The Best Operating Ratio Reported in Nearly Three Years

OVERLAND PARK, Kan., Nov. 03, 2021 (GLOBE NEWSWIRE) -- Yellow Corporation (NASDAQ: YELL) reported results for the third quarter ended September 30, 2021. Operating revenue was $1.301 billion and operating income was $48.4 million. In comparison, operating revenue in the third quarter 2020 was $1.183 billion and operating income was $19.4 million. Net income for third quarter 2021 was $8.3 million, or $0.16 per share, compared to net loss of $2.0 million, or $0.04 per share in third quarter 2020.

On a non-GAAP basis, the Company generated Adjusted EBITDA of $94.4 million in third quarter 2021, a $32.4 million increase compared to $62.0 million in the prior year comparable quarter (as detailed in the reconciliation below). Last twelve months Adjusted EBITDA as of September 30, 2021, was $248.4 million compared to $179.8 million as of September 30, 2020 (as detailed in the reconciliation below).

“During the third quarter we kept our focus on meeting our customers’ needs while improving the quality and profitability of the freight flowing through our network,” said Darren Hawkins, Chief Executive Officer. “Third quarter revenue increased 10% compared to a year ago driven by an increase in year-over-year LTL revenue per hundredweight of 20.7%. We also reported an operating ratio of 96.3% which is the best result since fourth quarter 2018.

“Capacity across the U.S. supply chain remains constricted with limited ability to expand primarily due to the tight labor market. In the near term, we are leaning into our yield strategy to help manage through the market labor headwinds and focus on reducing purchased transportation expense as a percentage of revenue. “Our multi-year transformation to One Yellow, and the operational efficiencies that we expect to achieve, should put the Company in position to continue improving financial results in 2022. During the third quarter we completed the conversion of our third operating company to the One Yellow technology platform as planned. This moves us closer to operating as a fully integrated network and enhancing the customer value proposition in the 1, 2 and 3-day lanes nationwide. The final operating company to be converted to the technology platform is expected to be completed around the end of this year.

“Another key step in the journey to One Yellow will take place next week when HNRY Logistics is renamed Yellow Logistics. Although the name will change, Yellow Logistics will continue using cutting-edge technology to provide multi-mode logistics solutions to complement our extensive core LTL resources and capabilities. “We have maintained a strong liquidity position while executing one of the largest capital expenditure plans in Company history. The capital expenditures guidance range for 2021 remains $480 million to $530 million. Investments made this year include tractors, trailers, technology, box trucks, containers, liftgates and other assets. These investments are making a significant impact to our fleet. Beginning with the fourth quarter 2020 through the end of 2021 we will have upgraded approximately 18% of our tractors and 9% of our trailers,” concluded Hawkins.

Financial Update

• In third quarter 2021, the Company invested $96.7 million in capital expenditures. This compares to $17.3 million in capital expenditures in third quarter 2020.

Operational Update

• The operating ratio for third quarter 2021 was 96.3 compared to 98.4 in third quarter 2020.

• Including fuel surcharge, third quarter 2021 LTL revenue per hundredweight increased 20.7% and LTL revenue per shipment increased 17.3% compared to the same period in 2020. Excluding fuel surcharge, third quarter LTL revenue per hundredweight increased 15.6% and LTL revenue per shipment increased 12.4%.

• Third quarter 2021 LTL tonnage per workday decreased 9.4% when compared to third quarter 2020.
Liquidity Update

• The Company’s available liquidity, which is comprised of cash and cash equivalents and Managed Accessibility (as detailed in the supplemental information provided below) under its ABL facility, was $409.2 million as of September 30, 2021, compared to $453.7 million as of September 30, 2020.

• The Company’s outstanding debt was $1.614 billion as of September 30, 2021, an increase of $458.5 million compared to $1.156 billion as of September 30, 2020.

• For the nine months ended September 30, 2021, cash provided in operating activities was $9.3 million compared to cash provided by operating activities of $108.5 million in 2020.
Boasting about having an operating ratio of 96.3% as the best operating ratio in nearly 3 years as the headline is just plain pitiful... but that is what you would expect from a company that screwed it's union workers for over a decade now while rewarding it's incompetent corporate officers!!!