Sunday, May 05, 2013

YRCW keeps turnaround story intact with solid first quarter results

Bottom line improvements continue to be the theme for less-than-truckload transportation services provider YRC Worldwide.

Following February’s announcement that it had achieved a positive annual operating income in 2012 for the first time in six years, the Overland Park, Kan.-based carrier said today it had a positive first quarter operating income—also for the first time in six years.

YRC’s consolidated operating revenue for the first quarter—at $1.162 billion—was down 2.7 percent compared to the first quarter of 2012. Meanwhile, its consolidated operating income increased from a $48.8 million loss a year ago to a $9.9 million gain in the first quarter, representing a $58.7 million increase. YRC officials said that first quarter operating income included a $4.5 million gain on asset disposals, which included an $8.3 million loss in 2012. And adjusted EBITDA—at $60.7 million—was $45.4 million more than the adjusted $15.3 million recorded a year ago.

“We concluded the first quarter with continued momentum that we began generating in the last half of 2012,” YRC Worldwide CEO James Welch on a conference call this morning. “Despite fighting difficult weather conditions throughout the quarter, our first quarter 2013 performance is substantially better than the first quarter of 2012…by quadrupling EBITDA. The last time we delivered this type of financial performance was when the first iPhone was hitting the market. But the brutal fact is we are simply not yet performing as well as we should be, and our management team recognizes that. We must perform better.”

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