YRC reports 78.4% decline in Q3 net profit 02 November 2017

YRC Worldwide Inc. has reported consolidated operating revenue for Q3, 2017 of US$1.251 billion, up 2.4%, and consolidated operating income of US$40.1 million, up 3.4%, which included a US$1.3 million loss on property disposals. As a comparison, for Q3, 2016, the Company reported consolidated operating revenue of US$1.221 billion and consolidated operating income of US$38.8 million, which included a US$0.2 million loss on property disposals. Net income in Q3, 2017 was US$3.0 million, down 78.4% compared to US$13.9 million in Q3, 2016. The total debt-to-Adjusted EBITDA ratio for Q3, 2017 was 3.52 times compared to 3.45 times for Q3, 2016.

For the 9M, 2017 period, consolidated operating revenue reached US$3.682 billion, up 3.8% as consolidated operating income declined to US$87.1 million, down 20.4%. The Company reported a net loss of US$3.3 million.

Reinvestment in the business continued during Q3, 2017 with US$31.9 million in capital expenditures and new operating leases for revenue equipment with a capital value equivalent of US$15.9 million, for a total of US$47.8 million.

The consolidated operating ratio for Q3, 2017 of 96.8 was consistent with Q3, 2016. The operating ratio at YRC Freight was 97.4 compared to 97.3 for the same period in 2016. The Regional segment's third quarter 2017 operating ratio was 95.4 compared to 95.1 a year ago. Q3, 2017 tonnage per day increased 0.7% at YRC Freight and 4.0% at the Regional segment compared to Q3, 2016.

At YRC Freight, including fuel surcharge, Q3, 2017 revenue per hundredweight increased 3.4% and revenue per shipment increased 3.8% when compared to the same period in 2016. Excluding fuel surcharge, revenue per hundredweight increased 2.4% and revenue per shipment increased 2.8%. At the Regional segment, including fuel surcharge, Q3, 2017 revenue per hundredweight increased 1.3% and revenue per shipment increased 4.1% when compared to the same period in 2016. Excluding fuel surcharge, revenue per hundredweight increased 0.3% and revenue per shipment increased by 3.2%.

YRC Freight continued to improve its revenue per hundredweight and reported its highest year-over-year percentage increase in nearly three years in addition to positive year-over-year tonnage per day for the fourth consecutive quarter. Collectively, the Regional carriers reported their largest increase in year-over-year tonnage per day since Q2, 2014.

At September 30, 2017, the Company had cash and cash equivalents and Managed Accessibility under its ABL facility totalling US$209.8 million compared to US$290.1 million as of September 30, 2016. For the nine months ended September 30, 2017, cash provided by operating activities was US$64.2 million compared to US$86.0 million for the nine months ended September 30, 2016. At September 30, 2017, the Company's outstanding debt was US$962.4 million, a decrease of US$93.0 million compared to US$1.055 billion as of September 30, 2016.

Looking ahead, as the economic environment continues to strengthen and the Company is optimistic about closing out 2017 with improved financial performance compared to a year ago. YRC Freight, Reddaway, Holland and New Penn will be positioned for tighter capacity due to the recovery and restoration efforts from the hurricanes and the ELD mandate. Refreshing the fleet remains a priority and by Q1, 2018 YRC expect to have taken delivery of more than 3,700 tractors and more than 7,300 trailers since the beginning of 2015. In November 2017, YRC Freight is implementing a significant change of operations that includes transitioning eight terminals to regional distribution centres which is expected to help strengthen customer service and reliability while adding capacity and reducing cost within its network.