Transportation company YRC Worldwide Inc. (YRCW) on Friday reported a loss for the second quarter that narrowed from last year on lower operating expenses that offset a slight decline in revenues.
Overland Park, Kansas-based YRC Worldwide's consolidated operating income for the quarter was $15.5 million and includes a $6.5 million gain on asset disposals. This compares to consolidated operating loss of $5.6 million in the year-ago period, including a $7.3 million gain on asset disposals.
James Welch, chief executive officer of YRC Worldwide said, "Our focused approach to pricing discipline, customer mix management and cost initiatives has driven year-over-year improvement in our business, which is reflected in our operating income. We are producing results slightly ahead of our forecast, despite the recently softening economy, and remain focused on executing our operations and sales strategies at all operating companies."
YRC Freight revenue for the quarter declined 0.7 percent to $821.1 million, while Regional Transportation revenues grew 7 percent to $429.8 million.
YRC Freight tonnage per day during the quarter declined 3.3 percent and shipments per day declined 2.1 percent, while revenue per shipment rose 1.7 percent. Regional Transportation tonnage per day gained 4.4 percent, shipments per day rose 2.5 percent, and revenue per shipment increased 4.3 percent.
YRC Worldwide's second-quarter net loss narrowed to $22.6 million or $3.21 per share from $42.6 million or $267.33 per share in the year-ago period.
The number of shares and the per share amounts for the prior-year quarter reflects the 1:300 reverse stock split that was effective on December 1, 2011.
On average, five analysts polled by Thomson Reuters expected the company to report loss of $4.43 per share for the quarter. Analysts' estimates typically exclude special items.
Operating revenue for the quarter edged down to $1.25 billion from $1.26 billion in the same period last year. Analysts had a consensus revenue estimate of $1.31 billion.
Consolidated operating ratio for the quarter was 98.8 percent, compared to 100.4 percent in the same period last year.
Operating expenses for the quarter were $1.24 billion, down from $1.26 billion in the year-ago period.
At the end of the second quarter, YRC Worldwide's cash, cash equivalents and availability under its $400 million multi-year asset-based loan facility or ABL were $248.7 million. This compares to cash, cash equivalents and availability of $240.7 million under its ABL at the end of the preceding first quarter.
Jamie Pierson, chief financial officer of YRC Worldwide said, "The approximate $250 million of total liquidity that we reported this quarter is our best second quarter liquidity in four years and speaks to our continued operational improvement and effective working capital management."
In Friday's regular session, YRCW is trading at $5.71, down $0.06 or 1.04 percent on a volume of 6,935 shares.
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