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February 5, 2010
YRC Worldwide Reports Year-Over-Year and Continued Sequential Improvement
in Fourth Quarter 2009 Results
Successful Debt-for-Equity Exchange Significantly Enhances Balance Sheet
Exchange Triggers Access to $160 Million in Additional Liquidity
New Capital-Raise Discussions in Advanced Stages
OVERLAND PARK, KAN. YRC Worldwide Inc. (NASDAQ: YRCW) today reported year-over-year and continued sequential improvement in its fourth quarter 2009 results. For the quarter ending December 31, 2009 the company announced pre-tax income of $50 million that 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. For the full year 2009 the company reported a pre-tax loss of $899 million compared to a full-year pre-tax loss in 2008 of $1,147 million, including impairment charges of $1,023 million. For the fourth quarter of 2008 the company reported a pre-tax loss of $353 million which included impairment charges of $200 million.
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, stated Bill Zollars, Chairman and CEO of YRC Worldwide. With our significantly improved balance sheet and additional liquidity resulting from our debt-for-equity exchange, we entered 2010 on a more solid financial base with good momentum.
The company reported an operating loss of $95 million for the fourth quarter of 2009, a continued sequential improvement from the third quarter operating loss of $118 million, which included a net gain on property disposals of $11 million, following the sequential improvement reported for the second quarter, and a year-over-year improvement from the fourth quarter of 2008 operating loss of $335 million, which included impairment charges of $200 million.
The company has not provided after-tax earnings information in this release as it is currently completing its income tax provision. This delay is caused by the time required to complete a valuation analysis together with the underlying complexity of the accounting associated with the debt-for-equity exchange. The company plans to include after-tax information in its 2009 Form 10-K filed with the Securities and Exchange Commission.
The company is executing on its plan to raise new capital sufficient to satisfy the remaining 2010 note obligations and is in advanced discussions with investors.
The following information was filed by Yrc Worldwide Inc. (YRCW) on Friday, February 5, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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