EX-99.1 2 d251564dex991.htm NEWS RELEASE DATED NOVEMBER 4, 2011 News Release dated November 4, 2011

Exhibit 99.1

LOGO

November 4, 2011

YRC Worldwide Reports Third Quarter 2011 Results

 

   

YRC National tons per day up 4.2%, revenue per hundredweight up 7.5%, operating revenue up 11.5%

 

   

Regional tons per day up 5.6%, revenue per hundredweight up 8.2%, operating revenue up 14.3%

 

   

New leadership at YRC National; organization changes at parent company and shared services

OVERLAND PARK, KAN.—YRC Worldwide Inc. (NASDAQ: YRCW) today reported financial results for the third quarter of 2011.

Consolidated operating revenue for the third quarter of 2011 was $1.276 billion, up 12.3% over 2010, and consolidated operating loss was $24 million, which included $12 million of restructuring professional fees and a $15 million non-cash charge for union employee equity awards. As a comparison, the company reported consolidated operating revenue of $1.137 billion for the third quarter of 2010 and a consolidated operating loss of $19 million, which included $7 million of restructuring professional fees.

The company also reported positive operating cash flow for the third quarter of 2011 of $9 million and gross capital expenditures of $14 million resulting in free cash flow usage of $5 million, which included $12 million of restructuring professional fees. As a comparison, the company generated free cash flow for the third quarter of 2010 of $3 million which included $7 million of restructuring professional fees.

As previously announced, Jeff Rogers, formerly president of Holland, was named president of YRC, Mike Naatz, formerly chief customer officer of YRC Worldwide, has been named president of Holland, and Jamie Pierson has been named executive vice president and chief financial officer of YRC Worldwide. The enterprise-wide shared services functions, largely supporting YRC, now report directly to Jeff Rogers as we have redeployed the specific shared services resources supporting the regional companies back to each operating company. This change in organization structure is designed to dramatically improve the alignment of critical sales and marketing, human resources, customer service and operational support functions with each operating company’s delivery of services to customers and provide greater autonomy for each operating company. The streamlined parent company will consist primarily of the traditional corporate financial and legal functions.

“I wish to express my personal thanks to Jeff Rogers for leading the Holland recovery, and look forward to his leadership impact at YRC,” said James Welch, chief executive officer of YRC Worldwide. “We are pleased with the continued year-over-year growth in business volumes as we seek to change the culture of the company and transition to new leadership. The leadership changes at the parent company and YRC, together with the redeployment of our shared services functions, are all designed to position the company for improved operating results from an increased focus on the delivery of consistently reliable service to our customers,” stated Welch.


At September 30, 2011, the company’s cash and cash equivalents were $163 million and availability under its new multi-year, $400 million asset-based loan (‘ABL’) was $116 million for total liquidity of $279 million. As a comparison, the company’s cash, cash equivalents and unrestricted availability under its lending facilities was $173 million at June 30, 2011.

“With our 12.3% revenue increase, our working capital continues to be well managed as demonstrated by the 38.5 days-sales-outstanding for consolidated receivables, which is about one day better than third quarter a year ago,” stated Jamie Pierson, chief financial officer of YRC Worldwide. “The unused availability from the new $400 million ABL facility provides important liquidity to support our working capital needs which are driven by seasonality and our year-over-year revenue growth.”

In addition, the company reported a net loss of $120 million for the third quarter of 2011. The third quarter 2011 net loss includes a $79 million non-cash charge related to fair value adjustments for the derivative instruments embedded in the $140 million Series A notes and $100 million Series B notes due 2015 (‘2015 convertible notes’). As a comparison, the company reported a net loss of $62 million for the third quarter of 2010.

Key Segment Information

Third quarter 2011 compared to the third quarter of 2010:

 

   

YRC National Transportation operating revenues up 11.5% to $841.6 million, adjusted operating ratio improved by 70 basis points to 100.9, tons per day up 4.2%, shipments per day up 5.5%, revenue per hundredweight up 7.5% and revenue per shipment up 6.2%.

 

   

Regional Transportation operating revenues up 14.3% to $404.8 million, adjusted operating ratio improved by 180 basis points to 95.2, tons per day up 5.6%, shipments per day up 3.6%, revenue per hundredweight up 8.2% and revenue per shipment up 10.4%.

