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): August 3, 2020
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)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
| Common Stock, $0.01 par value per share | YRCW | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
On August 3, 2020, YRC Worldwide Inc. announced its results of operations and financial condition for the three months ended June 30, 2020. 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 August 3, 2020 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 August 3, 2020 | |
| 99.2 | ||
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.
| YRC WORLDWIDE INC. | ||
| By: | /s/ Jamie G. Pierson | |
| Jamie G. Pierson | ||
| Chief Financial Officer | ||
Date: August 3, 2020
Exhibit 99.1
| 10990 Roe Avenue Overland Park, KS 66211 Phone 913 696 6108 Fax 913 696 6116
News Release |
|
YRC Worldwide Reports Second Quarter 2020 Results
Secures $700 Million Investment from the United States Department of Treasury
Deferred Health Payments Satisfied, Liquidity Enhanced and Ability to Reinvest in the
Fleet Bolstered
OVERLAND PARK, Kan., August 3, 2020 — YRC Worldwide Inc. (NASDAQ: YRCW) reported results for the second quarter ended June 30, 2020. Operating revenue was $1.015 billion and operating loss was $4.6 million, which included a $6.0 million net gain on property disposals. In comparison, operating revenue in the second quarter of 2019 was $1.273 billion and operating income was $14.3 million, which included a $6.2 million net gain on property disposals.
Net Loss for second quarter 2020 was $37.1 million, or $1.09 per share, compared to net loss of $23.6 million, or $0.71 per share, in second quarter 2019.
On July 7th, the Company successfully secured a loan with the United States Department of Treasury (the “UST”) for up to $700 million (the “UST Loan”) under the CARES Act. The significant terms of which are as follows:
| • | Tranche A of up to $300 million to satisfy previously deferred short-term contractual obligations such as healthcare payments and some lease obligations with the remaining amount going to fund an increase in liquidity. |
| • | Tranche B of up to $400 million to reinvest back into the business via purchases of tractors and trailers. |
| • | The UST Loan is non-amortizing, bears an interest rate of the Eurodollar (floor of 1.0%) + 3.5% and matures in September 2024. The Company issued UST approximately 30% of its outstanding shares on a post-transaction basis as a condition of the financing. |
In addition to the securing the UST Loan, the Company amended its existing term loan to, among other things, eliminate its Adjusted EBITDA covenant until December 31, 2021, at which time the covenant will require at least $100 million of LTM Adjusted EBITDA, and the covenant will incrementally increase to a requirement of at least $200 million LTM Adjusted EBITDA on June 30, 2022. The company was also able to decrease the amended interest rate on the existing term loan down to the previous LIBOR + 7.5% (with a floor of 1.0%). As a condition of the aforementioned amendments, the Company agreed to a minimum “Liquidity” requirement of $125 million.
Finally, the Company was also able to significantly extend the maturity on its Asset Based Loan (the “ABL”) from June 2021 to January 2024.
“It is a new day at YRC Worldwide,” said Darren Hawkins, Chief Executive Officer. “During this pandemic and historically difficult economic backdrop, we were able to secure financing that not only took care of our employees’ healthcare coverage but also will allow us to significantly upgrade the condition, age and efficiency of our rolling stock. We were also able to gain additional covenant relief and maturity extension of our other substantive debt instruments simultaneously,” said Darren Hawkins, Chief Executive Officer.
“On an operational basis, for the quarter, volumes declined year-over-year. However, after bottoming out in April, volumes have steadily improved through the quarter with rate of improvement slowing since late June. I would like to say the worst is behind us, but this virus and the spread thereof is too unpredictable. To that end, when we started to feel the impact of the economic slow down and subsequent decline in our volumes, we took immediate and swift action to build liquidity which allowed us to improve our cash position and end the quarter to just over $300 million in liquidity.”
“With the UST Loan secured and our largest maturities pushed out to 2024, we now have the unique ability to focus on and accelerate our Enterprise Transformation strategy that we began implementing last year. Our goal is to improve our customers’ experience while operating as one company, with one network and five incredibly proud and distinguished brands, Hawkins continued.
“In closing, I want to thank all of YRC’s employees across North America who continue to perform essential work to keep America rolling and the nation’s supply chain open during these challenging times. We continue to prioritize the health and safety of our employees above all while focusing on exceeding our customers’ expectations every single day on every single shipment,” concluded Hawkins.
Second Quarter 2020 Financial Update
| • | Revenue decreased by $257.2 million to $1.015 billion compared to revenue of $1.273 billion in second quarter of 2019. |
| • | Net loss increased by $13.5 million to $37.1 million compared to a net loss of $23.6 million in second quarter 2019. |
| • | On a non-GAAP basis, the Company generated consolidated Adjusted EBITDA of $37.9 million, a $29.4 million decrease compared to $67.3 million in the prior year comparable quarter (as detailed in the reconciliation below). Last twelve month (LTM) consolidated Adjusted EBITDA was $183.1 million compared to $259.1 million in 2019 (as detailed in the reconciliation below). |
Second Quarter 2020 Operational Update
| • | LTL revenue per hundredweight including fuel surcharge decreased 5.7%; however, weight per shipment increased 1.4% resulting in a LTL revenue per shipment decrease of 4.4% when compared to the same period in 2019. Excluding fuel surcharge, LTL revenue per hundredweight was down 2.6% and LTL revenue per shipment was down 1.2%. |
| • | LTL tonnage per day decreased 14.8% when compared to 2Q19. |
| • | The consolidated operating ratio for the quarter was 100.5 compared to 98.9 in 2Q19. |
Liquidity Update (as of June 30, 2020)
| • | The Company’s outstanding debt was $909.8 million, an increase of $44.8 million compared to $865.0 million as of June 30, 2019. |
| • | For the six months ended June 30, 2020, cash provided by operating activities was $213.6 million compared to cash used of $29.5 million for the six months ended June 30, 2019. |
| • | The Company’s available liquidity as calculated under our credit facilities in place before July 7, 2020, which was comprised of cash and cash equivalents and Managed Accessibility (as detailed in the supplemental information provided below) under its ABL facility, was $302.6 million. |
Key Information – Second quarter 2020 compared to Second quarter 2019
| YRC Worldwide |
2020 | 2019 | Percent Change(a) |
|||||||||
| Workdays |
63.0 | 63.5 | ||||||||||
| Operating revenue (in millions) |
$ | 1,015.4 | $ | 1,272.6 | (20.2 | )% | ||||||
| Operating income (in millions) |
$ | (4.6 | ) | $ | 14.3 | N/M | ||||||
| Operating ratio |
100.5 | 98.9 | (1.6pp | ) | ||||||||
| LTL tonnage per day (in thousands) |
36.24 | 42.54 | (14.8 | )% | ||||||||
| LTL shipments per day (in thousands) |
63.53 | 75.64 | (16.0 | )% | ||||||||
| LTL picked up revenue per hundredweight incl FSC |
$ | 20.36 | $ | 21.60 | (5.7 | )% | ||||||
| LTL picked up revenue per hundredweight excl FSC |
$ | 18.48 | $ | 18.98 | (2.6 | )% | ||||||
| LTL picked up revenue per shipment incl FSC |
$ | 232 | $ | 243 | (4.4 | )% | ||||||
| LTL picked up revenue per shipment excl FSC |
$ | 211 | $ | 214 | (1.2 | )% | ||||||
| LTL weight/shipment (in pounds) |
1,141 | 1,125 | 1.4 | % | ||||||||
| Total tonnage per day (in thousands) |
46.44 | 53.16 | (12.6 | )% | ||||||||
| Total shipments per day (in thousands) |
65.44 | 77.35 | (15.4 | )% | ||||||||
| Total picked up revenue per hundredweight incl FSC |
$ | 17.40 | $ | 18.72 | (7.0 | )% | ||||||
| Total picked up revenue per hundredweight excl FSC |
$ | 15.85 | $ | 16.51 | (4.0 | )% | ||||||
| Total picked up revenue per shipment incl FSC |
$ | 247 | $ | 257 | (4.0 | )% | ||||||
| Total picked up revenue per shipment excl FSC |
$ | 225 | $ | 227 | (0.8 | )% | ||||||
| Total weight/shipment (in pounds) |
1,419 | 1,374 | 3.3 | % | ||||||||
| (a) | Percent change based on unrounded figures and not the rounded figures presented |
Review of Financial Results
YRC Worldwide Inc. will host a conference call with the investment community today, Monday August 3, 2020, beginning at 5:00 p.m. ET.
