UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 6, 2017

 

 

YRC Worldwide Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware		0-12255		48-0948788
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

10990 Roe Avenue

Overland Park, Kansas 66211

(Address of principal executive office)(Zip Code)

(913) 696-6100

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02

Results of Operations and Financial Condition

On February 6, 2017, YRC Worldwide Inc. announced its results of operations and financial condition for the three months and full year ended December 31, 2016. A copy of the press release announcing the results of operations and financial condition is attached hereto as Exhibit 99.1 and incorporated herein by reference.

 

Item 7.01

Regulation FD Disclosure

Presentation slides to be referenced during the February 6, 2017 earnings call are attached hereto as Exhibit 99.2.

 

Item 9.01

Financial Statements and Exhibits

 

(d)

Exhibits

 

Exhibit
Number		Description
99.1		Press Release dated February 6, 2017
99.2		Presentation Slides for the February 6, 2017 Earnings Call

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Date: February 6, 2017

EXHIBIT 99.1

 

10990 Roe Avenue Overland Park, KS 66211 Phone 913 696 6100 Fax 913 696 6116   News Release

 

 

YRC Worldwide Reports Fourth Quarter and Full-Year Results for 2016

Fourth quarter results include Operating Income of $14.9 million and Adjusted EBITDA of $57.7 million

Year-end debt balance is the lowest in eleven years

OVERLAND PARK, Kan., February 6, 2017 — YRC Worldwide Inc. (NASDAQ: YRCW) reported consolidated operating revenue for fourth quarter 2016 of $1.148 billion and consolidated operating income of $14.9 million, which included a $3.4 million gain on property disposals. As a comparison, for the fourth quarter 2015, the Company reported consolidated operating revenue of $1.143 billion and a consolidated operating loss of $15.3 million, which included a non-union pension settlement charge of $28.7 million and a $0.4 million loss on property disposals.

Consolidated operating revenue for the year ended December 31, 2016 was $4.698 billion with consolidated operating income of $124.3 million, which included a $14.6 million gain on property disposals. This compares to full-year 2015 consolidated operating revenue of $4.832 billion with consolidated operating income of $93.0 million, which included the settlement charge referenced above and a $1.9 million loss on property disposals.

In January 2017 the Company completed an amendment to its Term Loan Credit Agreement to adjust the leverage ratio covenant from the first quarter of 2017 through the fourth quarter of 2018, to reduce uncertainty regarding its ongoing compliance with that covenant.

Financial Highlights

 

•

Fourth quarter 2016 operating income was $14.9 million compared to a loss of $15.3 million in 2015. The fourth quarter 2015 results included the $28.7 million non-union pension settlement charge. The full-year 2016 operating income increased to $124.3 million, an improvement of $31.3 million compared to 2015.

 

•

On a non-GAAP basis, the Company generated Adjusted EBITDA of $57.7 million in fourth quarter 2016 for an Adjusted EBITDA margin of 5.0% compared to $66.0 million and 5.8% in the prior year comparable quarter (as detailed in the reconciliation below). Consolidated Adjusted EBITDA for full-year 2016 was $297.5 million with an adjusted EBITDA margin of 6.3% compared to $333.3 million and 6.9% in 2015.

 

•

The total debt-to-Adjusted EBITDA ratio for fourth quarter 2016 was 3.40 times compared to 3.25 times for fourth quarter 2015. This complied with the 3.50 maximum total leverage ratio covenant as of December 31, 2016 under the Term Loan Credit Agreement.

 

•

Reinvestment in the business continued in 2016 with $100.6 million in capital expenditures and new operating leases for revenue equipment with a capital value equivalent of $152.5 million, for a total of $253.1 million. This is equal to 5.4% of operating revenue for 2016 and represents a $13.4 million increase over the $239.7 million invested in 2015. Tractors, trailers and technology were the primary investments during the quarter.

 

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Operational Highlights

 

•

The consolidated operating ratio for fourth quarter 2016 was 98.7 compared to 101.3 for the same period in 2015. YRC Freight’s operating ratio was 100.0 compared to 102.9 in fourth quarter 2015 and the Regional segment improved its operating ratio by 160 basis points to 96.1.

 

•

For full-year 2016, improved yield from continued pricing discipline contributed to a consolidated operating ratio of 97.4 compared to 98.1 in 2015. YRC Freight improved its operating ratio by 120 basis points to 98.2 while the Regional segment reported a 95.3 operating ratio compared to 95.2 in 2015.

 

•

Fourth quarter 2016 tonnage per day increased 1.9% at YRC Freight with no change at the Regional segment compared to fourth quarter 2015.

 

•

At YRC Freight, excluding fuel surcharge, fourth quarter 2016 revenue per shipment increased 0.5% and revenue per hundredweight decreased by 1.5% when compared to the same period in 2015. Including fuel surcharge, revenue per shipment increased 0.2% and revenue per hundredweight decreased by 1.8%.

 

•

At the Regional segment, excluding fuel surcharge, fourth quarter 2016 revenue per shipment increased 0.9% and revenue per hundredweight increased 0.3% when compared to the fourth quarter 2015. Including fuel surcharge, revenue per shipment increased 1.0% and revenue per hundredweight increased 0.4%.

 

•

With a continued focus on safety, fourth quarter 2016 liability claims expense decreased by $13.8 million and workers’ compensation expense decreased by $3.1 million compared to fourth quarter 2015.

Liquidity Update

 

•

At December 31, 2016, the company had cash and cash equivalents and Managed Accessibility (as defined in the company’s most recently filed periodic reports on Forms 10-K and 10-Q) under its ABL facility totaling $181.1 million compared to $209.3 million as of December 31, 2015.

 

•

For the full-year 2016, cash provided by operating activities was $103.1 million compared to $140.8 million in 2015.

“In the fourth quarter 2016, year-over-year tonnage per day was up at YRC Freight and flat at the Regional segment,” said James Welch, chief executive officer at YRC Worldwide. “However, YRC Freight’s year-over-year revenue per hundredweight declined which impacted its ability to offset cost increases during the quarter. Our pricing strategy remains focused on profitability while delivering award-winning customer service. Overall, we believe pricing discipline in the LTL space remains stable,” stated Welch.

“During the quarter we used our liquidity position to pay down a portion of the term loan, further derisking the balance sheet and reducing long-term debt to the lowest level since 2005. The term loan amendment allows us to maintain our focus on running the business and positioning the Company for long-term success.

“Despite the soft industrial conditions and lower fuel surcharge revenue during the year, we reported the highest full-year operating income since 2006. We also increased our capital value equivalent investments, including technology and new tractors and trailers for the fifth consecutive year. Until we see a stronger freight environment it is critical that our investments and self-help actions drive improvements,” concluded Welch.

 

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Key Segment Information – fourth quarter 2016 compared to fourth quarter 2015

 

YRC Freight		2016				2015				Percent Change(b)
Workdays			61.0				61.5
Operating revenue (in millions)		$	730.3			$	733.7				(0.5	)%
Operating loss (in millions)		$	(0.1	)		$	(21.4	)			NM	(a)
Operating ratio			100.0				102.9				2.9pp
Total tonnage per day (in thousands)			24.92				24.46				1.9	%
Total shipments per day (in thousands)			40.86				40.92				(0.1	)%
Total picked up revenue per hundredweight incl FSC		$	23.48			$	23.91				(1.8	)%
Total picked up revenue per hundredweight excl FSC		$	21.16			$	21.48				(1.5	)%
Total picked up revenue per shipment incl FSC		$	286			$	286				0.2	%
Total picked up revenue per shipment excl FSC		$	258			$	257				0.5	%
Total weight/shipment (in pounds)			1,220				1,196				2.0	%

 

Regional Transportation		2016				2015				Percent Change(b)
Workdays			60.5				59.5
Operating revenue (in millions)		$	418.0			$	409.2				2.2	%
Operating income (in millions)		$	16.4			$	9.5				72.2	%
Operating ratio			96.1				97.7				1.6pp
Total tonnage per day (in thousands)			29.60				29.59				0.0	%
Total shipments per day (in thousands)			39.92				40.13				(0.5	)%
Total picked up revenue per hundredweight incl FSC		$	11.64			$	11.59				0.4	%
Total picked up revenue per hundredweight excl FSC		$	10.49			$	10.46				0.3	%
Total picked up revenue per shipment incl FSC		$	173			$	171				1.0	%
Total picked up revenue per shipment excl FSC		$	156			$	154				0.9	%
Total weight/shipment (in pounds)			1,483				1,475				0.6	%

Key Segment Information – full-year 2016 compared to full-year 2015

 

YRC Freight		2016				2015				Percent Change(b)
Workdays			252.5				251.5
Operating revenue (in millions)		$	2,958.9			$	3,055.7				(3.2	)%
Operating income (in millions)		$	53.2			$	18.0				NM	(a)
Operating ratio			98.2				99.4				1.2pp
Total tonnage per day (in thousands)			24.64				25.43				(3.1	)%
Total shipments per day (in thousands)			41.06				42.35				(3.0	)%
Total picked up revenue per hundredweight incl FSC		$	23.49			$	23.71				(0.9	)%
Total picked up revenue per hundredweight excl FSC		$	21.30			$	21.01				1.3	%
Total picked up revenue per shipment incl FSC		$	282			$	285				(1.0	)%
Total picked up revenue per shipment excl FSC		$	256			$	252				1.3	%
Total weight/shipment (in pounds)			1,200				1,201				(0.1	)%

 

Regional Transportation		2016				2015				Percent Change(b)
Workdays			252.0				251.5
Operating revenue (in millions)		$	1,739.3			$	1,776.9				(2.1	)%
Operating income (in millions)		$	81.3			$	85.4				(4.8	)%
Operating ratio			95.3				95.2				(0.1	)pp
Total tonnage per day (in thousands)			30.10				30.71				(2.0	)%
Total shipments per day (in thousands)			40.84				41.33				(1.2	)%
Total picked up revenue per hundredweight incl FSC		$	11.47			$	11.52				(0.4	)%
Total picked up revenue per hundredweight excl FSC		$	10.42			$	10.26				1.6	%
Total picked up revenue per shipment incl FSC		$	169			$	171				(1.2	)%
Total picked up revenue per shipment excl FSC		$	154			$	152				0.8	%
Total weight/shipment (in pounds)			1,474				1,486				(0.8	)%

 

(a)	Not Meaningful

(b)	Percent change based on unrounded figures and not the rounded figures presented

 

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Review of Financial Results

YRC Worldwide Inc. will host a conference call with the investment community today, Monday, February 6, 2017, beginning

at 4:30 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 (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 union employees and gains or losses from 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 and to pay certain executive bonus compensation. 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 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 Memorandum of Understanding;

 

•

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, EBITDA 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.

 

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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): our level of indebtedness; 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 indebtedness, cash interest and lease and pension funding requirements; the impact of restrictive covenants in the documents governing of existing and future indebtedness; our failure to comply with the covenants in the documents governing our existing and future indebtedness; our holding company structure that makes us dependent on the ability of our subsidiaries to distribute funds to us; the uncertainty in the overall economy; business risks, including expense volatility, including (without limitation) volatility due to changes in purchased transportation service or pricing for purchased transportation; competition and competitive pressure on pricing; labor relations; our obligations to multi-employer health, welfare and pension plans; our exposure to self-insurance claims expense and higher insurance costs; 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 federal, state, local and foreign laws and regulations, including (without limitation) laws and regulations for the protection of employee safety and health, as well as state and federal labor laws; the costs of complying with environmental regulations and our exposure to liabilities for violations of such laws; terrorist attack; the impact of claims and litigation to which we are or may become exposed; the success of our management team in continuing with its strategic plan and operational and productivity initiatives; our ability to attract and retain qualified drivers; our dependence on our information technology systems in our network operations and the production of accurate information, as well as the risk of system failure, inadequacy or security breach; risks associated with doing business in foreign countries; our dependence on the services of key employees; inclement weather and seasonality; fuel shortages, 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; volatility in the price of our common stock; the dilutive effects of future issuances of our common stock; our intention not to pay dividends; our ability to issue preferred 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 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 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:		Tony Carreño
		913-696-6108 investor@yrcw.com

 

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Media Contact:		Mike Kelley
		916-696-6121 mike.kelley@yrcw.com
SOURCE:		YRC Worldwide

 

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CONSOLIDATED BALANCE SHEETS

YRC Worldwide Inc. and Subsidiaries

(Amounts in millions except share and per share data)

 

