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YRC Reports Year-over-Year Improvement in Fourth Quarter

February 06, 2011

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YRC Worldwide reported net income of $23 million and $0.49 earnings per share for the fourth quarter of 2010, including a $52 million benefit from an income tax settlement.


For the full year 2010, the company reported a net loss of $322 million and an $8.13 loss per share. As a comparison, the company reported net earnings of $120 million in the fourth quarter of 2009, including a $177 million after-tax gain on debt redemption, and for the full year 2009 reported a net loss of $622 million.

For the fourth quarter of 2010, consolidated operating revenue of $1.09 billion was 3.9 percent higher than the $1.05 billion reported for the fourth quarter of 2009. The company generated positive net cash flow from operating activities of $10 million for the fourth quarter of 2010. Consolidated operating loss of $27 million for the fourth quarter of 2010 improved from the $91 million operating loss reported for the fourth quarter of 2009. For the full year 2010, consolidated operating revenue was $4.3 billion as compared to $4.9 billion for full year 2009. Operating loss of $231 million for the full year 2010 improved from the $890 million operating loss reported for the full year 2009.

"We are pleased with the stability we have seen in our absolute business volumes at YRC over the last three quarters and the growth across our regional companies leading to continued year-over-year improvement in our operating results," said Sheila Taylor, executive vice president, CFO and Treasurer of YRC Worldwide. "Our business is generating positive cash flow and our ability to continually improve our days to collect should provide the needed liquidity as we move through the seasonally slower first quarter."

During the fourth quarter of 2010, the company sold excess property of $14 million and closed on $17 million of new sale and financing leasebacks. In addition, the company received $12 million in proceeds related to the working capital adjustment from the August 2010 sale of the majority of its YRC Logistics business.

"With our continued operating momentum we expect to achieve our fourth consecutive quarter of positive adjusted EBITDA and be within our credit agreement financial covenants in the first quarter of 2011," Taylor said.

In addition, the company expects that for the full year 2011, it will have gross capital expenditures in the range of $150 million to $175 million, excess property sales in the range of $40 million to $50 million, and non-union pension plan contributions of $30 million.


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