A live audio webcast of the conference call and presentation slides will be available on YRC Worldwide Inc.’s website www.yrcw.com. A replay of the webcast will also be available at www.yrcw.com.
Non-GAAP Financial Measures
EBITDA is a non-GAAP measure that reflects the company’s earnings before interest, taxes, depreciation, and amortization expense. Adjusted EBITDA is a non-GAAP measure that reflects EBITDA, and further adjusts for letter of credit fees, equity-based compensation expense, net gains or losses on property disposals, restructuring charges, transaction costs related to issuances of debt, non-recurring consulting fees, non-cash impairment charges and the gains or losses from permitted dispositions, discontinued operations, and certain non-cash expenses, charges and losses (provided that if any of such non-cash expenses, charges or losses represents an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period will be subtracted from Adjusted EBITDA in such future period to the extent paid). Adjusted EBITDA as used herein is defined as Consolidated EBITDA in our new term loan facility entered into September 11, 2019, and as amended on April 7, 2020. EBITDA and Adjusted EBITDA are used for internal management purposes as a financial measure that reflects the company’s core operating performance. In addition, management uses Adjusted EBITDA to measure compliance with financial covenants in our credit facilities and to determine certain management and employee bonus compensation. We believe our presentation of EBITDA and Adjusted EBITDA is useful to investors and other users as these measures represent key supplemental information our management uses to compare and
evaluate our core underlying business results both on a consolidated basis and across our business segments, particularly in light of our leverage position and the capital-intensive nature of our business. Further, EBITDA is a measure that is commonly used by other companies in our industry and provides a comparison for investors to evaluate the performance of the companies in the industry. Additionally, Adjusted EBITDA helps investors to understand how the company is tracking against our financial covenant in our term loan credit agreement. However, these financial measures should not be construed as better measurements than net income, as defined by generally accepted accounting principles (GAAP).
EBITDA and Adjusted EBITDA have the following limitations:
| • | EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or fund principal payments on our outstanding debt; |
| • | Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or fund principal payments on our outstanding debt, letter of credit expenses, restructuring charges, transaction costs related to debt, non-cash charges, charges or losses (subject to the conditions above), or nonrecurring consulting fees, among other items; |
| • | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; |
| • | Equity-based compensation is an element of our long-term incentive compensation program for certain employees, although Adjusted EBITDA excludes employee equity-based compensation expense when presenting our ongoing operating performance for a particular period; and |
| • | Other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. |
Because of these limitations, our non-GAAP measures should not be considered a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using our non-GAAP measures as secondary measures. The company has provided reconciliations of its non-GAAP measures to GAAP net income (loss) and operating income (loss) within the supplemental financial information in this release.
* * * * *
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as “will,” “expect,” “intend,” “anticipate,” “believe,” “could,” “would,” “should,” “may,” “project,” “forecast,” “look forward,” “propose,” “plan,” “designed,” “enable,” and similar expressions which speak only as of the date the statement was made are intended to identify forward-looking statements. Forward-looking statements are inherently uncertain, are based upon current beliefs, assumptions and expectations of Company management and current market conditions, and are subject to significant business, economic, competitive, regulatory and other risks, uncertainties and contingencies, known and unknown, many of which are beyond our control. Our future financial condition and results could differ materially from those predicted in such forward-looking statements because of a number of factors, including (without limitation) general economic factors and transportation industry-specific economic conditions, including the impact of COVID-19; our ability to generate sufficient liquidity to satisfy our cash needs and future cash commitments, including (without limitation) the impact of COVID-19 on our results of operations, financial condition and cash flows; our obligations related to our indebtedness and lease and pension funding requirements, and our ability to achieve increased cash flows through improvement in operations; our failure to comply with the covenants in the documents governing our existing and future indebtedness; customer demand in the retail and manufacturing sectors; business risks and increasing costs associated with the transportation industry, including increasing equipment, operational and technology costs and disruption from natural disasters; competition and competitive pressure on pricing; the risk of labor disruptions or stoppages, if our relationship with our employees and unions were to deteriorate; increasing pension expense and
funding obligations, subject to interest rate volatility; increasing costs relating to our self-insurance claims expenses; our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures; our ability to comply and the cost of compliance with, or liability resulting from violation of, federal, state, local and foreign laws and regulations, including (without limitation) labor laws and laws and regulations regarding the environment; impediments to our operations and business resulting from anti-terrorism measures; the impact of claims and litigation expense to which we are or may become exposed; failure to realize the expected benefits and costs savings from our performance and operational improvement initiatives; our ability to attract and retain qualified drivers and increasing costs of driver compensation; a significant privacy breach or IT system disruption; risks of operating in foreign countries; our dependence on key employees; seasonality; shortages of fuel and changes in the cost of fuel or the index upon which we base our fuel surcharge and the effectiveness of our fuel surcharge program in protecting us against fuel price volatility; limitations on our operations, our financing opportunities, potential strategic transactions, acquisitions or dispositions resulting from restrictive covenants in the documents governing our existing and future indebtedness; fluctuations in the price of our common stock; dilution from future issuances of our common stock; our intention not to pay dividends on our common stock; that we have the ability to issue preferred stock that may adversely affect the rights of holders of our common stock; and other risks and contingencies, including (without limitation) the risk factors that are included in our reports filed with the SEC, including those described under “Risk Factors” in our annual report on Form 10-K and quarterly reports on Form 10-Q.
