ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 48-0948788 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
10990 Roe Avenue, Overland Park, Kansas | 66211 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | o | Accelerated filer | ý | |||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
Class | Outstanding at November 7, 2013 | |
Common Stock, $0.01 par value per share | 10,937,029 shares |
Item | Page | |
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1A | ||
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6 | ||
September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 170.5 | $ | 208.7 | |||
Restricted amounts held in escrow | 90.1 | 20.0 | |||||
Accounts receivable, net | 519.0 | 460.1 | |||||
Prepaid expenses and other | 79.6 | 85.3 | |||||
Total current assets | 859.2 | 774.1 | |||||
Property and Equipment: | |||||||
Cost | 2,854.5 | 2,869.0 | |||||
Less – accumulated depreciation | (1,733.6 | ) | (1,677.6 | ) | |||
Net property and equipment | 1,120.9 | 1,191.4 | |||||
Intangibles, net | 84.9 | 99.2 | |||||
Restricted amounts held in escrow | 12.5 | 102.5 | |||||
Other assets | 56.4 | 58.3 | |||||
Total Assets | $ | 2,133.9 | $ | 2,225.5 | |||
Liabilities and Shareholders’ Deficit | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 194.3 | $ | 162.0 | |||
Wages, vacations and employees’ benefits | 224.1 | 190.9 | |||||
Other current and accrued liabilities | 199.7 | 233.2 | |||||
Current maturities of long-term debt | 392.7 | 9.1 | |||||
Total current liabilities | 1,010.8 | 595.2 | |||||
Other Liabilities: | |||||||
Long-term debt, less current portion | 968.3 | 1,366.3 | |||||
Pension and postretirement | 503.4 | 548.8 | |||||
Claims and other liabilities | 317.2 | 344.3 | |||||
Commitments and contingencies | |||||||
Shareholders’ Deficit: | |||||||
Preferred stock, $1 par value per share | — | — | |||||
Common stock, $0.01 par value per share | 0.1 | 0.1 | |||||
Capital surplus | 1,964.0 | 1,926.5 | |||||
Accumulated deficit | (2,154.6 | ) | (2,070.6 | ) | |||
Accumulated other comprehensive loss | (382.6 | ) | (392.4 | ) | |||
Treasury stock, at cost (410 shares) | (92.7 | ) | (92.7 | ) | |||
Total shareholders’ deficit | (665.8 | ) | (629.1 | ) | |||
Total Liabilities and Shareholders’ Deficit | $ | 2,133.9 | $ | 2,225.5 |
Three Months | Nine Months | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Operating Revenue | $ | 1,252.7 | $ | 1,236.8 | $ | 3,657.7 | $ | 3,681.9 | |||||||
Operating Expenses: | |||||||||||||||
Salaries, wages and employees’ benefits | 711.8 | 701.0 | 2,110.3 | 2,129.8 | |||||||||||
Operating expenses and supplies | 284.4 | 275.4 | 838.0 | 854.4 | |||||||||||
Purchased transportation | 139.0 | 126.8 | 379.6 | 372.7 | |||||||||||
Depreciation and amortization | 43.3 | 44.6 | 130.4 | 139.4 | |||||||||||
Other operating expenses | 67.1 | 64.0 | 171.3 | 192.0 | |||||||||||
(Gains) losses on property disposals, net | 1.3 | (2.3 | ) | (1.9 | ) | (0.5 | ) | ||||||||
Total operating expenses | 1,246.9 | 1,209.5 | 3,627.7 | 3,687.8 | |||||||||||
Operating Income (Loss) | 5.8 | 27.3 | 30.0 | (5.9 | ) | ||||||||||
Nonoperating Expenses: | |||||||||||||||
Interest expense | 43.1 | 33.7 | 124.2 | 111.6 | |||||||||||
Other, net | (0.2 | ) | (0.2 | ) | (3.0 | ) | (3.2 | ) | |||||||
Nonoperating expenses, net | 42.9 | 33.5 | 121.2 | 108.4 | |||||||||||
Loss before income taxes | (37.1 | ) | (6.2 | ) | (91.2 | ) | (114.3 | ) | |||||||
Income tax provision (benefit) | 7.3 | (9.2 | ) | (7.2 | ) | (13.1 | ) | ||||||||
Net income (loss) | (44.4 | ) | 3.0 | (84.0 | ) | (101.2 | ) | ||||||||
Less: net income attributable to non-controlling interest | — | — | — | 3.9 | |||||||||||
Net Income (Loss) Attributable to YRC Worldwide Inc. | (44.4 | ) | 3.0 | (84.0 | ) | (105.1 | ) | ||||||||
Other comprehensive income, net of tax | 4.6 | 3.7 | 9.8 | 9.9 | |||||||||||
Comprehensive Income (Loss) Attributable to YRC Worldwide Inc. Shareholders | $ | (39.8 | ) | $ | 6.7 | $ | (74.2 | ) | $ | (95.2 | ) | ||||
Average Common Shares Outstanding – Basic | 9,977 | 7,512 | 9,053 | 7,149 | |||||||||||
Average Common Shares Outstanding – Diluted | 9,977 | 14,162 | 9,053 | 7,149 | |||||||||||
Net Income (Loss) Per Share – Basic | $ | (4.45 | ) | $ | 0.40 | $ | (9.29 | ) | $ | (14.16 | ) | ||||
Net Loss Per Share – Diluted | $ | (4.45 | ) | $ | (4.30 | ) | $ | (9.29 | ) | $ | (14.16 | ) |
2013 | 2012 | ||||||
Operating Activities: | |||||||
Net loss | $ | (84.0 | ) | $ | (101.2 | ) | |
Noncash items included in net loss: | |||||||
Depreciation and amortization | 130.4 | 139.4 | |||||
Paid-in-kind interest on Series A Notes and Series B Notes | 24.6 | 22.1 | |||||
Amortization of deferred debt costs | 5.0 | 4.1 | |||||
Equity based compensation expense | 4.5 | 3.0 | |||||
Deferred income tax benefit | (0.1 | ) | — | ||||
Gains on property disposals, net | (1.9 | ) | (0.5 | ) | |||
Other noncash items, net | 5.9 | (1.6 | ) | ||||
Changes in assets and liabilities, net: | |||||||
Accounts receivable | (59.5 | ) | (44.3 | ) | |||
Accounts payable | 25.4 | 16.6 | |||||
Other operating assets | 0.9 | (9.0 | ) | ||||
Other operating liabilities | (54.2 | ) | (76.6 | ) | |||
Net cash used in operating activities | (3.0 | ) | (48.0 | ) | |||
Investing Activities: | |||||||
Acquisition of property and equipment | (56.5 | ) | (48.1 | ) | |||
Proceeds from disposal of property and equipment | 5.9 | 39.2 | |||||
Restricted escrow receipts, net | 19.9 | 23.9 | |||||
Other, net | 1.8 | 2.4 | |||||
Net cash (used in) provided by investing activities | (28.9 | ) | 17.4 | ||||
Financing Activities: | |||||||
Issuance of long-term debt | 0.3 | 45.0 | |||||
Repayments of long-term debt | (6.6 | ) | (20.4 | ) | |||
Debt issuance costs | — | (5.1 | ) | ||||
Net cash (used in) provided by financing activities | (6.3 | ) | 19.5 | ||||
Net Decrease In Cash and Cash Equivalents | (38.2 | ) | (11.1 | ) | |||
Cash and Cash Equivalents, Beginning of Period | 208.7 | 200.5 | |||||
Cash and Cash Equivalents, End of Period | $ | 170.5 | $ | 189.4 | |||
Supplemental Cash Flow Information: | |||||||
Interest paid | $ | (90.4 | ) | $ | (91.6 | ) | |
Income tax refund, net | $ | 10.8 | $ | 8.2 |
Common Stock | |||
Beginning and ending balance | $ | 0.1 | |
Capital Surplus | |||
Beginning balance | $ | 1,926.5 | |
Share-based compensation | 2.2 | ||
Issuance of equity upon conversion of Series B Notes | 35.3 | ||
Ending balance | $ | 1,964.0 | |
Accumulated Deficit | |||
Beginning balance | $ | (2,070.6 | ) |
Net loss attributable to YRC Worldwide Inc. | (84.0 | ) | |
Ending balance | $ | (2,154.6 | ) |
Accumulated Other Comprehensive Loss | |||
Beginning balance | $ | (392.4 | ) |
Reclassification of net pension actuarial losses to net loss, net of tax | 11.1 | ||
Foreign currency translation adjustments | (1.3 | ) | |
Ending balance | $ | (382.6 | ) |
Treasury Stock, At Cost | |||
Beginning and ending balance | $ | (92.7 | ) |
Total Shareholders’ Deficit | $ | (665.8 | ) |
• | YRC Freight is the reporting segment that focuses on longer haul business opportunities in national, regional and international services. YRC Freight provides for the movement of industrial, commercial and retail goods, primarily through centralized management and customer facing organizations. This unit includes our LTL subsidiary YRC Inc. and Reimer Express, a subsidiary located in Canada that specializes in shipments into, across and out of Canada. In addition to the United States and Canada, YRC Freight also serves parts of Mexico, Puerto Rico and Guam. |
• | Regional Transportation is the reporting segment for our transportation service providers focused on business opportunities in the regional and next-day delivery markets. Regional Transportation is comprised of USF Holland Inc. (“Holland”), New Penn Motor Express, Inc. (“New Penn”) and USF Reddaway Inc. (“Reddaway”). These companies each provide regional, next-day ground services in their respective regions through a network of facilities located across the United States, Canada, Mexico and Puerto Rico. |
Fair Value Measurement Hierarchy | |||||||||||||||
(in millions) | Total Carrying Value | Quoted prices in active market (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||
Restricted amounts held in escrow-current | $ | 90.1 | $ | 90.1 | $ | — | $ | — | |||||||
Restricted amounts held in escrow-long term | $ | 12.5 | $ | 12.5 | $ | — | $ | — | |||||||
Total assets at fair value | $ | 102.6 | $ | 102.6 | $ | — | $ | — |
Four Consecutive Fiscal Quarters Ending | Minimum Consolidated EBITDA | Maximum Total Leverage Ratio | Minimum Interest Coverage Ratio | ||
September 30, 2013 | $260,000,000 | 6.0 to 1.00 | 1.60 to 1.00 | ||
December 31, 2013 | $245,000,000 | 5.7 to 1.00 | 1.50 to 1.00 | ||
March 31, 2014 | $220,000,000 | 6.4 to 1.00 | 1.30 to 1.00 | ||
June 30, 2014 | $225,000,000 | 6.5 to 1.00 | 1.30 to 1.00 | ||
September 30, 2014 | $245,000,000 | 6.5 to 1.00 | 1.40 to 1.00 | ||
December 31, 2014 | $260,000,000 | 6.2 to 1.00 | 1.40 to 1.00 |
• | achieving forecasted results in order to comply with covenants and other terms of our credit facilities so as to have access to the borrowings available to us under our credit facilities; |
• | securing suitable lease financing arrangements to replace revenue equipment; |
• | generating operating cash flows that are sufficient to meet the minimum cash balance requirement under our credit facilities, cash requirements for pension contributions to our single-employer pension plan and our multi-employer pension funds, cash interest and principal payments on our funded debt, payments on our equipment leases, letter of credit fees under our credit facilities and for capital expenditures or additional lease payments for new revenue equipment. |
As of September 30, 2013 (in millions) | Par Value | Premium/ (Discount) | Book Value | Stated Interest Rate | Effective Interest Rate | ||||||||||||
Restructured Term Loan | $ | 298.7 | $ | 45.2 | $ | 343.9 | 10.0 | % | — | % | |||||||
Term A Facility (capacity $175.0, borrowing base $168.2, availability $63.2) | 105.0 | (2.8 | ) | 102.2 | 8.5 | % | 15.8 | % | |||||||||
Term B Facility (capacity $220.5, borrowing base $220.5, availability $0.0) | 220.5 | (5.1 | ) | 215.4 | 11.25 | % | 15.0 | % | |||||||||
Series A Notes | 173.5 | (20.6 | ) | 152.9 | 10.0 | % | 18.3 | % | |||||||||
Series B Notes | 68.2 | (12.1 | ) | 56.1 | 10.0 | % | 25.6 | % | |||||||||
