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YRC Worldwide Reports First Quarter 2018 Results
OVERLAND PARK, Kan. , May 03, 2018 (GLOBE NEWSWIRE) -- YRC Worldwide Inc. (NASDAQ:YRCW) reported consolidated operating revenue for first quarter 2018 of $1.215 billion and a consolidated operating loss of $4.3 million , which included a $3.2 million loss on property disposals. As a comparison, for the first quarter 2017, the Company's results included operating revenue of $1.171 billion and consolidated operating income of $0.3 million , which included a $2.7 million loss on property disposals.
Financial Highlights
- In first quarter 2018, the net loss of $14.6 million improved by $10.7 million compared to a net loss of $25.3 million in first quarter 2017.
- On a non-GAAP basis, the Company generated consolidated Adjusted EBITDA of $45.7 million in first quarter 2018 compared to $43.2 million in the prior year comparable quarter (as detailed in the reconciliation below). Last twelve month (LTM) consolidated Adjusted EBITDA was $276.7 million compared to $277.8 million a year ago.
- The total debt-to-Adjusted EBITDA ratio for first quarter 2018 was 3.32 times compared to 3.62 times for first quarter 2017.
- Purchased transportation expense increased $20.9 million in first quarter 2018 when compared to the same period last year. The increase was primarily due to a $16.2 million increase in third party costs for logistics solutions and rail purchased transportation from increases in rail rates and rail miles. The purchased transportation results also include a $9.9 million increase in equipment lease expense of which $5.5 million was attributable to long-term leases in conjunction with the Company's strategy to reinvest in its fleet. These increases were partially offset by a $4.0 million decrease from reduced usage of local and over-the-road purchased transportation.
- Reinvestment in the business continued with $23.5 million in capital expenditures and new operating leases for revenue equipment with a capital value equivalent of $73.7 million , for a total of $97.2 million , which is equal to 8.0% of operating revenue for first quarter 2018. The total represents a $72.5 million increase over the $24.7 million investment in first quarter 2017. The majority of the investment was in tractors, trailers and technology.
- For the period beginning January 1, 2018 , YRC Worldwide Inc. updated its presentation of net periodic pension cost associated with its plans for non-union employees due to the adoption of a new accounting standard, with retrospective application. For first quarter 2017, the amount reclassified from "Salaries, wages and employee benefits" in operating expenses to nonoperating expenses is $3.3 million . As a result, this reclassification changed the first quarter 2017 reported operating loss of $3.0 million to operating income of $0.3 million .
- The consolidated operating ratio for first quarter 2018 was 100.4 compared to 100.0 in first quarter 2017. The operating ratio at YRC Freight was 100.9 compared to 101.0 for the same period in 2017. The Regional segment's first quarter 2018 operating ratio was 98.9 compared to 97.2 a year ago.
- First quarter 2018 tonnage per day decreased 2.4% at YRC Freight and increased 0.2% at the Regional segment compared to first quarter 2017.
- At YRC Freight, including fuel surcharge, first quarter 2018 revenue per hundredweight increased 6.0% and revenue per shipment increased 8.3% when compared to the same period in 2017. Excluding fuel surcharge, revenue per hundredweight increased 4.4% and revenue per shipment increased 6.7%.
- At the Regional segment, including fuel surcharge, first quarter 2018 revenue per hundredweight increased 5.3% and revenue per shipment increased 9.0% when compared to the same period in 2017. Excluding fuel surcharge, revenue per hundredweight increased 3.6% and revenue per shipment increased 7.3%.
- At March 31, 2018 , the Company had cash and cash equivalents and Managed Accessibility (as defined in the Company's most recently filed periodic reports on Forms 10-K and 10-Q) under its ABL facility totaling $117.2 million compared to $202.0 million as of March 31, 2017 .
- For the three months ended March 31, 2018 , cash used in operating activities was $3.7 million compared to cash used in operating activities of $23.6 million for the three months ended March 31, 2017 .
- At March 31, 2018 , the Company's outstanding debt was $918.7 million , a decrease of $86.1 million compared to $1.005 billion as of March 31, 2017 .
"The pricing and demand environment remains favorable and in the first quarter 2018, YRC Freight and the Regional companies reported strong year-over-year increases in revenue per hundredweight and revenue per shipment. While year-over-year tonnage per day was down for the quarter at YRC Freight, the year-over-year monthly results improved sequentially during the quarter and turned positive in March."
"Replenishing our fleet is a priority and during the first quarter our capital expenditure equivalent investment was nearly four times as much compared to a year ago. During the quarter, we took delivery of more than 500 tractors with approximately another 400 scheduled for delivery in 2018. We also took delivery of more than 400 trailers with approximately another 2,100 expected to be delivered in 2018. As we integrate this equipment into our fleet, we expect it to help mitigate the use of short-term rentals," concluded Hawkins.
Source: YRC Worldwide, Inc.
http://investors.yrcw.com/releasedetail.cfm?ReleaseID=1066157