* * * * *
About YRC Worldwide
YRC Worldwide Inc., headquartered in Overland Park, Kan., is the holding company for a portfolio of less-than-truckload (LTL) companies including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company HNRY Logistics. Collectively, YRC Worldwide companies have one of the largest, most comprehensive logistics and LTL networks in North America with local, regional, national and international capabilities. Through their teams of experienced service professionals, YRC Worldwide companies offer industry-leading expertise in flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence.
Please visit our website at www.yrcw.com for more information.
Investor Contact: Eric Birge
913-696-6108
investor@yrcw.com
Media Contact: Mike Kelley
913-696-6121
mike.kelley@yrcw.com
SOURCE: YRC Worldwide
CONSOLIDATED BALANCE SHEETS
YRC Worldwide Inc. and Subsidiaries
(Amounts in millions except share and per share data)
| June 30, 2020 |
December 31, 2019 |
|||||||
| ASSETS |
(Unaudited | ) | ||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ | 264.2 | $ | 109.2 | ||||
| Restricted amounts held in escrow |
56.0 | — | ||||||
| Accounts receivable, net |
496.2 | 464.4 | ||||||
| Prepaid expenses and other |
42.9 | 44.6 | ||||||
|
|
|
|
|
|||||
| Total current assets |
859.3 | 618.2 | ||||||
|
|
|
|
|
|||||
| PROPERTY AND EQUIPMENT: |
||||||||
| Cost |
2,716.0 | 2,761.6 | ||||||
| Less—accumulated depreciation |
(2,002.3 | ) | (1,991.3 | ) | ||||
|
|
|
|
|
|||||
| Net property and equipment |
713.7 | 770.3 | ||||||
|
|
|
|
|
|||||
| Deferred income taxes, net |
0.5 | 0.6 | ||||||
| Operating lease right-of-use assets |
319.2 | 386.0 | ||||||
| Other assets |
43.9 | 56.5 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 1,936.6 | $ | 1,831.6 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ DEFICIT |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Accounts payable |
$ | 195.7 | $ | 163.7 | ||||
| Wages, vacations, and employee benefits |
333.2 | 195.9 | ||||||
| Current operating lease liabilities |
114.0 | 120.8 | ||||||
| Other current and accrued liabilities |
155.8 | 167.5 | ||||||
| Current maturities of long-term debt |
3.6 | 4.1 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
802.3 | 652.0 | ||||||
|
|
|
|
|
|||||
| OTHER LIABILITIES: |
||||||||
| Long-term debt, less current portion |
871.1 | 858.1 | ||||||
| Pension and postretirement |
225.9 | 236.5 | ||||||
| Operating lease liabilities |
214.0 | 246.3 | ||||||
| Claims and other liabilities |
290.2 | 279.9 | ||||||
| Commitments and contingencies |
||||||||
| SHAREHOLDERS’ DEFICIT: |
||||||||
| Preferred stock, $1 par value per share |
— | — | ||||||
| Common stock, $0.01 par value per share |
0.3 | 0.3 | ||||||
| Capital surplus |
2,335.5 | 2,332.9 | ||||||
| Accumulated deficit |
(2,345.2 | ) | (2,312.4 | ) | ||||
| Accumulated other comprehensive loss |
(364.8 | ) | (369.3 | ) | ||||
| Treasury stock, at cost (410 shares) |
(92.7 | ) | (92.7 | ) | ||||
|
|
|
|
|
|||||
| Total shareholders’ deficit |
(466.9 | ) | (441.2 | ) | ||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ deficit |
$ | 1,936.6 | $ | 1,831.6 | ||||
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|
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STATEMENTS OF CONSOLIDATED COMPREHENSIVE LOSS
YRC Worldwide Inc. and Subsidiaries
For the Three and Six Months Ended June 30
(Amounts in millions except per share data, shares in thousands)
(Unaudited)
| Three Months | Six Months | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| OPERATING REVENUE |
$ | 1,015.4 | $ | 1,272.6 | $ | 2,165.8 | $ | 2,454.9 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING EXPENSES: |
||||||||||||||||
| Salaries, wages and employee benefits |
647.9 | 782.3 | 1,368.1 | 1,500.5 | ||||||||||||
| Fuel, operating expenses and supplies |
162.7 | 228.3 | 370.7 | 464.2 | ||||||||||||
| Purchased transportation |
126.0 | 158.0 | 262.2 | 304.3 | ||||||||||||
| Depreciation and amortization |
34.2 | 38.5 | 69.9 | 78.5 | ||||||||||||
| Other operating expenses |
55.2 | 57.4 | 116.8 | 121.2 | ||||||||||||
| Gains on property disposals, net |
(6.0 | ) | (6.2 | ) | (45.3 | ) | (4.6 | ) | ||||||||
| Impairment charges |
— | — | — | 8.2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
1,020.0 | 1,258.3 | 2,142.4 | 2,472.3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING INCOME (LOSS) |
(4.6 | ) | 14.3 | 23.4 | (17.4 | ) | ||||||||||
|
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|
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|
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|
|||||||||
| NONOPERATING EXPENSES: |
||||||||||||||||
| Interest expense |
40.2 | 28.2 | 68.5 | 55.2 | ||||||||||||
| Non-union pension and postretirement benefits |
(1.6 | ) | 0.5 | (3.2 | ) | 0.8 | ||||||||||
| Other, net |
1.4 | 0.1 | (1.2 | ) | (0.1 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Nonoperating expenses, net |
40.0 | 28.8 | 64.1 | 55.9 | ||||||||||||
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|
|||||||||
| LOSS BEFORE INCOME TAXES |
(44.6 | ) | (14.5 | ) | (40.7 | ) | (73.3 | ) | ||||||||
| INCOME TAX EXPENSE (BENEFIT) |
(7.5 | ) | 9.1 | (7.9 | ) | (0.6 | ) | |||||||||
|
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|
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|
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|
|||||||||
| NET LOSS |
(37.1 | ) | (23.6 | ) | (32.8 | ) | (72.7 | ) | ||||||||
| OTHER COMPREHENSIVE INCOME, NET OF TAX |
3.2 | 2.0 | 4.5 | 5.5 | ||||||||||||
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|
|
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|
|
|||||||||
| COMPREHENSIVE LOSS |
$ | (33.9 | ) | $ | (21.6 | ) | $ | (28.3 | ) | $ | (67.2 | ) | ||||
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|||||||||
| AVERAGE COMMON SHARES OUTSTANDING—BASIC |
34,021 | 33,247 | 33,906 | 33,199 | ||||||||||||
| AVERAGE COMMON SHARES OUTSTANDING—DILUTED |
34,021 | 33,247 | 33,906 | 33,199 | ||||||||||||
| LOSS PER SHARE—BASIC |
$ | (1.09 | ) | $ | (0.71 | ) | $ | (0.97 | ) | $ | (2.19 | ) | ||||
