Successful Debt-for-Equity Exchange SignificantlyEnhances Balance Sheet
Exchange Triggers Access to $160 Million in Additional Liquidity
New Capital-Raise Discussions in Advanced Stages
YRC Worldwide Inc. today reported year-over-year and continued sequential improvement in its fourth quarter 2009 results. For the quarter ending December 31, 2009 the company announced pre-tax income of $50 million that included a net gain on note exchanges of $194 million, lease termination charges of $8 million related to further optimization of the YRC network, and severance charges of $3 million due to further headcount reductions. For the full year 2009 the company reported a pre-tax loss of $899 million compared to a full-year pre-tax loss in 2008 of $1,147 million, including impairment charges of $1,023 million. For the fourth quarter of 2008 the company reported a pre-tax loss of $353 million which included impairment charges of $200 million.
"We continued our positive momentum in the fourth quarter as we executed on our comprehensive plan. During 2009 we accomplished the integration and right-sizing of the national networks, the turnaround of the regional business, cost reductions and process improvements, a self-help liquidity program, and, most recently, the successful note exchange to conclude the year," stated Bill Zollars, Chairman and CEO of YRC Worldwide. "With our significantly improved balance sheet and additional liquidity resulting from our debt-for-equity exchange, we entered 2010 on a more solid financial base with good momentum."
The company reported an operating loss of $95 million for the fourth quarter of 2009, a continued sequential improvement from the third quarter operating loss of $118 million, which included a net gain on property disposals of $11 million, following the sequential improvement reported for the second quarter, and a year-over-year improvement from the fourth quarter of 2008 operating loss of $335 million, which included impairment charges of $200 million. Full Report........