YRC Worldwide Inc. on Friday, July 22, reported a net loss of $39 million for the second quarter compared to a net loss of $10 million for the second quarter of 2010, which included an $83 million after-tax benefit for a fair value adjustment to an equity-based award.
Consolidated operating revenue was $1.257 billion, and consolidated operating loss was $2 million, which included $17 million of restructuring professional fees. As a comparison, the company reported consolidated operating revenue of $1.119 billion for the second quarter of 2010 and consolidated operating income of $48 million, which included an $83 million benefit for a fair value adjustment to an equity-based award and $9 million of restructuring professional fees.
The Overland Park, Kan.-based company also announced that its restructure closing will mark the conclusion of service for the company’s current board of directors and the assignments for chief restructuring officer John Lamar and interim chief financial officer Bill Trubeck. “I wish to express my gratitude to John Lamar and Bill Trubeck for their leadership and expertise during this critical period,” said Bill Zollars, chairman, president and chief executive officer, who also is stepping down.
“I would like to extend my sincere thanks to all of our employees and other key stakeholders who have worked tirelessly to make the restructuring possible and to our loyal customers who have continued to allow us to serve their transportation and logistics needs throughout the restructuring period,” Zollars said.
YRC National Transportation’s adjusted operating ratio improved by 350 basis points to 99.2, while shipments per day were up 7.1 percent, tons per day were up 6.2 percent, revenue per shipment was up 5.0 percent and revenue per hundredweight was up 6.0 percent. YRC Regional Transportation’s adjusted operating ratio improved by 180 basis points to 95.9, while tons per day were up 8.1 percent, revenue per shipment was up 9.9 percent and revenue per hundredweight up 6.5 percent.
Trubeck said the restructure closing, which includes net cash proceeds from $100 million of new notes and a new $400 million ABL, will enhance the company’s liquidity position and provide runway for the continued growth in revenues and earnings. “With the operating momentum we achieved during the second quarter, which continued to-date into July, we expect to achieve year-over-year revenue growth and adjusted operating income for the remainder of 2011,” he said.
YRC Worldwide also announced a new board of directors. “I am confident that the new board members, with their vast experience in a wide variety of areas such as logistics, operations, business management, finance and law, will help us take YRC Worldwide to the next level as a leading provider of transportation and global logistics services,” said James Hoffman, the company’s new chairman.”
The new board immediately named transportation industry veteran James Welch, a former president and CEO of Yellow Transportation, as YRC Worldwide’s new CEO, effective immediately. “Mr. Welch brings hands-on institutional knowledge along with an employee and customer-focused approach to a company built on reliability and customer relations,” Hoffman said. “YRC Worldwide is fortunate to have someone with Mr. Welch’s skill set at the helm as this company moves forward. His leadership, coupled with the company’s new financial liquidity, places YRC Worldwide in a strong position to regain its competitive edge in the transportation marketplace.”
Welch has more than 30 years of experience in the transportation sector, many of those at the senior executive level. He most recently served as president and CEO of Dynamex Inc., a provider of same-day transportation and logistics services in the United States and Canada. Welch began his career with Yellow at the age of 23 and worked his way up to the position of president and CEO (2000-2007).