		December 31,				December 31,
		2016				2015
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	136.7			$	173.8
Restricted amounts held in escrow			126.7				58.8
Accounts receivable, net			448.7				427.4
Prepaid expenses and other			68.7				74.4
Total current assets			780.8				734.4
PROPERTY AND EQUIPMENT:
Cost			2,787.0				2,822.8
Less - accumulated depreciation			(1,916.4	)			(1,885.5	)
Net property and equipment			870.6				937.3
Intangibles, net			27.2				40.4
Restricted amounts held in escrow			12.3				63.4
Deferred income taxes, net			24.9				23.0
Other assets			54.2				80.9
Total assets		$	1,770.0			$	1,879.4
LIABILITIES AND SHAREHOLDERS’ DEFICIT
CURRENT LIABILITIES:
Accounts payable		$	160.6			$	161.1
Wages, vacations, and employee benefits			191.0				195.1
Deferred income taxes, net			24.9				23.0
Other current and accrued liabilities			168.6				178.4
Current maturities of long-term debt			16.8				15.9
Total current liabilities			561.9				573.5
OTHER LIABILITIES:
Long-term debt, less current portion			980.3				1,046.5
Deferred income taxes, net			3.6				3.7
Pension and postretirement			358.2				339.9
Claims and other liabilities			282.2				295.2
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			2,319.2				2,312.6
Accumulated deficit			(2,217.8	)			(2,239.3	)
Accumulated other comprehensive loss			(425.2	)			(360.3	)
Treasury stock, at cost (410 shares)			(92.7	)			(92.7	)
Total shareholders’ deficit			(416.2	)			(379.4	)
Total liabilities and shareholders’ deficit		$	1,770.0			$	1,879.4

 

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STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS)

YRC Worldwide Inc. and Subsidiaries

For the Three and Twelve Months Ended December 31

(Amounts in millions except per share data, shares in thousands)

(Unaudited)

 

		Three Months								Twelve Months
		2016				2015				2016				2015
OPERATING REVENUE		$	1,148.3			$	1,142.7			$	4,697.5			$	4,832.4
OPERATING EXPENSES:
Salaries, wages and employee benefits			690.5				719.6				2,823.1				2,868.2
Operating expenses and supplies			203.4				200.3				799.1				878.4
Purchased transportation			144.6				130.1				553.6				561.1
Depreciation and amortization			40.3				40.1				159.8				163.7
Other operating expenses			58.0				67.5				252.2				266.1
(Gains) losses on property disposals, net			(3.4	)			0.4				(14.6	)			1.9
Total operating expenses			1,133.4				1,158.0				4,573.2				4,739.4
OPERATING INCOME (LOSS)			14.9				(15.3	)			124.3				93.0
NONOPERATING EXPENSES:
Interest expense			25.5				26.4				103.4				107.6
Other, net			(2.8	)			(2.7	)			(3.7	)			(10.2	)
Nonoperating expenses, net			22.7				23.7				99.7				97.4
INCOME (LOSS) BEFORE INCOME TAXES			(7.8	)			(39.0	)			24.6				(4.4	)
INCOME TAX EXPENSE (BENEFIT)			(0.3	)			(15.5	)			3.1				(5.1	)
NET INCOME (LOSS)			(7.5	)			(23.5	)			21.5				0.7
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX			(67.8	)			69.6				(64.9	)			72.5
COMPREHENSIVE INCOME (LOSS)		$	(75.3	)		$	46.1			$	(43.4	)		$	73.2
AVERAGE COMMON SHARES OUTSTANDING - BASIC			32,472				32,134				32,416				31,736
AVERAGE COMMON SHARES OUTSTANDING - DILUTED			32,472				32,134				33,040				32,592
EARNINGS (LOSS) PER SHARE - BASIC		$	(0.23	)		$	(0.73	)		$	0.66			$	0.02
EARNINGS (LOSS) PER SHARE - DILUTED		$	(0.23	)		$	(0.73	)		$	0.65			$	0.02

 

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STATEMENTS OF CONSOLIDATED CASH FLOWS

YRC Worldwide Inc. and Subsidiaries

For the Twelve Months Ended December 31

(Amounts in millions)

(Unaudited)

 

		2016				2015
OPERATING ACTIVITIES:
Net income		$	21.5			$	0.7
Noncash items included in net income:
Depreciation and amortization			159.8				163.7
Equity-based compensation and employee benefits expense			21.0				24.4
Non-union pension settlement charge			—				28.7
Deferred income tax benefit, net			(0.4	)			(9.8	)
(Gains) losses on property disposals, net			(14.6	)			1.9
Other noncash items, net			6.1				0.4
Changes in assets and liabilities, net:
Accounts receivable			(21.0	)			40.7
Accounts payable			(1.1	)			(11.1	)
Other operating assets			10.5				(6.1	)
Other operating liabilities			(78.7	)			(92.7	)
Net cash provided by operating activities			103.1				140.8
INVESTING ACTIVITIES:
Acquisition of property and equipment			(100.6	)			(108.0	)
Proceeds from disposal of property and equipment			35.1				17.5
Restricted escrow receipts			112.1				41.9
Restricted escrow deposits			(128.9	)			(75.0	)
Proceeds from disposal of equity method investment, net			14.6				—
Other, net			—				2.2
Net cash used in investing activities			(67.7	)			(121.4	)
FINANCING ACTIVITIES:
Repayment of long-term debt			(70.7	)			(16.7	)
Debt issuance costs			(1.8	)			—
Net cash used in financing activities			(72.5	)			(16.7	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(37.1	)			2.7
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			173.8				171.1
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	136.7			$	173.8
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid		$	(90.2	)		$	(104.5	)
Letter of credit fees paid			(8.5	)			(8.8	)
Income tax payments, net			(6.8	)			(6.2	)
Debt redeemed for equity consideration			—				17.9

 

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SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Twelve Months Ended December 31

(Amounts in millions)

(Unaudited)

SEGMENT INFORMATION

 

		Three Months												Twelve Months
		2016				2015				%				2016				2015				%
Operating revenue:
YRC Freight		$	730.3			$	733.7				(0.5	)		$	2,958.9			$	3,055.7				(3.2	)
Regional Transportation			418.0				409.2				2.2				1,739.3				1,776.9				(2.1	)
Other, net of eliminations			—				(0.2	)							(0.7	)			(0.2	)
Consolidated			1,148.3				1,142.7				0.5				4,697.5				4,832.4				(2.8	)
Operating income (loss):
YRC Freight			(0.1	)			(21.4	)							53.2				18.0
Regional Transportation			16.4				9.5								81.3				85.4
Corporate and other			(1.4	)			(3.4	)							(10.2	)			(10.4	)
Consolidated		$	14.9			$	(15.3	)						$	124.3			$	93.0
Operating ratio:
YRC Freight			100.0	%			102.9	%							98.2	%			99.4	%
Regional Transportation			96.1	%			97.7	%							95.3	%			95.2	%
Consolidated			98.7	%			101.3	%							97.4	%			98.1	%

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										Debt Issue
As of December 31, 2016		Par Value				Discount				Costs				Book Value
Term Loan		$	638.5			$	(2.7	)		$	(8.6	)		$	627.2
ABL Facility (a)			—				—				—				—
Secured Second A&R CDA			28.7				—				(0.2	)			28.5
Unsecured Second A&R CDA			73.2				—				(0.4	)			72.8
Lease financing obligations			269.9				—				(1.3	)			268.6
Total debt		$	1,010.3			$	(2.7	)		$	(10.5	)		$	997.1
										Debt Issue
As of December 31, 2015		Par Value				Discount				Costs				Book Value
Term Loan		$	686.0			$	(4.3	)		$	(12.7	)		$	669.0
ABL Facility (b)			—				—				—				—
Secured Second A&R CDA			44.7				—				(0.3	)			44.4
Unsecured Second A&R CDA			73.2				—				(0.5	)			72.7
Lease financing obligations			278.0				—				(1.7	)			276.3
Total debt		$	1,081.9			$	(4.3	)		$	(15.2	)		$	1,062.4

Our total leverage ratio for the four consecutive fiscal quarters ended December 31, 2016 was 3.40 to 1.00.

 

(a)	Managed Accessibility was $44.4M.

(b)	Managed Accessibility was $35.5M.

 

10

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SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Twelve Months Ended December 31

(Amounts in millions)

(Unaudited)

 

		Three Months								Twelve Months
		2016				2015				2016				2015
Reconciliation of net income to Adjusted EBITDA:
Net income (loss)		$	(7.5	)		$	(23.5	)		$	21.5			$	0.7
Interest expense, net			25.4				26.2				103.0				107.1
Income tax expense (benefit)			(0.3	)			(15.5	)			3.1				(5.1	)
Depreciation and amortization			40.3				40.1				159.8				163.7
EBITDA			57.9				27.3				287.4				266.4
Adjustments for Term Loan Agreement:
(Gains) losses on property disposals, net			(3.4	)			0.4				(14.6	)			1.9
Letter of credit expense			1.7				2.2				7.7				8.8
Restructuring professional fees			—				—				—				0.2
Nonrecurring consulting fees			—				—				—				5.1
Permitted dispositions and other			1.2				0.1				3.0				0.4
Equity-based compensation expense			1.3				2.0				7.3				8.5
Amortization of ratification bonus			—				4.5				4.6				18.9
Loss on extinguishment of debt			—				—				—				0.6
Non-union pension settlement charge			—				28.7				—				28.7
Other, net (a)			(1.0	)			0.8				2.1				(6.2	)
Adjusted EBITDA		$	57.7			$	66.0			$	297.5			$	333.3
Operating revenue		$	1,148.3			$	1,142.7			$	4,697.5			$	4,832.4
Adjusted EBITDA margin			5.0%				5.8%				6.3%				6.9%

 

(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.

 

		Three Months								Twelve Months
Adjusted EBITDA by segment:		2016				2015				2016				2015
YRC Freight		$	20.8			$	36.8			$	140.1			$	167.2
Regional Transportation			35.2				30.2				156.5				165.9
Corporate and other			1.7				(1.0	)			0.9				0.2
Adjusted EBITDA		$	57.7			$	66.0			$	297.5			$	333.3

 

11

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SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Twelve Months Ended December 31

(Amounts in millions)

(Unaudited)

 

		Three Months								Twelve Months
YRC Freight segment		2016				2015				2016				2015
Reconciliation of operating income to Adjusted EBITDA:
Operating income (loss)		$	(0.1	)		$	(21.4	)		$	53.2			$	18.0
Depreciation and amortization			22.4				22.6				90.3				93.1
(Gains) losses on property disposals, net			(3.7	)			0.2				(15.7	)			1.9
Letter of credit expense			1.1				1.5				5.0				6.1
Nonrecurring consulting fees			—				—				—				5.1
Amortization of ratification bonus			—				2.9				3.0				12.2
Non-union pension settlement charge			—				28.7				—				28.7
Other, net (a)			1.1				2.3				4.3				2.1
Adjusted EBITDA		$	20.8			$	36.8			$	140.1			$	167.2

 

(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.

 

		Three Months								Twelve Months
Regional Transportation segment		2016				2015				2016				2015
Reconciliation of operating income to Adjusted EBITDA:
Operating income		$	16.4			$	9.5			$	81.3			$	85.4
Depreciation and amortization			17.9				17.5				69.5				70.7
Losses on property disposals, net			0.2				0.2				1.1				0.2
Letter of credit expense			0.5				0.6				2.5				2.1
Amortization of ratification bonus			—				1.6				1.6				6.7
Other, net (a)			0.2				0.8				0.5				0.8
Adjusted EBITDA		$	35.2			$	30.2			$	156.5			$	165.9

 

(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.

 

		Three Months								Twelve Months
Corporate and other		2016				2015				2016				2015
Reconciliation of operating loss to Adjusted EBITDA:
Operating loss		$	(1.4	)		$	(3.4	)		$	(10.2	)		$	(10.4	)
Depreciation and amortization			—				—				—				(0.1	)
(Gains) losses on property disposals, net			0.1				—				—				(0.2	)
Letter of credit expense			0.1				0.1				0.2				0.6
Restructuring professional fees			—				—				—				0.2
Permitted dispositions and other			1.2				0.1				3.0				0.4
Equity-based compensation expense			1.3				2.0				7.3				8.5
Other, net (a)			0.4				0.2				0.6				1.2
Adjusted EBITDA		$	1.7			$	(1.0	)		$	0.9			$	0.2

 

(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.

 

12

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YRC Worldwide Inc.

