YRC Worldwide (YRCW) Tops Q1 EPS by 27c

YRC Worldwide (NASDAQ: YRCW) reported Q1 EPS of ($0.44), $0.27 better than the analyst estimate of ($0.71). Revenue for the quarter came in at $1.22 billion versus the consensus estimate of $1.21 billion.

Financial Highlights

• In first quarter 2018, the net loss of $14.6 million improved by $10.7 million compared to a net loss of $25.3 million in first quarter 2017.
• On a non-GAAP basis, the Company generated consolidated Adjusted EBITDA of $45.7 million in first quarter 2018 compared to $43.2 million in the prior year comparable quarter (as detailed in the reconciliation below). Last twelve month (LTM) consolidated Adjusted EBITDA was $276.7 million compared to $277.8 million a year ago.
• The total debt-to-Adjusted EBITDA ratio for first quarter 2018 was 3.32 times compared to 3.62 times for first quarter 2017.
• Purchased transportation expense increased $20.9 million in first quarter 2018 when compared to the same period last year. The increase was primarily due to a $16.2 million increase in third party costs for logistics solutions and rail purchased transportation from increases in rail rates and rail miles. The purchased transportation results also include a $9.9 million increase in equipment lease expense of which $5.5 million was attributable to long-term leases in conjunction with the Company’s strategy to reinvest in its fleet. These increases were partially offset by a $4.0 million decrease from reduced usage of local and over-the-road purchased transportation.
• Reinvestment in the business continued with $23.5 million in capital expenditures and new operating leases for revenue equipment with a capital value equivalent of $73.7 million, for a total of $97.2 million, which is equal to 8.0% of operating revenue for first quarter 2018. The total represents a $72.5 million increase over the $24.7 million investment in first quarter 2017. The majority of the investment was in tractors, trailers and technology.
• For the period beginning January 1, 2018, YRC Worldwide Inc. updated its presentation of net periodic pension cost associated with its plans for non-union employees due to the adoption of a new accounting standard, with retrospective application. For first quarter 2017, the amount reclassified from “Salaries, wages and employee benefits” in operating expenses to nonoperating expenses is $3.3 million. As a result, this reclassification changed the first quarter 2017 reported operating loss of $3.0 million to operating income of $0.3 million.

For earnings history and earnings-related data on YRC Worldwide (YRCW) click here.

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