Yellow Corporation Reports Second Quarter 2023 Results


NASHVILLE, Tenn., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Yellow Corporation (NASDAQ: YELL) reported results for the second quarter ended June 30, 2023. Operating revenue was $1.127 billion and operating income was $38.9 million which included a $75.9 million gain on property disposals. In comparison, operating revenue in the second quarter of 2022 was $1.424 billion and operating income was $99.2 million which included a $3.2 million net gain on property disposals.

Net loss for second quarter 2023 was $14.7 million, or $0.28 per share, compared to net income of $60.0 million, or $1.17 per share in the second quarter 2022.

Following a substantial workforce reduction impacting all areas of the organization, on August 6th, the Company and its domestic subsidiaries filed voluntary petitions (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the district of Delaware seeking relief under Chapter 11 of Title 11 of the United States Bankruptcy Code.

Investor Contact: investor@myyellow.com

Media Contact: media@myyellow.com


CONSOLIDATED BALANCE SHEETS
Yellow Corporation and Subsidiaries
(Amounts in millions except per share data)
 
  
  June 30, 2023  December 31, 2022 
  (Unaudited)    
Assets      
Current Assets:      
Cash and cash equivalents $112.8  $235.1 
Restricted amounts held in escrow  19.6   3.9 
Accounts receivable, net  535.1   599.7 
Prepaid expenses and other  151.1   75.4 
Total current assets  818.6   914.1 
Property and Equipment:      
Cost  3,065.9   3,109.0 
Less - accumulated depreciation  (1,926.2)  (1,940.0)
Net property and equipment  1,139.7   1,169.0 
Deferred income taxes, net     0.3 
Pension  35.5   34.5 
Operating lease right-of-use assets  123.1   139.7 
Other assets  30.7   21.7 
Total Assets $2,147.6  $2,279.3 
Liabilities and Shareholders' Deficit      
Current Liabilities:      
Accounts payable $175.7  $188.6 
Wages, vacations and employee benefits  235.1   221.4 
Current operating lease liabilities  43.0   53.1 
Other current and accrued liabilities  188.3   182.1 
Current maturities of long-term debt  1,274.5   71.8 
Total current liabilities  1,916.6   717.0 
Other Liabilities:      
Long-term debt, less current portion  202.9   1,466.2 
Deferred income taxes, net  0.5    
Pension and postretirement  137.4   134.0 
Operating lease liabilities  89.2   94.6 
Claims and other liabilities  248.8   249.0 
Commitments and contingencies      
Shareholders' Deficit:      
Cumulative preferred stock, $1 par value per share      
Common stock, $0.01 par value per share  0.5   0.5 
Capital surplus  2,396.6   2,393.4 
Accumulated deficit  (2,522.5)  (2,453.2)
Accumulated other comprehensive loss  (229.7)  (229.5)
Treasury stock, at cost  (92.7)  (92.7)
Total shareholders' deficit  (447.8)  (381.5)
Total Liabilities and Shareholders' Deficit $2,147.6  $2,279.3 


STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS)
Yellow Corporation and Subsidiaries
For the Three Months Ended June 30
(Amounts in millions except per share data, shares in thousands)
(Unaudited)
 
  
  Three Months  Six Months 
  2023  2022  2023  2022 
Operating Revenue $1,126.8  $1,423.7  $2,285.4  $2,684.1 
Operating Expenses:            
Salaries, wages and employee benefits  686.3   736.7   1,358.8   1,447.7 
Fuel, operating expenses and supplies  227.0   287.3   467.6   530.9 
Purchased transportation  150.7   206.1   302.7   391.5 
Depreciation and amortization  35.8   35.5   71.1   71.2 
Other operating expenses  64.0   62.1   132.0   143.1 
Gains on property disposals, net  (75.9)  (3.2)  (76.4)  (8.7)
Total operating expenses  1,087.9   1,324.5   2,255.8   2,575.7 
Operating Income  38.9   99.2   29.6   108.4 
Nonoperating Expenses:            
Interest expense  48.3   38.0   94.8   75.7 
Non-union pension and postretirement benefits  1.1   (0.5)  2.3   (0.9)
Other, net  0.1   (0.1)  (0.1)  0.1 
Nonoperating expenses, net  49.5   37.4   97.0   74.9 
Income (loss) before income taxes  (10.6)  61.8   (67.4)  33.5 
Income tax expense  4.1   1.8   1.9   1.0 
Net income (loss)  (14.7)  60.0   (69.3)  32.5 
Other comprehensive income (loss), net of tax  2.4   1.5   (0.2)  3.8 
Comprehensive Income (Loss) $(12.3) $61.5  $(69.5) $36.3 
             
Average Common Shares Outstanding - Basic  52,010   51,342   51,871   51,217 
Average Common Shares Outstanding - Diluted  52,010   52,135   51,871   52,183 
             
Income (Loss) Per Share - Basic $(0.28) $1.17  $(1.34) $0.64 
Income (Loss) Per Share - Diluted $(0.28) $1.15  $(1.34) $0.62 
             
Operating Ratio(a):  96.5%  93.0%  98.7%  96.0%

(a) Operating ratio is calculated as (i) 100 percent (ii) minus the result of dividing operating income by operating revenue or (iii) plus the result of dividing operating loss by operating revenue, and expressed as a percentage.