“When you get up, the kids are sleeping. When you get home, the kids are sleeping.”
That’s how Rich Pawlikowski, a UPS package car driver in Queens, New York, described his lengthening workday. “Only six to eight years ago, the summer months were light. [Now] they send us out with 10, 11, 12 hours of work,” he said.
“It’s not healthy. You’ve got to get some rest. When the end of week comes, you see all the accidents and injuries.”
UPS, with its growing package business, isn’t refusing to hire because it’s hurting. On the contrary, business is booming. Like other chronic overtime abusers, such as lucrative television production companies and Verizon with its fat franchise agreements, UPS does it because it can.
Contract provisions and laws can help. But those only get enforced if workers get organized and do it themselves.
It takes vigilance, member involvement, and in some cases a collective “Hell no!”
An overtime boycott by hospital nurses, for instance, got management’s attention fast (see “Pushed to the Wall, Nurses Refuse Overtime”). They were helped by a law against mandatory overtime, but only saw motion after emergency room staff refused any assignments.CHRISTMAS DEBACLE
UPS Teamsters have long had contract provisions to curb overtime abuse. But workers in New York found direct action was required to get the full benefit.
The contract allows drivers to file a grievance if they work more than nine-and-a-half hours for three days in a given week. The penalty is triple-time pay for hours worked over 9.5—but what the drivers really want is a load adjustment, so they can get home before 10 p.m.
Pawlikowski said he kept grieving it, but management wouldn’t adjust his workload, preferring to pay the penalty.
During the last two Christmas seasons, Pawlikowski said, they were so understaffed that he and his co-workers were unable to get through the work. The company got nervous and even set up a task force to study the problem.
Then in February, 250 Queens drivers, members of Teamsters Local 804, were suspended after a short work stoppage. Though the immediate cause was to protest the firing of one of their members, that came on the heels of an accumulation of other contract violations.
The company started firing them in waves, but a vigorous union campaign and community pressure forced the company to rehire everyone by April.
After that flexing of union muscle, managers started adjusting workloads in earnest. The company has even started hiring.
“Drivers are ecstatic,” Pawlikowski said.
The system is elaborate. Workers have to go to a manager to get on the “9.5 list.” Previously, managers simply posted the list, but so many people signed up, they took it down. Now managers try to gatekeep.
“They always threaten, some people get intimidated. But there’s nothing they can do to you except look at you funny,” said Pawlikowski. The union provides advice and forms.
Once you’re on the list, you can tell them how much overtime you want. The limits don’t apply during peak—from Thanksgiving to New Year’s—but the improvement is noticeable.
“That’s the beauty of 9.5,” said Pawlikowski. “You get everybody on the list, it creates jobs, you get to see your family, everybody’s happy.”REALITY BITES
Writer-producers in the highly profitable “nonfiction” section of television production, known to most of us as reality TV, are deemed “exempt” and not eligible for overtime pay—even when they work grueling 80- to 100-hour weeks. (See box at right.)
These workers create the ideas in the shows, develop scenarios, write interview questions and even dialog, prep characters, set up shoots, film, tear down, and move to the next location.
A 30-year veteran of the industry said union jobs she’s worked paid $2,500-$3,500 a week—but these non-union jobs are paying $1,000. With the long weeks, it works out to $10-12 an hour.
On a union job, she said, “You work, put in a few extra hours…but I’m not working seven days a week for a month without a day off. You can say no.”
“Production companies are trying to deliver TV shows at cheaper and cheaper prices,” said Justin Molito, an organizer with the Writers Guild (WGAE). The shows are increasingly being made on a shorter timeline and with longer hours, he said.
A union survey in New York found that 84 percent of writer-producers worked more than 40 hours a week, every week, and 85 percent never received overtime pay. The union estimated the wage theft at $40 million a year.
That’s starting to change now that the Guild is organizing the workforce. About one-third have already voted the union in, said Molito. That and the prospect of being sued for wage theft have made some employers curb their worst abuses.
Still, workers are going before New York’s city council to expose labor violations in nonfiction TV—which is, not coincidentally, the most profitable segment of TV production.NOT GETTING BETTER
While overtime use goes up when the economy gets better, usually abuse goes down, said Catherine Ruckelshaus of the National Employment Law Project. That’s because workers are more able to stand up for themselves.
But not in this recovery. “In the low-wage sector, it’s still a buyer’s market for the employer,” she said.
Overtime violations are rampant. These include clocking people out before they’ve finished working, paying straight time when overtime is required, misclassifying workers—like those in nonfiction TV—as exempt professionals, and claiming workers are supervisors when they aren’t.
Allegedly “independent” contractors are even found in unionized auto plants, where fly-by-night hiring agencies have workers on 10-hour days, seven days a week, with no overtime protections and at rock-bottom pay.
After this article ran in print, a truck driver called us who works 12-hour shifts, six or seven days a week, transporting parts for a Ford assembly plant in Chicago. But “we don’t get overtime or anything,” he said.
