OVERLAND PARK, Kan., July 24 /PRNewswire-FirstCall/ -- YRC Worldwide Inc. (NASDAQ:YRCW) today announced diluted earnings per share of $.62 for the second quarter 2008, including a previously announced curtailment gain of $.39 per share and charge of $.09 per share for significant claim activity. The quarter also included a combined $.07 per share of losses on property disposals and reorganization charges. In the second quarter of 2007, the company reported $.95 of earnings per share.
"In spite of a challenging economy, our positive momentum continued in the quarter and we significantly improved our sequential results, delivering earnings consistent with previously issued guidance for the quarter," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Our actions to improve operational efficiency, get our regional companies back on track and reduce overhead costs have been effective. We are carrying that momentum forward as we implement further operational improvements in the third quarter," Zollars continued.
Segment Information
Key segment information for the second quarter 2008 included:
-- YRC National Transportation LTL revenue per hundredweight up 8.2% from
second quarter 2007 and LTL tonnage per day down 9.9%; revenue of $1.7
billion, consistent with 2007
-- YRC Regional Transportation LTL revenue per hundredweight up 6.1%
compared to last year and LTL tonnage per day down 17.6%; revenue of
$533 million, down 11.7% from 2007
Additional statistical information is available on the company's website at yrcw.com under Investors, Earnings Releases & Operating Statistics.
Outlook The company expects to earn between $1.05 and $1.15 per share in the third quarter 2008. These results will include a curtailment gain of approximately $.70 per share and increased union health and pension costs of approximately $.15 per share attributable to contractual increases that take effect on August 1. The company expects to offset these cost increases with operational efficiencies by year end 2008. The curtailment gains that were recognized in the second quarter and will be recognized in the third quarter of 2008 are related to the harmonization of retirement plans across the company for non- contractual employees.
"We are encouraged by our progress and are optimistic about continued improvement in our performance," stated Zollars.
Review of Financial Results YRC Worldwide Inc. will host a conference call for shareholders and the investment community on Friday, July 25, 2008, beginning at 9:30am ET, 8:30am CT.
Investors and analysts should dial 1.888.609.3912 at least 10 minutes prior to the start of the call. The Conference ID Number is 53899091. The conference call will be open to listeners through a live webcast via StreetEvents at streetevents.com and via the YRC Worldwide Internet site yrcw.com. An audio playback will be available after the call via http://www.streetevents.com/ and http://www.yrcw.com/.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "guidance," and similar expressions are intended to identify forward-looking statements. It is important to note that the company's actual future results and earnings per share could differ materially from those projected in such forward-looking statements because of a number of factors, including (among others) 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, including (without limitation) those cost reduction opportunities arising from acquisitions, 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 Securities and Exchange Commission (the "SEC"), including the company's Annual Report on Form 10-K for the year ended December 31, 2007.
YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people.
STATEMENTS OF CONSOLIDATED OPERATIONS
YRC Worldwide Inc. and Subsidiaries
For the Three and Six Months Ended June 30
(Amounts in thousands except per share data)
(Unaudited) Three Months Six Months
2008 2007 2008 2007 OPERATING REVENUE $2,398,728 $2,486,505 $4,631,320 $4,814,847 OPERATING EXPENSES:
Salaries, wages and
employees' benefits 1,332,137 1,464,840 2,685,283 2,886,365
Operating expenses and
supplies 538,664 469,644 1,024,893 911,572
Purchased transportation 281,938 273,184 536,250 524,952
Depreciation and
amortization 63,435 60,345 126,748 119,336
Other operating expenses 105,803 113,464 218,568 229,788
(Gains) losses on
property disposals, net 3,053 (2,788) 6,539 161
Reorganization and
settlements 2,444 (606) 15,228 13,851
Total operating
expenses 2,327,474 2,378,083 4,613,509 4,686,025
OPERATING INCOME 71,254 108,422 17,811 128,822 NONOPERATING (INCOME)
EXPENSES:
Interest expense 18,104 21,766 36,670 41,804
Other (1,863) 2,012 (3,834) 278
Nonoperating expenses,
net 16,241 23,778 32,836 42,082 INCOME (LOSS) BEFORE