Equity Conversion

As a result of approvals received at a special meeting of shareholders on September 16, 2011, the company’s authorized common shares were increased from 80 million to 10 billion. The increase in authorized common shares allowed approximately 5 million shares of outstanding preferred stock to automatically convert to approximately 1.9 billion common shares, as compared to the approximately 48 million common shares outstanding prior to the September 16, 2011 shareholder meeting. In addition to the 1.9 billion outstanding common shares, approximately 4.1 billion of the newly authorized common shares were reserved for issuance upon conversion of the 2015 convertible notes.

NASDAQ

As previously announced, the NASDAQ Hearings Panel (the “Panel”) granted the company’s request to remain listed on the NASDAQ. In accordance with the terms of the Panel’s decision, the company must implement a reverse stock split and demonstrate a closing bid price for its common stock above $1.00 per share for ten consecutive trading days on or before December 31, 2011. The company is seeking approval from shareholders for a reverse stock split at its 2011 annual meeting of shareholders scheduled to be held November 30, 2011, with the ratio and timing of implementation of the reverse stock split at the discretion of the company’s board of directors.

Review of Financial Results

YRC Worldwide Inc. will host a conference call with the investment community today, Friday, November 4, 2011, beginning at 9:30am ET, 8:30am CT. The conference call will be available to listeners via the YRC Worldwide website yrcw.com. An audio playback will be available after the call also via the YRC Worldwide website.


Certain Non-GAAP Financial Measures

Adjusted operating income (loss) is a non-GAAP measure that reflects the company’s operating income before letter of credit fees, certain union employee equity-based compensation expense, net gains or losses on property disposals, and certain other items including restructuring professional fees and results of permitted dispositions. Adjusted 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 and certain other items, including restructuring professional fees and results of permitted dispositions and discontinued operations as defined in the company’s credit agreement. Adjusted EBITDA and adjusted operating income (loss) are used for internal management purposes as financial measures that reflect the company’s core operating performance. In addition, management uses adjusted EBITDA to measure compliance with financial covenants in the company’s credit agreement. Free cash flow and adjusted free cash flow are non-GAAP measures that reflect the company’s operating cash flow minus gross capital expenditures and operating cash flow minus gross capital expenditures, excluding the restructuring costs included in operating cash flow, respectively. However, these financial measures should not be construed as better measurements than operating income, operating cash flow, net income or earnings per share, as defined by generally accepted accounting principles.

Adjusted operating income (loss), adjusted EBITDA and adjusted free cash flow have the following limitations:

 

   

Adjusted operating income (loss) and adjusted EBITDA do not reflect the interest expense or the cash requirements necessary to fund restructuring professional fees, letter of credit fees, service interest or principal payments on our outstanding debt;

 

   

Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements;

 

   

Equity-based compensation is an element of our long-term incentive compensation program, although adjusted operating income (loss) and adjusted EBITDA exclude either certain union employee equity-based compensation expense or all of it as an expense, respectively, when presenting our ongoing operating performance for a particular period;

 

   

Adjusted free cash flow excludes the cash usage by the company’s restructuring activities, debt issuance costs, equity issuance costs and principal payments on our outstanding debt and the resulting reduction in the company’s liquidity position from those cash outflows.

 

   

Other companies in our industry may calculate adjusted operating income (loss), adjusted EBITDA and adjusted free cash flow differently than we do, limiting their usefulness as a comparative measure.

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

* * * * *

Forward-Looking Statements

This news release and statements made on the conference call for shareholders and the investment community contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The words “would,” “anticipate,” “expect,” “believe,” “intend,” and similar expressions are intended to identify forward-looking statements. The company’s future results could differ materially from any results projected in such forward-looking statements because of a number of factors, including (among others), the effect the restructuring may have on the company’s customers’ willingness to ship their products on the company’s transportation network, the company’s ability to generate sufficient cash flows and liquidity to fund


operations, which raises substantial doubt about the company’s ability to continue as a going concern, inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the company bases its fuel surcharge, competitor pricing activity, expense volatility, including (without limitation) expense volatility due to changes in rail service or pricing for rail service, ability to capture cost reductions, changes in equity and debt markets, a downturn in general or regional economic activity, effects of a terrorist attack, labor relations, including (without limitation), the impact of work rules, work stoppages, strikes or other disruptions, any obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction, and the risk factors that are from time to time included in the company’s reports filed with the SEC, including the company’s Annual Report on Form 10-K for the year ended December 31, 2010, Quarterly Report on Form 10-Q for the three months ended March 31, 2011 and Quarterly Report on Form 10-Q for the three months ended June 30, 2011.

