YRCW Q2 Loss Narrows - Analyst Blog

YRC Worldwide Inc. (YRCW) today reported its second quarter 2010 financial results. Quarterly net loss was $9.5 million or a loss of 1 cent per share compared to a huge loss of $309 million or a loss of $5.20 per share in the year-ago quarter. This was mainly due to positive operating income reported by the Regional companies.

However, in the reported quarter, the company enjoyed a $81.54 million gain from equity-based compensation expenses and incurred $11.4 million of net loss from discontinued operations. Excluding these, second quarter net loss came in at 6 cents per share, better than the Zacks Consensus Estimate of a loss of 9 cents per share.

Quarterly operating revenue was $1,119.1 million, down 2.9% year-over-year and also below the Zacks Consensus Estimate of $1,183 million. Positive results from YRC Regional Transportation and YRC Truckload were more than offset by a reduction in revenue of YRC National Transportation.

Quarterly consolidated operating expense was $1,070.8 million, down 29.6% year over year. Operating margin, in the second quarter 2010 was 4.3%. Operating ratio in the reported quarter was 95.7% compared to 124% in the prior-year quarter. Second quarter 2010 adjusted EBITDA was $39.9 million compared to a negative $234 million in the year-ago quarter.

During the second quarter 2010, YRCW used $14.5 million of cash for operations compared to a cash consumption of $243.4 million in the prior-year quarter. Free cash flow, in the reported quarter was a negative $25.3 million compared to a negative $269.4 million in the prior-year quarter.

At the end of the second quarter 2010, YRCW had $144.3 million of cash & cash equivalents compared to $97.8 million at the end of fiscal 2009. Total debt, at the end of the same quarter was nearly $1,159 million compared to $1,132.9 million at the end of fiscal 2009.

YRC National Transportation

Quarterly operating revenue was $741.6 million, down 15.1% year-over-year. Operating income was $33.1 million compared to an operating loss of $239.5 million in the prior-year quarter. Second Quarter 2010 operating ratio was 95.5% compared to 127.4% in the year-ago quarter.

YRC Regional Transportation

Quarterly operating revenue was $351.5 million, up 4% year-over-year. Operating income was $22.4 million compared to an operating loss of $48.3 million in the prior-year quarter. Second Quarter 2010 operating ratio was 93.6% compared to 114.3% in the year-ago quarter.

YRC Truckload

Quarterly operating revenue was $28.2 million, up 2.4% year-over-year. Operating loss was nearly $2 million compared to an operating loss of $2.4 million in the prior-year quarter. Second Quarter 2010 operating ratio was 107% compared to 108.6% in the year-ago quarter.
 
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