Earnings Watch: YRC Trims Quarterly Loss, USA Truck Moves Into Red
The parent of less-than-truckload carrier YRC Freight and others managed to reduce its losses in the final quarter of 2016 while a truckload carrier reported a loss for both the final three months of last year and all of 2016.
YRC Worldwide Inc. reported a net loss of $7.5 million, or 23 cents per share, compared to a net loss of $23.5 million, or 73 cents per share a year earlier. Revenue was nearly the same during the two periods at $1.14 billion.
Operating income for the final quarter totaled $14.9 million compared to an operating loss of $15.3 million in the final three months of 2015, which included a $28.7 million non-union pension settlement charge.
“In the fourth quarter 2016, year-over-year tonnage per day was up at YRC Freight and flat at the regional segment,” said James Welch, CEO. “However, YRC Freight’s year-over-year revenue per hundredweight declined, which impacted its ability to offset cost increases during the quarter.”
The company’s results in 2016 from the year before were better with net income of $21.5 million, or 65 cents per share, versus a 2015 net loss of $700,000, or 2 cents per share. Revenue last year slipped to $4.7 billion from $4.83 billion a year earlier.
In contrast, 2016 operating income improved to $124.3 million from $93 million a year earlier, which the company said was the highest since 2006.
Last year, YRC said it invested $253 million in its business, mainly in the form of tractors, trailer and technology– nearly $13.4 million more than it did in 2015. The company said during the quarter it also paid down its long-term debt to its lowest level since 2005.
The company’s nationwide service, YRC Freight, barely reported an operating loss while its operating ratio fell from 102.9% a year earlier to 100% in the most recent quarter while …Read the rest of this story