INCOME TAXES 55,013 84,644 (15,025) 86,740
INCOME TAX PROVISION
(BENEFIT) 18,739 29,277 (5,424) 30,094
NET INCOME (LOSS) $36,274 $55,367 $(9,601) $56,646 AVERAGE SHARES
OUTSTANDING-BASIC 57,122 57,514 57,000 57,426
AVERAGE SHARES
OUTSTANDING-DILUTED 58,193 58,511 57,000 58,546
BASIC EARNINGS (LOSS) PER
SHARE $0.64 $0.96 $(0.17) $0.99
DILUTED EARNINGS (LOSS)
PER SHARE $0.62 $0.95 $(0.17) $0.97 SEGMENT FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Three and Six Months Ended June 30
(Amounts in thousands)
(Unaudited) Three Months
2008 2007 % Operating revenue:
YRC National Transportation $1,692,842 1,703,455 (0.6)
YRC Regional Transportation 533,565 604,207 (11.7)
YRC Logistics 159,832 158,203 1.0
YRC Truckload 31,520 30,747 2.5
Eliminations (19,031) (10,107)
Consolidated 2,398,728 2,486,505 (3.5) Operating income (loss):
YRC National Transportation 74,559 92,750 (19.6)
YRC Regional Transportation 2,136 15,593 (86.3)
YRC Logistics 1,874 1,537 21.9
YRC Truckload (3,938) (806) n/m
Corporate and other (3,377) (652)
Consolidated $71,254 108,422 (34.3) Operating ratio:
YRC National Transportation 95.6% 94.6%
YRC Regional Transportation 99.6% 97.4%
YRC Logistics 98.8% 99.0%
YRC Truckload 112.5% 102.6%
Consolidated 97.0% 95.6% (Gains) losses on property disposals, net:
YRC National Transportation $3,064 $(5,091)
YRC Regional Transportation (686) 279
YRC Logistics (6) 13
YRC Truckload 693 1,211
Corporate and other (12) 800
Consolidated 3,053 (2,788) (Gains) losses on reorganization and
settlements:
YRC National Transportation 344 -
YRC Regional Transportation 1,829 285
YRC Logistics 271 2,583
YRC Truckload - -
Corporate and other - (3,474)
Consolidated $2,444 $(606)
Six Months
2008 2007 % Operating revenue:
YRC National Transportation $3,252,688 3,311,899 (1.8)
YRC Regional Transportation 1,046,019 1,155,731 (9.5)
YRC Logistics 309,585 307,940 0.5
YRC Truckload 57,058 61,307 (6.9)
Eliminations (34,030) (22,030)
Consolidated 4,631,320 4,814,847 (3.8) Operating income (loss):
YRC National Transportation 67,314 125,876 (46.5)
YRC Regional Transportation (35,499) 10,232 n/m
YRC Logistics 795 467 70.2
YRC Truckload (8,989) (454) n/m
Corporate and other (5,810) (7,299)
Consolidated $17,811 128,822 (86.2) Operating ratio:
YRC National Transportation 97.9% 96.2%
YRC Regional Transportation 103.4% 99.1%
YRC Logistics 99.7% 99.8%
YRC Truckload 115.8% 100.7%
Consolidated 99.6% 97.3% (Gains) losses on property disposals, net:
YRC National Transportation $4,173 $(4,372)
YRC Regional Transportation 1,006 447
YRC Logistics 61 (24)
YRC Truckload 971 2,071
Corporate and other 328 2,039
Consolidated 6,539 161 (Gains) losses on reorganization and
settlements:
YRC National Transportation 2,075 6,082
YRC Regional Transportation 12,882 5,791
YRC Logistics 271 2,697
YRC Truckload - -
Corporate and other - (719)
Consolidated $15,228 $13,851 Selected Financial Data
YRC Worldwide Inc. and Subsidiaries
(Amounts in thousands unless otherwise noted)
(Unaudited) For the Six Months Ended June 30,
2008 2007
Net cash provided by operating
activities $110,587 $162,903
Net cash used in investing activities (70,140) (214,024)
Net cash (used in) provided by
financing activities (37,356) 31,405
Gross capital expenditures (77,018) (241,860)
Net capital expenditures (65,939) (213,921)
Proceeds from exercise of stock options 50 6,405
Free cash flow (a) 44,698 (44,613)
June 30, December 31,
2008 2007
Cash and cash equivalents $61,324 $58,233
Accounts receivable, net 1,116,081 1,073,915
Net property and equipment 2,314,899 2,380,473
Total assets 5,019,480 5,062,623
Asset backed securitization
borrowings 140,000 180,000
Current maturities of long-term debt 331,295 231,955
Long-term debt, less current portion 723,790 822,048
Total debt 1,195,085 1,234,003
Total shareholders' equity 1,607,070 1,612,304
Debt to capitalization (b) 42.6% 43.4%
(a) Management uses free cash flow as an indication of the cash available
to fund additional capital expenditures, to reduce outstanding debt
(including current maturities), or to invest in our growth strategies. Free cash flow is calculated as net cash from operating activities
plus stock option proceeds less net capital expenditures. This
measurement is used for internal management purposes and should not be
construed as a better measurement than net cash from operating
activities as defined by generally accepted accounting principles. (b) We calculate debt to capitalization as total debt divided by total
debt plus total shareholders' equity. DATASOURCE: YRC Worldwide Inc.
CONTACT: Investor: Stephen Bruffett, YRC Worldwide Inc., +1-913-696- 6108, ; Media: Suzanne Dawson, Linden Alschuler & Kaplan, +1-212-329-1420, Web site: http://www.yrcw.com/
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