| LOSS PER SHARE—DILUTED |
$ | (1.09 | ) | $ | (0.71 | ) | $ | (0.97 | ) | $ | (2.19 | ) | ||||
| OPERATING RATIO (a): |
100.5 | % | 98.9 | % | 98.9 | % | 100.7 | % | ||||||||
| (a) | Operating ratio is calculated as (i) 100 percent (ii) minus the result of dividing operating income by operating revenue or (iii) plus the result of dividing operating loss by operating revenue, and expressed as a percentage. |
STATEMENTS OF CONSOLIDATED CASH FLOWS
YRC Worldwide Inc. and Subsidiaries
For the Six Months Ended June 30
(Amounts in millions)
(Unaudited)
| 2020 | 2019 | |||||||
| OPERATING ACTIVITIES: |
||||||||
| Net loss |
$ | (32.8 | ) | $ | (72.7 | ) | ||
| Adjustments to reconcile net loss to cash flows from operating activities: |
||||||||
| Depreciation and amortization |
69.9 | 78.5 | ||||||
| Lease amortization and accretion expense |
83.5 | 82.3 | ||||||
| Lease payments |
(55.7 | ) | (75.4 | ) | ||||
| Paid-in-kind interest |
38.8 | — | ||||||
| Equity-based compensation and employee benefits expense |
10.5 | 9.5 | ||||||
| Gains on property disposals, net |
(45.3 | ) | (4.6 | ) | ||||
| Impairment charges |
— | 8.2 | ||||||
| Deferred income tax benefit, net |
0.1 | (1.6 | ) | |||||
| Other non-cash items, net |
4.8 | 2.1 | ||||||
| Changes in assets and liabilities, net: |
||||||||
| Accounts receivable |
(31.9 | ) | (67.2 | ) | ||||
| Accounts payable |
22.0 | 5.3 | ||||||
| Other operating assets |
8.6 | (4.5 | ) | |||||
| Other operating liabilities |
141.1 | 10.6 | ||||||
|
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|
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|
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| Net cash provided by (used in) operating activities |
213.6 | (29.5 | ) | |||||
|
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| INVESTING ACTIVITIES: |
||||||||
| Acquisition of property and equipment |
(24.1 | ) | (70.6 | ) | ||||
| Proceeds from disposal of property and equipment |
54.1 | 8.3 | ||||||
|
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|
|
|
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| Net cash provided by (used in) investing activities |
30.0 | (62.3 | ) | |||||
|
|
|
|
|
|||||
| FINANCING ACTIVITIES: |
||||||||
| Repayment of long-term debt |
(28.2 | ) | (17.5 | ) | ||||
| Debt issuance costs |
(3.8 | ) | — | |||||
| Payments for tax withheld on equity-based compensation |
(0.6 | ) | (0.8 | ) | ||||
|
|
|
|
|
|||||
| Net cash used in financing activities |
(32.6 | ) | (18.3 | ) | ||||
|
|
|
|
|
|||||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW |
211.0 | (110.1 | ) | |||||
| CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW, BEGINNING OF PERIOD |
109.2 | 227.6 | ||||||
|
|
|
|
|
|||||
| CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW, END OF PERIOD |
$ | 320.2 | $ | 117.5 | ||||
|
|
|
|
|
|||||
| SUPPLEMENTAL CASH FLOW INFORMATION |
||||||||
| Interest paid |
$ | (22.1 | ) | $ | (50.6 | ) | ||
| Income tax payment, net |
(0.6 | ) | (2.5 | ) | ||||
SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
(Amounts in millions)
(Unaudited)
SUPPLEMENTAL INFORMATION: Total Debt
| As of June 30, 2020 |
Par Value | Discount | Debt Issue Costs |
Book Value | ||||||||||||
| New Term Loan |
$ | 613.5 | $ | (23.9 | ) | $ | (10.7 | ) | $ | 578.9 | ||||||
| ABL Facility |
— | — | — | — | ||||||||||||
| Secured Second A&R CDA |
24.8 | — | (0.1 | ) | 24.7 | |||||||||||
| Unsecured Second A&R CDA |
45.2 | — | (0.1 | ) | 45.1 | |||||||||||
| Lease financing obligations |
226.3 | — | (0.3 | ) | 226.0 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total debt |
$ | 909.8 | $ | (23.9 | ) | $ | (11.2 | ) | $ | 874.7 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| As of December 31, 2019 |
Par Value | Discount | Debt Issue Costs |
Book Value | ||||||||||||
| New Term Loan |
$ | 600.0 | $ | (28.1 | ) | $ | (12.0 | ) | $ | 559.9 | ||||||
| ABL Facility |
— | — | — | — | ||||||||||||
| Secured Second A&R CDA |
26.0 | — | (0.1 | ) | 25.9 | |||||||||||
| Unsecured Second A&R CDA |
45.2 | — | (0.1 | ) | 45.1 | |||||||||||
| Lease financing obligations |
231.6 | — | (0.3 | ) | 231.3 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total debt |
$ | 902.8 | $ | (28.1 | ) | $ | (12.5 | ) | $ | 862.2 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
SUPPLEMENTAL INFORMATION: Liquidity
| June 30, 2020 |
December 31, 2019 |
|||||||||||||||
| Cash and cash equivalents |
$ | 264.2 | $ | 109.2 | ||||||||||||
| Changes to restricted cash |
18.0 | (29.0 | ) | |||||||||||||
| Managed Accessibility (a) |
20.4 | 0.2 | ||||||||||||||
|
|
|
|
|
|||||||||||||
| Total Cash and cash equivalents and Managed Accessibility |
$ | 302.6 | $ | 80.4 | ||||||||||||
|
|
|
|
|
|||||||||||||
| (a) | Managed Accessibility represents the maximum amount we would access on the ABL Facility and is adjusted for eligible receivables plus eligible borrowing base cash measured for the applicable period. Based on the eligible receivable’s management uses to measure availability, which is 10% of the borrowing line, the credit agreement governing the ABL Facility permits adjustments from eligible borrowing base cash to restricted cash prior to the compliance measurement date which is 15 days from the period close. |
SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Three and Six Months Ended June 30
(Amounts in millions)
(Unaudited)
| Three Months | Six Months | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Reconciliation of net income (loss) to Adjusted EBITDA(a): |
||||||||||||||||
| Net loss |
$ | (37.1 | ) | $ | (23.6 | ) | $ | (32.8 | ) | $ | (72.7 | ) | ||||
| Interest expense, net |
40.2 | 27.8 | 68.4 | 54.3 | ||||||||||||
| Income tax expense (benefit) |
(7.5 | ) | 9.1 | (7.9 | ) | (0.6 | ) | |||||||||
| Depreciation and amortization |
34.2 | 38.5 | 69.9 | 78.5 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
29.8 | 51.8 | 97.6 | 59.5 | ||||||||||||
| Adjustments for New Term Loan Agreement: |
||||||||||||||||
| Gains on property disposals, net |
(6.0 | ) | (6.2 | ) | (45.3 | ) | (4.6 | ) | ||||||||
