YRC Worldwide softens loss in Q1

The LTL holding company recorded a net loss of $14.6 million, compared to $25.3 million last year.    Overland Park, Kan.-based YRC Worldwide Inc. recorded a net loss of $14.6 million for the first quarter of 2018, compared to a net loss of $25.3 million for last year’s first quarter as less-than-truckload demand holds strong.
   YRC Worldwide, which is the holding company for a portfolio of LTL companies, is broken down into two main segments: YRC Freight, with YRC Reimer operating the YRC Freight network in Canada, as well as the regional segment, which includes Holland, Reddaway and New Penn.
   Consolidated operating revenues at YRC Worldwide totaled $1.22 billion for the quarter, up 3.8 percent year-over-year.
   YRC Worldwide’s loss on property disposals totaled $3.2 million for the quarter. This was mainly due to equipment write-offs, coupled with a few property sales, YRC Worldwide Chief Financial Officer Stephanie Fisher said on the earnings call. Last year, the company’s loss on property disposals totaled $2.7 million.
   Average shipments carried by YRC Worldwide were heavier during the quarter. At YRC Freight, total shipments per day fell 4.5 percent year-over-year during the quarter, while tonnage per day only slipped 2.4 percent. The regional segment saw total shipments fall 3.2 percent and tonnage pick up 0.2 percent.
   YRC Worldwide CEO Darren Hawkins said that during the quarter, YRC Worldwide took delivery of more than 500 tractors and over 400 trailers, with about another 400 tractors and 2,100 trailers expected to be delivered in 2018. YRC Worldwide expects this to help mitigate the use of short-term rentals, he explained.
   In addition, YRC Freight had eight distribution centers become fully operational during the quarter, YRC Freight President TJ O’Connor said.
   YRC Worldwide closed out the quarter with outstanding debt totaling $918.7 million, down 8.6 percent year-over-year.
   However, the consolidated operating ratio at YRC Worldwide totaled 100.4 percent, compared to 100 percent for the first quarter of 2017. In regard to driving down the operating ratio, Hawkins said during the earnings call that, as with any LTL operation, the yield platform is one of the largest levers to profitability.
   Hawkins held a positive outlook, pointing out that both segments had the strongest yield increases since 2015. “When weight per shipment is rising like ours is right now and yield is coming along at a pace of 6 percent at YRC Freight and 5.3 [percent] at the regionals, its encouraging,” he said.
   Revenue per shipment rose 8.3 percent year-over-year during the quarter at YRC Freight and 9 percent in the regional segment. In addition, customer contract negotiations increased an average of 6.2 percent during the quarter at YRC Freight and 6 percent in the regional segment.