6% Convertible Senior Notes | 69.4 | (2.5 | ) | 66.9 | 6.0 | % | 15.5 | % | |||||||||
A&R CDA | 124.3 | (0.2 | ) | 124.1 | 3.0-18.0% | 7.0 | % | ||||||||||
Lease financing obligations | 299.3 | — | 299.3 | 10.0-18.2% | 11.9 | % | |||||||||||
Other | 0.2 | — | 0.2 | ||||||||||||||
Total debt | $ | 1,359.1 | $ | 1.9 | $ | 1,361.0 | |||||||||||
Current maturities of Term A Facility | (105.0 | ) | 2.8 | (102.2 | ) | ||||||||||||
Current maturities of Term B Facility | (220.5 | ) | $ | 5.1 | (215.4 | ) | |||||||||||
Current maturities of 6% Notes | (69.4 | ) | 2.5 | (66.9 | ) | ||||||||||||
Current maturities of lease financing obligations | (8.0 | ) | — | (8.0 | ) | ||||||||||||
Current maturities of other | (0.2 | ) | — | (0.2 | ) | ||||||||||||
Long-term debt | $ | 956.0 | $ | 12.3 | $ | 968.3 |
As of December 31, 2012 (in millions) | Par Value | Premium/ (Discount) | Book Value | Stated Interest Rate | Effective Interest Rate | ||||||||||||
Restructured Term Loan | $ | 298.7 | $ | 67.6 | $ | 366.3 | 10.0 | % | — | % | |||||||
Term A Facility (capacity $175.0, borrowing base $147.6, availability $42.6) | 105.0 | (4.8 | ) | 100.2 | 8.5 | % | 15.8 | % | |||||||||
Term B Facility (capacity $222.2, borrowing base $222.2, availability $0.0) | 222.2 | (8.5 | ) | 213.7 | 11.25 | % | 15.0 | % | |||||||||
Series A Notes | 161.2 | (27.8 | ) | 133.4 | 10.0 | % | 18.3 | % | |||||||||
Series B Notes | 91.5 | (25.4 | ) | 66.1 | 10.0 | % | 25.6 | % | |||||||||
6% Notes | 69.4 | (6.3 | ) | 63.1 | 6.0 | % | 15.5 | % | |||||||||
A&R CDA | 125.8 | (0.4 | ) | 125.4 | 3.0-18.0% | 7.1 | % | ||||||||||
Lease financing obligations | 306.9 | — | 306.9 | 10.0-18.2% | 11.9 | % | |||||||||||
Other | 0.3 | — | 0.3 | ||||||||||||||
Total debt | $ | 1,381.0 | $ | (5.6 | ) | $ | 1,375.4 | ||||||||||
Current maturities of Term B Facility | (2.3 | ) | — | (2.3 | ) | ||||||||||||
Current maturities of lease financing obligations | (6.5 | ) | — | (6.5 | ) | ||||||||||||
Current maturities of other | (0.3 | ) | — | (0.3 | ) | ||||||||||||
Long-term debt | $ | 1,371.9 | $ | (5.6 | ) | $ | 1,366.3 |
September 30, 2013 | December 31, 2012 | ||||||||||||||
(in millions) | Carrying amount | Fair Value | Carrying amount | Fair Value | |||||||||||
Restructured Term Loan | $ | 343.9 | $ | 297.0 | $ | 366.3 | $ | 197.5 | |||||||
ABL Facility | 317.6 | 329.0 | 313.9 | 325.8 | |||||||||||
Series A Notes and Series B Notes | 209.0 | 234.1 | 199.5 | 81.5 | |||||||||||
Lease financing obligations | 299.3 | 299.3 | 306.9 | 306.9 | |||||||||||
Other | 191.2 | 188.9 | 188.8 | 99.5 | |||||||||||
Total debt | $ | 1,361.0 | $ | 1,348.3 | $ | 1,375.4 | $ | 1,011.2 |
Three Months | Nine Months | ||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 1.1 | $ | 0.9 | $ | 3.2 | $ | 2.8 | |||||||
Interest cost | 14.0 | 14.8 | 42.1 | 44.5 | |||||||||||
Expected return on plan assets | (13.9 | ) | (14.9 | ) | (41.7 | ) | (38.1 | ) | |||||||
Amortization of net loss | 3.7 | 1.0 | 11.1 | 6.8 | |||||||||||
Total periodic pension cost | $ | 4.9 | $ | 1.8 | $ | 14.7 | $ | 16.0 |
(shares in thousands) | 2013 | |
Beginning balance | 7,976 | |
Issuance of equity awards | 245 | |
Issuance of common stock upon conversion of Series B Notes | 1,929 | |
Ending balance | 10,150 |
Three Months | Nine Months | ||||||||||||||
(dollars in millions, except per share data, shares in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Basic net income (loss) available to common shareholders | $ | (44.4 | ) | $ | 3.0 | $ | (84.0 | ) | $ | (105.1 | ) | ||||
Effect of dilutive securities: | |||||||||||||||
6% Notes1 | — | (11.8 | ) | — | — | ||||||||||
Series B Notes1 | — | (52.0 | ) | — | — | ||||||||||
Dilutive net loss available to common shareholders | $ | (44.4 | ) | $ | (60.8 | ) | $ | (84.0 | ) | $ | (105.1 | ) | |||
Basic weighted average shares outstanding | 9,977 | 7,512 | 9,053 | 7,149 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options and restricted stock | — | 31 | — | — | |||||||||||
6% Notes | — | 18 | — | — | |||||||||||
Series B Notes | — | 6,601 | — | — | |||||||||||
Dilutive weighted average shares outstanding | 9,977 | 14,162 | 9,053 | 7,149 | |||||||||||
Basic earnings (loss) per share | $ | (4.45 | ) | $ | 0.40 | $ | (9.29 | ) | $ | (14.16 | ) | ||||
Diluted loss per share | $ | (4.45 | ) | $ | (4.30 | ) | $ | (9.29 | ) | $ | (14.16 | ) |
• | YRC Freight is the reporting segment for our transportation service providers focused on business opportunities in national, regional and international services. YRC Freight provides for the movement of industrial, commercial and retail goods, primarily through centralized management and customer facing organizations. This unit includes our LTL subsidiary YRC Inc. and Reimer Express, a subsidiary located in Canada that specializes in shipments into, across and out of Canada. In addition to the United States and Canada, YRC Freight also serves parts of Mexico, Puerto Rico and Guam. |
• | Regional Transportation is the reporting segment for our transportation service providers focused on business opportunities in the regional and next-day delivery markets. The Regional Transportation companies each provide regional, next-day ground services in their respective regions through a network of facilities located across the United States, Canada, Mexico and Puerto Rico. |
(in millions) | YRC Freight | Regional Transportation | Corporate/ Eliminations | Consolidated | |||||||||||
As of September 30, 2013 | |||||||||||||||
Identifiable assets | $ | 1,303.2 | $ | 812.1 | $ | 18.6 | $ | 2,133.9 | |||||||
As of December 31, 2012 | |||||||||||||||
Identifiable assets | $ | 1,315.4 | $ | 745.5 | $ | 164.6 | $ | 2,225.5 | |||||||
Three Months Ended September 30, 2013 | |||||||||||||||
External revenue | $ | 808.7 | $ | 444.0 | $ | — | $ | 1,252.7 | |||||||
Intersegment revenue | $ | — | $ | — | $ | — | $ | — | |||||||
Operating income (loss) | $ | (9.7 | ) | $ | 20.0 | $ | (4.5 | ) | $ | 5.8 | |||||
Nine Months Ended September 30, 2013 | |||||||||||||||
External revenue | $ | 2,360.1 | $ | 1,297.6 | $ | — | $ | 3,657.7 | |||||||
Intersegment revenue | $ | — | $ | — | $ | — | $ | — | |||||||
Operating income (loss) | $ | (15.8 | ) | $ | 57.2 | $ | (11.4 | ) | $ | 30.0 | |||||
Three Months Ended September 30, 2012 | |||||||||||||||
External revenue | $ | 819.5 | $ | 417.3 | $ | — | $ | 1,236.8 | |||||||
Intersegment revenue | $ | — | $ | — | $ | — | $ | — | |||||||
Operating income (loss) | $ | 2.8 | $ | 27.2 | $ | (2.7 | ) | $ | 27.3 | ||||||
Nine Months Ended September 30, 2012 | |||||||||||||||
External revenue | $ | 2,429.7 | $ | 1,249.0 | $ | 3.2 | $ | 3,681.9 | |||||||
Intersegment revenue | $ | — | $ | 0.2 | $ | (0.2 | ) | $ | — | ||||||
Operating income (loss) | $ | (58.4 | ) | $ | 61.6 | $ | (9.1 | ) | $ | (5.9 | ) |
(in millions) | Employee Separation | Contract Termination and Other Costs | Total | ||||||
Balance at December 31, 2012 | $ | — | $ | 0.5 | $ | 0.5 | |||
Network optimization charges | 1.3 | 5.0 | 6.3 | ||||||
Payments | (0.9 | ) | (4.6 | ) | (5.5 | ) | |||
Balance at September 30, 2013 | $ | 0.4 | $ | 0.9 | $ | 1.3 |
As of September 30, 2013 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash and cash equivalents | $ | 129.6 | $ | 13.2 | $ | 27.7 | $ | — | $ | 170.5 | |||||||||
Intercompany advances receivable | — | (35.2 | ) | 35.2 | — | — | |||||||||||||
Accounts receivable, net | 3.3 | (3.3 | ) | 519.0 | — | 519.0 | |||||||||||||
Prepaid expenses and other | 105.0 | 58.3 | 6.4 | — | 169.7 | ||||||||||||||
Total current assets | 237.9 | 33.0 | 588.3 | — | 859.2 | ||||||||||||||
Property and equipment | 0.8 | 2,671.5 | 182.2 | — | 2,854.5 | ||||||||||||||
Less – accumulated depreciation | (0.3 | ) | (1,624.8 | ) | (108.5 | ) | — | (1,733.6 | ) | ||||||||||
Net property and equipment | 0.5 | 1,046.7 | 73.7 | — | 1,120.9 | ||||||||||||||
Investment in subsidiaries | 1,743.5 | 206.8 | (0.1 | ) | (1,950.2 | ) | — | ||||||||||||
Receivable from affiliate | (491.1 | ) | 426.3 | 414.8 | (350.0 | ) | — | ||||||||||||
Intangibles and other assets | 37.8 | 53.7 | 62.3 | — | 153.8 | ||||||||||||||
Total Assets | $ | 1,528.6 | $ | 1,766.5 | $ | 1,139.0 | $ | (2,300.2 | ) | $ | 2,133.9 | ||||||||
Intercompany advances payable | $ | (11.8 | ) | $ | (269.2 | ) | $ | 281.0 | $ | — | $ | — | |||||||
Accounts payable | 42.9 | 137.1 | 14.3 | — | 194.3 | ||||||||||||||
Wages, vacations and employees’ benefits | 13.2 | 196.0 | 14.9 | — | 224.1 | ||||||||||||||
Other current and accrued liabilities | 174.3 | 23.9 | 1.5 | — | 199.7 | ||||||||||||||
Current maturities of long-term debt | 74.5 | 0.6 | 317.6 | — | 392.7 | ||||||||||||||
Total current liabilities | 293.1 | 88.4 | 629.3 | — | 1,010.8 | ||||||||||||||
Payable to affiliate | — | 200.0 | 150.0 | (350.0 | ) | — | |||||||||||||
Long-term debt, less current portion | 967.5 | 0.8 | — | — | 968.3 | ||||||||||||||
Deferred income taxes, net | 225.7 | (222.1 | ) | (3.6 | ) | — | — | ||||||||||||
Pension and postretirement | 503.5 | — | (0.1 | ) | — | 503.4 | |||||||||||||
Claims and other liabilities | 279.9 | 34.1 | 3.2 | — | 317.2 | ||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Shareholders’ equity (deficit) | (741.1 | ) | 1,665.3 | 360.2 | (1,950.2 | ) | (665.8 | ) | |||||||||||
Total Liabilities and Shareholders’ Equity (Deficit) | $ | 1,528.6 | $ | 1,766.5 | $ | 1,139.0 | $ | (2,300.2 | ) | $ | 2,133.9 |
As of December 31, 2012 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash and cash equivalents | $ | 151.9 | $ | 13.6 | $ | 43.2 | $ | — | $ | 208.7 | |||||||||
Intercompany advances receivable | — | (28.8 | ) | 28.8 | — | — | |||||||||||||
Accounts receivable, net | 3.3 | (7.4 | ) | 464.2 | — | 460.1 | |||||||||||||
Prepaid expenses and other | 93.7 | 9.7 | 1.9 | — | 105.3 | ||||||||||||||
Total current assets | 248.9 | (12.9 | ) | 538.1 | — | 774.1 | |||||||||||||
Property and equipment | 0.7 | 2,681.7 | 186.6 | — | 2,869.0 | ||||||||||||||
Less – accumulated depreciation | (0.2 | ) | (1,572.5 | ) | (104.9 | ) | — | (1,677.6 | ) | ||||||||||
Net property and equipment | 0.5 | 1,109.2 | 81.7 | — | 1,191.4 | ||||||||||||||
Investment in subsidiaries | 1,463.5 | 162.7 | (17.6 | ) | (1,608.6 | ) | — | ||||||||||||
Receivable from affiliate | (392.8 | ) | 318.6 | 424.2 | (350.0 | ) | — | ||||||||||||
Intangibles and other assets | 154.1 | 53.6 | 52.3 | — | 260.0 | ||||||||||||||
Total Assets | $ | 1,474.2 | $ | 1,631.2 | $ | 1,078.7 | $ | (1,958.6 | ) | $ | 2,225.5 | ||||||||