The company’s expectations regarding liquidity, working capital and cash flow are only its expectations regarding these matters. Actual liquidity, working capital and cash flow will depend upon (among other things) the company’s operating results, the timing of its receipts and disbursements, the company’s access to credit facilities or credit markets, the continuation of the wage, benefit and work rule concessions under the company’s modified labor agreement and the factors identified in the preceding paragraph.

* * * * *

About YRC Worldwide

YRC Worldwide Inc., a Fortune 500 company headquartered in Overland Park, Kan., is a leading provider of transportation and global logistics services. It is the holding company for a portfolio of successful brands including YRC, YRC Reimer, Holland, Reddaway, New Penn and Glen Moore, and provides China-based services through its Jiayu and JHJ joint ventures. YRC Worldwide has one of the largest, most comprehensive less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. Through its team of experienced service professionals, YRC Worldwide offers industry-leading expertise in heavyweight shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence. Please visit www.yrcw.com for more information.

Web site: www.yrcw.com

Follow YRC Worldwide on Twitter: http://twitter.com/yrcworldwide

Investor  Contact: Paul Liljegren

913-696-6108

paul.liljegren@yrcw.com

Media Contact:     Suzanne Dawson

Linden, Alschuler & Kaplan

212-329-1420

sdawson@lakpr.com


CONSOLIDATED BALANCE SHEETS

YRC Worldwide Inc. and Subsidiaries

(Amounts in thousands except share data)

 

     September 30,
2011
    December 31,
2010
 
     (Unaudited)        

ASSETS

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 162,814      $ 143,017   

Accounts receivable, net

     546,580        442,500   

Prepaid expenses and other

     183,992        182,515   

Restricted amounts held in escrow

     64,680        —     
  

 

 

   

 

 

 

Total current assets

     958,066        768,032   
  

 

 

   

 

 

 

PROPERTY AND EQUIPMENT:

    

Cost

     3,144,679        3,237,971   

Less—accumulated depreciation

     (1,733,523     (1,687,397
  

 

 

   

 

 

 

Net property and equipment

     1,411,156        1,550,574   
  

 

 

   

 

 

 

OTHER ASSETS:

    

Intangibles, net

     124,828        139,525   

Restricted amounts held in escrow

     93,805        —     

Other assets

     96,741        134,802   
  

 

 

   

 

 

 

Total assets

   $ 2,684,596      $ 2,592,933   
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ DEFICIT

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 145,932      $ 147,112   

Wages, vacations, and employees’ benefits

     231,088        196,486   

Other current and accrued liabilities

     304,990        452,226   

Current maturities of long-term debt

     9,513        222,873   
  

 

 

   

 

 

 

Total current liabilities

     691,523        1,018,697   
  

 

 

   

 

 

 

OTHER LIABILITIES:

    

Long-term debt, less current portion

     1,331,585        837,262   

Deferred income taxes, net

     104,892        118,624   

Pension and post retirement

     445,268        447,928   

Claims and other liabilities

     374,006        360,439   

Commitments and contingencies

    

SHAREHOLDERS’ DEFICIT:

    

Cumulative Preferred stock, $1.00 par value per share—authorized 5,000,000

    

Series A Preferred stock, shares issued 1 and 0, liquidation preference $1 and $0

     —          —     

Series B Preferred stock, shares issued 0 and 0, liquidation preference $0 and $0

     —          —     

Common stock, $0.01 par value per share—authorized 10,000,000,000 and 80,000,000 shares, issued 1,938,233,000 and 47,684,000 shares

