Drivers

YRC Narrows Loss in Second Quarter

August 03, 2010

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Less-than-truckload carrier YRC Worldwide narrowed its second quarter loss to $9.5 million, or 1 cent a share, from a net loss of $309 million, or $5.20 a share, in the 2009 quarter.


The company's results include an $83 million non-cash reduction to its equity-based compensation expense related to its March 2010 union equity-based awards. In addition, YRC Logistics is being reported within discontinued operations, as a portion will be sold to Austin Ventures for $37 million.

The company's revenue was $1.1 million, compared to $1.2 million in the 2009 quarter.

"We are pleased with the sequential improvement in our business volumes and earnings as our pricing discipline, customer mix management and cost initiatives gain significant traction," said Bill Zollars, chairman, president and CEO of YRC Worldwide. "For the quarter, the Regional companies reported positive operating income, and YRC National achieved positive adjusted EBITDA."

Within its YRC National Transportation segment, tons per day and shipments per day were down 18.6 percent from the second quarter of 2009. Revenue per hundredweight and revenue per shipment were up 3.9 percent over the same time period.

YRC Regional saw tons per day rise 4.6 percent over 2009, while shipments per day were down 3.1 percent. Revenue per hundredweight decreased 2.8 percent, and revenue per shipment grew 4.9 percent from the second quarter of 2009.

"The sequential growth in our business volumes put increased pressure on our liquidity even though our adjusted EBITDA from continuing operations improved from $3 million in April to $22 million in June," said Sheila Taylor, executive vice president and CFO of YRC Worldwide. "We proactively addressed these working capital needs by partnering with our lenders to open up additional borrowing availability, while we handled more shipments with fewer people and improved our consolidated days sales outstanding (DSO) by four days compared to last year, our best DSO in more than four years."

"With the significant operating momentum we achieved throughout the second quarter and experienced in July, the company is positioned for further growth, and we expect to achieve positive adjusted EBITDA in the third quarter of 2010 in excess of the second quarter," said Zollars.

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