YRC Worldwide posts 4Q profit on income tax settlement

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YRC Worldwide Inc. on Friday, Feb. 4, reported net income of $23 million for the fourth quarter of 2010, including a $52 million benefit from an income tax settlement. For the full year 2010, the company reported a net loss of $322 million. As a comparison, the company reported net earnings of $120 million in the fourth quarter of 2009, including a $177 million after-tax gain on debt redemption, and for the full year 2009 reported a net loss of $622 million.

For the fourth quarter of 2010, consolidated operating revenue of $1.092 billion was 3.9 percent higher than the $1.050 billion reported for the fourth quarter of 2009. The company generated positive net cash flow from operating activities of $10 million but recorded a consolidated operating loss of $27 million, improved from a $91 million operating loss. For the full year 2010, consolidated operating revenue was $4.3 billion as compared to $4.9 billion for full year 2009, with an operating loss of $231 million improved from an $890 million operating loss.

“We are pleased with the stability we have seen in our absolute business volumes at YRC over the last three quarters and the growth across our Regional companies leading to continued year-over-year improvement in our operating results,” said Sheila Taylor, executive vice president, chief financial officer and treasurer of the Overland Park, Kan.-based company.

Taylor said the business is generating positive cash flow, and its ability to continually improve its days to collect should provide the needed liquidity as it moves through the seasonally slower first quarter. “With our continued operating momentum, we expect to achieve our fourth consecutive quarter of positive adjusted EBITDA and be within our credit agreement financial covenants in the first quarter of 2011,” she said.