Segment Statistics

Quarterly Comparison

 

		YRC Freight
														Y/Y				Sequential
		4Q16				4Q15				3Q16				% (b)				% (b)
Workdays			61.0				61.5				64.0
Total picked up revenue (in millions) (a)		$	713.8			$	719.5			$	763.6				(0.8	)			(6.5	)
Total tonnage (in thousands)			1,520				1,504				1,620				1.0				(6.2	)
Total tonnage per day (in thousands)			24.92				24.46				25.31				1.9				(1.5	)
Total shipments (in thousands)			2,493				2,517				2,678				(1.0	)			(6.9	)
Total shipments per day (in thousands)			40.86				40.92				41.84				(0.1	)			(2.3	)
Total picked up revenue/cwt.		$	23.48			$	23.91			$	23.57				(1.8	)			(0.4	)
Total picked up revenue/cwt. (excl. FSC)		$	21.16			$	21.48			$	21.31				(1.5	)			(0.7	)
Total picked up revenue/shipment		$	286			$	286			$	285				0.2				0.4
Total picked up revenue/shipment (excl. FSC)		$	258			$	257			$	258				0.5				0.1
Total weight/shipment (in pounds)			1,220				1,196				1,210				2.0				0.8

(a)       Reconciliation of operating revenue to total picked up revenue (in millions):

Operating revenue		$	730.3			$	733.7			$	777.9
Change in revenue deferral and other			(16.5	)			(14.2	)			(14.3	)
Total picked up revenue		$	713.8			$	719.5			$	763.6

 

		Regional Transportation
														Y/Y				Sequential
		4Q16				4Q15				3Q16				% (b)				% (b)
Workdays			60.5				59.5				63.0
Total picked up revenue (in millions) (a)		$	417.1			$	408.2			$	443.6				2.2				(6.0	)
Total tonnage (in thousands)			1,791				1,761				1,914				1.7				(6.4	)
Total tonnage per day (in thousands)			29.60				29.59				30.38				0.0				(2.5	)
Total shipments (in thousands)			2,415				2,388				2,622				1.2				(7.9	)
Total shipments per day (in thousands)			39.92				40.13				41.62				(0.5	)			(4.1	)
Total picked up revenue/cwt.		$	11.64			$	11.59			$	11.59				0.4				0.5
Total picked up revenue/cwt. (excl. FSC)		$	10.49			$	10.46			$	10.49				0.3				0.1
Total picked up revenue/shipment		$	173			$	171			$	169				1.0				2.1
Total picked up revenue/shipment (excl. FSC)		$	156			$	154			$	153				0.9				1.7
Total weight/shipment (in pounds)			1,483				1,475				1,460				0.6				1.6

(a)       Reconciliation of operating revenue to total picked up revenue (in millions):

Operating revenue		$	418.0			$	409.2			$	443.7
Change in revenue deferral and other			(0.9	)			(1.0	)			(0.1	)
Total picked up revenue		$	417.1			$	408.2			$	443.6

 

(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.

 

13

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YRC Worldwide Inc.

Segment Statistics

YTD Comparison

 

		YRC Freight
										Y/Y
		2016				2015				% (b)
Workdays			252.5				251.5
Total picked up revenue (in millions) (a)		$	2,922.7			$	3,033.4				(3.7	)
Total tonnage (in thousands)			6,221				6,396				(2.7	)
Total tonnage per day (in thousands)			24.64				25.43				(3.1	)
Total shipments (in thousands)			10,368				10,651				(2.7	)
Total shipments per day (in thousands)			41.06				42.35				(3.0	)
Total picked up revenue/cwt.		$	23.49			$	23.71				(0.9	)
Total picked up revenue/cwt. (excl. FSC)		$	21.30			$	21.01				1.3
Total picked up revenue/shipment		$	282			$	285				(1.0	)
Total picked up revenue/shipment (excl. FSC)		$	256			$	252				1.3
Total weight/shipment (in pounds)			1,200				1,201				(0.1	)

 

(a)	Reconciliation of operating revenue to total picked up revenue (in millions):

 

Operating revenue		$	2,958.9			$	3,055.7
Change in revenue deferral and other			(36.2	)			(22.3	)
Total picked up revenue		$	2,922.7			$	3,033.4

 

		Regional Transportation
										Y/Y
		2016				2015				% (b)
Workdays			252.0				251.0
Total picked up revenue (in millions) (a)		$	1,740.7			$	1,776.5				(2.0	)
Total tonnage (in thousands)			7,585				7,708				(1.6	)
Total tonnage per day (in thousands)			30.10				30.71				(2.0	)
Total shipments (in thousands)			10,291				10,375				(0.8	)
Total shipments per day (in thousands)			40.84				41.33				(1.2	)
Total picked up revenue/cwt.		$	11.47			$	11.52				(0.4	)
Total picked up revenue/cwt. (excl. FSC)		$	10.42			$	10.26				1.6
Total picked up revenue/shipment		$	169			$	171				(1.2	)
Total picked up revenue/shipment (excl. FSC)		$	154			$	152				0.8
Total weight/shipment (in pounds)			1,474				1,486				(0.8	)

 

(a)	Reconciliation of operating revenue to total picked up revenue (in millions):

 

Operating revenue		$	1,739.3			$	1,776.9
Change in revenue deferral and other			1.4				(0.4	)
Total picked up revenue		$	1,740.7			$	1,776.5

 

(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.

 

14

Fourth Quarter 2016 Earnings Conference Call Consolidated ($ in millions) Exhibit 99.2

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($ in millions) By Segment Fourth Quarter 2016 Earnings Conference Call

---

Funded Debt to Adjusted EBITDA ratio down 5.1 turns since 2011 Note: Funded debt balances based on par value Leverage Ratio Fourth Quarter 2016 Earnings Conference Call

---

Credit Facility Covenants (a) As amended in January 2017 3.40x LTM as of 4Q16 Fourth Quarter 2016 Earnings Conference Call

---

+0.5% Fourth Quarter 2016 Year-Over-Year Revenue Per Shipment and Revenue Per CWT Fourth Quarter 2016 Earnings Conference Call -1.5% +0.9% +0.3%

---

Fourth Quarter 2016 Year-Over-Year Volume Fourth Quarter 2016 Earnings Conference Call -0.1% +1.9% +0.0% -0.5%

---

Full-Year 2016 Year-Over-Year Revenue Per Shipment and Revenue Per CWT +1.3% +0.8% +1.6% Fourth Quarter 2016 Earnings Conference Call +1.3%

---

Full-Year 2016 Year-Over-Year Volume -3.0% -3.1% -1.2% -2.0% Fourth Quarter 2016 Earnings Conference Call

---

Consolidated Adjusted EBITDA ($ in millions) -8.3M -80bps -35.8M -60bps Fourth Quarter 2016 Earnings Conference Call ($ in millions)

---

Segment Adjusted EBITDA ($ in millions) -16.0M +5.0M -220bps +100bps Fourth Quarter 2016 Earnings Conference Call ($ in millions)

