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YRC Worldwide prioritises freight mix and profitability over volume and market share 04 February 2016

Operating income for full-year 2015 more than doubled

In 2015, YRC Worldwide successfully executed a strategy of improving price, freight mix and profitability over volume and market share while lowering the consolidated operating ratio to 98.1. Despite the challenges of decreasing fuel surcharge revenue and a flattening economy in the second half of the year, full-year operating income more than doubled prior year results.

YRC Worldwide Inc. reported consolidated operating revenue for the fourth quarter 2015 of US$1.143 billion with a consolidated operating loss of US$15.3 million, which included a non-union pension settlement charge of US$28.7 million and a US$0.4 million loss on property disposals. As a comparison, the Company reported consolidated operating revenue of US$1.218 billion for Q4, 2014 with consolidated operating income of US$31.2 million, which included a US$5.8 million gain on property disposals.

Consolidated operating revenue for the year ended December 31, 2015 was US$4.832 billion with consolidated operating income of US$93.0 million, which included a US$1.9 million loss on property disposals and the settlement charge. This compares to full-year 2014 consolidated operating revenue of US$5.069 billion with consolidated operating income of US$45.5 million, which included an US$11.9 million gain on property disposals.

Adjusted EBITDA for full-year 2015 increased to US$333.3 million, an improvement of US$88.8 million from the US$244.5 million reported in 2014. Adjusted EBITDA for Q4, 2015 was US$66.0 million compared to US$77.0 million in 2014.
 
Full-year 2015 operating income more than doubled to US$93.0 million from US$45.5 million in 2014. The Company reported a Q4, 2015 operating loss of US$15.3 million compared to operating income of US$31.2 million in 2014. The fourth quarter 2015 results were impacted by the US$28.7 million non-union pension settlement charge.
 
Improved yield from continued pricing discipline contributed to an operating ratio of 98.1 for full-year 2015 on a consolidated basis. YRC Freight improved its full-year 2015 operating ratio to 99.4 even after including the impact of the non-union pension settlement charge. Excluding the non-union pension settlement charge, YRC Freight's adjusted operating ratio is 98.5. For 2015, the Regional segment reported an operating ratio of 95.2.
 
The Company maintained its strategy of prioritising freight mix, yield improvements and profitability over market share and tonnage growth. Q4, 2015 tonnage per day decreased 6.8% at YRC Freight and 2.6% at the Regional segment compared to Q4, 2014. For the full-year 2015, tonnage per day decreased 5.8% at YRC Freight and 1.9% at the Regional segment compared to 2014.
 
At YRC Freight, excluding fuel surcharge, Q4, 2015 revenue per shipment increased 4.4% and revenue per hundredweight increased by 4.2% when compared to the same period in 2014. Including fuel surcharge, revenue per shipment decreased 1.5% and revenue per hundredweight decreased 1.6%. Excluding fuel surcharge, full-year 2015 revenue per shipment increased 7.7% at YRC Freight and revenue per hundredweight increased by 6.1% when compared to 2014. Including fuel surcharge, revenue per shipment increased 1.7% and revenue per hundredweight increased 0.3%.
 
At the Regional segment, excluding fuel surcharge, Q4, 2015 revenue per shipment increased 3.4% and revenue per hundredweight increased by 3.3% compared 2014. Including fuel surcharge, revenue per shipment decreased 2.0% and revenue per hundredweight decreased 2.2%. Excluding fuel surcharge, full-year 2015 revenue per shipment increased 5.6% at the Regional segment and revenue per hundredweight increased by 4.6% compared to 2014. Including fuel surcharge, revenue per shipment increased 0.2% and revenue per hundredweight decreased 0.7%.
 
Looking ahead, whilst the Company would obviously like for the freight environment to be better and improve throughout 2016. It will stay the course and remain focused on providing excellent service, improving its freight mix and profitability which drives long-term shareholder value.