YRC Worldwide reports $899 million pre-tax loss

YRC Worldwide Inc. reported year-over-year and continued sequential improvement in its fourth quarter 2009 results. For the quarter ending December 31, 2009 the company announced pre-tax income of $50 million. For the full year 2009 the company reported a pre-tax loss of $899 million compared to a full-year pre-tax loss in 2008 of $1,147 million, including impairment charges of $1,023 million. For the fourth quarter of 2008 the company reported a pre-tax loss of $353 million which included impairment charges of $200 million.

"We continued our positive momentum in the fourth quarter as we executed on our comprehensive plan. During 2009 we accomplished the integration and right-sizing of the national networks, the turnaround of the regional business, cost reductions and process improvements, a self-help liquidity programme, and, most recently, the successful note exchange to conclude the year," stated Bill Zollars, Chairman and CEO of YRC Worldwide. "With our significantly improved balance sheet and additional liquidity resulting from our debt-for-equity exchange, we entered 2010 on a more solid financial base with good momentum."

The company reported an operating loss of $95 million for the fourth quarter of 2009, a continued sequential improvement from the third quarter operating loss of $118 million, which included a net gain on property disposals of $11 million, following the sequential 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.

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.

YRC National Transportation total shipments per day were down 39.9% and total revenue per hundredweight, including fuel surcharge, was down 4.2%.

YRC Regional Transportation total shipments per day were down 19.9% and total revenue per hundredweight, including fuel surcharge, was down 7.7%.

"Our fourth quarter sequential improvement in operating results, despite seasonally lower revenues, resulted from our cost improvement actions, continued pricing discipline and initiatives to improve our revenue mix," said Tim Wicks, President and Chief Operating Officer of YRC Worldwide. "Our improved performance, measured year-over-year and from a lower revenue base, is now becoming apparent in our operating results and we expect favourable year-over-year comparisons will accelerate during 2010."

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