---

(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 Fourth Quarter 2016 Earnings Conference Call EBITDA Reconciliation - Consolidated ($ in millions) YRCW Inc. Reconciliation of Operating Income / Loss to EBITDA YRCW Consolidated 40602 40633 40663 40694 40724 40755 40786 40816 40847 40877 40908 40939 40968 40999 41029 41060 41090 41121 41152 41182 41213 41243 41274 41305 41333 41364 41394 41425 41455 41486 41517 41547 41578 41608 41639 41670 41698 41729 41759 41790 41820 41851 41882 41912 41943 41973 42004 42035 42063 42094 42124 42155 42185 42216 42247 42277 42308 42338 42369 42400 42429 42460 42490 42521 42551 42582 42613 42643 42674 42704 42735 42766 42794 42825 42855 42886 42916 42947 42978 43008 43039 43069 43100 43131 43159 43190 43220 43251 43281 43312 43343 43373 43404 43434 43465 43496 43524 43555 43585 43616 43646 43677 43708 43738 43769 43799 43830 43861 43890 43921 43951 43982 44012 44043 44074 44104 44135 44165 44196 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 LTM 3Q 2016 4Q 2015 4Q 2016 Reconciliation of Net (Loss) Income to Adjusted EBITDA Net (loss) income $,-33,652.127849640114 $,-32,187.325768550763 $,-22,111.369875875065 $,-11,768.214502606243 $-8,255.2299866962512 $,-42,307.83920245192 $-,820.9463640508136 $,-75,720.227195263564 $,-14,597.510753252969 $,-18,850.912037272101 $,-55,829.874061704795 $,-36,449.43417477471 $,-21,936.792217109345 $,-27,390.944528893757 $,-15,673.40045272787 $-5,989.8930621222262 $-,930.45375997948133 $,-14,835.601134407361 $-2,276.3532414046035 $20,132.55606639848 $-6,679.8457787150792 $-8,346.6698662784329 $,-20,206.42197774578 $,-32,056.59607441581 $,-12,174.37930048657 $19,685.284353610612 $-7,592.1908994249898 $,-19,358.75706169482 $11,863.796627305826 $,-15,006.215258536349 $-7,164.2573412661004 $,-22,261.135859566308 $-7,704.7169258559825 $,-15,151.528784923572 $23,319.379064305333 $,-55,021.641396347215 $-9,828.59853177892 $-5,319.3193577971815 $54.697960385325857 $-3,353.6898825248113 $-1,559.2372350131081 $-3,061.8954753968906 $-4,010.3464048516498 $8,209.3794850056147 $8,031.9994548807126 $-5,618.6629341540565 $3,832.1543069467393 $,-11,836.113610231339 $,-17,440.574979703266 $7,681.1005161797166 $5,085.83798110491 $1,858.3879185416527 $19,022.959210054069 $4,115.134803475321 $8,808.2552128705811 $6,880.4950813623309 $6,546.8736535686903 $-3,328.2363901122944 $,-30,922.1161570615 $,-15,113.201872679656 $-2,589.9981495442171 $6,787.929988808939 $5,563.5465003782228 $10,590.66825681435 $11,302.766963581227 $1,461.6850174429567 $14,780.199739594465 $13,081.881921050068 $11,540.406018252606 $6,639.777296470962 $5,937.2876432335061 $-8,078.8863914906387 $-1,341.538141080469 $18,176.162311865319 $8,585.1516140391304 $20,324.679700020264 $31,395.218456660677 $9,342.7527780547643 $16,069.100609593283 $16,946.203523238903 $18,986.692239492917 $8,279.6059402841311 $10,045.434225467216 $-1,545.9432232393967 $-1,444.1844504544922 $15,669.265810827566 $17,412.426277862523 $20,081.998692656682 $22,403.910150046686 $12,109.946911255272 $20,159.454532444885 $16,435.54187802563 $23,359.151497984451 $9,764.9902166404554 $8,797.1347655839891 $-7,679.8426902497504 $165.67590286877584 $15,939.83933727676 $18,881.479370405643 $20,641.466295538321 $26,965.296607430279 $11,720.495832061957 $19,192.895172496948 $26,358.353591746247 $20,879.116051822661 $12,860.921258869488 $8,738.4706414184966 $-2,141.5870629236656 $-,424.7989158708153 $17,431.193159028553 $21,119.55410800768 $14,540.725699359962 $29,925.385218640015 $18,655.36043164273 $16,613.46562634685 $28,892.565908951921 $21,655.146305239719 $10,055.62652822771 $11,132.152109252651 $19,803.763774580446 $,-27,703.478893605105 $,-10,915.270033414932 $27,456.380289640885 $29,323.76667808749 $24,117.470957957074 $-,354.4 $-,136.5 $-83.614999999999995 $-67.7 $0.65100000000000002 $21.500000000000178 $5.5 $-23.500000000000171 $-7.49999999999946 Interest expense, net $12,262.60876099529 $13,764.427676363357 $13,038.397882492789 $12,421.240928078394 $14,408.89769917776 $12,649.43375051652 $11,642.470425964233 $12,887.627285681781 $15,566.326103275715 $11,333.604253253176 $16,212.142274523096 $12,178.543204405207 $12,139.585593965156 $11,681.144665541011 $12,041.844205860281 $12,083.726971637156 $17,125.923042546914 $11,701.818999143659 $12,286.479268110854 $9,680.2011339337314 $12,228.9485762507 $12,050.149895437244 $14,685.524417222212 $15,553.402502515151 $11,813.37194011358 $11,825.46454257375 $12,226.127214140528 $15,806.778490225712 $13,861.551679620659 $18,268.213152776425 $12,397.844713138591 $12,438.427435852516 $12,398.150725727966 $13,995.371132080374 $13,218.704503264747 $32,434.832665500569 $10,198.636763550689 $15,471.980373079954 $10,424.693073156981 $10,558.544735459089 $10,611.900554633899 $10,572.144695317918 $14,765.117134571337 $7,194.3999149066012 $9,518.2164627843777 $9,203.69240693545 $8,486.2355763697597 $9,614.8545503552068 $8,978.7259036461674 $8,832.4092526505701 $8,945.9611027699884 $9,070.1247415232338 $9,814.3773707912333 $9,080.1527319126108 $8,935.2890880508712 $7,605.9428046790017 $8,482.7299887274821 $8,626.4447251244437 $8,784.740623203159 $8,785.6422757643795 $8,328.3616830003739 $8,662.6079460818328 $8,487.6790919806081 $8,647.872894959135 $8,451.8850208131771 $8,628.4512668999214 $8,611.368644077334 $8,416.1156368473603 $8,591.9466812191331 $8,398.7040915887683 $8,553.3386595795509 $8,562.1859977147633 $8,027.8965845857992 $8,541.3975056399231 $8,379.5783789471425 $8,545.8009720688769 $8,359.1486385685075 $8,620.4226697556678 $8,611.2641068239209 $8,421.8559302167851 $8,669.7256723225037 $8,490.701026702518 $8,573.5509283962219 $8,639.4005793453343 $8,105.5672508217349 $8,626.8035976388619 $8,505.7272046064118 $8,685.2944738860897 $8,493.3760547947277 $8,731.8130657474176 $8,731.6411396782332 $8,538.4123104301834 $8,780.8996968386782 $8,598.2413113245639 $8,767.5923785647028 $8,833.7713269078031 $7,908.524867911824 $8,447.9429299528492 $8,263.9900324577666 $8,447.8654484749513 $8,251.60819952274 $8,436.1600684216082 $8,435.9733515374428 $8,239.809951313804 $8,601.511109852669 $8,412.1239111970099 $8,587.634923997586 $8,588.690929813045 $8,023.368813478344 $8,761.9473107198319 $8,386.814782076613 $8,573.884938159561 $8,372.5523073688328 $8,559.8208886617722 $8,559.6341717776104 $8,358.8865845636992 $8,701.1814458087665 $8,509.242527802384 $8,686.7768556954816 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 155.69999999999999 150.14400000000001 163.803 149.5 107.05200000000001 103 103.8 26.2 25.400000000000006 Income tax (benefit) expense $-30.410529500998202 $-4,550.5490064462438 $67.852361987768262 $50.950671100635233 $-2,695.1648282067113 $234.18564461170936 $45.473099463027154 $-8,938.713993725712 $52.268378809850361 $201.61790179915261 $8,079.4762113096895 $74.193763887441008 $53.4689546292594 $-3,284.460164052702 $361.67173641876525 $-,199.84928938918799 $-,912.66567709865001 $226.9282430896296 $107.19312394850699 $-9,568.5038334107085 $220.52665888620987 $36.403212078400003 $-2,126.616394054996 $7.2133929567418003 $15.090430163437 $-4,477.7773724782719 $77.108695086157198 $26.263172289118998 $,-10,135.28757314909 $55.463784381490008 $19.4088890127898 $7,253.2974787394305 $45.410167827689804 $15.4935677080499 $,-38,825.989729574139 $15.1759042389182 $-91.514455272939799 $-4,039.6833905799813 $9.2884578979007806 $167.070563605453 $-8,051.9652954738704 $11.080877695443951 $-1,960.7797309388059 $-2,459.59801676302 $10.71683702 $5.7495961883039604 $253.54171742973995 $20.039899999999996 $10.863106971503999 $1,413.1609998866238 $48.519092303549996 $15.725722261669999 $2,238.8129390908398 $19.741035283399999 $29.771941589397997 $6,609.8652650694003 $12.1078034459 $390.98263964044418 $390.98263964044418 $-3,265.8069430794521 $-,559.67186904549101 $1,466.8016131421484 $1,202.2249780124878 $2,288.4041421762386 $2,442.411286280781 $315.85504638760148 $3,193.8486189962009 $2,826.8596665503192 $2,493.762633350098 $1,434.7873453946954 $1,282.9865816444533 $-1,011.2467951552728 $-,167.86179504590064 $2,275.1385519489218 $1,074.6168017368693 $2,544.718204493319 $3,929.7884026365032 $1,169.4469196506029 $2,011.3943562313898 $2,121.1826943097308 $2,376.5938456579856 $1,036.3711737647088 $1,257.4026510815286 $-,183.89796541535344 $-,171.79323155643777 $1,863.9404467426077 $2,071.2984262992509 $2,388.857912462589 $2,665.61324379546 $1,440.5410009827556 $2,398.71686379034 $1,955.929597106606 $2,778.6922376793759 $1,161.5962385592272 $1,046.4648122624149 $-,830.50075926224201 $17.916247594324254 $1,723.6578720175519 $2,041.8494994727932 $2,232.1750746919356 $2,916.362014490847 $1,267.4583425797812 $2,075.52610855379 $2,850.4011805658497 $2,257.8745988870351 $1,390.7843299789868 $944.98114026510893 $-,222.36838885330022 $-44.03368131509059 $1,809.9410505740477 $2,192.916319678553 $1,509.8138210221823 $3,107.2562082994509 $1,937.168884264247 $1,724.990060891869 $3,000.15008607862 $2,248.5287092203048 $1,044.519186153153 $1,155.8898406983019 -7.4519609606818973 -15.015000000000001 -45.923999999999999 -16.130916934952857 -5.0999999999999996 3.1 -12.1 -15.5 -0.29999999999999982 Depreciation and amortization $15,237.334212487187 $18,696.322029551702 $15,956.997240084502 $15,042.60048871255 $16,558.357088901808 $15,284.428732915088 $15,372.795712276782 $15,545.19521859771 $15,230.574910012845 $14,558.760739823198 $21,279.732094075323 $15,931.33180448407 $16,127.50721066473 $16,969.474610124391 $15,391.990549579361 $14,929.307337871733 $14,653.434704660611 $14,338.882737442158 $15,131.776702950361 $15,117.534480419745 $15,335.844263122532 $14,403.465191965264 $14,665.668886177988 $14,527.260491016519 $13,964.730963793987 $15,078.724068459438 $14,362.455045300365 $14,363.955976215659 $14,862.447676923557 $14,331.555786457966 $14,305.334663576752 $14,577.204068647 $14,456.394084141197 $13,411.144531577085 $14,087.901685110131 $13,679.116023371878 $13,068.6531028446 $14,274.767926711193 $13,771.912656866927 $13,230.527466386358 $14,017.676014122611 $13,428.296220419077 $13,299.751705973842 $14,162.862329033676 $13,635.609494785162 $12,664.721159443056 $14,378.815017869105 $13,430.254372397851 $13,346.14553246036 $14,803.41299291297 $13,694.518184105196 $13,010.697812506594 $14,624.765597649135 $13,467.56206149125 $13,144.793862969624 $14,080.744204464971 $13,244.581236556058 $12,683.73466972258 $13,970.793190979004 $13,123.149712921186 $13,530.122981889952 $14,952.44327006381 $13,737.654637875041 $13,958.63075477021 $15,262.222472557274 $13,859.481343085978 $14,769.890399156602 $15,484.28683746508 $14,510.751109110603 $14,405.842191994967 $15,758.68105983106 $13,583.616367598459 $13,535.446802203331 $15,484.694461715557 $13,617.172948442896 $14,523.835394691758 $15,723.920664639498 $14,154.102988922701 $15,215.131272034494 $15,705.239702182831 $15,213.5455774632 $14,815.237319806849 $15,899.658424267102 $15,523.66761246707 $15,198.430160520689 $16,886.16224912948 $15,677.549867030582 $16,224.637795511953 $17,211.245343654969 $16,090.760461827451 $16,964.223269668488 $17,090.305395183783 $17,258.920139388363 $16,455.23639936906 $17,186.817357172655 $17,140.400936128193 $16,529.49555856702 $18,458.972841882289 $17,430.757375172212 $17,879.342237337329 $18,581.633266439738 $18,083.125078761313 $18,354.366643488691 $19,172.169528747942 $18,780.459397519448 $17,473.60509538067 $19,337.281300410494 $18,673.340012974328 $18,168.331115336252 $20,423.769067445748 $18,802.327173634181 $18,523.511287361183 $20,570.70134894191 $18,977.626159002662 $18,873.590398012708 $20,570.5190527952 $19,421.333555136818 $18,466.50662083042 $20,683.810271533912 195.666 183.761 172.32900000000001 163.61206254601134 163.72800000000001 159.80000000000001 159.6 40.099999999999994 40.300000000000011 EBITDA $-6,183.1432905543934 $-4,277.125069081947 $6,951.8776086899943 $15,746.37145444043 $20,016.859973176604 $,-14,139.791074408602 $26,239.792873653227 $,-56,225.651787094575 $16,251.658638845442 $7,243.708576034249 $,-10,258.523481796688 $-8,265.2732687364169 $6,383.3130525515426 $-2,024.3712696336261 $12,122.106039130536 $20,823.291957997473 $29,936.238310129393 $11,432.28845268085 $25,249.95853605118 $35,361.787847341249 $21,104.620000918731 $18,143.348433202475 $7,018.7096862489198 $-1,968.1832209531694 $13,619.155404022347 $42,111.277503849153 $19,073.50005510206 $10,838.921932561007 $30,452.767226535132 $17,649.17465079531 $19,558.330924462032 $12,007.591095712109 $19,195.238051840872 $12,270.480446441938 $11,799.995523106072 $-8,892.5168032358506 $13,346.530307527275 $20,387.745551413984 $24,260.592148307136 $20,602.452882926089 $15,018.374038269532 $20,949.626318035549 $22,093.742704754724 $27,107.43712182873 $31,196.542249470251 $16,254.877062170848 $26,950.746618615343 $11,229.35212521718 $4,895.285841604418 $32,729.712068008204 $27,774.6758989781 $23,954.93619483315 $45,700.915117585275 $26,682.469309034794 $30,918.110105480475 $35,177.47355575705 $28,286.292682298132 $18,372.925644375173 $-7,775.5997032388932 $3,529.7831729264581 $18,708.81464630062 $31,869.383875039301 $28,991.105208246358 $35,484.406938293832 $37,459.28574323246 $24,265.472673816457 $41,354.975622155005 $39,808.885908194257 $37,136.866441932441 $30,879.110925449393 $31,532.293944288569 $13,055.669178667311 $20,054.427777635181 $44,477.392831169724 $31,656.519743166034 $45,938.38788723023 $59,408.76162505189 $33,286.725356383737 $41,906.890344683088 $43,194.48184994825 $45,246.66315219723 $32,621.915460558208 $35,776.46229212065 $22,433.227003157655 $21,688.19729331492 $43,046.172104338519 $43,667.1775798766 $47,380.788874517311 $50,773.592872875932 $38,373.61439812896 $48,253.390628170644 $44,019.352543350251 $52,177.663571890866 $35,979.851406461152 $35,798.9313583767 $17,463.828813524004 $24,621.166574231625 $44,569.657577580365 $46,618.76277508415 $49,200.849056042542 $56,714.26895271367 $39,507.239321824658 $48,058.761276076868 $56,620.734252373848 $50,518.501159214415 $40,136.890009583556 $37,607.796574493856 $24,897.453654178666 $25,723.254423781913 $48,426.850587768182 $50,500.87907952808 $43,147.935745902883 $61,975.263869202492 $48,129.499979255132 $45,771.261193316866 $60,821.986554918687 $52,026.190015405606 $38,074.189486301366 $41,658.629077180347 $-10.485960960681894 $182.39 $206.59300000000002 $229.28114561105849 $266.39999999999998 $287.4000000000002 $256.8 $27.299999999999823 $57.90000000000056 Adjustments for debt covenants: (Gains) / loss on property disposals, net 102.20925585670025 1,218.2440881486 -3,799.2125006308597 -,937.74651382144987 -2,539.7955586324629 -,797.9215743279301 -8,355.7539221168408 -1,636.5893129642 218.60482397229899 -,140.10127408089849 12,859.982041240199 -,907 -,745 10,014 -4,145 -,987 -1,409 -12 -61 -2,268 212 -,507 -8,916 34 -4,826 321 -98 1,229 138 230 190 850 -,205 338 -,392 48 -,467 607 -4,259 -2,817 609 260 -98 -6.8916199999992003 -1,327.6902678099 -1,930.8871455292101 -2,475.4839327477998 -55.938586850528964 21.008317892994 1,324.1975344000002 -41.471978808968004 309.00265557780006 -,917.28990205279797 171.50874357615095 49.762224247229796 645.29321860100038 322.08225569414981 187 -1,023.3 0 0 0 0 7.9999999999997726 0 0 0 0 0 0 0 0 0 -3,200 0 0 -9,700 0 0 0 0 0 -7,700 -0.18600000000014916 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 866.56418642438109 -,514.21774430585015 0 7.9999999999997726 0 0 -8.2460000000000004 -9.7319999999999993 -2.1909999999999998 -11.858331725058001 1.9339999999999999 -14.6 -10.8 0.39999999999999991 -3.4000000000000004 Letter of credit expense 2,508.6331399999999 2,799.742 2,713.2262600000004 2,783.4268 2,686.1681200000003 2,963.2266100000015 3,241.6316200000001 3,138.147399999996 3,242.75510000001 3,137.51971 3,238.2580500000004 3,238 1,592 3,234 3,120 3,217 3,113 3,217 3,223 3,081 3,174 3,026 3,101 3,102 2,800 3,035 2,929 3,022 2,863 2,751 2,719 2,575 2,655 2,666 2,816 2,831 1,561 793 801 771 572 927 781 748.01559677083321 764.14997082986099 739.49997177083321 765.37705416319443 764.53650207986095 675.7713208749999 748.17539096874987 723.59538843749988 741.57163749652773 717.64997177083319 749.49689631944443 749.49689631944443 720.31957708333323 749.49689631944443 720.76749374999986 744.79307687499988 757.06391020833325 708.2210772916668 746.8382157638888 722.7466604166666 736.61252131944445 712.85082708333323 736.61252131944445 736.61252131944445 702.95499374999986 726.38682687499988 702.95499374999986 726.38682687499988 726.38682687499988 656.09132750000003 720.93448659722219 697.6785354166667 715.48214631944438 692.40207708333332 715.48214631944438 715.48214631944438 687.12561874999994 710.02980604166657 687.12561874999994 710.02980604166657 710.02980604166657 641.31724416666668 706.60419840277768 683.81051458333332 703.17859076388879 680.49541041666669 703.17859076388879 703.17859076388879 677.18030624999994 699.7529831249999 677.18030624999994 699.7529831249999 699.7529831249999 632.03495250000003 697.02681298611105 674.54207708333331 694.30064284722221 671.90384791666668 694.30064284722221 694.30064284722221 669.26561874999993 691.57447270833325 669.26561874999993 691.57447270833325 691.57447270833325 624.6479108333333 712.45832666666661 667.92968124999993 688.81353520833329 666.59374374999993 688.81353520833329 688.81353520833329 665.25780624999993 687.43306645833331 665.25780624999993 687.43306645833331 2,219.313369722222 2,215.574669444441 2,212.1232032638891 2,172.2100088194443 2,176.1800363888888 2,155.7286474999996 35.225999999999999 36.335000000000001 33.933 12.053042593534721 8.7880000000000003 7.7 8.1999999999999993 2.1999999999999993 1.7000000000000002 Restructuring professional fees #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! 118 -10 357 2,742 164 -,340 #REF! #REF! #REF! #REF! #REF! #REF! 500 820 443 372 665 1,455 944 827 759 3,206 2,027 1,918 -,558 -,206 -,263 13 45 #REF! #REF! #REF! #REF! #REF! #REF! 0 0 0 0 0 0 0 0 186.25 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 186.25 0 0 0 0 0 44 3.0310000000000001 12.016999999999999 4.1649852900000006 0.186 0 0 0 0 Nonrecurring consulting fees 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,002.7140000000001 937.21100000000001 956.47289999999998 968.39859999999999 978.32830000000001 1,018.8948 960.47820000000002 -1,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5.1020000000000003 0 0 0 0 Permitted dispositions and other 0 0 0 0 0 0 0 0 0 0 0 32.469000000000001 32.72 -1,973.9621399999999 31.5283300000001 31.433330000000101 -,276.79167000000001 45.558330000000304 45.5023300000001 -,951.97115000000008 47.680330000000104 39.358330000000102 -1,086.4696899999999 36.613330000000005 35.913330000000002 24.0427 30.209330000000001 10.12533 -,248.99967000000001 80.92841 80.133669999999995 1.3522500000000299 79.370070000000013 79.598199999999991 1,436.9757 81.752210000000005 1.3801099999999999 -13.85032 29.744700000000002 28.490599999999997 173.01335 29.728679999999898 28.303879999999999 1,363.7727399999999 28.473460000000198 27.834259999999798 -36.7833299999998 27.47634 31.110430000000001 79.524559999999994 55.605669999999996 27.287790000000001 88.581240000000008 26.987359999999999 27.10519 -34.218440000000001 27.128720000000001 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 19.874110000000002 27.128720000000001 0 0 0 0 6.2380000000000004 -3.9830000000000001 1.7 1.8 0.4 3 1.9 0.1 1.2 Equity based compensation expense -1,412.73118 122.13996999999999 156.90369000000001 161.61656000000002 69.054000000000002 15,029.16576 145.19094000000041 255.06851999999998 160.39893000000001 206.96299999999999 327.44934000000001 76 578 399 222 407 402 241 244 384 247 246 356 196 275 571 278 569 2,131 304 310 -,100 282 272 705 272 4,535 1,776 650 637 1,232 648 652 740.85405000000094 658.53922000000102 658.18901000000005 1,882.8900100000001 596.31939 508.78190000000001 -,581.75029000000006 653.87718999999993 1,623.3994 919.68944999999997 1,342.13301 734.33249999999998 718.38615000000004 713.58420000000001 708.9 708.9 670.2 947.3 724.96 724.96 1,866.2750000000001 722.7 721.97299999999996 718.97900000000004 716.1 716.1 715.9 719.9 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 2,794.8516600000003 2,131.3842 2,342.46 3,313.9350000000004 2,157.520000000001 2,151.9 0.626 3.802 5.7939999999999996 14.344472290000002 8.4730000000000008 7.3 8 2 1.2999999999999998 Union equity awards 14.884 0 0 0 0 0 0 0 0 Restructuring transaction costs 17.783000000000001 0 0 0 0 0 0 0 0 Fair value adjustment of derivative liabilities 79.221000000000004 0 0 0 0 0 0 0 0 Amortization of ratification bonus 1,695 1,695 1,823 1,695 1,695 1,823 1,695 1,695 1,823 1,696.3290084615385 1,696.3290084615385 1,841.532383076923 1,484.2446016346153 1,484.2446016346153 1,591.7605254807693 1,507.2768953846153 1,484.2446016346153 1,591.7605254807693 1,503.7446016346153 1,503.7446016346153 1,612.2605254807693 1,503.7446016346153 1,503.7446016346153 1,612.2605254807693 4,583.2820224999996 4,619.74972875 4,619.74972875 0 0 0 0 0 0 15.638999999999999 18.934000000000001 4.5999999999999996 9.1 4.5 0 Non-union pension settlement 0 0 0 0 0 0 0 0 0 0 0 30,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28.687999999999999 0 28.722999999999999 28.7 0 Equity Investment Impairment 0 30.8 0 0 0 0 0 0 0 (Gains) / loss on extinguishment of debt -50.340809999999998 ,-13,690.743060000001 2,498.7998900000002 0 0 0 0 0 0 0 0 0 0 0 570.33420999999998 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -25.794 0 0 -11.24228398 0.56999999999999995 0 0 0 0 Other, net (a) -,143.90078114786695 3,917.992935236268 188.00806980672519 645.29898845105106 1,880.7053123871301 -,223.8550403141078 -,184.32515068410896 5,973.8447879241721 -2,263.5749563525642 278.11015060199554 2,765.775414569272 -,209.19573126358318 -,397.3305255154282 3,768.3334096336257 -74.63436913053738 8.2747120025269396 190.55335987060607 #REF! #REF! #REF! #REF! #REF! #REF! -90.429907196690465 5.9315535177356651 -,372.32005704553012 13.290870037017157 -,259.4698158331485 -,380.76738847453817 -,335.94565777415119 -,166.46436245106815 -51.945244549558993 -,368.60790035862738 -,190.78840297836 -,678.97122310607301 -,110.89459676414936 -,259.16735752727254 -3,606.6951214139845 -,189.33684830713537 -,299.94348292608993 209.6126117304666 #REF! #REF! #REF! #REF! #REF! #REF! -2,247.7718662125881 627.95943861002161 -1,291.6987564538722 1,113.7437697470705 -1,984.7705795420879 386.79879721591715 -1,333.3504143150058 -,855.5151768176074 -1,326.838386740812 550.67064405365818 -,195.7134588784138 -,197.59561497628238 -23.002138147736332 -19.241576665866887 -22.615014523755235 1,479.5448451281736 -21.96320416364324 -20.297057807452802 -21.767748552450939 -21.779836933004844 -18.839475474385836 -20.73132454304141 -19.605156537880248 -21.072186808138213 -20.788233600118474 -15.610027391176118 -20.548969738694723 -18.791481456588372 -19.584440812832327 -18.079491016484099 -20.432407959953707 -20.000115872702736 -17.880051000596723 -19.432735540540307 -17.759015149342304 -19.294704493066092 -18.201377783527278 -14.305092066912039 -18.076092947740108 -16.371891422721092 -18.25856038373604 -16.896504222117073 -17.889815534697846 -18.468408903398085 -16.545158086730225 -18.012085263988411 -16.320977904637402 -17.944186538974463 -18.10972108612259 -13.364942361280555 -18.009127316152444 -16.31177901448973 -17.227313312803744 -15.959529176325304 -17.878312015353004 -17.48046870631515 -15.622582382697146 -17.038587586168433 -15.302323644296848 -17.049470230311272 -17.651036832063255 -13.02785782180581 -19.102046710926516 -15.917133755778195 -16.897800351354817 -15.718410685585695 -17.574128496431513 -17.168012475543946 -15.426545778027503 -16.799749067569792 -15.008286912183394 -16.890988708277291 -3,515.2403187375785 157.361570198962 -64.858729337358454 1,437.2845831570776 -62.387060959841619 -61.408667889059871 5.8 -3.1 -2.8559999999999999 -9.6735311541805356 -6.2 2.1 3.9 0.8 -1 Adjusted EBITDA $-2,178.944271737374 $6,623.9804239506902 $13,119.831269883485 $23,934.752643343891 $27,473.740958059221 $5,106.6922539450716 $21,953.627011782079 $27,590.259715220702 $19,230.446548573855 $9,521.4937323893319 $12,534.728738293024 $-5,917 $7,434 $13,774 $14,018 $23,664 $31,616 $14,732 $28,414 $35,554 $24,595 $20,827 $30,776 $1,310.20185014 $12,410.287540082 $46,510.146803621 $22,669.255139079 $15,782.280977692 $35,620.168060593 $22,134.21730538 $23,635.232010963 $16,108.99810116255 $22,397.221482245 $18,641.9998061441 $17,714 $-3,903 $4,469 $22,236 $22,725 $20,630 $19,682 $23,362.893923792533 $26,181.5150000006 $32,085.25028567496 $32,933 $16,574.999992373971 $27,468.999999999884 $13,012.7 $9,393.1999999999971 $36,376.5 $32,732 $27,134 $49,507 $30,107 $31,388 $37,678 $32,153 $21,297.624280881377 $24,069.458284140594 $6,437.7895466216705 $21,848.838748561033 $34,930.827601760204 $31,918.356713791196 $38,073.331255449637 $38,874.539512508338 $25,702.290446583447 $42,788.787306541446 $41,209.101426469868 $38,558.6219442644 $32,278.360762661516 $32,957.508584355433 $14,411.267771942192 $21,344.909077744003 $43,177.778348028252 $32,985.40679712611 $47,284.285592736844 $51,582.398748572035 $34,631.775094743229 $43,252.372375129831 $45,063.72741769765 $46,586.663385720851 $33,941.282064158862 $29,966.781330760667 $23,774.869431415795 $22,965.31881431249 $44,934.700209793555 $44,984.440398959377 $48,715.708904897467 $52,637.191779070483 $39,708.35021504209 $49,588.100810031137 $45,879.987691513517 $53,509.404469751877 $37,290.710734806511 $37,679.818110169792 $18,795.47207556288 $25,889.836584370343 $46,448.675263250327 $47,926.306575577255 $50,527.92238557696 $58,569.971214011712 $40,833.661652656527 $49,385.581450217775 $58,474.377288741154 $51,843.37044336583 $41,440.853304689263 $39,482.321576971881 $26,221.377090054935 $26,984.87447679344 $50,320.206867723922 $51,802.891627022305 $44,469.851480759862 $63,826.13920226691 $49,450.739385967034 $47,092.906716049656 $62,671.817815390663 $53,346.823332796368 $39,374.439005639186 $43,529.171154930402 $99,173 $77,520.82565021963 $63,217.455896942905 $,108,866.22748174917 $,109,700.17917959476 $,103,794.49129128136 $159.19999999999999 $239.54300000000001 $254.9 $244.5084989253547 $333.27499999999998 $297.50000000000023 $305.82299999999998 $65.999999999999815 $57.700000000000564 Revenue $4,868.8450000000003 $4,850.480681463574 $4,865.4342518556286 $5,068.8 $4,832.3999999999996 $4,697.4710078968801 $4,691.8999999999996 $1,142.6999999999998 $1,148.3000000000002 Adjusted EBITDA Margin 3.3% 4.9% 5.2% 4.8% 6.9% 6.3% 6.5% 5.8% 5.2% Leverage Ratio 8.5351758793969861 5.7651444625808308 5.3405256963515102 4.565076489798261 3.2462680969169608 3.395966386554619 3.4510157836395567 YRC Freight Segment 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 FY 2013 FY 2014 FY 2015 4Q14 4Q15 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 LTM 3Q 2016 4Q 2015 4Q 2016 Reconciliation of operating income (loss) to adjusted EBITDA Operating (loss) income $-31.2 $0.5 $18 $24.5 $-21.4 $-88.48 $-37.299999999999997 $-31.2 $0.5 $18 $53.2 $31.856999999999999 $-21.4 $-9.9999999999994316E-2 Depreciation and amortization 109.1 98 93.1 23.8 22.599999999999994 102.91500000000001 119.8 109.1 98 93.1 90.3 90.488 22.6 22.399999999999991 (Gains) losses on property disposals, net -3 -15.9 1.9 -9.1 0.19999999999999996 -10.478 -9.9 -3 -15.9 1.9 -15.7 -11.840999999999999 0.2 -3.6999999999999993 Letter of credit expense 25.8 8.3000000000000007 6.1 1.5 1.5 28.093 29.6 25.8 8.3000000000000007 6.1 5 5.427999999999999 1.5 1.1000000000000001 Union equity awards 10.311 0 0 0 0 0 0 0 0 Nonrecurring consulting fees 0 0 5.0999999999999996 0 0 0 0 0 0 5.0999999999999996 0 0 0 0 Amortization of ratification bonus 0 10 12.2 3.3 2.8999999999999986 0 0 0 10 12.2 3 5.9039999999999999 2.9 0 Non-union pension settlement charge 0 0 28.7 0 28.7 0 0 0 0 28.7 0 28.710118740000002 28.7 0 Other, net (a) 4.5 -1.1000000000000001 2.1 0 2.3000000000000003 1.4 2.7 4.5 -1.1000000000000001 2.1 4.3 5.5 2.2999999999999998 1.0999999999999996 Adjusted EBITDA $105.19999999999999 $99.8 $167.19999999999996 $43.999999999999993 $36.79999999999999 $43.7 $104.89999999999999 $105.19999999999999 $99.8 $167.19999999999996 $140.10000000000002 $156.14611873999999 $36.799999999999997 $20.799999999999997 Revenue $3,203.369999999998 $3,206.9133781 $3,136.7610459000002 $3,237.376861499999 $3,055.7 $2,958.9 $2,962.28653222091 $733.69999999999982 $730.30000000000018 Adjusted EBITDA Margin 1.4% 3.3% 3.4% 3.8% 5.5% 4.7% 5.3% 5.2% 2.8% Regional Transportation Segment 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 FY 2013 FY 2014 FY 2015 4Q14 4Q15 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 LTM 3Q 2016 4Q 2015 4Q 2016 Reconciliation of operating income to adjusted EBITDA Operating Income $79.900000000000006 $66.099999999999994 $85.4 $10.599999999999994 $9.5 $32.880000000000003 $70 $79.900000000000006 $66.099999999999994 $85.4 $81.3 $74.418000000000006 $9.5 $16.399999999999991 Depreciation and amortization 63.1 65.8 70.7 16.8 17.5 61.561999999999998 63.3 63.1 65.8 70.7 69.5 69.106999999999999 17.5 17.899999999999999 (Gains) losses on property disposals, net 0.6 4 0.2 3.3 0.2 -2.6549999999999998 0.7 0.6 4 0.2 1.1000000000000001 1.2 0.2 0.20000000000000007 Letter of credit expense 6.8 2.9 2.1 0.6 0.60000000000000009 6.6079999999999997 6.2 6.8 2.9 2.1 2.5 2.5269999999999997 0.6 0.5 Union equity awards 4.5730000000000004 0 0 0 0 0 0 0 0 Amortization of ratification bonus 0 5.6 6.6999999999999993 1.9 1.5999999999999996 0 0 0 5.6 6.7 1.5999999999999996 3.222 1.6 0 Other, net (a) 0.1 0 0.8 0 0.8 0.1 0 0.1 0 0.8 0.5 1.0780000000000001 0.8 0.2 Adjusted EBITDA $150.5 $144.39999999999998 $165.9 $33.199999999999996 $30.2 $103.06800000000001 $140.19999999999999 $150.5 $144.39999999999998 $165.9 $156.5 $151.452 $30.200000000000003 $35.199999999999996 Revenue $1,554.2729999999999 $1,640.6 $1,728.6 $1,831.4 $1,776.9 $1,739.3 $1,730.4731513499999 $409.20000000000005 $418 Adjusted EBITDA Margin 6.6% 8.5% 8.7% 7.9% 9.3% 8.9978727074110282 8.8% 7.4% 8.4%