Intercompany advances payable | $ | (11.8 | ) | $ | (294.5 | ) | $ | 306.3 | $ | — | $ | — | |||||||
Accounts payable | 42.1 | 107.6 | 12.3 | — | 162.0 | ||||||||||||||
Wages, vacations and employees’ benefits | 13.2 | 163.9 | 13.8 | — | 190.9 | ||||||||||||||
Other current and accrued liabilities | 193.5 | 30.3 | 9.4 | — | 233.2 | ||||||||||||||
Current maturities of long-term debt | 6.8 | — | 2.3 | — | 9.1 | ||||||||||||||
Total current liabilities | 243.8 | 7.3 | 344.1 | — | 595.2 | ||||||||||||||
Payable to affiliate | — | 200.0 | 150.0 | (350.0 | ) | — | |||||||||||||
Long-term debt, less current portion | 1,054.7 | — | 311.6 | — | 1,366.3 | ||||||||||||||
Deferred income taxes, net | 228.2 | (224.6 | ) | (3.6 | ) | — | — | ||||||||||||
Pension and postretirement | 548.8 | — | — | — | 548.8 | ||||||||||||||
Claims and other liabilities | 302.9 | 40.1 | 1.3 | — | 344.3 | ||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Shareholders’ equity (deficit) | (904.2 | ) | 1,608.4 | 275.3 | (1,608.6 | ) | (629.1 | ) | |||||||||||
Total Liabilities and Shareholders’ Equity (Deficit) | $ | 1,474.2 | $ | 1,631.2 | $ | 1,078.7 | $ | (1,958.6 | ) | $ | 2,225.5 |
Three Months Ended September 30, 2013 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Revenue | $ | — | $ | 1,146.9 | $ | 105.8 | $ | — | $ | 1,252.7 | |||||||||
Operating Expenses: | |||||||||||||||||||
Salaries, wages and employees’ benefits | 6.6 | 651.2 | 54.0 | — | 711.8 | ||||||||||||||
Operating expenses and supplies | (2.9 | ) | 263.4 | 23.9 | — | 284.4 | |||||||||||||
Purchased transportation | — | 123.3 | 15.7 | — | 139.0 | ||||||||||||||
Depreciation and amortization | — | 39.6 | 3.7 | — | 43.3 | ||||||||||||||
Other operating expenses | — | 60.7 | 6.4 | — | 67.1 | ||||||||||||||
Losses on property disposals, net | — | 1.2 | 0.1 | — | 1.3 | ||||||||||||||
Total operating expenses | 3.7 | 1,139.4 | 103.8 | — | 1,246.9 | ||||||||||||||
Operating Income (Loss) | (3.7 | ) | 7.5 | 2.0 | — | 5.8 | |||||||||||||
Nonoperating Expenses (Income): | |||||||||||||||||||
Interest expense | 30.4 | 0.1 | 12.6 | — | 43.1 | ||||||||||||||
Other, net | 32.4 | (0.1 | ) | (32.5 | ) | — | (0.2 | ) | |||||||||||
Nonoperating expenses (income), net | 62.8 | — | (19.9 | ) | — | 42.9 | |||||||||||||
Income (loss) before income taxes | (66.5 | ) | 7.5 | 21.9 | — | (37.1 | ) | ||||||||||||
Income tax provision (benefit) | 6.7 | (0.1 | ) | 0.7 | — | 7.3 | |||||||||||||
Net income (loss) | (73.2 | ) | 7.6 | 21.2 | — | (44.4 | ) | ||||||||||||
Other comprehensive income, net of tax | 0.3 | 3.4 | 0.9 | — | 4.6 | ||||||||||||||
Comprehensive Income (Loss) | $ | (72.9 | ) | $ | 11.0 | $ | 22.1 | $ | — | $ | (39.8 | ) |
Three Months Ended September 30, 2012 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Revenue | $ | — | $ | 1,130.8 | $ | 106.0 | $ | — | $ | 1,236.8 | |||||||||
Operating Expenses: | |||||||||||||||||||
Salaries, wages and employees’ benefits | 8.3 | 644.9 | 47.8 | — | 701.0 | ||||||||||||||
Operating expenses and supplies | (7.1 | ) | 258.6 | 23.9 | — | 275.4 | |||||||||||||
Purchased transportation | — | 108.6 | 18.2 | — | 126.8 | ||||||||||||||
Depreciation and amortization | — | 40.9 | 3.7 | — | 44.6 | ||||||||||||||
Other operating expenses | 0.9 | 58.7 | 4.4 | — | 64.0 | ||||||||||||||
Gains on property disposals, net | — | (2.2 | ) | (0.1 | ) | — | (2.3 | ) | |||||||||||
Total operating expenses | 2.1 | 1,109.5 | 97.9 | — | 1,209.5 | ||||||||||||||
Operating Income (Loss) | (2.1 | ) | 21.3 | 8.1 | — | 27.3 | |||||||||||||
Nonoperating Expenses (Income): | |||||||||||||||||||
Interest expense | 24.4 | (3.0 | ) | 12.3 | — | 33.7 | |||||||||||||
Other, net | 77.7 | (49.6 | ) | (28.3 | ) | — | (0.2 | ) | |||||||||||
Nonoperating expenses (income), net | 102.1 | (52.6 | ) | (16.0 | ) | — | 33.5 | ||||||||||||
Income (loss) before income taxes | (104.2 | ) | 73.9 | 24.1 | — | (6.2 | ) | ||||||||||||
Income tax provision (benefit) | (11.2 | ) | 1.1 | 0.9 | — | (9.2 | ) | ||||||||||||
Net income (loss) | (93.0 | ) | 72.8 | 23.2 | — | 3.0 | |||||||||||||
Other comprehensive income (loss), net of tax | (0.1 | ) | 0.9 | 2.9 | — | 3.7 | |||||||||||||
Comprehensive Income (Loss) | $ | (93.1 | ) | $ | 73.7 | $ | 26.1 | $ | — | $ | 6.7 |
Nine Months Ended September 30, 2013 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Revenue | $ | — | $ | 3,349.7 | $ | 308.0 | $ | — | $ | 3,657.7 | |||||||||
Operating Expenses: | |||||||||||||||||||
Salaries, wages and employees’ benefits | 26.2 | 1,927.3 | 156.8 | — | 2,110.3 | ||||||||||||||
Operating expenses and supplies | (16.9 | ) | 782.1 | 72.8 | — | 838.0 | |||||||||||||
Purchased transportation | — | 336.3 | 43.3 | — | 379.6 | ||||||||||||||
Depreciation and amortization | 0.1 | 119.3 | 11.0 | — | 130.4 | ||||||||||||||
Other operating expenses | 0.1 | 159.0 | 12.2 | — | 171.3 | ||||||||||||||
(Gains) losses on property disposals, net | — | (2.0 | ) | 0.1 | — | (1.9 | ) | ||||||||||||
Total operating expenses | 9.5 | 3,322.0 | 296.2 | — | 3,627.7 | ||||||||||||||
Operating Income (Loss) | (9.5 | ) | 27.7 | 11.8 | — | 30.0 | |||||||||||||
Nonoperating Expenses (Income): | |||||||||||||||||||
Interest expense (income) | 88.2 | (1.6 | ) | 37.6 | — | 124.2 | |||||||||||||
Other, net | 78.5 | 15.0 | (96.5 | ) | — | (3.0 | ) | ||||||||||||
Nonoperating expenses (income), net | 166.7 | 13.4 | (58.9 | ) | — | 121.2 | |||||||||||||
Income (loss) before income taxes | (176.2 | ) | 14.3 | 70.7 | — | (91.2 | ) | ||||||||||||
Income tax provision (benefit) | (8.0 | ) | (1.1 | ) | 1.9 | — | (7.2 | ) | |||||||||||
Net income (loss) | (168.2 | ) | 15.4 | 68.8 | — | (84.0 | ) | ||||||||||||
Other comprehensive income (loss), net of tax | 1.3 | 10.1 | (1.6 | ) | — | 9.8 | |||||||||||||
Comprehensive Income (Loss) | $ | (166.9 | ) | $ | 25.5 | $ | 67.2 | $ | — | $ | (74.2 | ) |
Nine Months Ended September 30, 2012 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Revenue | $ | — | $ | 3,362.3 | $ | 319.6 | $ | — | $ | 3,681.9 | |||||||||
Operating Expenses: | |||||||||||||||||||
Salaries, wages and employees’ benefits | 26.8 | 1,957.1 | 145.9 | — | 2,129.8 | ||||||||||||||
Operating expenses and supplies | (22.8 | ) | 807.7 | 69.5 | — | 854.4 | |||||||||||||
Purchased transportation | — | 314.9 | 57.8 | — | 372.7 | ||||||||||||||
Depreciation and amortization | 0.1 | 128.4 | 10.9 | — | 139.4 | ||||||||||||||
Other operating expenses | 2.8 | 174.7 | 14.5 | — | 192.0 | ||||||||||||||
Gains on property disposals, net | — | (0.3 | ) | (0.2 | ) | — | (0.5 | ) | |||||||||||
Total operating expenses | 6.9 | 3,382.5 | 298.4 | — | 3,687.8 | ||||||||||||||
Operating Income (Loss) | (6.9 | ) | (20.2 | ) | 21.2 | — | (5.9 | ) | |||||||||||
Nonoperating Expenses (Income): | |||||||||||||||||||
Interest expense (income) | 77.8 | (2.4 | ) | 36.2 | — | 111.6 | |||||||||||||
Other, net | 226.6 | (141.9 | ) | (87.9 | ) | — | (3.2 | ) | |||||||||||
Nonoperating expenses (income), net | 304.4 | (144.3 | ) | (51.7 | ) | — | 108.4 | ||||||||||||
Income (loss) before income taxes | (311.3 | ) | 124.1 | 72.9 | — | (114.3 | ) | ||||||||||||
Income tax provision (benefit) | (16.0 | ) | 1.0 | 1.9 | — | (13.1 | ) | ||||||||||||
Net income (loss) | (295.3 | ) | 123.1 | 71.0 | — | (101.2 | ) | ||||||||||||
Less: Net income attributable to non-controlling interest | — | — | 3.9 | — | 3.9 | ||||||||||||||
Net Income (Loss) Attributable to YRC Worldwide Inc. | (295.3 | ) | 123.1 | 67.1 | — | (105.1 | ) | ||||||||||||
Other comprehensive income, net of tax | 0.6 | 6.1 | 3.2 | — | 9.9 | ||||||||||||||
Comprehensive Income (Loss) Attributable to YRC Worldwide Inc. Shareholders | $ | (294.7 | ) | $ | 129.2 | $ | 70.3 | $ | — | $ | (95.2 | ) |
Nine Months Ended September 30, 2013 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Activities: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (194.9 | ) | $ | 174.4 | $ | 17.5 | $ | — | $ | (3.0 | ) | |||||||
Investing Activities: | |||||||||||||||||||
Acquisition of property and equipment | — | (55.2 | ) | (1.3 | ) | — | (56.5 | ) | |||||||||||
Proceeds from disposal of property and equipment | — | 3.9 | 2.0 | — | 5.9 | ||||||||||||||
Restricted escrow receipts, net | 19.9 | — | — | — | 19.9 | ||||||||||||||
Other, net | 1.8 | — | — | — | 1.8 | ||||||||||||||
Net cash provided by (used in) investing activities | 21.7 | (51.3 | ) | 0.7 | — | (28.9 | ) | ||||||||||||
Financing Activities: | |||||||||||||||||||
Issuance of long-term debt | — | 0.3 | — | — | 0.3 | ||||||||||||||
Repayments of long-term debt | (4.7 | ) | (0.2 | ) | (1.7 | ) | — | (6.6 | ) | ||||||||||
Intercompany advances (repayments) | 155.6 | (123.6 | ) | (32.0 | ) | — | — | ||||||||||||
Net cash provided by (used in) financing activities | 150.9 | (123.5 | ) | (33.7 | ) | — | (6.3 | ) | |||||||||||
Net Decrease in Cash and Cash Equivalents | (22.3 | ) | (0.4 | ) | (15.5 | ) | — | (38.2 | ) | ||||||||||
Cash and Cash Equivalents, Beginning of Period | 151.9 | 13.6 | 43.2 | — | 208.7 | ||||||||||||||
Cash and Cash Equivalents, End of Period | $ | 129.6 | $ | 13.2 | $ | 27.7 | $ | — | $ | 170.5 |
Nine Months Ended September 30, 2012 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Activities: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (368.4 | ) | $ | 289.2 | $ | 31.2 | $ | — | $ | (48.0 | ) | |||||||
Investing Activities: | |||||||||||||||||||
Acquisition of property and equipment | — | (46.8 | ) | (1.3 | ) | — | (48.1 | ) | |||||||||||
Proceeds from disposal of property and equipment | — | 39.0 | 0.2 | — | 39.2 | ||||||||||||||
Restricted escrow receipts, net | 23.9 | — | — | — | 23.9 | ||||||||||||||
Other, net | 2.4 | — | — | — | 2.4 | ||||||||||||||
Net cash provided by (used in) investing activities | 26.3 | (7.8 | ) | (1.1 | ) | — | 17.4 | ||||||||||||
Financing Activities: | |||||||||||||||||||
Issuance of long-term debt | — | — | 45.0 | — | 45.0 | ||||||||||||||
Repayments of long-term debt | (18.7 | ) | — | (1.7 | ) | — | (20.4 | ) | |||||||||||
Debt issuance costs | (2.0 | ) | — | (3.1 | ) | — | (5.1 | ) | |||||||||||
Intercompany advances (repayments) | 352.1 | (283.7 | ) | (68.4 | ) | — | — | ||||||||||||
Net cash provided by (used in) financing activities | 331.4 | (283.7 | ) | (28.2 | ) | — | 19.5 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (10.7 | ) | (2.3 | ) | 1.9 | — | (11.1 | ) | |||||||||||