     19,382        477   

Capital surplus

     1,875,874        1,643,277   

Accumulated deficit

     (1,821,294     (1,499,514

Accumulated other comprehensive loss

     (241,271     (239,626

Treasury stock, at cost (123,000 shares)

     (92,737     (92,737
  

 

 

   

 

 

 

Total YRC Worldwide Inc. shareholders’ deficit

     (260,046     (188,123

Non-controlling interest

     (2,632     (1,894
  

 

 

   

 

 

 

Total shareholders’ deficit

     (262,678     (190,017
  

 

 

   

 

 

 

Total liabilities and shareholders’ deficit

   $ 2,684,596      $ 2,592,933   
  

 

 

   

 

 

 


STATEMENTS OF CONSOLIDATED OPERATIONS

YRC Worldwide Inc. and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in thousands except per share data)

(Unaudited)

 

     Three Months     Nine months  
     2011     2010     2011     2010  

OPERATING REVENUE

   $ 1,276,418      $ 1,136,836      $ 3,656,516      $ 3,243,081   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING EXPENSES:

        

Salaries, wages and employees’ benefits

     726,777        683,034        2,112,222        2,017,046   

Equity based compensation expense

     15,443        2,211        14,795        30,540   

Operating expenses and supplies

     304,177        235,222        888,707        716,011   

Purchased transportation

     142,241        122,882        402,681        337,784   

Depreciation and amortization

     46,203        49,785        143,056        150,491   

Other operating expenses

     76,049        65,967        212,904        186,471   

(Gains) losses on property disposals, net

     (10,790     (3,429     (21,026     3,183   

Impairment charges

     —          —          —          5,281   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     1,300,100        1,155,672        3,753,339        3,446,807   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING LOSS

     (23,682     (18,836     (96,823     (203,726
  

 

 

   

 

 

   

 

 

   

 

 

 

NONOPERATING (INCOME) EXPENSES:

        

Interest expense

     37,679        43,922        116,551        126,234   

Equity investment impairment

     —          —          —          12,338   

Fair value adjustment of derivative liabilities

     79,221        —          79,221        —     

(Gain) loss on extinguishment of debt, net

     (26,035     1,935        (25,212     1,935   

Restructuring transaction costs

     17,783        —          17,783        —     

Other, net

     (3,588     (976     (4,445     (5,767
  

 

 

   

 

 

   

 

 

   

 

 

 

Nonoperating expenses, net

     105,060        44,881        183,898        134,740   
  

 

 

   

 

 

   

 

 

   

 

 

 

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     (128,742     (63,717     (280,721     (338,466

INCOME TAX BENEFIT

     (8,658     (3,794     (15,785     (9,448
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS FROM CONTINUING OPERATIONS

     (120,084     (59,923     (264,936     (329,018

NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX

     —          (2,514     —          (17,876
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS

     (120,084     (62,437     (264,936     (346,894

LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST

     (267     (696     (1,204     (1,543
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS ATTRIBUTABLE TO YRC WORLDWIDE INC.

   $ (119,817   $ (61,741   $ (263,732   $ (345,351

AMORTIZATION OF BENEFICIAL CONVERSION FEATURE ON PREFERRED STOCK

     (58,048     —          (58,048     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

   $ (177,865   $ (61,741   $ (321,780   $ (345,351
  

 

 

   

 

 

   

 

 

   

 

 

 

AVERAGE COMMON SHARES OUTSTANDING-BASIC AND DILUTED

     351,821        46,530        150,185        36,930   

BASIC AND DILUTED LOSS PER SHARE

        

LOSS FROM CONTINUING OPERATIONS

   $ (0.51   $ (1.27   $ (2.14   $ (8.87

LOSS FROM DISCONTINUED OPERATIONS

     —          (0.06     —          (0.48
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS PER SHARE

   $ (0.51   $ (1.33   $ (2.14   $ (9.35
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts attributable to YRC Worldwide Inc. common shareholders:

        

Loss from continuing operations, net of tax

   $ (119,817   $ (59,227   $ (263,732   $ (327,475

Loss from discontinued operations, net of tax

     —          (2,514     —          (17,876
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (119,817   $ (61,741   $ (263,732   $ (345,351
  