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(a) As required under our Term Loan, other nonoperating, net, shown above does not include the impact of non-cash foreign currency gains or losses Fourth Quarter 2016 Earnings Conference Call EBITDA Reconciliation - Segment ($ in millions) YRCW Inc. Reconciliation of Operating Income / Loss to EBITDA YRCW Consolidated 40602 40633 40663 40694 40724 40755 40786 40816 40847 40877 40908 40939 40968 40999 41029 41060 41090 41121 41152 41182 41213 41243 41274 41305 41333 41364 41394 41425 41455 41486 41517 41547 41578 41608 41639 41670 41698 41729 41759 41790 41820 41851 41882 41912 41943 41973 42004 42035 42063 42094 42124 42155 42185 42216 42247 42277 42308 42338 42369 42400 42429 42460 42490 42521 42551 42582 42613 42643 42674 42704 42735 42766 42794 42825 42855 42886 42916 42947 42978 43008 43039 43069 43100 43131 43159 43190 43220 43251 43281 43312 43343 43373 43404 43434 43465 43496 43524 43555 43585 43616 43646 43677 43708 43738 43769 43799 43830 43861 43890 43921 43951 43982 44012 44043 44074 44104 44135 44165 44196 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 LTM 3Q 2016 4Q 2015 4Q 2016 Reconciliation of Net (Loss) Income to Adjusted EBITDA Net (loss) income $,-33,652.127849640114 $,-32,187.325768550763 $,-22,111.369875875065 $,-11,768.214502606243 $-8,255.2299866962512 $,-42,307.83920245192 $-,820.9463640508136 $,-75,720.227195263564 $,-14,597.510753252969 $,-18,850.912037272101 $,-55,829.874061704795 $,-36,449.43417477471 $,-21,936.792217109345 $,-27,390.944528893757 $,-15,673.40045272787 $-5,989.8930621222262 $-,930.45375997948133 $,-14,835.601134407361 $-2,276.3532414046035 $20,132.55606639848 $-6,679.8457787150792 $-8,346.6698662784329 $,-20,206.42197774578 $,-32,056.59607441581 $,-12,174.37930048657 $19,685.284353610612 $-7,592.1908994249898 $,-19,358.75706169482 $11,863.796627305826 $,-15,006.215258536349 $-7,164.2573412661004 $,-22,261.135859566308 $-7,704.7169258559825 $,-15,151.528784923572 $23,319.379064305333 $,-55,021.641396347215 $-9,828.59853177892 $-5,319.3193577971815 $54.697960385325857 $-3,353.6898825248113 $-1,559.2372350131081 $-3,061.8954753968906 $-4,010.3464048516498 $8,209.3794850056147 $8,031.9994548807126 $-5,618.6629341540565 $3,832.1543069467393 $,-11,836.113610231339 $,-17,440.574979703266 $7,681.1005161797166 $5,085.83798110491 $1,858.3879185416527 $19,022.959210054069 $4,115.134803475321 $8,808.2552128705811 $6,880.4950813623309 $6,546.8736535686903 $-3,328.2363901122944 $,-30,922.1161570615 $,-15,113.201872679656 $-2,589.9981495442171 $6,787.929988808939 $5,563.5465003782228 $10,590.66825681435 $11,302.766963581227 $1,461.6850174429567 $14,780.199739594465 $13,081.881921050068 $11,540.406018252606 $6,639.777296470962 $5,937.2876432335061 $-8,078.8863914906387 $-1,341.538141080469 $18,176.162311865319 $8,585.1516140391304 $20,324.679700020264 $31,395.218456660677 $9,342.7527780547643 $16,069.100609593283 $16,946.203523238903 $18,986.692239492917 $8,279.6059402841311 $10,045.434225467216 $-1,545.9432232393967 $-1,444.1844504544922 $15,669.265810827566 $17,412.426277862523 $20,081.998692656682 $22,403.910150046686 $12,109.946911255272 $20,159.454532444885 $16,435.54187802563 $23,359.151497984451 $9,764.9902166404554 $8,797.1347655839891 $-7,679.8426902497504 $165.67590286877584 $15,939.83933727676 $18,881.479370405643 $20,641.466295538321 $26,965.296607430279 $11,720.495832061957 $19,192.895172496948 $26,358.353591746247 $20,879.116051822661 $12,860.921258869488 $8,738.4706414184966 $-2,141.5870629236656 $-,424.7989158708153 $17,431.193159028553 $21,119.55410800768 $14,540.725699359962 $29,925.385218640015 $18,655.36043164273 $16,613.46562634685 $28,892.565908951921 $21,655.146305239719 $10,055.62652822771 $11,132.152109252651 $19,803.763774580446 $,-27,703.478893605105 $,-10,915.270033414932 $27,456.380289640885 $29,323.76667808749 $24,117.470957957074 $-,354.4 $-,136.5 $-83.614999999999995 $-67.7 $0.65100000000000002 $21.500000000000178 $5.5 $-23.500000000000171 $-7.49999999999946 Interest expense, net $12,262.60876099529 $13,764.427676363357 $13,038.397882492789 $12,421.240928078394 $14,408.89769917776 $12,649.43375051652 $11,642.470425964233 $12,887.627285681781 $15,566.326103275715 $11,333.604253253176 $16,212.142274523096 $12,178.543204405207 $12,139.585593965156 $11,681.144665541011 $12,041.844205860281 $12,083.726971637156 $17,125.923042546914 $11,701.818999143659 $12,286.479268110854 $9,680.2011339337314 $12,228.9485762507 $12,050.149895437244 $14,685.524417222212 $15,553.402502515151 $11,813.37194011358 $11,825.46454257375 $12,226.127214140528 $15,806.778490225712 $13,861.551679620659 $18,268.213152776425 $12,397.844713138591 $12,438.427435852516 $12,398.150725727966 $13,995.371132080374 $13,218.704503264747 $32,434.832665500569 $10,198.636763550689 $15,471.980373079954 $10,424.693073156981 $10,558.544735459089 $10,611.900554633899 $10,572.144695317918 $14,765.117134571337 $7,194.3999149066012 $9,518.2164627843777 $9,203.69240693545 $8,486.2355763697597 $9,614.8545503552068 $8,978.7259036461674 $8,832.4092526505701 $8,945.9611027699884 $9,070.1247415232338 $9,814.3773707912333 $9,080.1527319126108 $8,935.2890880508712 $7,605.9428046790017 $8,482.7299887274821 $8,626.4447251244437 $8,784.740623203159 $8,785.6422757643795 $8,328.3616830003739 $8,662.6079460818328 $8,487.6790919806081 $8,647.872894959135 $8,451.8850208131771 $8,628.4512668999214 $8,611.368644077334 $8,416.1156368473603 $8,591.9466812191331 $8,398.7040915887683 $8,553.3386595795509 $8,562.1859977147633 $8,027.8965845857992 $8,541.3975056399231 $8,379.5783789471425 $8,545.8009720688769 $8,359.1486385685075 $8,620.4226697556678 $8,611.2641068239209 $8,421.8559302167851 $8,669.7256723225037 $8,490.701026702518 $8,573.5509283962219 $8,639.4005793453343 $8,105.5672508217349 $8,626.8035976388619 $8,505.7272046064118 $8,685.2944738860897 $8,493.3760547947277 $8,731.8130657474176 $8,731.6411396782332 $8,538.4123104301834 $8,780.8996968386782 $8,598.2413113245639 $8,767.5923785647028 $8,833.7713269078031 $7,908.524867911824 $8,447.9429299528492 $8,263.9900324577666 $8,447.8654484749513 $8,251.60819952274 $8,436.1600684216082 $8,435.9733515374428 $8,239.809951313804 $8,601.511109852669 $8,412.1239111970099 $8,587.634923997586 $8,588.690929813045 $8,023.368813478344 $8,761.9473107198319 $8,386.814782076613 $8,573.884938159561 $8,372.5523073688328 $8,559.8208886617722 $8,559.6341717776104 $8,358.8865845636992 $8,701.1814458087665 $8,509.242527802384 $8,686.7768556954816 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 155.69999999999999 150.14400000000001 163.803 149.5 107.05200000000001 103 103.8 26.2 25.400000000000006 Income tax (benefit) expense $-30.410529500998202 $-4,550.5490064462438 $67.852361987768262 $50.950671100635233 $-2,695.1648282067113 $234.18564461170936 $45.473099463027154 $-8,938.713993725712 $52.268378809850361 $201.61790179915261 $8,079.4762113096895 $74.193763887441008 $53.4689546292594 $-3,284.460164052702 $361.67173641876525 $-,199.84928938918799 $-,912.66567709865001 $226.9282430896296 $107.19312394850699 $-9,568.5038334107085 $220.52665888620987 $36.403212078400003 $-2,126.616394054996 $7.2133929567418003 $15.090430163437 $-4,477.7773724782719 $77.108695086157198 $26.263172289118998 $,-10,135.28757314909 $55.463784381490008 $19.4088890127898 $7,253.2974787394305 $45.410167827689804 $15.4935677080499 $,-38,825.989729574139 $15.1759042389182 $-91.514455272939799 $-4,039.6833905799813 $9.2884578979007806 $167.070563605453 $-8,051.9652954738704 $11.080877695443951 $-1,960.7797309388059 $-2,459.59801676302 $10.71683702 $5.7495961883039604 $253.54171742973995 $20.039899999999996 $10.863106971503999 $1,413.1609998866238 $48.519092303549996 $15.725722261669999 $2,238.8129390908398 $19.741035283399999 $29.771941589397997 $6,609.8652650694003 $12.1078034459 $390.98263964044418 $390.98263964044418 $-3,265.8069430794521 $-,559.67186904549101 $1,466.8016131421484 $1,202.2249780124878 $2,288.4041421762386 $2,442.411286280781 $315.85504638760148 $3,193.8486189962009 $2,826.8596665503192 $2,493.762633350098 $1,434.7873453946954 $1,282.9865816444533 $-1,011.2467951552728 $-,167.86179504590064 $2,275.1385519489218 $1,074.6168017368693 $2,544.718204493319 $3,929.7884026365032 $1,169.4469196506029 $2,011.3943562313898 $2,121.1826943097308 $2,376.5938456579856 $1,036.3711737647088 $1,257.4026510815286 $-,183.89796541535344 $-,171.79323155643777 $1,863.9404467426077 $2,071.2984262992509 $2,388.857912462589 $2,665.61324379546 $1,440.5410009827556 $2,398.71686379034 $1,955.929597106606 $2,778.6922376793759 $1,161.5962385592272 $1,046.4648122624149 $-,830.50075926224201 $17.916247594324254 $1,723.6578720175519 $2,041.8494994727932 $2,232.1750746919356 $2,916.362014490847 $1,267.4583425797812 $2,075.52610855379 $2,850.4011805658497 $2,257.8745988870351 $1,390.7843299789868 $944.98114026510893 $-,222.36838885330022 $-44.03368131509059 $1,809.9410505740477 $2,192.916319678553 $1,509.8138210221823 $3,107.2562082994509 $1,937.168884264247 $1,724.990060891869 $3,000.15008607862 $2,248.5287092203048 $1,044.519186153153 $1,155.8898406983019 -7.4519609606818973 -15.015000000000001 -45.923999999999999 -16.130916934952857 -5.0999999999999996 3.1 -12.1 -15.5 -0.29999999999999982 Depreciation and amortization $15,237.334212487187 $18,696.322029551702 $15,956.997240084502 $15,042.60048871255 $16,558.357088901808 $15,284.428732915088 $15,372.795712276782 $15,545.19521859771 $15,230.574910012845 $14,558.760739823198 $21,279.732094075323 $15,931.33180448407 $16,127.50721066473 $16,969.474610124391 $15,391.990549579361 $14,929.307337871733 $14,653.434704660611 $14,338.882737442158 $15,131.776702950361 $15,117.534480419745 $15,335.844263122532 $14,403.465191965264 $14,665.668886177988 $14,527.260491016519 $13,964.730963793987 $15,078.724068459438 $14,362.455045300365 $14,363.955976215659 $14,862.447676923557 $14,331.555786457966 $14,305.334663576752 $14,577.204068647 $14,456.394084141197 $13,411.144531577085 $14,087.901685110131 $13,679.116023371878 $13,068.6531028446 $14,274.767926711193 $13,771.912656866927 $13,230.527466386358 $14,017.676014122611 $13,428.296220419077 $13,299.751705973842 $14,162.862329033676 $13,635.609494785162 $12,664.721159443056 $14,378.815017869105 $13,430.254372397851 $13,346.14553246036 $14,803.41299291297 $13,694.518184105196 $13,010.697812506594 $14,624.765597649135 $13,467.56206149125 $13,144.793862969624 $14,080.744204464971 $13,244.581236556058 $12,683.73466972258 $13,970.793190979004 $13,123.149712921186 $13,530.122981889952 $14,952.44327006381 $13,737.654637875041 $13,958.63075477021 $15,262.222472557274 $13,859.481343085978 $14,769.890399156602 $15,484.28683746508 $14,510.751109110603 $14,405.842191994967 $15,758.68105983106 $13,583.616367598459 $13,535.446802203331 $15,484.694461715557 $13,617.172948442896 $14,523.835394691758 $15,723.920664639498 $14,154.102988922701 $15,215.131272034494 $15,705.239702182831 $15,213.5455774632 $14,815.237319806849 $15,899.658424267102 $15,523.66761246707 $15,198.430160520689 $16,886.16224912948 $15,677.549867030582 $16,224.637795511953 $17,211.245343654969 $16,090.760461827451 $16,964.223269668488 $17,090.305395183783 $17,258.920139388363 $16,455.23639936906 $17,186.817357172655 $17,140.400936128193 $16,529.49555856702 $18,458.972841882289 $17,430.757375172212 $17,879.342237337329 $18,581.633266439738 $18,083.125078761313 $18,354.366643488691 $19,172.169528747942 $18,780.459397519448 $17,473.60509538067 $19,337.281300410494 $18,673.340012974328 $18,168.331115336252 $20,423.769067445748 $18,802.327173634181 $18,523.511287361183 $20,570.70134894191 $18,977.626159002662 $18,873.590398012708 $20,570.5190527952 $19,421.333555136818 $18,466.50662083042 $20,683.810271533912 195.666 183.761 172.32900000000001 163.61206254601134 163.72800000000001 159.80000000000001 159.6 40.099999999999994 40.300000000000011 EBITDA $-6,183.1432905543934 $-4,277.125069081947 $6,951.8776086899943 $15,746.37145444043 $20,016.859973176604 $,-14,139.791074408602 $26,239.792873653227 $,-56,225.651787094575 $16,251.658638845442 $7,243.708576034249 $,-10,258.523481796688 $-8,265.2732687364169 $6,383.3130525515426 $-2,024.3712696336261 $12,122.106039130536 $20,823.291957997473 $29,936.238310129393 $11,432.28845268085 $25,249.95853605118 $35,361.787847341249 $21,104.620000918731 $18,143.348433202475 $7,018.7096862489198 $-1,968.1832209531694 $13,619.155404022347 $42,111.277503849153 $19,073.50005510206 $10,838.921932561007 $30,452.767226535132 $17,649.17465079531 $19,558.330924462032 $12,007.591095712109 $19,195.238051840872 $12,270.480446441938 $11,799.995523106072 $-8,892.5168032358506 $13,346.530307527275 $20,387.745551413984 $24,260.592148307136 $20,602.452882926089 $15,018.374038269532 $20,949.626318035549 $22,093.742704754724 $27,107.43712182873 $31,196.542249470251 $16,254.877062170848 $26,950.746618615343 $11,229.35212521718 $4,895.285841604418 $32,729.712068008204 $27,774.6758989781 $23,954.93619483315 $45,700.915117585275 $26,682.469309034794 $30,918.110105480475 $35,177.47355575705 $28,286.292682298132 $18,372.925644375173 $-7,775.5997032388932 $3,529.7831729264581 $18,708.81464630062 $31,869.383875039301 $28,991.105208246358 $35,484.406938293832 $37,459.28574323246 $24,265.472673816457 $41,354.975622155005 $39,808.885908194257 $37,136.866441932441 $30,879.110925449393 $31,532.293944288569 $13,055.669178667311 $20,054.427777635181 $44,477.392831169724 $31,656.519743166034 $45,938.38788723023 $59,408.76162505189 $33,286.725356383737 $41,906.890344683088 $43,194.48184994825 $45,246.66315219723 $32,621.915460558208 $35,776.46229212065 $22,433.227003157655 $21,688.19729331492 $43,046.172104338519 $43,667.1775798766 $47,380.788874517311 $50,773.592872875932 $38,373.61439812896 $48,253.390628170644 $44,019.352543350251 $52,177.663571890866 $35,979.851406461152 $35,798.9313583767 $17,463.828813524004 $24,621.166574231625 $44,569.657577580365 $46,618.76277508415 $49,200.849056042542 $56,714.26895271367 $39,507.239321824658 $48,058.761276076868 $56,620.734252373848 $50,518.501159214415 $40,136.890009583556 $37,607.796574493856 $24,897.453654178666 $25,723.254423781913 $48,426.850587768182 $50,500.87907952808 $43,147.935745902883 $61,975.263869202492 $48,129.499979255132 $45,771.261193316866 $60,821.986554918687 $52,026.190015405606 $38,074.189486301366 $41,658.629077180347 $-10.485960960681894 $182.39 $206.59300000000002 $229.28114561105849 $266.39999999999998 $287.4000000000002 $256.8 $27.299999999999823 $57.90000000000056 Adjustments for debt covenants: (Gains) / loss on property disposals, net 102.20925585670025 1,218.2440881486 -3,799.2125006308597 -,937.74651382144987 -2,539.7955586324629 -,797.9215743279301 -8,355.7539221168408 -1,636.5893129642 218.60482397229899 -,140.10127408089849 12,859.982041240199 -,907 -,745 10,014 -4,145 -,987 -1,409 -12 -61 -2,268 212 -,507 -8,916 34 -4,826 321 -98 1,229 138 230 190 850 -,205 338 -,392 48 -,467 607 -4,259 -2,817 609 260 -98 -6.8916199999992003 -1,327.6902678099 -1,930.8871455292101 -2,475.4839327477998 -55.938586850528964 21.008317892994 1,324.1975344000002 -41.471978808968004 309.00265557780006 -,917.28990205279797 171.50874357615095 49.762224247229796 645.29321860100038 322.08225569414981 187 -1,023.3 0 0 0 0 7.9999999999997726 0 0 0 0 0 0 0 0 0 -3,200 0 0 -9,700 0 0 0 0 0 -7,700 -0.18600000000014916 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 866.56418642438109 -,514.21774430585015 0 7.9999999999997726 0 0 -8.2460000000000004 -9.7319999999999993 -2.1909999999999998 -11.858331725058001 1.9339999999999999 -14.6 -10.8 0.39999999999999991 -3.4000000000000004 Letter of credit expense 2,508.6331399999999 2,799.742 2,713.2262600000004 2,783.4268 2,686.1681200000003 2,963.2266100000015 3,241.6316200000001 3,138.147399999996 3,242.75510000001 3,137.51971 3,238.2580500000004 3,238 1,592 3,234 3,120 3,217 3,113 3,217 3,223 3,081 3,174 3,026 3,101 3,102 2,800 3,035 2,929 3,022 2,863 2,751 2,719 2,575 2,655 2,666 2,816 2,831 1,561 793 801 771 572 927 781 748.01559677083321 764.14997082986099 739.49997177083321 765.37705416319443 764.53650207986095 675.7713208749999 748.17539096874987 723.59538843749988 741.57163749652773 717.64997177083319 749.49689631944443 749.49689631944443 720.31957708333323 749.49689631944443 720.76749374999986 744.79307687499988 757.06391020833325 708.2210772916668 746.8382157638888 722.7466604166666 736.61252131944445 712.85082708333323 736.61252131944445 736.61252131944445 702.95499374999986 726.38682687499988 702.95499374999986 726.38682687499988 726.38682687499988 656.09132750000003 720.93448659722219 697.6785354166667 715.48214631944438 692.40207708333332 715.48214631944438 715.48214631944438 687.12561874999994 710.02980604166657 687.12561874999994 710.02980604166657 710.02980604166657 641.31724416666668 706.60419840277768 683.81051458333332 703.17859076388879 680.49541041666669 703.17859076388879 703.17859076388879 677.18030624999994 699.7529831249999 677.18030624999994 699.7529831249999 699.7529831249999 632.03495250000003 697.02681298611105 674.54207708333331 694.30064284722221 671.90384791666668 694.30064284722221 694.30064284722221 669.26561874999993 691.57447270833325 669.26561874999993 691.57447270833325 691.57447270833325 624.6479108333333 712.45832666666661 667.92968124999993 688.81353520833329 666.59374374999993 688.81353520833329 688.81353520833329 665.25780624999993 687.43306645833331 665.25780624999993 687.43306645833331 2,219.313369722222 2,215.574669444441 2,212.1232032638891 2,172.2100088194443 2,176.1800363888888 2,155.7286474999996 35.225999999999999 36.335000000000001 33.933 12.053042593534721 8.7880000000000003 7.7 8.1999999999999993 2.1999999999999993 1.7000000000000002 Restructuring professional fees #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! 118 -10 357 2,742 164 -,340 #REF! #REF! #REF! #REF! #REF! #REF! 500 820 443 372 665 1,455 944 827 759 3,206 2,027 1,918 -,558 -,206 -,263 13 45 #REF! #REF! #REF! #REF! #REF! #REF! 0 0 0 0 0 0 0 0 186.25 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 186.25 0 0 0 0 0 44 3.0310000000000001 12.016999999999999 4.1649852900000006 0.186 0 0 0 0 Nonrecurring consulting fees 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,002.7140000000001 937.21100000000001 956.47289999999998 968.39859999999999 978.32830000000001 1,018.8948 960.47820000000002 -1,720 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5.1020000000000003 0 0 0 0 Permitted dispositions and other 0 0 0 0 0 0 0 0 0 0 0 32.469000000000001 32.72 -1,973.9621399999999 31.5283300000001 31.433330000000101 -,276.79167000000001 45.558330000000304 45.5023300000001 -,951.97115000000008 47.680330000000104 39.358330000000102 -1,086.4696899999999 36.613330000000005 35.913330000000002 24.0427 30.209330000000001 10.12533 -,248.99967000000001 80.92841 80.133669999999995 1.3522500000000299 79.370070000000013 79.598199999999991 1,436.9757 81.752210000000005 1.3801099999999999 -13.85032 29.744700000000002 28.490599999999997 173.01335 29.728679999999898 28.303879999999999 1,363.7727399999999 28.473460000000198 27.834259999999798 -36.7833299999998 27.47634 31.110430000000001 79.524559999999994 55.605669999999996 27.287790000000001 88.581240000000008 26.987359999999999 27.10519 -34.218440000000001 27.128720000000001 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 19.874110000000002 27.128720000000001 0 0 0 0 6.2380000000000004 -3.9830000000000001 1.7 1.8 0.4 3 1.9 0.1 1.2 Equity based compensation expense -1,412.73118 122.13996999999999 156.90369000000001 161.61656000000002 69.054000000000002 15,029.16576 145.19094000000041 255.06851999999998 160.39893000000001 206.96299999999999 327.44934000000001 76 578 399 222 407 402 241 244 384 247 246 356 196 275 571 278 569 2,131 304 310 -,100 282 272 705 272 4,535 1,776 650 637 1,232 648 652 740.85405000000094 658.53922000000102 658.18901000000005 1,882.8900100000001 596.31939 508.78190000000001 -,581.75029000000006 653.87718999999993 1,623.3994 919.68944999999997 1,342.13301 734.33249999999998 718.38615000000004 713.58420000000001 708.9 