Cash and Cash Equivalents, Beginning of Period | 142.0 | 20.0 | 38.5 | — | 200.5 | ||||||||||||||
Cash and Cash Equivalents, End of Period | $ | 131.3 | $ | 17.7 | $ | 40.4 | $ | — | $ | 189.4 |
As of September 30, 2013 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash and cash equivalents | $ | 129.6 | $ | 15.1 | $ | 25.8 | $ | — | $ | 170.5 | |||||||||
Intercompany advances receivable | — | (35.2 | ) | 35.2 | — | — | |||||||||||||
Accounts receivable, net | 3.3 | 27.6 | 488.1 | — | 519.0 | ||||||||||||||
Prepaid expenses and other | 105.0 | 62.6 | 2.1 | — | 169.7 | ||||||||||||||
Total current assets | 237.9 | 70.1 | 551.2 | — | 859.2 | ||||||||||||||
Property and equipment | 0.8 | 2,802.1 | 51.6 | — | 2,854.5 | ||||||||||||||
Less – accumulated depreciation | (0.3 | ) | (1,694.9 | ) | (38.4 | ) | — | (1,733.6 | ) | ||||||||||
Net property and equipment | 0.5 | 1,107.2 | 13.2 | — | 1,120.9 | ||||||||||||||
Investment in subsidiaries | 1,743.5 | 206.7 | — | (1,950.2 | ) | — | |||||||||||||
Receivable from affiliate | (491.1 | ) | 494.2 | 196.9 | (200.0 | ) | — | ||||||||||||
Intangibles and other assets | 37.8 | 85.1 | 30.9 | — | 153.8 | ||||||||||||||
Total Assets | $ | 1,528.6 | $ | 1,963.3 | $ | 792.2 | $ | (2,150.2 | ) | $ | 2,133.9 | ||||||||
Intercompany advances payable | $ | (11.8 | ) | $ | (269.2 | ) | $ | 281.0 | $ | — | $ | — | |||||||
Accounts payable | 42.9 | 143.1 | 8.3 | — | 194.3 | ||||||||||||||
Wages, vacations and employees’ benefits | 13.2 | 207.2 | 3.7 | — | 224.1 | ||||||||||||||
Other current and accrued liabilities | 174.3 | 17.2 | 8.2 | — | 199.7 | ||||||||||||||
Current maturities of long-term debt | 74.5 | 0.6 | 317.6 | — | 392.7 | ||||||||||||||
Total current liabilities | 293.1 | 98.9 | 618.8 | — | 1,010.8 | ||||||||||||||
Payable to affiliate | — | 200.0 | — | (200.0 | ) | — | |||||||||||||
Long-term debt, less current portion | 967.5 | 0.8 | — | — | 968.3 | ||||||||||||||
Deferred income taxes, net | 225.7 | (228.3 | ) | 2.6 | — | — | |||||||||||||
Pension and postretirement | 503.5 | — | (0.1 | ) | — | 503.4 | |||||||||||||
Claims and other liabilities | 279.9 | 35.1 | 2.2 | — | 317.2 | ||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Shareholders’ equity (deficit) | (741.1 | ) | 1,856.8 | 168.7 | (1,950.2 | ) | (665.8 | ) | |||||||||||
Total Liabilities and Shareholders’ Equity (Deficit) | $ | 1,528.6 | $ | 1,963.3 | $ | 792.2 | $ | (2,150.2 | ) | $ | 2,133.9 |
As of December 31, 2012 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Cash and cash equivalents | $ | 151.9 | $ | 15.5 | $ | 41.3 | $ | — | $ | 208.7 | |||||||||
Intercompany advances receivable | — | (28.8 | ) | 28.8 | — | — | |||||||||||||
Accounts receivable, net | 3.3 | 20.6 | 436.2 | — | 460.1 | ||||||||||||||
Prepaid expenses and other | 93.7 | 31.8 | (20.2 | ) | — | 105.3 | |||||||||||||
Total current assets | 248.9 | 39.1 | 486.1 | — | 774.1 | ||||||||||||||
Property and equipment | 0.7 | 2,814.9 | 53.4 | — | 2,869.0 | ||||||||||||||
Less – accumulated depreciation | (0.2 | ) | (1,638.7 | ) | (38.7 | ) | — | (1,677.6 | ) | ||||||||||
Net property and equipment | 0.5 | 1,176.2 | 14.7 | — | 1,191.4 | ||||||||||||||
Investment in subsidiaries | 1,463.5 | 149.2 | (4.1 | ) | (1,608.6 | ) | — | ||||||||||||
Receivable from affiliate | (392.8 | ) | 351.5 | 241.3 | (200.0 | ) | — | ||||||||||||
Intangibles and other assets | 154.1 | 86.9 | 19.0 | — | 260.0 | ||||||||||||||
Total Assets | $ | 1,474.2 | $ | 1,802.9 | $ | 757.0 | $ | (1,808.6 | ) | $ | 2,225.5 | ||||||||
Intercompany advances payable | $ | (11.8 | ) | $ | (294.5 | ) | $ | 306.3 | $ | — | $ | — | |||||||
Accounts payable | 42.1 | 112.3 | 7.6 | — | 162.0 | ||||||||||||||
Wages, vacations and employees’ benefits | 13.2 | 173.8 | 3.9 | — | 190.9 | ||||||||||||||
Other current and accrued liabilities | 193.5 | 28.0 | 11.7 | — | 233.2 | ||||||||||||||
Current maturities of long-term debt | 6.8 | — | 2.3 | — | 9.1 | ||||||||||||||
Total current liabilities | 243.8 | 19.6 | 331.8 | — | 595.2 | ||||||||||||||
Payable to affiliate | — | 200.0 | — | (200.0 | ) | — | |||||||||||||
Long-term debt, less current portion | 1,054.7 | — | 311.6 | — | 1,366.3 | ||||||||||||||
Deferred income taxes, net | 228.2 | (230.9 | ) | 2.7 | — | — | |||||||||||||
Pension and postretirement | 548.8 | — | — | — | 548.8 | ||||||||||||||
Claims and other liabilities | 302.9 | 40.9 | 0.5 | — | 344.3 | ||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Shareholders’ equity (deficit) | (904.2 | ) | 1,773.3 | 110.4 | (1,608.6 | ) | (629.1 | ) | |||||||||||
Total Liabilities and Shareholders’ Equity (Deficit) | $ | 1,474.2 | $ | 1,802.9 | $ | 757.0 | $ | (1,808.6 | ) | $ | 2,225.5 |
Three Months Ended September 30, 2013 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Revenue | $ | — | $ | 1,216.8 | $ | 35.9 | $ | — | $ | 1,252.7 | |||||||||
Operating Expenses: | |||||||||||||||||||
Salaries, wages and employees’ benefits | 6.6 | 691.6 | 13.6 | — | 711.8 | ||||||||||||||
Operating expenses and supplies | (2.9 | ) | 277.3 | 10.0 | — | 284.4 | |||||||||||||
Purchased transportation | — | 130.2 | 8.8 | — | 139.0 | ||||||||||||||
Depreciation and amortization | — | 42.7 | 0.6 | — | 43.3 | ||||||||||||||
Other operating expenses | — | 67.0 | 0.1 | — | 67.1 | ||||||||||||||
Losses on property disposals, net | — | 1.3 | — | — | 1.3 | ||||||||||||||
Total operating expenses | 3.7 | 1,210.1 | 33.1 | — | 1,246.9 | ||||||||||||||
Operating Income (Loss) | (3.7 | ) | 6.7 | 2.8 | — | 5.8 | |||||||||||||
Nonoperating Expenses (Income): | |||||||||||||||||||
Interest expense | 30.4 | 0.2 | 12.5 | — | 43.1 | ||||||||||||||
Other, net | 32.4 | (3.4 | ) | (29.2 | ) | — | (0.2 | ) | |||||||||||
Nonoperating expenses (income), net | 62.8 | (3.2 | ) | (16.7 | ) | — | 42.9 | ||||||||||||
Income (loss) before income taxes | (66.5 | ) | 9.9 | 19.5 | — | (37.1 | ) | ||||||||||||
Income tax provision (benefit) | 6.7 | (0.1 | ) | 0.7 | — | 7.3 | |||||||||||||
Net income (loss) | (73.2 | ) | 10.0 | 18.8 | — | (44.4 | ) | ||||||||||||
Other comprehensive income, net of tax | 0.3 | 3.5 | 0.8 | — | 4.6 | ||||||||||||||
Comprehensive Income (Loss) | $ | (72.9 | ) | $ | 13.5 | $ | 19.6 | $ | — | $ | (39.8 | ) |
Three Months Ended September 30, 2012 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Revenue | $ | — | $ | 1,196.9 | $ | 39.9 | $ | — | $ | 1,236.8 | |||||||||
Operating Expenses: | |||||||||||||||||||
Salaries, wages and employees’ benefits | 8.3 | 677.9 | 14.8 | — | 701.0 | ||||||||||||||
Operating expenses and supplies | (7.1 | ) | 271.9 | 10.6 | — | 275.4 | |||||||||||||
Purchased transportation | — | 114.5 | 12.3 | — | 126.8 | ||||||||||||||
Depreciation and amortization | — | 43.9 | 0.7 | — | 44.6 | ||||||||||||||
Other operating expenses | 0.9 | 62.2 | 0.9 | — | 64.0 | ||||||||||||||
Gains on property disposals, net | — | (2.3 | ) | — | — | (2.3 | ) | ||||||||||||
Total operating expenses | 2.1 | 1,168.1 | 39.3 | — | 1,209.5 | ||||||||||||||
Operating Income (Loss) | (2.1 | ) | 28.8 | 0.6 | — | 27.3 | |||||||||||||
Nonoperating Expenses (Income): | |||||||||||||||||||
Interest expense (income) | 24.4 | (3.1 | ) | 12.4 | — | 33.7 | |||||||||||||
Other, net | 77.7 | (51.1 | ) | (26.8 | ) | — | (0.2 | ) | |||||||||||
Nonoperating expenses (income), net | 102.1 | (54.2 | ) | (14.4 | ) | — | 33.5 | ||||||||||||
Income (loss) before income taxes | (104.2 | ) | 83.0 | 15.0 | — | (6.2 | ) | ||||||||||||
Income tax provision (benefit) | (11.2 | ) | 1.1 | 0.9 | — | (9.2 | ) | ||||||||||||
Net income (loss) | (93.0 | ) | 81.9 | 14.1 | — | 3.0 | |||||||||||||
Other comprehensive income (loss), net of tax | (0.1 | ) | 0.8 | 3.0 | — | 3.7 | |||||||||||||
Comprehensive Income (Loss) | $ | (93.1 | ) | $ | 82.7 | $ | 17.1 | $ | — | $ | 6.7 |
Nine Months Ended September 30, 2013 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Revenue | $ | — | $ | 3,551.9 | $ | 105.8 | $ | — | $ | 3,657.7 | |||||||||
Operating Expenses: | |||||||||||||||||||
Salaries, wages and employees’ benefits | 26.2 | 2,043.1 | 41.0 | — | 2,110.3 | ||||||||||||||
Operating expenses and supplies | (16.9 | ) | 824.3 | 30.6 | — | 838.0 | |||||||||||||
Purchased transportation | — | 355.1 | 24.5 | — | 379.6 | ||||||||||||||
Depreciation and amortization | 0.1 | 128.5 | 1.8 | — | 130.4 | ||||||||||||||
Other operating expenses | 0.1 | 171.4 | (0.2 | ) | — | 171.3 | |||||||||||||
Gains on property disposals, net | — | (1.9 | ) | — | — | (1.9 | ) | ||||||||||||
Total operating expenses | 9.5 | 3,520.5 | 97.7 | — | 3,627.7 | ||||||||||||||
Operating Income (Loss) | (9.5 | ) | 31.4 | 8.1 | — | 30.0 | |||||||||||||
Nonoperating Expenses (Income): | |||||||||||||||||||
Interest expense (income) | 88.2 | (1.5 | ) | 37.5 | — | 124.2 | |||||||||||||
Other, net | 78.5 | 5.4 | (86.9 | ) | — | (3.0 | ) | ||||||||||||
Nonoperating expenses (income), net | 166.7 | 3.9 | (49.4 | ) | — | 121.2 | |||||||||||||
Income (loss) before income taxes | (176.2 | ) | 27.5 | 57.5 | — | (91.2 | ) | ||||||||||||
Income tax provision (benefit) | (8.0 | ) | (1.1 | ) | 1.9 | — | (7.2 | ) | |||||||||||
Net income (loss) | (168.2 | ) | 28.6 | 55.6 | — | (84.0 | ) | ||||||||||||
Other comprehensive income (loss), net of tax | 1.3 | 10.2 | (1.7 | ) | — | 9.8 | |||||||||||||
Comprehensive Income (Loss) | $ | (166.9 | ) | $ | 38.8 | $ | 53.9 | $ | — | $ | (74.2 | ) |
Nine Months Ended September 30, 2012 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Revenue | $ | — | $ | 3,557.7 | $ | 124.2 | $ | — | $ | 3,681.9 | |||||||||
Operating Expenses: | |||||||||||||||||||
Salaries, wages and employees’ benefits | 26.8 | 2,056.9 | 46.1 | — | 2,129.8 | ||||||||||||||
Operating expenses and supplies | (22.8 | ) | 847.3 | 29.9 | — | 854.4 | |||||||||||||
Purchased transportation | — | 333.1 | 39.6 | — | 372.7 | ||||||||||||||
Depreciation and amortization | 0.1 | 137.5 | 1.8 | — | 139.4 | ||||||||||||||
Other operating expenses | 2.8 | 185.5 | 3.7 | — | 192.0 | ||||||||||||||
Gains on property disposals, net | — | (0.4 | ) | (0.1 | ) | — | (0.5 | ) | |||||||||||
Total operating expenses | 6.9 | 3,559.9 | 121.0 | — | 3,687.8 | ||||||||||||||
Operating Income (Loss) | (6.9 | ) | (2.2 | ) | 3.2 | — | (5.9 | ) | |||||||||||
Nonoperating Expenses (Income): | |||||||||||||||||||
Interest expense (income) | 77.8 | (2.4 | ) | 36.2 | — | 111.6 | |||||||||||||
Other, net | 226.6 | (145.9 | ) | (83.9 | ) | — | (3.2 | ) | |||||||||||
