YRC Worldwide Swings To Q4 Profit, Results Top Estimates

(RTTNews) - Transportation company YRC Worldwide, Inc. (YRCW) reported Thursday a small profit for the fourth quarter compared to a loss last year, reflecting lower non operating expenses and revenue growth. Loss per share for the quarter came in narrower than analysts' expectations, and quarterly revenues topped their estimates.

"During the fourth quarter of 2013, our Regional group continued to produce results that were at or near industry margins. Our Regional group continues to build on their profitability with operational improvements and efficiencies," CEO James Welch said in a statement.

The Overland Park, Kansas-based company reported net income $0.4 million or $1.71 loss per diluted share for the fourth quarter, compared to a net loss of $35.3 million or $4.53 per diluted share in the prior-year quarter.

The results for the quarter were calculated on 14.88 million outstanding shares, compared to 7.80 million outstanding shares in the year-ago quarter.

On average, six analysts polled by Thomson Reuters expected the company to report a loss of $2.77 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated operating revenues for the quarter grew 3.3 percent to $1.21 billion from $1.17 billion in the same quarter last year, and topped four Wall Street analysts' consensus estimate of $1.18 billion.

YRC freight revenue for the quarter edged down 0.1 percent to $776.7 million, while regional transportation revenues grew 10.1 percent to $431.0 million in the year-ago quarter.

YRC freight total tonnage per day during the quarter grew 3.2 percent, and total shipments per day increased 1.0 percent, while revenue per shipment declined 1.1 percent from last year.

Regional transportation tonnage per day grew 8.9 percent, shipments per day increased 7.5 percent, and revenue per shipment edged up 0.9 percent from a year ago.

The operating ratio for the quarter increased 30 basis points over the prior-year quarter to 100.1 percent, as a 320 basis points improvement in regional transportation was more than offset by a 470 basis points increase in YRC Freight.

Nonoperating expenses for the quarter nearly doubled to $36.7 million from $67.2 million last year.

Additionally, the company also announced that Darren Hawkins has been appointed as the YRC Freight president and will report directly to Welch. Previously, Hawkins was senior vice president of Sales and Marketing for YRC Freight. Prior to holding that position, he served for four years at Con-way in a major operations role before rejoining YRC Freight in January 2013.

For fiscal 2013, the company reported a net loss of $83.6 million or $8.96 per share, sharply narrower than $140.4 million or $19.20 per share in the prior year. Consolidated operating revenues for the full year edged up 0.3 percent to $4.87 billion from $4.85 billion in the previous year.

Street was looking for full-year 2013 loss of $11.26 per share on annual revenues of $4.84 billion.

"Going forward, we will be adhering to a strict set of fundamental freight processes that will allow us to improve our on-time service performance at YRC Freight much like we have at our Regional companies. These changes will enable us to provide our customers the best possible service for their specific freight needs," Welch added.

In Thursday's regular trading session, YRCW is currently trading at $24.29, up $1.66 or 7.34% on a volume of 1.07 million shares.