708.9 670.2 947.3 724.96 724.96 1,866.2750000000001 722.7 721.97299999999996 718.97900000000004 716.1 716.1 715.9 719.9 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 650 650 1,200 2,794.8516600000003 2,131.3842 2,342.46 3,313.9350000000004 2,157.520000000001 2,151.9 0.626 3.802 5.7939999999999996 14.344472290000002 8.4730000000000008 7.3 8 2 1.2999999999999998 Union equity awards 14.884 0 0 0 0 0 0 0 0 Restructuring transaction costs 17.783000000000001 0 0 0 0 0 0 0 0 Fair value adjustment of derivative liabilities 79.221000000000004 0 0 0 0 0 0 0 0 Amortization of ratification bonus 1,695 1,695 1,823 1,695 1,695 1,823 1,695 1,695 1,823 1,696.3290084615385 1,696.3290084615385 1,841.532383076923 1,484.2446016346153 1,484.2446016346153 1,591.7605254807693 1,507.2768953846153 1,484.2446016346153 1,591.7605254807693 1,503.7446016346153 1,503.7446016346153 1,612.2605254807693 1,503.7446016346153 1,503.7446016346153 1,612.2605254807693 4,583.2820224999996 4,619.74972875 4,619.74972875 0 0 0 0 0 0 15.638999999999999 18.934000000000001 4.5999999999999996 9.1 4.5 0 Non-union pension settlement 0 0 0 0 0 0 0 0 0 0 0 30,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28.687999999999999 0 28.722999999999999 28.7 0 Equity Investment Impairment 0 30.8 0 0 0 0 0 0 0 (Gains) / loss on extinguishment of debt -50.340809999999998 ,-13,690.743060000001 2,498.7998900000002 0 0 0 0 0 0 0 0 0 0 0 570.33420999999998 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -25.794 0 0 -11.24228398 0.56999999999999995 0 0 0 0 Other, net (a) -,143.90078114786695 3,917.992935236268 188.00806980672519 645.29898845105106 1,880.7053123871301 -,223.8550403141078 -,184.32515068410896 5,973.8447879241721 -2,263.5749563525642 278.11015060199554 2,765.775414569272 -,209.19573126358318 -,397.3305255154282 3,768.3334096336257 -74.63436913053738 8.2747120025269396 190.55335987060607 #REF! #REF! #REF! #REF! #REF! #REF! -90.429907196690465 5.9315535177356651 -,372.32005704553012 13.290870037017157 -,259.4698158331485 -,380.76738847453817 -,335.94565777415119 -,166.46436245106815 -51.945244549558993 -,368.60790035862738 -,190.78840297836 -,678.97122310607301 -,110.89459676414936 -,259.16735752727254 -3,606.6951214139845 -,189.33684830713537 -,299.94348292608993 209.6126117304666 #REF! #REF! #REF! #REF! #REF! #REF! -2,247.7718662125881 627.95943861002161 -1,291.6987564538722 1,113.7437697470705 -1,984.7705795420879 386.79879721591715 -1,333.3504143150058 -,855.5151768176074 -1,326.838386740812 550.67064405365818 -,195.7134588784138 -,197.59561497628238 -23.002138147736332 -19.241576665866887 -22.615014523755235 1,479.5448451281736 -21.96320416364324 -20.297057807452802 -21.767748552450939 -21.779836933004844 -18.839475474385836 -20.73132454304141 -19.605156537880248 -21.072186808138213 -20.788233600118474 -15.610027391176118 -20.548969738694723 -18.791481456588372 -19.584440812832327 -18.079491016484099 -20.432407959953707 -20.000115872702736 -17.880051000596723 -19.432735540540307 -17.759015149342304 -19.294704493066092 -18.201377783527278 -14.305092066912039 -18.076092947740108 -16.371891422721092 -18.25856038373604 -16.896504222117073 -17.889815534697846 -18.468408903398085 -16.545158086730225 -18.012085263988411 -16.320977904637402 -17.944186538974463 -18.10972108612259 -13.364942361280555 -18.009127316152444 -16.31177901448973 -17.227313312803744 -15.959529176325304 -17.878312015353004 -17.48046870631515 -15.622582382697146 -17.038587586168433 -15.302323644296848 -17.049470230311272 -17.651036832063255 -13.02785782180581 -19.102046710926516 -15.917133755778195 -16.897800351354817 -15.718410685585695 -17.574128496431513 -17.168012475543946 -15.426545778027503 -16.799749067569792 -15.008286912183394 -16.890988708277291 -3,515.2403187375785 157.361570198962 -64.858729337358454 1,437.2845831570776 -62.387060959841619 -61.408667889059871 5.8 -3.1 -2.8559999999999999 -9.6735311541805356 -6.2 2.1 3.9 0.8 -1 Adjusted EBITDA $-2,178.944271737374 $6,623.9804239506902 $13,119.831269883485 $23,934.752643343891 $27,473.740958059221 $5,106.6922539450716 $21,953.627011782079 $27,590.259715220702 $19,230.446548573855 $9,521.4937323893319 $12,534.728738293024 $-5,917 $7,434 $13,774 $14,018 $23,664 $31,616 $14,732 $28,414 $35,554 $24,595 $20,827 $30,776 $1,310.20185014 $12,410.287540082 $46,510.146803621 $22,669.255139079 $15,782.280977692 $35,620.168060593 $22,134.21730538 $23,635.232010963 $16,108.99810116255 $22,397.221482245 $18,641.9998061441 $17,714 $-3,903 $4,469 $22,236 $22,725 $20,630 $19,682 $23,362.893923792533 $26,181.5150000006 $32,085.25028567496 $32,933 $16,574.999992373971 $27,468.999999999884 $13,012.7 $9,393.1999999999971 $36,376.5 $32,732 $27,134 $49,507 $30,107 $31,388 $37,678 $32,153 $21,297.624280881377 $24,069.458284140594 $6,437.7895466216705 $21,848.838748561033 $34,930.827601760204 $31,918.356713791196 $38,073.331255449637 $38,874.539512508338 $25,702.290446583447 $42,788.787306541446 $41,209.101426469868 $38,558.6219442644 $32,278.360762661516 $32,957.508584355433 $14,411.267771942192 $21,344.909077744003 $43,177.778348028252 $32,985.40679712611 $47,284.285592736844 $51,582.398748572035 $34,631.775094743229 $43,252.372375129831 $45,063.72741769765 $46,586.663385720851 $33,941.282064158862 $29,966.781330760667 $23,774.869431415795 $22,965.31881431249 $44,934.700209793555 $44,984.440398959377 $48,715.708904897467 $52,637.191779070483 $39,708.35021504209 $49,588.100810031137 $45,879.987691513517 $53,509.404469751877 $37,290.710734806511 $37,679.818110169792 $18,795.47207556288 $25,889.836584370343 $46,448.675263250327 $47,926.306575577255 $50,527.92238557696 $58,569.971214011712 $40,833.661652656527 $49,385.581450217775 $58,474.377288741154 $51,843.37044336583 $41,440.853304689263 $39,482.321576971881 $26,221.377090054935 $26,984.87447679344 $50,320.206867723922 $51,802.891627022305 $44,469.851480759862 $63,826.13920226691 $49,450.739385967034 $47,092.906716049656 $62,671.817815390663 $53,346.823332796368 $39,374.439005639186 $43,529.171154930402 $99,173 $77,520.82565021963 $63,217.455896942905 $,108,866.22748174917 $,109,700.17917959476 $,103,794.49129128136 $159.19999999999999 $239.54300000000001 $254.9 $244.5084989253547 $333.27499999999998 $297.50000000000023 $305.82299999999998 $65.999999999999815 $57.700000000000564 Revenue $4,868.8450000000003 $4,850.480681463574 $4,865.4342518556286 $5,068.8 $4,832.3999999999996 $4,697.4710078968801 $4,691.8999999999996 $1,142.6999999999998 $1,148.3000000000002 Adjusted EBITDA Margin 3.3% 4.9% 5.2% 4.8% 6.9% 6.3% 6.5% 5.8% 5.2% Leverage Ratio 8.5351758793969861 5.7651444625808308 5.3405256963515102 4.565076489798261 3.2462680969169608 3.395966386554619 3.4510157836395567 YRC Freight Segment 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 FY 2013 FY 2014 FY 2015 4Q14 4Q15 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 LTM 3Q 2016 4Q 2015 4Q 2016 Reconciliation of operating income (loss) to adjusted EBITDA Operating (loss) income $-31.2 $0.5 $18 $24.5 $-21.4 $-88.48 $-37.299999999999997 $-31.2 $0.5 $18 $53.2 $31.856999999999999 $-21.4 $-9.9999999999994316E-2 Depreciation and amortization 109.1 98 93.1 23.8 22.599999999999994 102.91500000000001 119.8 109.1 98 93.1 90.3 90.488 22.6 22.399999999999991 (Gains) losses on property disposals, net -3 -15.9 1.9 -9.1 0.19999999999999996 -10.478 -9.9 -3 -15.9 1.9 -15.7 -11.840999999999999 0.2 -3.6999999999999993 Letter of credit expense 25.8 8.3000000000000007 6.1 1.5 1.5 28.093 29.6 25.8 8.3000000000000007 6.1 5 5.427999999999999 1.5 1.1000000000000001 Union equity awards 10.311 0 0 0 0 0 0 0 0 Nonrecurring consulting fees 0 0 5.0999999999999996 0 0 0 0 0 0 5.0999999999999996 0 0 0 0 Amortization of ratification bonus 0 10 12.2 3.3 2.8999999999999986 0 0 0 10 12.2 3 5.9039999999999999 2.9 0 Non-union pension settlement charge 0 0 28.7 0 28.7 0 0 0 0 28.7 0 28.710118740000002 28.7 0 Other, net (a) 4.5 -1.1000000000000001 2.1 0 2.3000000000000003 1.4 2.7 4.5 -1.1000000000000001 2.1 4.3 5.5 2.2999999999999998 1.0999999999999996 Adjusted EBITDA $105.19999999999999 $99.8 $167.19999999999996 $43.999999999999993 $36.79999999999999 $43.7 $104.89999999999999 $105.19999999999999 $99.8 $167.19999999999996 $140.10000000000002 $156.14611873999999 $36.799999999999997 $20.799999999999997 Revenue $3,203.369999999998 $3,206.9133781 $3,136.7610459000002 $3,237.376861499999 $3,055.7 $2,958.9 $2,962.28653222091 $733.69999999999982 $730.30000000000018 Adjusted EBITDA Margin 1.4% 3.3% 3.4% 3.8% 5.5% 4.7% 5.3% 5.2% 2.8% Regional Transportation Segment 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 FY 2013 FY 2014 FY 2015 4Q14 4Q15 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 LTM 3Q 2016 4Q 2015 4Q 2016 Reconciliation of operating income to adjusted EBITDA Operating Income $79.900000000000006 $66.099999999999994 $85.4 $10.599999999999994 $9.5 $32.880000000000003 $70 $79.900000000000006 $66.099999999999994 $85.4 $81.3 $74.418000000000006 $9.5 $16.399999999999991 Depreciation and amortization 63.1 65.8 70.7 16.8 17.5 61.561999999999998 63.3 63.1 65.8 70.7 69.5 69.106999999999999 17.5 17.899999999999999 (Gains) losses on property disposals, net 0.6 4 0.2 3.3 0.2 -2.6549999999999998 0.7 0.6 4 0.2 1.1000000000000001 1.2 0.2 0.20000000000000007 Letter of credit expense 6.8 2.9 2.1 0.6 0.60000000000000009 6.6079999999999997 6.2 6.8 2.9 2.1 2.5 2.5269999999999997 0.6 0.5 Union equity awards 4.5730000000000004 0 0 0 0 0 0 0 0 Amortization of ratification bonus 0 5.6 6.6999999999999993 1.9 1.5999999999999996 0 0 0 5.6 6.7 1.5999999999999996 3.222 1.6 0 Other, net (a) 0.1 0 0.8 0 0.8 0.1 0 0.1 0 0.8 0.5 1.0780000000000001 0.8 0.2 Adjusted EBITDA $150.5 $144.39999999999998 $165.9 $33.199999999999996 $30.2 $103.06800000000001 $140.19999999999999 $150.5 $144.39999999999998 $165.9 $156.5 $151.452 $30.200000000000003 $35.199999999999996 Revenue $1,554.2729999999999 $1,640.6 $1,728.6 $1,831.4 $1,776.9 $1,739.3 $1,730.4731513499999 $409.20000000000005 $418 Adjusted EBITDA Margin 6.6% 8.5% 8.7% 7.9% 9.3% 8.9978727074110282 8.8% 7.4% 8.4%