Friday, August 03, 2012
YRC Worldwide Reports Positive Operating Income for Second Quarter
Best Second Quarter Liquidity since 2008
YRC Worldwide Inc. today reported financial results for the second quarter of 2012.
Consolidated operating revenue for the second quarter of 2012 was $1.251 billion, just 0.5% under 2011, and consolidated operating income was $15.5 million, which included a $6.5 million gain on asset disposals. This is the first time since third quarter of 2008 that the company has reported income from operations, excluding second quarter of 2010, which included an $83 million non-cash reduction to its equity-based compensation expense. As a comparison, the company reported consolidated operating revenue of $1.257 billion for the second quarter of 2011 and a consolidated operating loss of $5.6 million, which included a $7.3 million gain on asset disposals.
The company reported, on a non-GAAP basis, adjusted EBITDA for the second quarter of 2012 of $70.1 million, a $5.6 million improvement over the $64.5 million adjusted EBITDA during the comparable period in 2011 (as detailed in the reconciliation below). Additionally, given the resumption of multi-employer pension plan contributions in June 2011, the company recorded an incremental $14 million of multi-employer pension plan expense in the second quarter of 2012 that was not incurred during the second quarter of 2011.
"Our focused approach to pricing discipline, customer mix management and cost initiatives has driven year-over-year improvement in our business, which is reflected in our operating income," stated James Welch, chief executive officer of YRC Worldwide. "We are producing results slightly ahead of our forecast, despite the recently softening economy, and remain focused on executing our operations and sales strategies at all operating companies. We continue to be committed to delivering consistent, high-quality and cost-effective service for our customers and value for our stakeholders," he added. "I also want to especially recognize the resiliency and dedication of the 33,000 employees who are working diligently to help move YRCW forward in a positive and progressive way. We are fortunate to have employees who have the passion and the drive to return the company to its leadership position, and they prove it every day by working to satisfy our customers while at the same time embracing our culture of working safely," said Welch.