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.

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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.

Source: Yellow Corporation

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