YRC Worldwide gives early look at Q4 financial results

YRC Worldwide, which controls the fourth- and eighth-largest less-than-truckload (LTL) units with its long-haul and regional trucking companies, is offering an early peak into its operating results for the fourth quarter 2018.

By ·

YRC Worldwide, which controls the fourth- and eighth-largest less-than-truckload (LTL) units with its long-haul and regional trucking companies, is offering an early peak into its operating results for the fourth quarter 2018.

For the quarter, YRC said it anticipates reporting consolidated operating revenue of approximately $1.2 billion to $1.3 billion and consolidated operating income of approximately $55 to $65 million. That includes approximately $28 million gain on property sales.

Those results compares with consolidated operating revenue for the three months ended Dec. 31, 2017 of $1.2 billion with consolidated operating income of $22.1 million, which included a $3.6 million gain on property disposals.

YRC said on a non-GAAP basis, it anticipates reporting fourth quarter consolidated adjusted earnings before interest, depreciation and amortization expense (EBITDA) of approximately $100 million to $110 million compared to consolidated adjusted EBITDA of $58.5 million in fourth quarter 2017 .

As of the end of last year, YRC said it anticipates reporting cash and cash equivalents under its loan agreements of more than $200 million compared to $118.3 million as of Dec. 31, 2017.

“I am proud of the year-over-year operational improvement in our fourth quarter,” YRC CEO Darren Hawkins said in a statement. “At the beginning of the year, we laid out our strategy to improve our yield metrics by effectively pricing freight and balancing our network capacity, as well as to continue reinvestment in our tractor and trailer fleet,” Hawkins added. “Our 2018 results demonstrate successful execution in these areas and we remain committed to these objectives moving forward.”

Hawkins said YRC has built a “a solid foundation” to continue improving its operating results.

“Going into 2019, our liquidity position is strong. We will continue our focus on yield discipline, realizing returns on our investments in revenue equipment, and increasing the coverage of our customers’ supply chain needs with HNRY Logistics,” Hawkins added. 

YRC Worldwide will host an analysts’ conference call on Jan. 31 beginning at 9:30 a.m. ET. Fourth quarter 2018 financial results will be released the same day before the market opens.

One likely topic will be YRC’s ongoing negotiations with the Teamsters union representing about 24,000 employees. They have been working under a 15 percent wage reduction and 75 percent loss in pension contributions since 2009. The union rank and file would like to recover some of those givebacks in its next contract, though it is unclear how far YRC management is willing to go in that area.

About the Author

John D. Schulz
John D. Schulz has been a transportation journalist for more than 20 years, specializing in the trucking industry. John is on a first-name basis with scores of top-level trucking executives who are able to give shippers their latest insights on the industry on a regular basis.

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Less-Than-Truckload · LTL · YRC · YRC Freight · All Topics
Latest Whitepaper
Practical advice for integrating new technology
As one of the world’s leading location platforms, HERE shares insights and tips to streamline the supply chain technology integration across the whole organization.
Download Today!
From the August 2019 Logistics Management Magazine
The staff of Logistics Management (LM) is honored to present the logistics and transportation community with the results of our 36th Annual Quest for Quality Survey
Ocean: Protecting margins in a soft market
Warehouse Voice Technology Speaks for Itself
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly newsletter!
Latest Webcast
Creating the ROI for Multi-Carrier Parcel Shipping Solutions
This webinar will reveal how manufacturers, retailers, and 3PLs can utilize their own data to identify and demonstrate ROI for multi-carrier parcel shipping by leveraging state-of-the art business intelligence to increase performance.
Register Today!
36th Annual Quest for Quality Awards: Winners in the spotlight
Which carriers, third-party logistics (3PL) providers and U.S. ports have reached the pinnacle of...
State of Logistics in 2019: What’s next?
Tight capacity, high rates, rapid e-commerce growth and a booming economy fueled an 11.45% rise in...

Got labor? How supply chain companies are recruiting talent during a labor crunch
How are companies faring in the race to recruit and train high-level supply chain talent in a market...
35th Annual Salary Survey: Compensation matters more than ever
While job satisfaction remains the primary reason for today’s logistics managers to stay with one...