Nonoperating expenses (income), net | 304.4 | (148.3 | ) | (47.7 | ) | — | 108.4 | ||||||||||||
Income (loss) before income taxes | (311.3 | ) | 146.1 | 50.9 | — | (114.3 | ) | ||||||||||||
Income tax provision (benefit) | (16.0 | ) | 1.0 | 1.9 | — | (13.1 | ) | ||||||||||||
Net income (loss) | (295.3 | ) | 145.1 | 49.0 | — | (101.2 | ) | ||||||||||||
Less: Net income attributable to non-controlling interest | — | — | 3.9 | — | 3.9 | ||||||||||||||
Net Income (Loss) Attributable to YRC Worldwide Inc. | (295.3 | ) | 145.1 | 45.1 | — | (105.1 | ) | ||||||||||||
Other comprehensive income, net of tax | 0.6 | 6.1 | 3.2 | — | 9.9 | ||||||||||||||
Comprehensive Income (Loss) Attributable to YRC Worldwide Inc. Shareholders | $ | (294.7 | ) | $ | 151.2 | $ | 48.3 | $ | — | $ | (95.2 | ) |
Nine Months Ended September 30, 2013 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Activities: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (194.9 | ) | $ | 188.9 | $ | 3.0 | $ | — | $ | (3.0 | ) | |||||||
Investing Activities: | |||||||||||||||||||
Acquisition of property and equipment | — | (56.2 | ) | (0.3 | ) | — | (56.5 | ) | |||||||||||
Proceeds from disposal of property and equipment | — | 5.9 | — | — | 5.9 | ||||||||||||||
Restricted amounts held in escrow | 19.9 | — | — | — | 19.9 | ||||||||||||||
Other, net | 1.8 | — | — | — | 1.8 | ||||||||||||||
Net cash provided by (used in) investing activities | 21.7 | (50.3 | ) | (0.3 | ) | — | (28.9 | ) | |||||||||||
Financing Activities: | |||||||||||||||||||
Issuance of long-term debt | — | 0.3 | — | — | 0.3 | ||||||||||||||
Repayments of long-term debt | (4.7 | ) | (0.2 | ) | (1.7 | ) | — | (6.6 | ) | ||||||||||
Intercompany advances (repayments) | 155.6 | (139.1 | ) | (16.5 | ) | — | — | ||||||||||||
Net cash provided by (used in) financing activities | 150.9 | (139.0 | ) | (18.2 | ) | — | (6.3 | ) | |||||||||||
Net Decrease in Cash and Cash Equivalents | (22.3 | ) | (0.4 | ) | (15.5 | ) | — | (38.2 | ) | ||||||||||
Cash and Cash Equivalents, Beginning of Period | 151.9 | 15.5 | 41.3 | — | 208.7 | ||||||||||||||
Cash and Cash Equivalents, End of Period | $ | 129.6 | $ | 15.1 | $ | 25.8 | $ | — | $ | 170.5 |
Nine Months Ended September 30, 2012 (in millions) | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||
Operating Activities: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (368.4 | ) | $ | 316.0 | $ | 4.4 | $ | — | $ | (48.0 | ) | |||||||
Investing Activities: | |||||||||||||||||||
Acquisition of property and equipment | — | (47.2 | ) | (0.9 | ) | — | (48.1 | ) | |||||||||||
Proceeds from disposal of property and equipment | — | 39.2 | — | — | 39.2 | ||||||||||||||
Restricted amounts held in escrow | 23.9 | — | — | — | 23.9 | ||||||||||||||
Other, net | 2.4 | — | — | — | 2.4 | ||||||||||||||
Net cash provided by (used in) investing activities | 26.3 | (8.0 | ) | (0.9 | ) | — | 17.4 | ||||||||||||
Financing Activities: | |||||||||||||||||||
Issuance of long-term debt | — | — | 45.0 | — | 45.0 | ||||||||||||||
Repayments of long-term debt | (18.7 | ) | — | (1.7 | ) | — | (20.4 | ) | |||||||||||
Debt issuance cost | (2.0 | ) | — | (3.1 | ) | — | (5.1 | ) | |||||||||||
Intercompany advances (repayments) | 352.1 | (310.4 | ) | (41.7 | ) | — | — | ||||||||||||
Net cash provided by (used in) financing activities | 331.4 | (310.4 | ) | (1.5 | ) | — | 19.5 | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (10.7 | ) | (2.4 | ) | 2.0 | — | (11.1 | ) | |||||||||||
Cash and Cash Equivalents, Beginning of Period | 142.0 | 21.1 | 37.4 | — | 200.5 | ||||||||||||||
Cash and Cash equivalents, End of Period | $ | 131.3 | $ | 18.7 | $ | 39.4 | $ | — | $ | 189.4 |
• | our ability to generate sufficient liquidity to satisfy our cash needs and future cash commitments, including (without limitation) our obligations related to our indebtedness and lease and pension funding requirements, and our ability to achieve increased cash flows through improvement in operations; |
• | the pace of recovery in the overall economy, including (without limitation) customer demand in the retail and manufacturing sectors; |
• | the success of our management team in implementing its strategic plan and operational and productivity improvements, including (without limitation) our continued ability to meet high on-time and quality delivery performance standards and our ability to increase volume and yield, and the impact of those improvements on our future liquidity and profitability; |
• | our ability to comply with debt covenants and our cash reserve requirement; |
• | our ability to refinance or restructure our indebtedness, a substantial portion of which matures in late 2014 or early 2015, in light of our recent operating results or otherwise; |
• | our ability to obtain amendments or waivers to our credit facilities prior to any breach in our credit facility financial covenants; |
• | our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures; |
• | our dependence on our information technology systems in our network operations and the production of accurate information, and the risk of system failure, inadequacy or security breach; |
• | changes in equity and debt markets; |
• | inclement weather; |
• | price and availability of fuel; |
• | sudden changes in the cost of fuel or the index upon which we base our fuel surcharge and the effectiveness of our fuel surcharge program in protecting us against fuel price volatility; |
• | competition and competitive pressure on service and pricing; |
• | expense volatility, including (without limitation) volatility due to changes in rail service or pricing for rail service; |
• | our ability to comply and the cost of compliance with federal, state, local and foreign laws and regulations, including (without limitation) laws and regulations for the protection of employee safety and health (including new hours-of-service regulations) and the environment; |
• | terrorist attack; |
• | labor relations, including (without limitation) the continued support of our union employees for our strategic plan, the impact of work rules, work stoppages, strikes or other disruptions, our obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction; |
• | the impact of claims and litigation to which we are or may become exposed; and |
• | other risks and contingencies, including (without limitation) the risk factors that are included in our reports filed with the SEC, including those described under “Risk Factors” in our annual report on Form 10-K and quarterly reports on Form 10-Q, including this quarterly report. |
• | Operating Revenue: Our operating revenue has two primary components: volume (commonly evaluated using number of shipments and weight per shipment) and yield or price (commonly evaluated on a dollar per hundredweight basis). Yield includes fuel surcharge revenue, which is common in the trucking industry and represents an amount charged to customers that adjusts with changing fuel prices. We base our fuel surcharges on a published national index and adjust them weekly. Rapid material changes in the index or our cost of fuel can positively or negatively impact our revenue and operating income versus prior periods, as there is a lag in our adjustment of base rates in response to changes in fuel surcharge. We believe that fuel surcharge is an accepted and important component of the overall pricing of our services to our customers. Without an industry accepted fuel surcharge program, our base pricing for our transportation services would require numerous changes. We believe the distinction between base rates and fuel surcharge has blurred over time, and it is impractical to clearly separate all the different factors that influence the price that our customers are willing to pay. In general, under our present fuel surcharge program, we believe rising fuel costs are beneficial to us and falling fuel costs are detrimental to us in the short term. |
• | Operating Income (Loss): Operating income (loss) is our operating revenue less operating expenses. Our consolidated operating income (loss) includes certain corporate charges that are not allocated to our YRC Freight and Regional Transportation reporting segments. |
• | Operating Ratio: Operating ratio is a common operating performance metric used in the trucking industry. It is calculated as (i) 100 percent (ii) minus the result of dividing operating income by operating revenue or (iii) plus the result of dividing operating loss by operating revenue, and expressed as a percentage. |
• | Non-GAAP Financial Measures: We use certain non-GAAP financial measures to assess our performance. These include (without limitation) adjusted EBITDA and adjusted free cash flow (deficit): |
◦ | Adjusted EBITDA: a non-GAAP measure that reflects our earnings before interest, taxes, depreciation, and amortization expense, and further adjusted for letter of credit fees, equity-based compensation expense, net gains or losses on property disposals and certain other items, including restructuring professional fees and results of permitted dispositions and discontinued operations as defined in our credit facilities. Adjusted EBITDA is used for internal management purposes as a financial measure that reflects our core operating performance and to measure compliance with financial covenants in our credit facilities. |
◦ | Adjusted Free Cash Flow (Deficit): a non-GAAP measure that reflects our net cash provided by (used in) operating activities minus gross capital expenditures and excludes restructuring professional fees included in operating cash flow. |
◦ | Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to fund restructuring professional fees, letter of credit fees, service interest or principal payments on our outstanding debt; |
◦ | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and adjusted EBITDA does not reflect any cash requirements for such replacements; |
◦ | Equity based compensation is an element of our long-term incentive compensation package, although adjusted EBITDA excludes employee equity-based compensation expense when presenting our ongoing operating performance for a particular period; |
◦ | Adjusted free cash flow (deficit) excludes the cash usage by our restructuring professional fees, debt issuance costs, equity issuance costs and principal payments on our outstanding debt and the resulting reduction in our liquidity position from those cash outflows; and |
