YRC Worldwide Inc. YRCW today announced reported diluted earnings per share ("EPS") for the second quarter 2007 of $0.95 compared to $1.58 in the second quarter last year. Adjusted diluted EPS was $0.91, compared to $1.62 for the second quarter 2006. Second quarter 2007 reported EPS includes a $0.07 benefit from a reduction in the effective tax rate. Adjusted EPS excludes a net gain of $0.04 from the following: property disposals, reorganization charges related to YRC Logistics and settlement of certain pre-acquisition USF obligations. The company does not consider these gains and charges part of core operations and excludes them when evaluating ongoing performance.
"Our results continue to be impacted by a weak domestic shipping market resulting in a difficult operating environment," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "National Transportation results compare favorably to overall industry performance even as we continue to face an economic headwind."
YRC Worldwide reported the following consolidated results for the second quarter 2007:
-- Quarterly operating revenue of $2.5 billion compared to second quarter last year of $2.6 billion.
-- Adjusted operating income of $105 million compared to second quarter 2006 adjusted operating income of $177 million. Adjustments in the second quarter 2007 exclude a net gain from the following: property disposals, reorganization charges related to YRC Logistics and settlement of certain pre-acquisition USF obligations. Reported operating income was $108 million compared to reported operating income of $172 million in 2006.
-- The tax rate declined from 39.0% in the first quarter of 2007 to 34.6% in the second quarter primarily due to the newly available propane gas tax credit.
-- National Transportation adjusted operating ratio was 94.9%.
Statistical information is available on the company's website at http://www.yrcw.com under Investors, Earnings Releases & Operating Statistics.
"The transportation industry continues to experience soft volumes year over year," Zollars stated, "and most economists have pushed out economic strengthening until late in the year. The slower economic conditions will continue to impact the company as we move through 2007."
The unpredictability of the economy directly impacts the company's ability to provide an accurate 2007 forecast. Therefore, for the balance of this year the company will not provide annual EPS guidance.
However, we do have the following expectations for the full year 2007:
-- Interest expense of approximately $90 million.
-- Consolidated income tax rate of 36.9% for the second half of 2007.
-- Diluted average shares of approximately 58 million assuming an average year-to-date, through June 30, 2007, stock price of $41.15 per share.
-- 2007 gross capital expenditures in the range of $375 to $400 million and disposals of approximately $50 million.
-- Free cash flow in excess of $200 million before funding of our single employer pension deficit and settlement of certain pre-acquisition USF multi-employer pension withdrawal obligations.