Thursday, August 11, 2016
YRC Worldwide Reports Second Quarter 2016 Results
YRC Worldwide Inc. reported consolidated operating revenue for second quarter 2016 of $1.208 billion and consolidated operating income of $57.2 million, which included an $11.1 million gain on property disposals. As a comparison, the Company reported consolidated operating revenue of $1.258 billion for the second quarter 2015 and consolidated operating income of $56.9 million, which included a $0.7 million gain on property disposals.
On a non-GAAP basis, the Company generated Adjusted EBITDA of $91.4 million in second quarter 2016 for a consolidated Adjusted EBITDA margin of 7.6% and an $18.0 million decrease compared to the $109.4 million of Adjusted EBITDA reported in the prior year comparable quarter (as detailed in the reconciliation below).
Last twelve month (LTM) Adjusted EBITDA is $319.4 million for a consolidated Adjusted EBITDA margin of 6.8%, and a decrease of $7.4 million from the $326.8 million of LTM Adjusted EBITDA in second quarter 2015.
The total debt-to-Adjusted EBITDA ratio in second quarter 2016 is 3.32 times compared to 3.33 times in second quarter 2015.
Reinvestment in the business continued during second quarter 2016 with $27.5 million in capital expenditures and new operating leases for revenue equipment with a capital value equivalent of $38.4 million, for a total of $65.9 million which is equal to 5.5% of operating revenue for the quarter. This represents an $18.1 million increase over the $47.8 million of reinvestment in second quarter 2015. The vast majority of the investment was in tractors, trailers and technology.
The $450 million asset based loan (ABL) facility was amended to provide for a 50 basis points reduction in the interest rate and an extension of the maturity, subject to certain conditions, from February 2019 to June 2021. The amendment also reduces availability requirements allowing additional flexibility to utilize cash that was previously restricted.
Full Report here.......