◦ | Other companies in our industry may calculate adjusted EBITDA and adjusted free cash flow (deficit) differently than we do, potentially limiting their usefulness as comparative measures. |
Third Quarter | First Three Quarters | ||||||||||||||||||||
(in millions) | 2013 | 2012 | Percent Change | 2013 | 2012 | Percent Change | |||||||||||||||
Operating revenue | $ | 1,252.7 | $ | 1,236.8 | 1.3 | % | $ | 3,657.7 | $ | 3,681.9 | (0.7 | )% | |||||||||
Operating income (loss) | $ | 5.8 | $ | 27.3 | (78.8 | )% | $ | 30.0 | $ | (5.9 | ) | NM* | |||||||||
Nonoperating expenses, net | $ | 42.9 | $ | 33.5 | 28.1 | % | $ | 121.2 | $ | 108.4 | 11.8 | % | |||||||||
Net income (loss) | $ | (44.4 | ) | $ | 3.0 | NM* | $ | (84.0 | ) | $ | (101.2 | ) | 17.0 | % |
• | The $12.2 million increase in purchased transportation was driven by increased purchased rail transportation miles at our YRC Freight reporting segment largely in conjunction with our network optimization initiative. |
• | The $10.8 million increase in salaries, wages and employees' benefits was largely due to a $9.8 million or 2.7% increase in wages driven by increased volumes at our Regional Transportation reporting segment and a $2.2 million increase in workers' compensation expense driven by unfavorable development on prior year claims. |
• | The $9.0 million increase in operating expenses and supplies was primarily driven by a $5.4 million increase in our vehicle maintenance expense to support our aging fleet. |
• | The $3.1 million increase in other operating expenses was primarily driven by a $4.4 million increase in our bodily injury and property damage expense. |
• | The $20.7 million decrease in other operating expenses was primarily driven by a $12.5 million decrease in our bodily injury and property damage expense due to our settlement initiatives and a $5.9 million decrease in cargo claims driven by favorable claim development and lower shipping volumes. |
• | The $19.5 million decrease in salaries, wages and employees' benefits was largely due to a $11.4 million or 11.1% reduction in workers' compensation expense driven by safety initiatives and settlement activity that are reducing our claims outstanding as well as a $7.0 million or 1.0% decrease in benefits driven by lower expense on our single-employer pension plan. |
• | The $16.4 million decrease in operating expenses and supplies was primarily driven by lower fuel expense of $16.2 million or 3.8%. The decrease in fuel expense is primarily a function of fewer miles driven at our YRC Freight reporting segment. |
• | YRC Freight is the reporting segment for our transportation service providers focused on business opportunities in national, regional and international services. YRC Freight provides for the movement of industrial, commercial and retail goods, primarily through centralized management and customer facing organizations. This unit includes our LTL subsidiary YRC Inc. and Reimer Express, a subsidiary located in Canada that specializes in shipments into, across and out of Canada. In addition to the United States and Canada, YRC Freight also serves parts of Mexico, Puerto Rico and Guam. |
• | Regional Transportation is the reporting segment for our transportation service providers focused on business opportunities in the regional and next-day delivery markets. The Regional Transportation companies each provide regional, next-day ground services in their respective regions through a network of facilities located across the United States, Canada, Mexico and Puerto Rico. |
Third Quarter | First Three Quarters | ||||||||||||||||||||
(in millions) | 2013 | 2012 | Percent Change | 2013 | 2012 | Percent Change | |||||||||||||||
Operating revenue | $ | 808.7 | $ | 819.5 | (1.3)% | $ | 2,360.1 | $ | 2,429.7 | (2.9 | )% | ||||||||||
Operating income (loss) | $ | (9.7 | ) | $ | 2.8 | NM* | $ | (15.8 | ) | $ | (58.4 | ) | 72.9% | ||||||||
Operating ratio(a) | 101.2 | % | 99.7 | % | (1.5 | ) pp | 100.7 | % | 102.4 | % | 1.7 | pp |
(a) | pp represents the change in percentage points |
Third Quarter | ||||||||||
2013 | 2012 | Percent Change(b) | ||||||||
Workdays | 64.0 | 63.0 | ||||||||
Total picked up revenue (in millions) (a) | $ | 803.6 | $ | 812.2 | (1.1 | )% | ||||
Total tonnage (in thousands) | 1,730 | 1,710 | 1.1 | % | ||||||
Total tonnage per day (in thousands) | 27.03 | 27.15 | (0.5 | )% | ||||||
Total shipments (in thousands) | 2,928 | 2,977 | (1.7 | )% | ||||||
Total shipments per day (in thousands) | 45.75 | 47.26 | (3.2 | )% | ||||||
Total picked up revenue per hundred weight | $ | 23.23 | $ | 23.74 | (2.2 | )% | ||||
Total picked up revenue per shipment | $ | 274 | $ | 273 | 0.6 | % | ||||
Total weight per shipment (in pounds) | 1,181 | 1,149 | 2.8 | % |
Third Quarter | |||||||
(in millions) | 2013 | 2012 | |||||
(a)Reconciliation of operating revenue to total picked up revenue: | |||||||
Operating revenue | $ | 808.7 | $ | 819.5 | |||
Change in revenue deferral and other | (5.1 | ) | (7.3 | ) | |||
Total picked up revenue | $ | 803.6 | $ | 812.2 |
• | The $8.6 million increase in purchased transportation was driven by increased purchased rail transportation miles used largely in conjunction with our network optimization initiative. |
• | The $5.6 million decrease in salary, wages and employees' benefits in the third quarter of 2013 was primarily the result of a $2.8 million reduction in workers' compensation expense driven by safety initiatives and settlement activity that has reduced our outstanding claims and a $1.8 million decrease in salaries driven by changes in management related to our network optimization initiative, partially offset by higher overtime wages. |
First Three Quarters | ||||||||||
2013 | 2012 | Percent Change(b) | ||||||||
Workdays | 190.5 | 190.5 | ||||||||
Total picked up revenue (in millions) (a) | $ | 2,358.1 | $ | 2,423.0 | (2.7 | )% | ||||
Total tonnage (in thousands) | 5,045 | 5,209 | (3.1 | )% | ||||||
Total tonnage per day (in thousands) | 26.48 | 27.34 | (3.1 | )% | ||||||
Total shipments (in thousands) | 8,644 | 9,039 | (4.4 | )% | ||||||
Total shipments per day (in thousands) | 45.37 | 47.45 | (4.4 | )% | ||||||
Total picked up revenue per hundred weight | $ | 23.37 | $ | 23.26 | 0.5 | % | ||||
Total picked up revenue per shipment | $ | 273 | $ | 268 | 1.8 | % | ||||
Total weight per shipment (in pounds) | 1,167 | 1,152 | 1.3 | % |
First Three Quarters | |||||||
(in millions) | 2013 | 2012 | |||||
(a)Reconciliation of operating revenue to total picked up revenue: | |||||||
Operating revenue | $ | 2,360.1 | $ | 2,429.7 | |||
Change in revenue deferral and other | (2.0 | ) | (6.7 | ) | |||
Total picked up revenue | $ | 2,358.1 | $ | 2,423.0 |
• | The $52.2 million decrease in salary, wages and employees' benefits in the first three quarters of 2013 was primarily the result of a $19.3 million reduction in workers' compensation expense driven by safety initiatives and settlement activity that has reduced our outstanding claims, a $14.3 million decrease in wages driven primarily by fewer shipments and a $11.2 million reduction in benefits driven by lower expense for our single-employer pension plan. |
• | The $32.3 million decrease in operating expenses and supplies in the first three quarters of 2013 was primarily driven by lower fuel expenses of $15.9 million and a $1.5 million decrease in vehicle maintenance expenses. |
• | The $22.3 million decrease in other operating expenses in the first three quarters of 2013 was primarily driven by a $14.2 million decrease in our bodily injury and property damage expense due to our settlement initiatives and a $6.0 million decrease in cargo claims driven by favorable claim development compared to the first three quarters of 2012. |
Third Quarter | First Three Quarters | ||||||||||||||||||||
(in millions) | 2013 | 2012 | Percent Change | 2013 | 2012 | Percent Change | |||||||||||||||
Operating revenue | $ | 444.0 | $ | 417.3 | 6.4% | $ | 1,297.6 | $ | 1,249.2 | 3.9% | |||||||||||
Operating income | $ | 20.0 | $ | 27.2 | (26.5)% | $ | 57.2 | $ | 61.6 | (7.1)% | |||||||||||
Operating ratio (a) | 95.5 | % | 93.5 | % | (2.0 | ) pp | 95.6 | % | 95.1 | % | (0.5 | ) pp |
(a) | pp represents the change in percentage points |
Third Quarter | ||||||||||
2013 | 2012 | Percent Change(b) | ||||||||
Workdays | 62.5 | 63.0 | ||||||||
Total picked up revenue (in millions) (a) | $ | 443.6 | $ | 417.6 | 6.2 | % | ||||
Total tonnage (in thousands) | 1,932 | 1,837 | 5.2 | % | ||||||
Total tonnage per day (in thousands) | 30.91 | 29.15 | 6.0 | % | ||||||
Total shipments (in thousands) | 2,676 | 2,540 | 5.4 | % | ||||||
Total shipments per day (in thousands) | 42.82 | 40.32 | 6.2 | % | ||||||
Total picked up revenue per hundred weight | $ | 11.48 | $ | 11.37 | 1.0 | % | ||||
Total picked up revenue per shipment | $ | 166 | $ | 164 | 0.8 | % | ||||
Total weight per shipment (in pounds) | 1,444 | 1,446 | (0.2 | )% |
Third Quarter | |||||||
(in millions) | 2013 | 2012 | |||||
(a)Reconciliation of operating revenue to total picked up revenue: | |||||||
Operating revenue | $ | 444.0 | $ | 417.3 | |||
Change in revenue deferral and other | (0.4 | ) | 0.3 | ||||
Total picked up revenue | $ | 443.6 | $ | 417.6 |
• | The $17.3 million increase in salary, wages and employees' benefits was primarily driven by a $9.5 million increase in wages driven by increased shipping volumes and a $4.0 million increase in workers' compensation expense driven by unfavorable development of existing claims. |
• | The $6.7 million increase in operating expenses and supplies was primarily driven by a $2.5 million increase in vehicle maintenance expense primarily driven by increased shipping volumes and our aging fleet and a $1.9 million increase in fuel expense driven by increased shipping volumes. |
• | The $5.6 million increase in other operating expenses was driven by a $4.2 million increase in our bodily injury and property damage expense due to unfavorable development of our existing claims. |
First Three Quarters | ||||||||||
2013 | 2012 | Percent Change(b) | ||||||||
Workdays | 189.0 | 190.5 | ||||||||
Total picked up revenue (in millions) (a) | $ | 1,297.7 | $ | 1,249.4 | 3.9 | % | ||||
Total tonnage (in thousands) | 5,733 | 5,609 | 2.2 | % | ||||||
Total tonnage per day (in thousands) | 30.33 | 29.44 | 3.0 | % | ||||||
Total shipments (in thousands) | 7,866 | 7,636 | 3.0 | % | ||||||
Total shipments per day (in thousands) | 41.62 | 40.08 | 3.8 | % | ||||||