 

 

   

 

 

   

 

 

   

 

 

 


STATEMENTS OF CONSOLIDATED CASH FLOWS

YRC Worldwide Inc. and Subsidiaries

For the Nine Months Ended September 30

(Amounts in thousands)

 

     2011     2010  

OPERATING ACTIVITIES:

    

Net loss

   $ (264,936   $ (346,894

Noncash items included in net loss:

    

Depreciation and amortization

     143,056        155,444   

Equity based compensation expense

     14,795        30,540   

Impairment charges

     —          17,619   

Gain on sale of affiliate

     —          (638

(Gain) loss on extinguishment of debt

     (25,212     1,935   

Fair value adjustment of derivative liabilities

     79,221        —     

(Gains) losses on property disposals, net

     (21,026     4,583   

Deferred income tax benefit, net

     (1,269     (9,963

Amortization of deferred debt costs

     22,627        35,697   

Paid-in-kind interest on Series A Notes and Series B Notes

     5,126        —     

Other noncash items, net

     (3,395     (4,368

Restructuring transaction costs

     17,783        —     

Changes in assets and liabilities, net:

    

Accounts receivable

     (104,454     (37,635

Accounts payable

     (1,003     (3,367

Other operating assets

     (16,952     74,538   

Other operating liabilities

     102,857        73,184   
  

 

 

   

 

 

 

Net cash used in operating activities

     (52,782     (9,325
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of property and equipment

     (36,083     (12,935

Proceeds from disposal of property and equipment

     43,356        71,343   

Deposits into restricted escrow

     (158,485     —     

Disposition of affiliate, net of cash sold

     —          22,883   

Other

     3,463        5,223   
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (147,749     86,514   
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

ABS borrowings, net

     (122,788     (23,497

Issuance of long-term debt

     411,602        153,458   

Repayment of long-term debt

     (36,466     (187,858

Debt issuance costs

     (30,472     (12,713

Equity issuance costs

     (1,548     (17,323

Equity issuance proceeds

     —          15,906   

Stock issued in connection with the 6% notes

     —          11,994   
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     220,328        (60,033
  

 

 

   

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

     19,797        17,156   

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     143,017        97,788   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 162,814      $ 114,944   
  

 

 

   

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION

    

Interest paid

   $ (44,827   $ (31,947

Income tax (payment) refund, net

     (1,288     83,035   

Pension contribution deferral transfer to debt

     —          4,361   

Lease financing transactions

     8,985        29,613   

Deferred interest and fees converted to equity

     43,164        —     

Interest paid in stock for the 6% Notes

     2,082        2,007   


SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in thousands)

(Unaudited)

SEGMENT INFORMATION

 

     Three Months     Nine Months  
     2011     2010     %     2011     2010     %  

Operating revenue:

            

YRC National Transportation

   $ 841,561      $ 755,017        11.5      $ 2,398,538      $ 2,159,719        11.1   

Regional Transportation

     404,811        354,182        14.3        1,172,568        1,014,834        15.5   

Truckload

     25,998        28,841        (9.9     76,719        83,942        (8.6

Other, net of eliminations

     4,048        (1,204       8,691        (15,414  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated

     1,276,418        1,136,836        12.3        3,656,516        3,243,081        12.7   

Operating income (loss):

            

YRC National Transportation

     (14,279     (16,377       (58,550     (151,515  

Regional Transportation

     12,430        9,935          25,986        (2,929  

Truckload

     (2,689     (2,191       (10,280     (6,999  

Corporate and other

     (19,144     (10,203       (53,979     (42,283  
  

 

 

   

 

 

     

 

 

   

 

 

   

Consolidated

   $ (23,682   $ (18,836     $ (96,823   $ (203,726  

Operating ratio:

            

YRC National Transportation

     101.7     102.2       102.4     107.0  

Regional Transportation

     96.9     97.2       97.8     100.3  

Truckload

     110.3     107.6       113.4     108.3  

Consolidated

     101.9     101.7       102.6     106.3  

Operating ratio is calculated as 100 (i) minus the result of dividing operating income by operating revenue or (ii) plus the result of dividing operating loss by operating revenue, and expressed as a percentage.

