- Generates Significant Free Cash Flow and Reduces Net Debt
- New YRC Brand Name Leads to One-Time, Non-Cash Charge
OVERLAND PARK, Kan. -- YRC Worldwide Inc. (Nasdaq: YRCW) today announced a loss per share for the fourth quarter 2008 of $1.63, excluding impairment charges of $2.51 per share, and for the full year 2008 a loss per share of $1.22, excluding impairment charges of $15.70 per share. When including impairment, the fourth quarter loss was $4.14 per share compared to a loss of $12.99 per share in the fourth quarter of last year and a full year loss of $16.92 per share compared to a full year loss of $11.17 per share in 2007. The fourth quarter impairment charge consisted of $141 million related to the Roadway trade name as the company introduced a new YRC brand for the integrated network of Yellow Transportation and Roadway. The impairment charge also included goodwill of $59 million at YRC Logistics.
"Our results reflect the significance of the economic recession that has been longer and deeper than anyone anticipated," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Although we were not pleased with this level of performance, it was consistent with our internal expectations and those of our banking group. The discussions with the banks are progressing well, and we are on track to finalize an amendment by mid- February," Zollars added.
YRC Worldwide generated $220 million of cash from operating activities during 2008, and after accounting for net capital expenditures of $35 million, 2008 free cash flow was $185 million. Total debt at December 31, 2008 increased by $127 million compared to the prior year. However, when taking into account cash and cash equivalents of $325 million at December 31, 2008, the company's debt, net of cash, decreased by $140 million compared to 2007.
"Even in this economic environment, we generated a significant amount of cash and we have multiple initiatives in place that can further improve liquidity," stated Zollars. "We recognized $128 million of asset proceeds in 2008 and we expect to generate more than $250 million in 2009 from a combination of sale and financing leaseback transactions and sales of excess facilities."
Key segment information for the fourth quarter 2008 compared to the fourth quarter 2007 included:
- YRC National Transportation total tonnage per day down 14.6% and total revenue per hundredweight, including fuel surcharge, down 3.6%.
- YRC Regional Transportation total tonnage per day down about 14%, when adjusting for the network changes in the first quarter 2008, and down 23.6% without adjusting for the network changes. Total revenue per hundredweight, including fuel surcharge, down 3.5%.
Additional statistical information is available on the company's website at yrcw.com under Investors, Earnings Releases & Operating Statistics.
"Although we cannot control or even predict the economy, we have considerable
opportunities to improve our financial position while enhancing service to our
customers," stated Zollars. "The network integration at YRC is now on track to
deliver a run-rate of
As a result of the integration efforts at YRC, the company has made some changes in the management reporting structure. Effectively immediately, Keith Lovetro, President of YRC Regional Transportation, reports directly to Bill Zollars. Mike Smid, President of YRC National Transportation, continues to lead the integration of Yellow Transportation and Roadway and remains responsible for all functions of YRC Inc. Mr. Smid continues to report to Mr. Zollars.
Review of Financial Results
YRC Worldwide Inc. (NASDAQ: YRCW) will host a conference call for shareholders and the investment community on Friday, January 30, 2009, beginning at 9:30am ET, 8:30am CT.
The conference call will be open to listeners through a live webcast via StreetEvents at streetevents.com and via the YRC Worldwide Internet site yrcw.com. An audio playback will also be available after the call via StreetEvents and the YRC Worldwide web sites.
Charts and details are available at www.yrcw.com
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YRC Worldwide Inc., a Fortune 500 company and one of the largest
transportation service providers in the world, is the holding company for a
portfolio of successful brands including YRC, Reimer Express, YRC Logistics, New