Total picked up revenue per hundred weight | $ | 11.32 | $ | 11.14 | 1.6 | % | ||||
Total picked up revenue per shipment | $ | 165 | $ | 164 | 0.8 | % | ||||
Total weight per shipment (in pounds) | 1,458 | 1,469 | (0.8 | )% |
First Half | |||||||
(in millions) | 2013 | 2012 | |||||
(a)Reconciliation of operating revenue to total picked up revenue: | |||||||
Operating revenue | $ | 1,297.6 | $ | 1,249.2 | |||
Change in revenue deferral and other | 0.1 | 0.2 | |||||
Total picked up revenue | $ | 1,297.7 | $ | 1,249.4 |
• | The $33.9 million increase in salary, wages and employees' benefits was primarily driven by an $18.1 million increase in wages and a $6.4 million increase in benefits driven by increased shipping volumes. |
• | The $12.5 million increase in operating expenses and supplies was primarily driven by a $5.3 million increase in vehicle and facility maintenance expense primarily driven by increased shipping volumes. |
Third Quarter | First Three Quarters | ||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Reconciliation of operating income (loss) to adjusted EBITDA: | |||||||||||||||
Operating income (loss) | $ | 5.8 | $ | 27.3 | $ | 30.0 | $ | (5.9 | ) | ||||||
Depreciation and amortization | 43.3 | 44.6 | 130.4 | 139.4 | |||||||||||
(Gains) losses on property disposals, net | 1.3 | (2.3 | ) | (1.9 | ) | (0.5 | ) | ||||||||
Letter of credit expense | 8.0 | 9.5 | 25.8 | 27.0 | |||||||||||
Restructuring professional fees | 3.2 | — | 6.0 | 3.0 | |||||||||||
Permitted dispositions and other | 0.1 | (0.9 | ) | — | (3.0 | ) | |||||||||
Equity based compensation expense | 0.5 | 0.9 | 4.5 | 3.0 | |||||||||||
Other nonoperating, net | 0.2 | (0.3 | ) | 3.0 | 1.2 | ||||||||||
Adjusted EBITDA | $ | 62.4 | $ | 78.8 | $ | 197.8 | $ | 164.2 |
Third Quarter | First Three Quarters | ||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Adjusted EBITDA | $ | 62.4 | $ | 78.8 | $ | 197.8 | $ | 164.2 | |||||||
Total restructuring professional fees | (3.2 | ) | — | (6.0 | ) | (3.0 | ) | ||||||||
Cash paid for interest | (33.2 | ) | (31.3 | ) | (90.4 | ) | (91.6 | ) | |||||||
Cash paid for letter of credit fees | (11.0 | ) | (9.6 | ) | (26.0 | ) | (28.6 | ) | |||||||
Working Capital cash flows excluding income tax, net | 1.2 | (68.8 | ) | (89.2 | ) | (97.2 | ) | ||||||||
Net cash provided by (used in) operating activities before income taxes | 16.2 | (30.9 | ) | (13.8 | ) | (56.2 | ) | ||||||||
Cash (paid) received for income taxes, net | (1.0 | ) | (0.5 | ) | 10.8 | 8.2 | |||||||||
Net cash provided by (used in) operating activities | 15.2 | (31.4 | ) | (3.0 | ) | (48.0 | ) | ||||||||
Acquisition of property and equipment | (17.4 | ) | (17.4 | ) | (56.5 | ) | (48.1 | ) | |||||||
Total restructuring professional fees | 3.2 | — | 6.0 | 3.0 | |||||||||||
Adjusted Free Cash Flow (Deficit) | $ | 1.0 | $ | (48.8 | ) | $ | (53.5 | ) | $ | (93.1 | ) |
Third Quarter | First Three Quarters | ||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Adjusted EBITDA by segment: | |||||||||||||||
YRC Freight | $ | 24.2 | $ | 37.2 | $ | 87.8 | $ | 55.5 | |||||||
Regional Transportation | 38.3 | 44.4 | 109.8 | 114.2 | |||||||||||
Corporate and other | (0.1 | ) | (2.8 | ) | 0.2 | (5.5 | ) | ||||||||
Adjusted EBITDA | $ | 62.4 | $ | 78.8 | $ | 197.8 | $ | 164.2 |
Third Quarter | First Three Quarters | ||||||||||||||
YRC Freight segment (in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Reconciliation of operating income (loss) to adjusted EBITDA: | |||||||||||||||
Operating income (loss) | $ | (9.7 | ) | $ | 2.8 | $ | (15.8 | ) | $ | (58.4 | ) | ||||
Depreciation and amortization | 27.4 | 29.0 | 83.3 | 91.4 | |||||||||||
(Gains) losses on property disposals, net | 0.9 | (2.3 | ) | (2.6 | ) | (0.6 | ) | ||||||||
Letter of credit expense | 5.5 | 7.7 | 20.1 | 22.0 | |||||||||||
Other nonoperating expenses, net | 0.1 | — | 2.8 | 1.1 | |||||||||||
Adjusted EBITDA | $ | 24.2 | $ | 37.2 | $ | 87.8 | $ | 55.5 |
Third Quarter | First Three Quarters | ||||||||||||||
Regional Transportation segment (in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Reconciliation of operating income to adjusted EBITDA: | |||||||||||||||
Operating income | $ | 20.0 | $ | 27.2 | $ | 57.2 | $ | 61.6 | |||||||
Depreciation and amortization | 15.9 | 15.6 | 47.0 | 47.4 | |||||||||||
Losses on property disposals, net | 0.4 | — | 0.5 | 0.6 | |||||||||||
Letter of credit expense | 1.9 | 1.6 | 4.9 | 4.6 | |||||||||||
Other nonoperating expenses, net | 0.1 | — | 0.2 | — | |||||||||||
Adjusted EBITDA | $ | 38.3 | $ | 44.4 | $ | 109.8 | $ | 114.2 |
Third Quarter | First Three Quarters | ||||||||||||||
Corporate and other segment (in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Reconciliation of operating loss to adjusted EBITDA: | |||||||||||||||
Operating loss | $ | (4.5 | ) | $ | (2.7 | ) | $ | (11.4 | ) | $ | (9.1 | ) | |||
Depreciation and amortization | — | — | 0.1 | 0.6 | |||||||||||
(Gains) losses on property disposals, net | — | — | 0.2 | (0.5 | ) | ||||||||||
Letter of credit expense | 0.6 | 0.2 | 0.8 | 0.4 | |||||||||||
Restructuring professional fees | 3.2 | — | 6.0 | 3.0 | |||||||||||
Permitted dispositions and other | 0.1 | (0.9 | ) | — | (3.0 | ) | |||||||||
Equity based compensation expense | 0.5 | 0.9 | 4.5 | 3.0 | |||||||||||
Other nonoperating income, net | — | (0.3 | ) | — | 0.1 | ||||||||||
Adjusted EBITDA | $ | (0.1 | ) | $ | (2.8 | ) | $ | 0.2 | $ | (5.5 | ) |
Four Consecutive Fiscal Quarters Ending | Minimum Consolidated EBITDA | Maximum Total Leverage Ratio | Minimum Interest Coverage Ratio | ||
September 30, 2013 | $260,000,000 | 6.0 to 1.00 | 1.60 to 1.00 | ||
December 31, 2013 | $245,000,000 | 5.7 to 1.00 | 1.50 to 1.00 | ||
March 31, 2014 | $220,000,000 | 6.4 to 1.00 | 1.30 to 1.00 | ||
June 30, 2014 | $225,000,000 | 6.5 to 1.00 | 1.30 to 1.00 | ||
September 30, 2014 | $245,000,000 | 6.5 to 1.00 | 1.40 to 1.00 | ||
December 31, 2014 | $260,000,000 | 6.2 to 1.00 | 1.40 to 1.00 |
• | achieving forecasted results in order to comply with covenants and other terms of our credit facilities so as to have access to the borrowings available to us under our credit facilities; |
• | securing suitable lease financing arrangements to replace revenue equipment; |
• | generating operating cash flows that are sufficient to meet the minimum cash balance requirement under our credit facilities, cash requirements for pension contributions to our single-employer pension plan and our multi-employer pension funds, cash interest and principal payments on our funded debt, payments on our equipment leases, letter of credit fees under our credit facilities and for capital expenditures or additional lease payments for new revenue equipment. |
Payments Due by Period | ||||||||||||||||||||
(in millions) | Less than 1 year | 1-3 years | 3-5 years | After 5 years | Total | |||||||||||||||
Balance sheet obligations:(a) | ||||||||||||||||||||
ABL borrowings, including interest | $ | 374.3 | $ | — | $ | — | $ | — | $ | 374.3 | ||||||||||
Long-term debt, including interest | 101.4 | 592.5 | 0.2 | — | 694.1 | |||||||||||||||
Lease financing obligations | 41.5 | 84.5 | 86.5 | 61.8 | 274.3 | (b) | ||||||||||||||
Multi-employer pension deferral obligations, including interest | 8.7 | 129.1 | — | — | 137.8 | |||||||||||||||
Workers’ compensation, property damage and liability claims obligations | 100.1 | 118.1 | 58.3 | 113.9 | 390.4 | (c) | ||||||||||||||
Off balance sheet obligations: | ||||||||||||||||||||
Operating leases | 53.7 | 63.7 | 27.3 | 20.9 | 165.6 | |||||||||||||||
Letter of credit fees | 31.4 | 15.7 | — | — | 47.1 | (d) | ||||||||||||||
Capital expenditures | 3.3 | — | — | — | 3.3 | |||||||||||||||
Total contractual obligations | $ | 714.4 | $ | 1,003.6 | $ | 172.3 | $ | 196.6 | $ | 2,086.9 |
(a) | Total liabilities for unrecognized tax benefits as of September 30, 2013 were $27.8 million and are classified on our consolidated balance sheet within “Claims and Other Liabilities” and are excluded from the table above. |
(b) | The $274.3 million of lease financing obligation payments represent interest payments of $200.7 million and principal payments of $73.6 million. The remaining principle obligation is offset by the estimated book value of leased property at the expiration date of each lease agreement. |
(c) | The workers' compensation, property damage and liability claims obligations represent our estimate of future payments for these obligations, not all of which are contractually required. |
(d) | The letter of credit fees are related to the cash collateral for our outstanding letters of credit on our previous ABS facility, as well as the amended and restated credit agreement outstanding letters of credit. |
Amount of Commitment Expiration Per Period | |||||||||||||||||||
(in millions) | Less than 1 year | 1-3 years | 3-5 years | After 5 years | Total | ||||||||||||||
Unused line of credit | |||||||||||||||||||
ABL Facility(a) | $ | 63.2 | $ | — | $ | — | $ | — | $ | 63.2 | |||||||||
Letters of credit | — | 364.6 | (b) | — | — | 364.6 | |||||||||||||
Surety bonds | 120.0 | 8.4 | — | — | 128.4 | ||||||||||||||
Total commercial commitments | $ | 183.2 | $ | 373.0 | $ | — | $ | — | $ | 556.2 |
(a) | We hold in restricted escrow $90.1 million. |
(b) | Under our credit facilities, we hold in restricted escrow $12.5 million of cash related to the net cash proceeds from certain asset sales. This restricted escrow provides additional cash collateral for our outstanding letters of credit. On November 12, 2013 we entered into an amendment to our amended and restated credit agreement that permits the return of this restricted escrow. |
• | achieving forecasted results in order to comply with covenants and other terms of our credit facilities so as to have access to the borrowings available to us under our credit facilities; |
• | securing suitable lease financing arrangements to replace revenue equipment; |
• | generating operating cash flows that are sufficient to meet the minimum cash balance requirement under our credit facilities, cash requirements for pension contributions to our single-employer pension plan and our multi-employer pension funds, cash interest and principal payments on our funded debt, payments on our equipment leases, letter of credit fees under our credit facilities and for capital expenditures or additional lease payments for new revenue equipment. |
Test Period Ending | Maximum Total Leverage Ratio |
