YRC Worldwide Inc. (YRCW) saw its loss narrow to $7.50 million, or $0.23 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $23.50 million, or $0.73 a share.
Revenue during the quarter went up marginally by 0.49 percent to $1,148.30 million from $1,142.70 million in the previous year period. Gross margin for the quarter contracted 139 basis points over the previous year period to 69.69 percent. Operating margin for the quarter period stood at positive 1.30 percent as compared to a negative 1.34 percent for the previous year period.
Operating income for the quarter was $14.90 million, compared with an operating loss of $15.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $57.70 million compared with $66 million in the prior year period. At the same time, adjusted EBITDA margin contracted 75 basis points in the quarter to 5.02 percent from 5.78 percent in the last year period.
"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, chief executive officer at YRC Worldwide. "However, YRC Freight’s year-over-year revenue per hundredweight declined which impacted its ability to offset cost increases during the quarter. Our pricing strategy remains focused on profitability while delivering award-winning customer service. Overall, we believe pricing discipline in the LTL space remains stable,"
Operating cash flow drops significantly
YRC Worldwide Inc. has generated cash of $103.10 million from operating activities during the year, down 26.78 percent or $37.70 million, when compared with the last year.
The company has spent $67.70 million cash to meet investing activities during the year as against cash outgo of $121.40 million in the last year. It has incurred net capital expenditure of $65.50 million on net basis during the year, down 27.62 percent or $25 million from year ago.
The company has spent $72.50 million cash to carry out financing activities during the year as against cash outgo of $16.70 million in the last year period.
Cash and cash equivalents stood at $136.70 million as on Dec. 31, 2016, down 21.35 percent or $37.10 million from $173.80 million on Dec. 31, 2015.
Working capital increases sharply
YRC Worldwide Inc. has recorded an increase in the working capital over the last year. It stood at $218.90 million as at Dec. 31, 2016, up 36.05 percent or $58 million from $160.90 million on Dec. 31, 2015. Current ratio was at 1.39 as on Dec. 31, 2016, up from 1.28 on Dec. 31, 2015.
Debt comes down
YRC Worldwide Inc. has recorded a decline in total debt over the last one year. It stood at $997.10 million as on Dec. 31, 2016, down 6.15 percent or $65.30 million from $1,062.40 million on Dec. 31, 2015. Total debt was 56.33 percent of total assets as on Dec. 31, 2016, compared with 56.08 percent on Dec. 31, 2015.
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