| Non-cash reserve changes(b) |
2.7 | 16.0 | 3.0 | 16.0 | ||||||||||||
| Impairment charges |
— | — | — | 8.2 | ||||||||||||
| Letter of credit expense |
1.6 | 1.6 | 3.2 | 3.2 | ||||||||||||
| Permitted dispositions and other |
— | — | 0.2 | (1.1 | ) | |||||||||||
| Equity-based compensation expense |
1.2 | 1.1 | 3.2 | 3.4 | ||||||||||||
| Other, net |
2.1 | 1.0 | 0.5 | 2.1 | ||||||||||||
| Expense amounts subject to 10% threshold(c): |
||||||||||||||||
| COVID-19 |
3.7 | — | 3.9 | — | ||||||||||||
| Other, net |
2.8 | 4.1 | 5.7 | 12.8 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA prior to 10% threshold |
37.9 | 69.4 | 72.0 | 99.5 | ||||||||||||
| Adjustments pursuant to TTM calculation(c) |
— | (2.1 | ) | — | (2.1 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
$ | 37.9 | $ | 67.3 | $ | 72.0 | $ | 97.4 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (a) | Certain reclassifications have been made to prior year to conform to current year presentation. |
| (b) | Non-cash reserve changes reflect the net non-cash reserve charge for union and non-union vacation, with such non-cash reserve adjustment to be reduced by cash charges in a future period when paid. |
| (c) | Pursuant to the New Term Loan Agreement, Adjusted EBITDA limits certain adjustments in aggregate to 10% of the trailing-twelve-month (“TTM”) consolidated Adjusted EBITDA, prior to the inclusion of amounts subject to the 10% threshold, for each period ending. Such adjustments include, but are not limited to, restructuring charges, integration costs, severance, and non-recurring charges. The limitation calculation is updated quarterly based on TTM Adjusted EBITDA, however, the sum of the quarters may not necessarily equal TTM Adjusted EBITDA due to the expiration of adjustments from prior periods. |
SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Trailing Twelve Months Ended June 30
(Amounts in millions)
(Unaudited)
| 2020 | 2019 | |||||||
| Reconciliation of net loss to Adjusted EBITDA(a): |
||||||||
| Net loss |
$ | (64.1 | ) | $ |
(52.3 |
) | ||
| Interest expense, net |
124.0 | 107.8 | ||||||
| Income tax expense |
(11.6 | ) | 13.0 | |||||
| Depreciation and amortization |
143.8 | 150.9 | ||||||
|
|
|
|
|
|||||
| EBITDA |
192.1 | 219.4 | ||||||
| Adjustments for Term Loan Agreement: |
||||||||
| Gains on property disposals, net |
(54.4 | ) | (30.8 | ) | ||||
| Non-cash reserve changes(b) |
3.1 | 16.0 | ||||||
| Impairment charges |
— | 8.2 | ||||||
| Letter of credit expense |
6.5 | 6.4 | ||||||
| Permitted dispositions and other |
0.4 | (1.5 | ) | |||||
| Equity-based compensation expense |
6.1 | 4.9 | ||||||
| Loss on extinguishment of debt |
11.2 | — | ||||||
| Non-union pension settlement charge |
1.8 | 10.9 | ||||||
| Other, net |
1.3 | 1.9 | ||||||
| Expense amounts subject to 10% threshold(c): |
||||||||
| COVID-19 |
3.9 | — | ||||||
| Other, net |
11.1 | 25.8 | ||||||
|
|
|
|
|
|||||
| Adjusted EBITDA prior to 10% threshold |
183.1 | 261.2 | ||||||
| Adjustments pursuant to TTM calculation(c) |
— | (2.1 | ) | |||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
$ | 183.1 | $ | 259.1 | ||||
|
|
|
|
|
|||||
For explanations of footnotes (a), (b) and (c), please refer to previous page.
YRC Worldwide Inc.
Statistics
Quarterly Comparison
| 2Q20 | 2Q19 | 1Q20 | Y/Y % (b) |
Sequential % (a) |
||||||||||||||||
| Workdays |
63.0 | 63.5 | 65.5 | |||||||||||||||||
| LTL picked up revenue (in millions) |
$ | 929.8 | $ | 1,167.2 | $ | 1,049.6 | (20.3 | ) | (11.4 | ) | ||||||||||
| LTL tonnage (in thousands) |
2,283 | 2,702 | 2,544 | (15.5 | ) | (10.3 | ) | |||||||||||||
| LTL tonnage per day (in thousands) |
36.24 | 42.54 | 38.85 | (14.8 | ) | (6.7 | ) | |||||||||||||
| LTL shipments (in thousands) |
4,003 | 4,803 | 4,323 | (16.7 | ) | (7.4 | ) | |||||||||||||
| LTL shipments per day (in thousands) |
63.53 | 75.64 | 66.00 | (16.0 | ) | (3.7 | ) | |||||||||||||
| LTL picked up revenue/cwt. |
$ | 20.36 | $ | 21.60 | $ | 20.63 | (5.7 | ) | (1.3 | ) | ||||||||||
| LTL picked up revenue/cwt. (excl. FSC) |
$ | 18.48 | $ | 18.98 | $ | 18.27 | (2.6 | ) | 1.2 | |||||||||||
| LTL picked up revenue/shipment |
$ | 232 | $ | 243 | $ | 243 | (4.4 | ) | (4.3 | ) | ||||||||||
| LTL picked up revenue/shipment (excl. FSC) |
$ | 211 | $ | 214 | $ | 215 | (1.2 | ) | (1.9 | ) | ||||||||||
| LTL weight/shipment (in pounds) |
1,141 | 1,125 | 1,177 | 1.4 | (3.1 | ) | ||||||||||||||
| Total picked up revenue (in millions)(b) |
$ | 1,018.4 | $ | 1,264.0 | $ | 1,141.4 | (19.4 | ) | (10.8 | ) | ||||||||||
| Total tonnage (in thousands) |
2,926 | 3,375 | 3,234 | (13.3 | ) | (9.5 | ) | |||||||||||||
| Total tonnage per day (in thousands) |
46.44 | 53.16 | 49.37 | (12.6 | ) | (5.9 | ) | |||||||||||||
| Total shipments (in thousands) |
4,122 | 4,912 | 4,426 | (16.1 | ) | (6.9 | ) | |||||||||||||
| Total shipments per day (in thousands) |
65.44 | 77.35 | 67.57 | (15.4 | ) | (3.2 | ) | |||||||||||||
| Total revenue/cwt. |
$ | 17.40 | $ | 18.72 | $ | 17.65 | (7.0 | ) | (1.4 | ) | ||||||||||
| Total revenue/cwt. (excl. FSC) |
$ | 15.85 | $ | 16.51 | $ | 15.69 | (4.0 | ) | 1.1 | |||||||||||
| Total revenue/shipment |
$ | 247 | $ | 257 | $ | 258 | (4.0 | ) | (4.2 | ) | ||||||||||
| Total revenue/shipment (excl. FSC) |
$ | 225 | $ | 227 | $ | 229 | (0.8 | ) | (1.8 | ) | ||||||||||
| Total weight/shipment (in pounds) |
1,419 | 1,374 | 1,461 | 3.3 | (2.9 | ) | ||||||||||||||
| (b)Reconciliation of operating revenue to total picked up revenue (in millions): |
|
|||||||||||||||||||
| Operating revenue |
$ | 1,015.4 | $ | 1,272.6 | $ | 1,150.4 | ||||||||||||||
| Change in revenue deferral and other |
3.0 | (8.6 | ) | (9.0 | ) | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
| Total picked up revenue |
$ | 1,018.4 | $ | 1,264.0 | $ | 1,141.4 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
| (a) | Percent change based on unrounded figures and not the rounded figures presented. |
| (b) | Does not equal financial statement revenue due to revenue adjustments for shipments in transit and the impact of other revenue. |
YRC Worldwide Inc.