December 31, 2013 | 5.7 to 1.00 |
March 31, 2014 | 6.4 to 1.00 |
June 30, 2014 | 6.5 to 1.00 |
September 30, 2014 | 6.5 to 1.00 |
December 31, 2014 | 6.2 to 1.00 |
Test Period Ending | Minimum Interest Coverage Ratio |
December 31, 2013 | 1.50 to 1.00 |
March 31, 2014 | 1.30 to 1.00 |
June 30, 2014 | 1.30 to 1.00 |
September 30, 2014 | 1.40 to 1.00 |
December 31, 2014 | 1.40 to 1.00 |
Four Consecutive Fiscal Quarter Period Ending | Minimum Consolidated EBITDA |
December 31, 2013 | $245,000,000 |
March 31, 2014 | $220,000,000 |
June 30, 2014 | $225,000,000 |
September 30, 2014 | $245,000,000 |
December 31, 2014 | $260,000,000 |
10.1* | Amendment No. 3 to Amended and Restated Credit Agreement, by and among the Company, as borrower, JPMorgan Chase Bank, National Association, as administrative agent, and the lenders party thereto. |
10.2* | Amendment No. 4 to Credit Agreement, by and among YRCW Receivables LLC, as borrower, and the lenders party thereto. |
31.1* | Certification of James L. Welch filed pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* | Certification of Jamie G. Pierson filed pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1* | Certification of James L. Welch furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2* | Certification of Jamie G. Pierson furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS** | XBRL Instance Document |
101.SCH** | XBRL Taxonomy Extension Schema |
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF** | XBRL Taxonomy Extension Definition Linkbase |
101.LAB** | XBRL Taxonomy Extension Label Linkbase |
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase |
* | Indicates documents filed herewith |
** | XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
YRC WORLDWIDE INC. | ||
Date: November 12, 2013 | /s/ James L. Welch | |
James L. Welch | ||
Chief Executive Officer | ||
Date: November 12, 2013 | /s/ Jamie G. Pierson | |
Jamie G. Pierson | ||
Executive Vice President and | ||
Chief Financial Officer |
Eurodollar Spread for Eurodollar Term Loans | Commitment Fee Rate | ABR Spread for Term Loans |
7.00 % | 8.00% | 6.00% |
Test Period Ending | Maximum Total Leverage Ratio |
March 31, 2012 | 9.0 to 1.00 |
June 30, 2012 | 10.0 to 1.00 |
September 30, 2012 | 9.6 to 1.00 |
December 31, 2012 | 8.6 to 1.00 |
March 31, 2013 | 7.4 to 1.00 |
June 30, 2013 | 6.5 to 1.00 |
September 30, 2013 | 6.0 to 1.00 |
December 31, 2013 | 5.7 to 1.00 |
March 31, 2014 | 6.4 to 1.00 |
June 30, 2014 | 6.5 to 1.00 |
September 30, 2014 | 6.5 to 1.00 |
December 31, 2014 | 6.2 to 1.00 |
Test Period Ending | Minimum Interest Coverage Ratio |
March 31, 2012 | 1.00 to 1.00 |
June 30, 2012 | 1.00 to 1.00 |
September 30, 2012 | 0.95 to 1.00 |
December 31, 2012 | 1.05 to 1.00 |
March 31, 2013 | 1.20 to 1.00 |
June 30, 2013 | 1.45 to 1.00 |
September 30, 2013 | 1.60 to 1.00 |
December 31, 2013 | 1.50 to 1.00 |
March 31, 2014 | 1.30 to 1.00 |
June 30, 2014 | 1.30 to 1.00 |
September 30, 2014 | 1.40 to 1.00 |
December 31, 2014 | 1.40 to 1.00 |
Four Consecutive Fiscal Quarter Period Ending | Minimum Consolidated EBITDA |
December 31, 2013 | $245,000,000 |
March 31, 2014 | $220,000,000 |
June 30, 2014 | $225,000,000 |
September 30, 2014 | $245,000,000 |
December 31, 2014 | $260,000,000 |
EXPRESS LANE SERVICE, INC. By:__/s/ Phil J. Gaines________________ Name: Phil J. Gaines Title: Senior Vice President, Finance |
NEW PENN MOTOR EXPRESS, INC. By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
ROADWAY EXPRESS INTERNATIONAL, INC. By:__/s/ Phil J. Gaines________________ Name: Phil J. Gaines Title: Senior Vice President, Finance |
ROADWAY LLC By:__/s/ Phil J. Gaines________________ Name: Phil J. Gaines Title: Senior Vice President, Finance |
ROADWAY NEXT DAY CORPORATION By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
ROADWAY REVERSE LOGISTICS, INC. By:__/s/ Phil J. Gaines________________ Name: Phil J. Gaines Title: Senior Vice President, Finance |
USF BESTWAY INC. By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
USF DUGAN INC. By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
USF GLEN MOORE INC. By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
USF HOLLAND INC. By:__/s/ Mark Boehmer_______________ Name: Mark Boehmer Title: Vice President |
USF REDSTAR LLC By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
USF REDDAWAY INC. By:__/s/ Mark Boehmer_______________ Name: Mark Boehmer Title: Vice President |
YRC ASSOCIATION SOLUTIONS, INC. By:__/s/ Phil J. Gaines________________ Name: Phil J. Gaines Title: Senior Vice President, Finance |
YRC INC. By:__/s/ Phil J. Gaines________________ Name: Phil J. Gaines Title: Senior Vice President, Finance |
YRC INTERNATIONAL INVESTMENTS, INC. By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
YRC LOGISTICS SERVICES, INC. By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
YRC MORTGAGES, LLC By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
YRC ENTERPRISE SERVICES, INC. By:__/s/ Phil J. Gaines________________ Name: Phil J. Gaines Title: Senior Vice President, Finance |
YRC REGIONAL TRANSPORTATION, INC. By:__/s/ Stephanie D. Fisher___________ Name: Stephanie D. Fisher Title: Vice President, Finance |
(a) | YRCW Receivables LLC (the “Borrower” or “YRCW”), |
(b) | YRC Worldwide Inc. (the “Servicer”), |
(c) | the financial institutions listed on the signature pages hereof, |
(d) | JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative Agent”) and |
(e) | YRC Inc., USF Reddaway Inc. and USF Holland Inc. (each an “Originator” and collectively, the “Originators”), |
Four Consecutive Fiscal Quarter Period Ending | Minimum Consolidated EBITDA |
December 31, 2013 | $245,000,000 |
March 31, 2014 | $220,000,000 |
June 30, 2014 | $225,000,000 |
September 30, 2014 | $245,000,000 |
December 31, 2014 | $260,000,000 |
(1) | I have reviewed this quarterly report on Form 10-Q of YRC Worldwide Inc.; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 12, 2013 | /s/ James L. Welch | |
James L. Welch | ||
Chief Executive Officer |
(1) | I have reviewed this quarterly report on Form 10-Q of YRC Worldwide Inc.; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 12, 2013 | /s/ Jamie G. Pierson | |
Jamie G. Pierson | ||
Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of YRC Worldwide Inc. |
Date: November 12, 2013 | /s/ James L. Welch | |
James L. Welch | ||
Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of YRC Worldwide Inc. |
Date: November 12, 2013 | /s/ Jamie G. Pierson | |
Jamie G. Pierson | ||
Executive Vice President and Chief Financial Officer |
Commitments, Contingencies, And Uncertainties
|
9 Months Ended |
---|---|
Sep. 30, 2013
|
|
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, And Uncertainties | Commitments, Contingencies, and Uncertainties ABF Lawsuit On November 1, 2010, ABF Freight System, Inc. (“ABF”) filed a complaint in the U.S. District Court for the Western District of Arkansas against several parties, including our subsidiaries YRC Inc., New Penn Motor Express, Inc. and USF Holland Inc. and the International Brotherhood of Teamsters and the local Teamster unions that are party to the National Master Freight Agreement (“NMFA”), alleging violation of the NMFA due to modifications to the NMFA that provided relief to our subsidiaries without providing the same relief to ABF. The complaint sought to have the modifications to the NMFA declared null and void and damages of $750.0 million from the named defendants. We believe the allegations are without merit. On December 17, 2010, the District Court dismissed the complaint. ABF appealed the dismissal on January 18, 2011 to the U.S. Court of Appeals for the 8th Circuit. On July 6, 2011, the Court of Appeals vacated the District Court's dismissal of the litigation on jurisdictional grounds and remanded the case back to the District Court for further proceedings. ABF filed an amended complaint on October 12, 2011, containing allegations consistent with the original complaint. Our subsidiaries filed a motion to dismiss the amended complaint. On August 1, 2012, the District Court dismissed ABF's amended complaint without prejudice. ABF appealed the dismissal to the Court of Appeals, and, on August 30, 2013, the Court of Appeals affirmed the District Court’s decision. It is unknown at this time if ABF will elect to seek review of the Court of Appeals’ decision by the U.S. Supreme Court. If ABF were to seek such review, we believe we have meritorious defenses to this case. Therefore, we have not recorded any liability for this matter. Bryant Holdings Securities Litigation On February 7, 2011, a putative class action was filed by Bryant Holdings LLC ("Bryant") in the U.S. District Court for the District of Kansas on behalf of purchasers of our common stock between April 24, 2008 and November 2, 2009, inclusive (the "Class Period"), seeking damages under the federal securities laws for statements and/or omissions allegedly made by us and the individual defendants during the Class Period which plaintiffs claimed to be false and misleading. The individual defendants are former officers of our Company. No current officers or directors were named in the lawsuit. The parties participated in voluntary mediation between March 11, 2013 and April 15, 2013. The mediation resulted in the execution of a mutually acceptable definitive agreement by the parties, which agreement remains subject to approval by the court. Court approval cannot be assured. Substantially all of the payments contemplated by the settlement will be covered by our liability insurance. The self-insured retention on this matter has been accrued as of September 30, 2013. Other Legal Matters We are involved in other litigation or proceedings that arise in ordinary business activities. We insure against these risks to the extent we deem prudent, but no assurance can be given that the nature or amount of such insurance will be sufficient to fully indemnify us against liabilities arising out of pending and future legal proceedings. Many of these insurance policies contain self-insured retentions in amounts we deem prudent. Based on our current assessment of information available as of the date of these financial statements, we believe that our financial statements include adequate provisions for estimated costs and losses that may be incurred within the litigation and proceedings to which we are a party. |
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