Yellow Corporation reports Second Quarter 2022 results
Strong results include a 93.0% Operating Ratio and Earnings Per Share of $1.17
Yellow Corporation reported results for the second quarter ended June 30, 2022. Operating revenue was $1.424 billion and operating income was $99.2 million, which included a $3.2 million net gain on property disposals. In comparison, operating revenue in the second quarter of 2021 was $1.313 billion and operating income was $27.0 million.
Net income for the second quarter of 2022 was $60.0 million, or $1.17 per share, compared to a net loss of $9.4 million, or $0.18 per share, in the second quarter of 2021.
On a non-GAAP basis, the Company generated Adjusted EBITDA of $145.9 million in the second quarter of 2022, a $63.0 million increase compared to $82.9 million in the prior year comparable quarter (as detailed in the reconciliation below). The last twelve months Adjusted EBITDA as of June 30, 2022, was $406.7 million compared to $216.0 million as of June 30, 2021 (as detailed in the reconciliation below).
“Strong yield and efforts to manage the use of purchased transportation helped Yellow achieve its highest quarterly operating income in 15 years,” said Darren Hawkins, chief executive officer. “Elevated demand for LTL capacity continued during the quarter which drove the favorable pricing environment. On the cost side, purchased transportation expense was down to 14.5% of revenue in the second quarter compared to 16% a year ago.
“We remain focused on integrating the four operating company networks into a single LTL network with national coverage, servicing regional and long-haul lanes. We expect to execute the integration of phase one in the western U.S. this summer with the transformation of the entire network to be completed around the end of the year. When this transformation is completed, our customers will benefit by interacting with North America’s second-largest super-regional LTL network for both regional and long-haul shipments. We expect the network transformation to also lead to improved asset utilization, enhanced network efficiencies, cost savings, and create capacity without the need to add new terminals.
“Primarily due to limited tractor and trailer production capacity at the original equipment manufacturers, we are lowering our capital expenditures guidance. For 2022, we expect our total investments in capital expenditures to be in the range of $250 million to $300 million compared to the previous range of $325 million to $400 million,” concluded Hawkins.
Operational Update
- The operating ratio for the second quarter of 2022 was 93.0 compared to 97.9 in the second quarter of 2021.
- Including fuel surcharge, second quarter of 2022 LTL revenue per hundredweight increased 29.7% and LTL revenue per shipment increased 27.8% compared to the same period in 2021. Excluding fuel surcharge, second quarter LTL revenue per hundredweight increased 15.3% and LTL revenue per shipment increased 13.7%.
- In the second quarter of 2022 LTL tonnage per workday decreased 16.4% when compared to the second quarter of 2021.
Capital Expenditures Update
- In the second quarter of 2022, the Company invested $36.2 million in capital expenditures. This compares to $143.8 million in capital expenditures in the second quarter of 2021.
- Full-year 2022 capital expenditures are expected to be in the range of $250 million to $300 million.
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 $304.9 million as of June 30, 2022, compared to $423.2 million a year ago.
- The Company’s outstanding debt was $1.603 billion as of June 30, 2022, compared to $1.594 billion as of June 30, 2021.
- For the six months ended June 30, 2022, cash provided by operating activities was $36.6 million compared to cash used in operating activities of $12.7 million in 2021.
Key Information – Second quarter 2022 compared to second quarter 2021
| 2022 | 2021 | Percent Change(a) |
||||||
| Workdays | 63.5 | 64.0 | ||||||
| Operating revenue (in millions) | $ | 1,423.7 | $ | 1,313.1 | 8.4 | % | ||
| Operating income (in millions) | $ | 99.2 | $ | 27.0 | NM* | |||
| Operating ratio | 93.0 | 97.9 | 4.9 pp | |||||
| LTL tonnage per workday (in thousands) | 32.80 | 39.24 | (16.4 | )% | ||||
| LTL shipments per workday (in thousands) | 58.56 | 69.05 | (15.2 | )% | ||||
| LTL picked up revenue per hundredweight incl FSC | $ | 30.69 | $ | 23.67 | 29.7 | % | ||
| LTL picked up revenue per hundredweight excl FSC | $ | 23.88 | $ | 20.70 | 15.3 | % | ||
| LTL picked up revenue per shipment incl FSC | $ | 344 | $ | 269 | 27.8 | % | ||
| LTL picked up revenue per shipment excl FSC | $ | 267 | $ | 235 | 13.7 | % | ||
| LTL weight/shipment (in pounds) | 1,120 | 1,137 | (1.5 | )% | ||||
| Total tonnage per workday (in thousands) | 41.87 | 51.06 | (18.0 | )% | ||||
| Total shipments per workday (in thousands) | 60.16 | 71.10 | (15.4 | )% | ||||
| Total picked up revenue per hundredweight incl FSC | $ | 26.35 | $ | 20.01 | 31.7 | % | ||
| Total picked up revenue per hundredweight excl FSC | $ | 20.72 | $ | 17.57 | 17.9 | % | ||
| Total picked up revenue per shipment incl FSC | $ | 367 | $ | 287 | 27.6 | % | ||
| Total picked up revenue per shipment excl FSC | $ | 288 | $ | 252 | 14.3 | % | ||
| Total weight/shipment (in pounds) | 1,392 | 1,436 | (3.1 | )% | ||||
(a) Percent change based on unrounded figures and not the rounded figures presented
* Not meaningful