Statistics
YTD Comparison
| 2020 | 2019 | Y/Y % (a) |
||||||||||
| Workdays |
128.5 | 126.5 | ||||||||||
| LTL picked up revenue (in millions) |
$ | 1,979.3 | $ | 2,253.5 | (12.2 | ) | ||||||
| LTL tonnage (in thousands) |
4,827 | 5,226 | (7.6 | ) | ||||||||
| LTL tonnage per day (in thousands) |
37.57 | 41.31 | (9.1 | ) | ||||||||
| LTL shipments (in thousands) |
8,325 | 9,259 | (10.1 | ) | ||||||||
| LTL shipments per day (in thousands) |
64.79 | 73.19 | (11.5 | ) | ||||||||
| LTL picked up revenue/cwt. |
$ | 20.50 | $ | 21.56 | (4.9 | ) | ||||||
| LTL picked up revenue/cwt. (excl. FSC) |
$ | 18.37 | $ | 19.00 | (3.3 | ) | ||||||
| LTL picked up revenue/shipment |
$ | 238 | $ | 243 | (2.3 | ) | ||||||
| LTL picked up revenue/shipment (excl. FSC) |
$ | 213 | $ | 214 | (0.7 | ) | ||||||
| LTL weight/shipment (in pounds) |
1,160 | 1,129 | 2.7 | |||||||||
| Total picked up revenue (in millions) (b) |
$ | 2,159.8 | $ | 2,440.4 | (11.5 | ) | ||||||
| Total tonnage (in thousands) |
6,159 | 6,530 | (5.7 | ) | ||||||||
| Total tonnage per day (in thousands) |
47.93 | 51.62 | (7.1 | ) | ||||||||
| Total shipments (in thousands) |
8,548 | 9,461 | (9.6 | ) | ||||||||
| Total shipments per day (in thousands) |
66.52 | 74.79 | (11.0 | ) | ||||||||
| Total picked up revenue/cwt. |
$ | 17.53 | $ | 18.69 | (6.2 | ) | ||||||
| Total picked up revenue/cwt. (excl. FSC) |
$ | 15.77 | $ | 16.52 | (4.5 | ) | ||||||
| Total picked up revenue/shipment |
$ | 253 | $ | 258 | (2.1 | ) | ||||||
| Total picked up revenue/shipment (excl. FSC) |
$ | 227 | $ | 228 | (0.3 | ) | ||||||
| Total weight/shipment (in pounds) |
1,441 | 1,380 | 4.4 | |||||||||
| (a) Reconciliation of operating revenue to total picked up revenue (in millions): |
|
|||||||||||
| Operating revenue |
$ | 2,165.8 | $ | 2,454.9 | ||||||||
| Change in revenue deferral and other |
(6.0 | ) | (14.5 | ) | ||||||||
|
|
|
|
|
|||||||||
| Total picked up revenue |
$ | 2,159.8 | $ | 2,440.4 | ||||||||
|
|
|
|
|
|||||||||
| (a) | Percent change based on unrounded figures and not the rounded figures presented. |
| (b) | Does not equal financial statement revenue due to revenue adjustments for shipments in transit and the impact of other revenue. |
YRC WORLDWIDE second QUARTER 2020 EARNINGS CONFERENCE CALL Exhibit 99.2
($ in millions) Term Loan Lease Financing Obligations CDA Notes UST Tranche B UST Tranche A Capital Structure Overview Tranche A of $300M will be used to cover short-term contractual obligations and certain other obligations including pension and healthcare payments and will carry an interest rate of LIBOR plus 3.5%, consisting of 1.5% cash and 2.0% payment in kind Tranche B of $400M will be used for essential capital investment in trailers and tractors and is expected to carry an interest rate of LIBOR plus 3.5% in cash
Largest debt instruments and the current labor agreement mature at various dates in 2024 Focused on Operational Execution Runway 3.5 years IBT March ABL Facility Jan. Term Loan June CDA Notes December UST Loan Sept. Capital Structure and Labor Timeline Today 2020 2021 2022 2023 2024
COVENANT WAIVER THROUGH 3Q21 LTM Adjusted EBITDA Covenant
FINANCIAL RESULTS Revenue (in millions) $5,092 $5,006 $4,871 $4,582 2018 2Q19 LTM 2019 2Q20 LTM Operating Income (in millions) $143 $79 $57 $16 2018 2Q19 LTM 2019 2Q20 LTM 5
Financial results
Operating statistics (a) Percent change based on unrounded figures and not the rounded figures presented YoY % (a) 43951 43982 44012 Total LTL tonnage per day -22.560840232032962 0 -14.477907686330004 0 -8.5871408908211109 Total tonnage per day -20.300098945219812 0 -12.08650868507698 0 -6.6500041508973933 (a) Percent change based on unrounded figures and not the rounded figures presented. YRC Worldwide Inc. Instructions: Statistics 1 Update linking as appropriate Quarterly Comparison 2 Review check totals at the bottom 2Q20 2Q19 YoY % (a) Workdays 63 63.5 Total LTL tonnage (in thousands) 2,283.875474999998 2,701.5138614999951 -15.48858660187171 Total LTL tonnage per day (in thousands) 36.239484880952375 42.543525377952676 -14.817861098711962 Total LTL shipments (in thousands) 4,002.5230000000001 4,803.3660029999992 -16.672537601753085 Total LTL shipments per day (in thousands) 63.532111111111114 75.64355910236219 -16.011208535100327 Total picked up LTL revenue/cwt. $ 20.36191984175321 $ 21.602098871077715 -5.7410117263417249 Total picked up LTL revenue/cwt. (excl. FSC) $ 18.482311463191166 $ 18.981663538910954 -2.6307076547645805 Total picked up LTL revenue/shipment $ 232.29370891260297 $ 242.9894765514909 -4.4017410921173923 Total picked up LTL revenue/shipment (excl. FSC) $ 210.85068168566801 $ 213.51371989005187 -1.2472445357399931 Total LTL weight/shipment (in pounds) 1,140.8241988865523 1,124.8419794838587 1.4208412998621454 Total tonnage (in thousands) 2,925.6072372285003 3,375.386518499995 -13.325267456225262 Total tonnage per day (in thousands) 46.438210114738098 53.155693204724329 -12.637372753496892 Total shipments (in thousands) 4,122.4669999999996 