SUPPLEMENTAL INFORMATION

 

As of September 30, 2011

(in millions)

   Par Value      Premium/
(Discount)
    Book
Value
 

Restructured term loan

   $ 304.8       $ 107.0      $ 411.8   

ABL facility – Term A—(capacity $175M; borrowing base $146M; availability $116M)

     30.0         (8.3     21.7   

ABL facility – Term B

     225.0         (13.3     211.7   

Series A notes

     142.7         (36.4     106.3   

Series B notes

     100.8         (40.4     60.4   

6% convertible senior notes

     69.4         (11.1     58.3   

Pension contribution deferral obligations

     147.5         (0.6     146.9   

Lease financing obligations

     321.7         —          321.7   

5.0% and 3.375% contingent convertible senior notes

     1.9         —          1.9   

Other

     0.4         —          0.4   
  

 

 

    

 

 

   

 

 

 

Total debt

   $ 1,344.2       $ (3.1   $ 1,341.1   
  

 

 

    

 

 

   

 

 

 

 

As of December 31, 2010

(in millions)

   Par Value      Premium/
(Discount)
    Book
Value
 

Revolving credit facility (capacity $713.7)

   $ 142.9       $ —        $ 142.9   

Term loan

     257.1         0.7        257.8   

ABS borrowings, secured by accounts receivable (capacity $325.0)

     122.8         —          122.8   

6% convertible senior notes

     69.4         (13.3     56.1   

Pension contribution deferral obligations

     139.1         —          139.1   

Lease financing obligations

     338.4         —          338.4   

5.0% and 3.375% contingent convertible senior notes

     1.9         —          1.9   

Other

     1.1         —          1.1   
  

 

 

    

 

 

   

 

 

 

Total debt

   $ 1,072.7       $ (12.6   $ 1,060.1   
  

 

 

    

 

 

   

 

 

 


SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in thousands)

(Unaudited)

 

0000000000 0000000000 0000000000 0000000000
     Three months     Nine months  
     2011     2010     2011     2010  

Operating revenue

   $ 1,276,418      $ 1,136,836      $ 3,656,516      $ 3,243,081   

Adjusted operating ratio

     99.6     100.6     100.9     103.6

Reconciliation of operating loss to adjusted EBITDA:

        

Operating loss

   $ (23,682   $ (18,836   $ (96,823   $ (203,726

(Gains) losses on property disposals, net

     (10,790     (3,429     (21,026     3,183   

Impairment charges

     —          —          —          5,281   

Union equity awards

     14,884        —          14,884        24,995   

Letter of credit expense

     9,343        8,321        25,607        24,943   

Restructuring professional fees, included in operating income

     12,385        6,594        37,825        28,081   

Permitted dispositions and other

     3,318        —          6,514        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income (loss)

     5,458        (7,350     (33,019     (117,243

Depreciation and amortization

     46,203        49,785        143,056        150,491   

Equity based compensation (benefit) expense

     559        2,211        (89     5,545   

Restructuring professional fees, included in nonoperating income

     200        179        1,915        585   

Reimer Finance Co. dissolution (foreign exchange)

     —          —          —          5,540   

Other nonoperating, net

     3,617        928        4,495        1,421   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 56,037      $ 45,753      $ 116,358      $ 46,339   
  

 

 

   

 

 

   

 

 

   

 

 

 
     Three months     Nine months  

Adjusted EBITDA by segment:

   2011     2010     2011     2010  

YRC National Transportation

   $ 17,814      $ 14,372      $ 33,693      $ (22,903

Regional Transportation

     34,851        26,958        78,893        61,690   

Truckload

     (537     34        (3,394     (18

Corporate and other

     3,909        4,389        7,166        7,570   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 56,037      $ 45,753      $ 116,358      $ 46,339   
  

 

 

   

 

 

   

 

 

   

 

 

 
      Three months     Nine months  

Reconciliation of Adjusted EBITDA to adjusted free cash flow:

   2011     2010     2011     2010  

Adjusted EBITDA

   $ 56,037      $ 45,753      $ 116,358      $ 46,339   

Total restructuring professional fees

     (12,585     (6,773     (39,740     (28,666

Permitted dispositions and other not included in adjusted EBITDA

     —          1,348        —          (8,210

Cash paid for interest

     (23,971     (11,009     (44,827     (31,947

Cash paid for letter of credit fees

     (7,224     —          (7,224     —     

Working capital cash flows excluding income tax, net

     (2,076     (23,919     (76,061     (69,876
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities before income taxes

     10,181        5,400        (51,494     (92,360

Cash (paid) received for income taxes, net

     (1,622     (253     (1,288     83,035   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     8,559        5,147        (52,782     (9,325

Acquisition of property and equipment

     (13,370     (2,080     (36,083     (12,935
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow (deficit)

     (4,811     3,067        (88,865     (22,260

Total restructuring professional fees

     12,585        6,773        39,740        28,666   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted free cash flow (deficit)

   $ 7,774      $ 9,840      $ (49,125   $ 6,406   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating ratio is calculated as 100 (i) minus the result of dividing adjusted operating income by operating revenue or (ii) plus the result of dividing adjusted operating loss by operating revenue, and expressed as a percentage.


SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in thousands)

(Unaudited)

 

     Three months     Nine months  

YRC National Transportation segment

   2011     2010     2011     2010  

Operating Revenue

   $ 841,561      $ 755,017      $ 2,398,538      $ 2,159,719   

Adjusted operating ratio

     100.9     101.6     101.9     105.1

Reconciliation of operating loss to adjusted EBITDA:

        

Operating loss

   $ (14,279   $ (16,377   $ (58,550   $ (151,515

(Gains) losses on property disposals, net

     (10,999     (2,404     (16,997     (102

Impairment charges

     —          —          —          3,281   

Union equity awards

     9,955        —          9,955        18,794   

Letter of credit expense

     7,493        6,456        20,287        19,368   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating loss

     (7,830     (12,325     (45,305     (110,174

Depreciation and amortization

     24,153        26,799        76,550        80,628   

Reimer Finance Co. dissolution (foreign exchange)

     —          —          —          5,540   

Other nonoperating, net

     1,491        (102     2,448        1,103   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 17,814      $ 14,372      $ 33,693      $ (22,903
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA as % of operating revenue

     2.1     1.9     1.4     -1.1
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three months     Nine months  

Regional Transportation segment

   2011     2010     2011     2010  

Operating Revenue

   $ 404,811      $ 354,182      $ 1,172,568      $ 1,014,834   

Adjusted operating ratio

     95.2     97.0     97.2     98.7

Reconciliation of operating income (loss) to adjusted EBITDA:

        

Operating income (loss)

   $ 12,430      $ 9,935      $ 25,986      $ (2,929

(Gains) losses on property disposals, net

     180        (1,086     (3,186     3,044   

Impairment charges

     —          —          —          2,000   

Union equity awards

     4,929        —          4,929        6,089   

Letter of credit expense

     1,715        1,744        4,933        5,174   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income

     19,254        10,593        32,662        13,378   

Depreciation and amortization

     15,499        15,960        46,102        47,890   

Other nonoperating, net

     98        405        129        422   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 34,851      $ 26,958      $ 78,893      $ 61,690   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA as % of operating revenue

     8.6     7.6     6.7     6.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating ratio is calculated as 100 (i) minus the result of dividing adjusted operating income by operating revenue or (ii) plus the result of dividing adjusted operating loss by operating revenue, and expressed as a percentage.


SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in thousands)

(Unaudited)

 

     Three months     Nine months  

Truckload segment

   2011     2010     2011     2010  

Operating Revenue

   $ 25,998      $ 28,841      $ 76,719      $ 83,942   

Adjusted operating ratio

     110.0     107.3     112.9     107.9

Reconciliation of operating loss to adjusted EBITDA:

        

Operating loss

   $ (2,689   $ (2,191   $ (10,280   $ (6,999

(Gains) losses on property disposals, net

     1        —          142        42   

Union equity awards

     —          —          —          111   

Letter of credit expense

     87        72        248        244   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating loss

