Transportation service provider YRC Worldwide Inc. has reported a pre-tax loss of $899 million for the full year 2009, which compares to a pre-tax loss in 2008 of $1.14 billion, including impairment charges of $1,023 million. For the fourth quarter of 2009, the company announced pre-tax income of $50 million that included a net gain on note exchanges of $194 million, lease termination charges of $8 million related to further optimization of the YRC network, and severance charges of $3 million due to further headcount reductions. That compares to a pre-tax loss in 2008 of $353 million, which included impairment charges of $200 million.
The company reported an operating loss of $95 million for the fourth quarter of 2009, a modest improvement from the third quarter operating loss of $118 million, which included a net gain on property disposals of $11 million, following the improvement reported for the second quarter, and a year-over-year improvement from the fourth quarter of 2008 operating loss of $335 million, which included impairment charges of $200 million.
YRC is executing on its plan to raise new capital sufficient to satisfy the remaining 2010 note obligations and is in advanced discussions with investors.
At December 31, 2009 the company reported cash and cash equivalents of $98 million and unused revolver reserves of $160 million within the company's $950 million revolving credit facility. The company also reported usage of $223 million under its $400 million asset-backed securitization facility. In addition, the company has filed its 2009 estimated federal tax return using the newly available five-year carry-back legislation. YRC Worldwide expects to receive an $85 million cash refund during the first quarter of 2010 which the company would use for operating liquidity.
For the fourth quarter the company completed sale and financing leasebacks of $26 million and sold $27 million of surplus property. During 2009 the company completed sale and financing leasebacks of $332 million and sales of surplus property of $133 million, and deferred union pension contributions of $171 million, all as part of the company’s self-help liquidity plan.