4,911.6400029999995 -16.067403199704739 Total shipments per day (in thousands) 65.435984126984124 77.348661464566916 -15.401271479067466 Total picked up revenue/cwt. $ 17.404447132189908 $ 18.723793467924271 -7.0463623623841745 Total picked up revenue/cwt. (excl. FSC) $ 15.854703214829874 $ 16.508140654713461 -3.9582740028145804 Total picked up revenue/shipment $ 247.02963778677002 $ 257.34801413868951 -4.0095030017829174 Total picked up revenue/shipment (excl. FSC) $ 225.03338156213866 $ 226.8951119275323 -0.82052466867962126 Total weight/shipment (in pounds) 1,419.3478018033863 1,374.4437770025204 3.2670688719472887 YTD 2020 YTD 2020 YoY % (a) Workdays 128.5 126.5 Total LTL tonnage (in thousands) 4,827.4644900000003 5,225.6539764999998 -7.6198976872689128 Total LTL tonnage per day (in thousands) 37.567817042801558 41.309517600790514 -9.0577202913581196 Total LTL shipments (in thousands) 8,325.3169999999991 9,259.920059999989 -10.084952232842085 Total LTL shipments per day (in thousands) 64.788459143968865 73.194403209486154 -11.484408229218078 Total picked up LTL revenue/cwt. $ 20.50066733583246 $ 21.561997714207742 -4.9222265600925468 Total picked up LTL revenue/cwt. (excl. FSC) $ 18.368976074782271 $ 19.000419555905225 -3.3233133577132237 Total picked up LTL revenue/shipment $ 237.74768837038667 $ 243.38356077144184 -2.3156339660704273 Total picked up LTL revenue/shipment (excl. FSC) $ 213.02631411793934 $ 214.46944893331587 -0.67288596233827525 Total LTL weight/shipment (in pounds) 1,159.7070694124923 1,128.7616481429745 2.7415372696643958 Total tonnage (in thousands) 6,159.2479377250002 6,529.7527829999999 -5.6741021840765109 Total tonnage per day (in thousands) 47.93189056595331 51.618599075098814 -7.1422095430792085 Total shipments (in thousands) 8,548.4269999999997 9,460.5710059999983 -9.6415322650346038 Total shipments per day (in thousands) 66.524723735408557 74.787122577075081 -11.047889739508769 Total picked up revenue/cwt. $ 17.532648059986521 $ 18.68665502154635 -6.1755673245383962 Total picked up revenue/cwt. (excl. FSC) $ 15.765753409627408 $ 16.515185183576421 -4.537834517861099 Total picked up revenue/shipment $ 252.6498182796208 $ 257.95321985219982 -2.0559547873128796 Total picked up revenue/shipment (excl. FSC) $ 227.18842700517536 $ 227.97794413429196 -0.3463129436115685 Total weight/shipment (in pounds) 1,441.248663818502 1,380.4140952715768 4.3907673297373195 (a) Percent change based on unrounded figures and not the rounded figures presented. QTD Check 0 0 0 YTD Check 0
KEY SEGMENT INFORMATION (a) Percent change based on unrounded figures and not the rounded figures presented YRC Worldwide Inc. Instructions: Statistics 1 Update linking as appropriate Quarterly Comparison 2 Review check totals at the bottom 2Q20 2Q19 YoY % (a) Workdays 63 63.5 Total LTL tonnage (in thousands) 2,283.875474999998 2,701.5138614999951 -15.48858660187171 Total LTL tonnage per day (in thousands) 36.239484880952375 42.543525377952676 -14.817861098711962 Total LTL shipments (in thousands) 4,002.5230000000001 4,803.3660029999992 -16.672537601753085 Total LTL shipments per day (in thousands) 63.532111111111114 75.64355910236219 -16.011208535100327 Total picked up LTL revenue/cwt. $ 20.36191984175321 $ 21.602098871077715 -5.7410117263417249 Total picked up LTL revenue/cwt. (excl. FSC) $ 18.482311463191166 $ 18.981663538910954 -2.6307076547645805 Total picked up LTL revenue/shipment $ 232.29370891260297 $ 242.9894765514909 -4.4017410921173923 Total picked up LTL revenue/shipment (excl. FSC) $ 210.85068168566801 $ 213.51371989005187 -1.2472445357399931 Total LTL weight/shipment (in pounds) 1,140.8241988865523 1,124.8419794838587 1.4208412998621454 Total tonnage (in thousands) 2,925.6072372285003 3,375.386518499995 -13.325267456225262 Total tonnage per day (in thousands) 46.438210114738098 53.155693204724329 -12.637372753496892 Total shipments (in thousands) 4,122.4669999999996 4,911.6400029999995 -16.067403199704739 Total shipments per day (in thousands) 65.435984126984124 77.348661464566916 -15.401271479067466 Total picked up revenue/cwt. $ 17.404447132189908 $ 18.723793467924271 -7.0463623623841745 Total picked up revenue/cwt. (excl. FSC) $ 15.854703214829874 $ 16.508140654713461 -3.9582740028145804 Total picked up revenue/shipment $ 247.02963778677002 $ 257.34801413868951 -4.0095030017829174 Total picked up revenue/shipment (excl. FSC) $ 225.03338156213866 $ 226.8951119275323 -0.82052466867962126 Total weight/shipment (in pounds) 1,419.3478018033863 1,374.4437770025204 3.2670688719472887 YTD 2020 YTD 2019 YoY % (a) Workdays 128.5 126.5 Total LTL tonnage (in thousands) 4,827.4644900000003 5,225.6539764999998 -7.6198976872689128 Total LTL tonnage per day (in thousands) 37.567817042801558 41.309517600790514 -9.0577202913581196 Total LTL shipments (in thousands) 8,325.3169999999991 9,259.920059999989 -10.084952232842085 Total LTL shipments per day (in thousands) 64.788459143968865 73.194403209486154 -11.484408229218078 Total picked up LTL revenue/cwt. $ 