     (2,601     (2,119     (9,890     (6,602

Depreciation and amortization

     2,064        2,152        6,496        6,583   

Other nonoperating, net

     —          1        —          1   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (537   $ 34      $ (3,394   $ (18
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA as % of operating revenue

     -2.1     0.1     -4.4     0.0
  

 

 

   

 

 

   

 

 

   

 

 

 

 

$0000000 $0000000 $0000000 $0000000
      Three months     Nine months  

Corporate and other segment

   2011     2010     2011     2010  

Reconciliation of operating loss to adjusted EBITDA:

        

Operating loss

   $ (19,144   $ (10,203   $ (53,979   $ (42,283

(Gains) losses on property disposals, net

     27        61        (986     199   

Letter of credit expense

     49        49        140        157   

Restructuring professional fees, included in operating income

     12,385        6,594        37,825        28,081   

Permitted dispositions and other

     3,318        —          6,514        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating loss

     (3,365     (3,499     (10,486     (13,846

Depreciation and amortization

     4,487        4,874        13,908        15,390   

Equity based compensation (benefit) expense

     559        2,211        (89     5,545   

Restructuring professional fees, included in nonoperating income

     200        179        1,915        585   

Other nonoperating, net

     2,028        624        1,918        (104
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 3,909      $ 4,389      $ 7,166      $ 7,570   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating ratio is calculated as 100 (i) minus the result of dividing adjusted operating income by operating revenue or (ii) plus the result of dividing adjusted operating loss by operating revenue, and expressed as a percentage.


YRC Worldwide Inc.

Segment Statistics

(amounts in thousands except workdays and per unit data)

 

     YRC National Transportation  
      3Q11     3Q10     2Q11     Y/Y
%
    Sequential
%
 

Workdays

     64.0        64.0        63.5       

Total revenue(a)

   $ 836,568      $ 746,768      $ 821,611        12.0        1.8   

Total tonnage

     1,822        1,747        1,820        4.2        0.1   

Total tonnage per day

     28.46        27.30        28.66        4.2        (0.7

Total shipments

     3,166        3,001        3,139        5.5        0.9   

Total shipments per day

     49.47        46.89        49.44        5.5        0.1   

Total revenue/cwt.

   $ 22.96      $ 21.37      $ 22.57        7.5        1.7   

Total revenue/shipment

   $ 264.21      $ 248.83      $ 261.71        6.2        1.0   

Total weight/shipment

     1,151        1,165        1,159        (1.2     (0.7

Total Length of Haul

     1,273        1,251        1,253        1.8        1.6   
Reconciliation of operating revenue to total picked up revenue:           

Operating revenue

   $ 841,561      $ 755,017      $ 826,933       

Change in revenue deferral and other

     (4,993     (8,249     (5,322    
  

 

 

   

 

 

   

 

 

     

Total picked up revenue

   $ 836,568      $ 746,768      $ 821,611       
  

 

 

   

 

 

   

 

 

     
     Regional Transportation  
      3Q11     3Q10     2Q11     Y/Y
%
    Sequential
%
 

Workdays

     63.0        63.0        63.5       

Total picked up revenue(a)

   $ 404,825      $ 354,197      $ 402,063        14.3        0.7   

Total tonnage

     1,831        1,734        1,850        5.6        (1.0

Total tonnage per day

     29.07        27.52        29.14        5.6        (0.2

Total shipments

     2,551        2,463        2,556        3.6        (0.2

Total shipments per day

     40.49        39.10        40.25        3.6        0.6   

Total revenue/cwt.

   $ 11.05      $ 10.21      $ 10.86        8.2        1.7   

Total revenue/shipment

   $ 159      $ 144      $ 157        10.4        0.9   

Total weight/shipment

     1,436        1,408        1,448        2.0        (0.8

Total Length of Haul

     419        417        419        0.4        (0.1

Reconciliation of operating revenue to total picked up revenue:

          

Operating revenue

   $ 404,811      $ 354,182      $ 401,688       

Change in revenue deferral and other

     14        15        375       
  

 

 

   

 

 

   

 

 

     

Total picked up revenue

   $ 404,825      $ 354,197      $ 402,063       
  

 

 

   

 

 

   

 

 

     

 

(a) 

Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods.