Transportation service provider YRC Worldwide Inc. (YRCW), Friday reported a pre-tax profit for the fourth quarter, compared to a loss last year, reflecting lower operating expenses and a gain on debt redemption that more than offset a decline in revenue.
The Overland Park, Kansas-based company's pre-tax income was $49.80 million for the fourth quarter, compared to a pre-tax loss of $353.28 million in the previous year.
The company has not provided after-tax earnings details as it is currently completing income tax provision. YRC Worldwide further noted that it plans to include after-tax information in its 2009 Form 10-K to be filed with the Securities and Exchange Commission.
Results for the quarter, included a net gain on note exchanges of $194 million, lease termination charges of $8 million related to further optimization of the YRC network, and severance charges of $3 million due to further headcount reductions. The year ago comparable fourth quarter included impairment charges of $200.31 million.
Operating revenue for the quarter declined to $1.14 billion from $1.93 billion in the previous year. On average, 7 analysts polled by Thomson Reuters expected revenues of $1.22 billion for the quarter.
Total operating expenses declined to $1.14 billion from $1.93 billion last year. Salaries, wages and employees' benefits were $0.69 billion, down from $1.26 billion a year ago. Operating expenses and supplies declined to $275.52 million from $420.51 million in the previous year.
Purchased transportation expenses were $143.61 million, compared to $235.81 million in the comparable quarter last year.
Bill Zollars, chairman and CEO of YRC Worldwide, said, "We continued our positive momentum in the fourth quarter as we executed on our comprehensive plan. During 2009 we accomplished the integration and right-sizing of the national networks, the turnaround of the regional business, cost reductions and process improvements, a self-help liquidity program, and, most recently, the successful note exchange to conclude the year."
For the fiscal 2009, loss before taxes narrowed to $0.90 billion from $1.15 billion in the previous year. Operating revenue declined to $5.28 billion from $8.94 billion a year ago.
A customer survey of transportation decision makers on their 2010 business outlook indicated 62% were optimistic that their business volumes would increase this year. In addition, 85% said they planned to increase or maintain their YRC Worldwide shipments during 2010.
YRCW is currently trading at $0.84, up 0.01 or 1.46%, on a volume of 9.83 million shares on the Nasdaq.
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