YRC Worldwide gives early look at Q4 financial results

YRC Worldwide, which controls the fourth- and eighth-largest less-than-truckload (LTL) units with its long-haul and regional trucking companies, is offering an early peak into its operating results for the fourth quarter 2018.

For the quarter, YRC said it anticipates reporting consolidated operating revenue of approximately $1.2 billion to $1.3 billion and consolidated operating income of approximately $55 to $65 million. That includes approximately $28 million gain on property sales.

Those results compares with consolidated operating revenue for the three months ended Dec. 31, 2017 of $1.2 billion with consolidated operating income of $22.1 million, which included a $3.6 million gain on property disposals.

YRC said on a non-GAAP basis, it anticipates reporting fourth quarter consolidated adjusted earnings before interest, depreciation and amortization expense (EBITDA) of approximately $100 million to $110 million compared to consolidated adjusted EBITDA of $58.5 million in fourth quarter 2017 .

As of the end of last year, YRC said it anticipates reporting cash and cash equivalents under its loan agreements of more than $200 million compared to $118.3 million as of Dec. 31, 2017.

“I am proud of the year-over-year operational improvement in our fourth quarter,” YRC CEO Darren Hawkins said in a statement. “At the beginning of the year, we laid out our strategy to improve our yield metrics by effectively pricing freight and balancing our network capacity, as well as to continue reinvestment in our tractor and trailer fleet,” Hawkins added. “Our 2018 results demonstrate successful execution in these areas and we remain committed to these objectives moving forward.”

Hawkins said YRC has built a “a solid foundation” to continue improving its operating results.

“Going into 2019, our liquidity position is strong. We will continue our focus on yield discipline, realizing returns on our investments in revenue equipment, and increasing the coverage of our customers’ supply chain needs with HNRY Logistics,” Hawkins added. 

YRC Worldwide will host an analysts’ conference call on Jan. 31 beginning at 9:30 a.m. ET. Fourth quarter 2018 financial results will be released the same day before the market opens.

One likely topic will be YRC’s ongoing negotiations with the Teamsters union representing about 24,000 employees. They have been working under a 15 percent wage reduction and 75 percent loss in pension contributions since 2009. The union rank and file would like to recover some of those givebacks in its next contract, though it is unclear how far YRC management is willing to go in that area.