Transportation service provider YRC Worldwide Inc. reported that for the second quarter ending June 30, 2010, the company announced a net loss of $9.5 million and a $.01 loss per share. As a comparison, the company reported a net loss of $309 million and a $5.20 loss per share in the second quarter of 2009.
"We are pleased with the sequential improvement in our business volumes and earnings as our pricing discipline, customer mix management and cost initiatives gain significant traction," states Bill Zollars, chairman, president and CEO of YRC Worldwide. "For the quarter, the regional companies reported positive operating income, and YRC National achieved positive adjusted EBITDA."
"The sequential growth in our business volumes put increased pressure on our liquidity even though our adjusted EBITDA from continuing operations improved from $3 million in April to $22 million in June," adds Sheila Taylor, executive vice president and CFO of YRC Worldwide. "We proactively addressed these working capital needs by partnering with our lenders to open up additional borrowing availability, while we handled more shipments with fewer people and improved our consolidated days sales outstanding (DSO) by four days compared to last year, our best DSO in more than four years."
Key Segment Information
Second quarter 2010 compared to the second quarter of 2009:
● YRC National Transportation tons per day and shipments per day down 18.6%, and revenue per hundredweight and revenue per shipment, both up 3.9%.
● YRC Regional Transportation tons per day up 4.6%, shipments per day down 3.1%, revenue per hundredweight down 2.8% and revenue per shipment up 4.9%.
Second quarter 2010 compared to the first quarter of 2010:
● YRC National Transportation tons per day up 11.0%, shipments per day up 8.0%, and revenue per shipment up 0.9%.
● YRC Regional Transportation tons per day up 15.5%, shipments per day up 13.8%, and revenue per shipment up 0.5%.
"With the significant operating momentum we achieved throughout the second quarter and experienced in July, the company is positioned for further growth, and we expect to achieve positive adjusted EBITDA in the third quarter of 2010 in excess of the second quarter," Zollars says.
In addition, the company has the following expectations for 2010:
● Gross capital expenditures in the range of $30 million to $50 million
● Excess real estate sales of approximately $50 million
● Sale and financing leasebacks in the range of $40 million to $50 million
● Interest expense in the range of $40 to $45 million per quarter, with cash interest of $10 million to $12 million per quarter
● Effective income tax rate of approximately 2%