YRC Worldwide Achieves Continued Year-over-Year First Quarter Operating Improvement

- YRC National shipments per day up 6.3% and revenue per shipment up 3.3%
- YRC Regional shipments per day up 9.8% and revenue per shipment up 7.7%
- YRC Worldwide has engaged Morgan Stanley to arrange a $400 million Asset-Based Loan

Facility as part of its overall restructuring

YRC Worldwide Inc. reported a net loss of $102 million and $2.14 loss per share for the first quarter of 2011, which represents an improvement from the net loss of $274 million and $13.15 loss per share reported for the first quarter of 2010.

Consolidated operating revenue for the first quarter of 2011 was $1.1 billion and consolidated operating loss was $68 million. The first quarter 2011 operating revenue and operating loss were impacted by extreme winter weather and included $8 million of restructuring professional fee expenses. In addition, the company recorded a 2011 first quarter charge of $17 million to increase its self-insured claims reserve, primarily related to workers' compensation claims, which occurred during or were open and unsettled at the 2009 integration of the Yellow and Roadway network operations. As a comparison, the company reported consolidated operating revenue of $987 million for the first quarter of 2010 and an operating loss of $233 million, which included a $108 million charge for union employee equity awards, $12 million of restructuring professional fee expenses and an $11 million charge for prior years' self-insured claims.

"We are pleased with the year-over-year growth in business volumes and adjusted EBITDA improvements at YRC National and across our Regional companies," stated Bill Trubeck, Interim Executive Vice President, CFO and Treasurer of YRC Worldwide. "Our first quarter operating performance improved significantly once we moved past the severe winter weather in the first two months of the quarter. Excluding the insurance charge, we generated adjusted EBITDA in excess of $20 million for the month of March."

During the first quarter of 2011, the company reported operating cash usage from operations of $46 million primarily due to $34 million in working capital requirements. Working capital changes included a $55 million increase in receivables due to the sequential growth in operating revenues and the seasonal timing of payment for certain operating expenses. Working capital requirements and the increase in the company's cash balances described below were funded by utilizing revolver availability under the company's credit agreement with net draws of $33 million and from the increased borrowing base under the asset-backed securitization (ABS) facility, which resulted in an additional $28 million in liquidity.

At March 31, 2011, the company reported cash and cash equivalents of $157 million, unrestricted availability of $8 million and unused restricted revolver reserves of $71 million, subject to the terms of the company's credit agreement. As a comparison, at December 31, 2010, the company reported cash and cash equivalents of $143 million, unrestricted availability of $51 million and unused restricted revolver reserves of $71 million, subject to the terms of the company's credit agreement.

During the quarter, a portion of asset sale proceeds were used to repay $10 million of credit agreement borrowings which reduced the revolver capacity by $7 million and the term loan by $3 million. At March 31, 2011, the company's revolver capacity was $706 million, the term loan was $254 million and the ABS borrowing base was $218 million as compared to ABS capacity of $325 million.