20.50066733583246 $ 21.561997714207742 -4.9222265600925468 Total picked up LTL revenue/cwt. (excl. FSC) $ 18.368976074782271 $ 19.000419555905225 -3.3233133577132237 Total picked up LTL revenue/shipment $ 237.74768837038667 $ 243.38356077144184 -2.3156339660704273 Total picked up LTL revenue/shipment (excl. FSC) $ 213.02631411793934 $ 214.46944893331587 -0.67288596233827525 Total LTL weight/shipment (in pounds) 1,159.7070694124923 1,128.7616481429745 2.7415372696643958 Total tonnage (in thousands) 6,159.2479377250002 6,529.7527829999999 -5.6741021840765109 Total tonnage per day (in thousands) 47.93189056595331 51.618599075098814 -7.1422095430792085 Total shipments (in thousands) 8,548.4269999999997 9,460.5710059999983 -9.6415322650346038 Total shipments per day (in thousands) 66.524723735408557 74.787122577075081 -11.047889739508769 Total picked up revenue/cwt. $ 17.532648059986521 $ 18.68665502154635 -6.1755673245383962 Total picked up revenue/cwt. (excl. FSC) $ 15.765753409627408 $ 16.515185183576421 -4.537834517861099 Total picked up revenue/shipment $ 252.6498182796208 $ 257.95321985219982 -2.0559547873128796 Total picked up revenue/shipment (excl. FSC) $ 227.18842700517536 $ 227.97794413429196 -0.3463129436115685 Total weight/shipment (in pounds) 1,441.248663818502 1,380.4140952715768 4.3907673297373195 (a) Percent change based on unrounded figures and not the rounded figures presented. QTD Check 0 0 0 YTD Check 0
($ in millions) Adjusted Ebitda reconciliation YRCW Inc. Reconciliation of Net (Loss) Income to Adjusted EBITDA LTM LTM LTM LTM LTM LTM 2015 2016 2017 2018 2019 2Q 2018 2Q 2019 4Q 2019 1Q 2020 2Q 2020 4Q 2018 1Q 2019 2Q 2019 4Q 2019 1Q 2020 2Q 2020 Reconciliation of net income (loss) to adjusted EBITDA Net income (loss) $0.7 $21.5 $-10.8 $20.2 $-,103.99999999999928 $14.4 $-23.6 $-15.299999999999827 $4.3 $-37.099999999999909 $20.2 $-14.299999999999862 $-52.299999999999869 $-,103.99999999999983 $-50.599999999999831 $-64.099999999999739 Interest expense, net 107.1 103 102.4 104.5 109.9 25.5 27.799999999999997 27.900000000000006 28.2 40.200000000000003 104.5 105.5 107.8 109.9 111.60000000000001 124.00000000000001 Income tax (benefit) expense -5.0999999999999996 3.1 -7.3 11.1 -4.3 10.4 9.1 -3.1999999999999997 -0.4 -7.5 11.1 14.3 13.000000000000002 -4.2999999999999989 5 -11.6 Depreciation and amortization 163.69999999999999 159.80000000000001 147.69999999999999 147.69999999999999 152.4 37.599999999999994 38.5 36.700000000000003 35.700000000000003 34.200000000000003 147.69999999999999 150 150.9 152.4 148.10000000000002 143.80000000000001 EBITDA $266.39999999999998 $287.39999999999998 232 283.5 154.00000000000074 $87.899999999999991 51.8 46.100000000000179 67.800000000000011 29.800000000000097 $283.5 $255.50000000000011 219.40000000000015 154.00000000000017 214.10000000000019 192.10000000000028 Adjustments pursuant to Term Loan Agreement: Gains on property disposals, net 1.9 -14.6 -0.6 -20.8 -13.7 2.2000000000000002 -6.1999999999999993 -10.1 -39.299999999999997 -6 -20.8 -22.4 -30.8 -13.7 -54.599999999999994 -54.4 Noncash reserve changes 0 0 0 0 16.100000000000001 0 16 2.1000000000000014 0.3 2.7 0 0 16 16.100000000000001 16.400000000000002 3.1000000000000014 Impairment charges 0 0 0 0 8.1999999999999993 0 0 0 0 0 0 8.1999999999999993 8.1999999999999993 8.1999999999999993 0 0 Letter of credit expense 8.8000000000000007 7.7 6.8 6.6 6.5 1.7 1.6 1.7000000000000002 1.6 1.6 6.6 6.5 6.4 6.5000000000000009 6.5 6.5 Permitted dispositions and other 0.4 3 1.2 0.3 -0.9 0.19999999999999996 0 0.1 0.2 0 0.3 -1.3000000000000003 -1.5 -0.9 0.4 0.4 Equity-based compensation expense 8.5 7.3 6.5 6.3 6.3 3.1999999999999997 1.1000000000000001 1.1000000000000001 2 1.2000000000000002 6.3 6.9999999999999991 4.9000000000000004 6.3000000000000007 6 6.1000000000000005 Loss on extinguishment of debt 0.6 0 0 0 11.2 0 0 0 0 0 0 0 0 11.2 11.2 11.2 Non-union pension settlement charge 28.7 0 7.6 10.9 1.8 0 0 0.1 0 0 10.9 10.9 10.9 1.8 1.8 1.8 Other, net #REF! #REF! 2.2999999999999998 0.1 2.9 1.4 1 0.6 -1.6 2.1 0.1 2.2999999999999998 1.9 2.9000000000000004 0.19999999999999973 1.3 Expense amounts subject to 10% threshold 5.0999999999999996 0 8.1 COVID-19 0 0 0 0.2 3.6999999999999997 0 0 0 0 0.2 3.9 Other, net 20.9 18.2 3.8 4.0999999999999996 4.0999999999999996 2.9 2.8000000000000003 7.7 25.5 25.799999999999997 18.2 12.4 11.1 Adjusted EBITDA prior to 10% threshold 274.2000000000001 307.8 210.60000000000073 96.600000000000009 69.399999999999991 45.800000000000189 34.100000000000016 37.900000000000098 294.60000000000002 292.2000000000001 261.20000000000016 210.60000000000016 214.60000000000019 183.10000000000028 Adjustments pursuant to TTM calculation 0.2 0 0 0 0 0 -2.1 1.5 0 0 2.2999999999999998 0 -2.1 0 0 0 hardcode for LTM! Adjusted EBITDA #REF! #REF! $274.2000000000001 $307.8 $210.60000000000073 $96.600000000000009 $67.3 $47.300000000000189 $34.100000000000016 $37.900000000000098 $591.5 $292.2000000000001 $259.10000000000014 $210.60000000000016 $214.60000000000019 $183.10000000000028