That’s because the company that pays him, CWS, has been getting away with the “independent contractor” ruse for years—though it’s clear he and his co-workers should legally be employees. The boss sets his hours, he punches a time clock, and he certainly doesn’t own the truck he drives. “Half the time we don’t even get to have lunch,” he said.
It’s a common setup. The driver said CWS has accounts with GM and Chrysler too.NOT ENOUGH PENALTY
Overtime premium pay is part of the Depression-era Fair Labor Standards Act. It was intended to cause employers to hire more workers, by making it more costly to push existing workforces into longer and longer hours.
But the deterrent doesn’t work unless there’s enforcement to keep employers from ducking the premium, said Ruckelshaus.
Even when employers are forced into paying the premium, time-and-a-half may not be enough to have the intended effect.
Ironically, good union contracts can make paying time-and-a-half cheaper than hiring additional workers. A 1990s study by Labor Notes found that in the auto industry, only double-time pay provided enough of a goad to get factories to hire more people. This was because “adding another Social Security number” carried its own costs in training, health insurance, workers compensation, and pension coverage.
Workers at Verizon can’t remember the last time the company was hiring, but it’s not for lack of work. Verizon promised in a 2008 franchise agreement that it would finish installing its fiber optic network (FiOS) in New York City by June 30, 2014. The city can impose penalties for lateness.
Instead of hiring more staff locally, the company has been pulling workers away from their homes in other parts of the Northeast for three-week shifts. Local employees, members of the Communications Workers (CWA), are working three out of four Saturdays. Even those who volunteered for the FiOS build-out, hoping for lots of overtime to pay debts or big bills, are starting to balk.
The company announced in June that it will miss the deadline. Instead of examining its hiring practices, it blamed hurricanes, uncooperative landlords, and even the 2011 strike by CWA and the Electricians (IBEW), even though in 2013 it claimed to be ahead of schedule.‘AWFUL WORK SCHEDULE’
A scheme to evade Saturday overtime pay hit autoworkers last year at two Detroit-area Chrysler plants.
The Autoworkers (UAW) contract provides for overtime pay for working on Saturdays. But the company created a 10-hour shift system, the “Alternative Work Schedule,” with two-thirds of the production workforce scheduled every Saturday—at straight time. The idea is, it doesn’t count as a weekend if it’s part of your regular schedule.
Half those workers must switch back and forth between day and evening shifts each week. The system also evades break and lunch times.
Even the best shift, Monday through Thursday, 5:30 a.m. to 4:00 p.m., is grueling, said Alex Wassell, a welder repair technician at the Warren Stamping Plant.
“It’s a long day [on that shift], too,” he said. “Even three days in a row off, you’re still tired on the 10-hour-a-day schedule.”
To the dismay of rank and filers, the union allowed the unpopular new schedule to stand. UAW’s vice president even tried to sell it to indignant members at a raucous meeting with Warren Stamping workers. Local 869 members at the plant organized against it—petitioning, wearing stickers, mass-texting the company and the union, even picketing the plant.
After the picket, Wassell was fired for supposedly disparaging the company. He got reinstated and won a long fight to clear his record.
For now, the bad schedule prevails at Warren Stamping. But “Sterling Stamping is still on the traditional schedule,” Wassell said, and “that could have been because of the ruckus we made. Management and union felt they’d stay with what they had.”
Members of the local are making abolishing the “awful work schedule” a high priority in 2015 negotiations. If they’re still on it after that, Wassell said, “people will be beyond themselves.”
Alexandra Bradbury contributed to this article.
OVERLAND PARK, Kan., July 31, 2014 (GLOBE NEWSWIRE) -- YRC Worldwide Inc. (Nasdaq:YRCW) today reported financial results for the second quarter of 2014.
Consolidated operating revenue for the second quarter of 2014 was $1.318 billion with consolidated operating income reported at $20.0 million, which included a $6.5 million gain on asset disposals. As a comparison, the company reported consolidated operating revenue of $1.243 billion for the second quarter of 2013 and consolidated operating income of $14.3 million, which included a $1.3 million loss on asset disposals.
The company reported, on a non-GAAP basis, adjusted EBITDA of $63.0 million for the second quarter of 2014, as compared to adjusted EBITDA of $74.1 million for the second quarter of 2013 (as detailed in the reconciliation below).
YRC Freight Second Quarter Results
"During the second quarter of 2014, YRC Freight experienced a 5.6% increase in operating revenue, despite a half workday less as compared to the second quarter of 2013," said YRC Worldwide CEO James Welch. "The additional revenue is due to increased volumes as well as a slight gain in revenue per hundredweight. The growth in shipments and tonnage per day is a result of the overall economic improvement and renewed shipper confidence due to the successful completion of our refinancing and modified labor agreement in February 2014," continued Welch. "However, profitability for the second quarter was negatively impacted by the network not being fully in cycle which resulted in a decrease in productivities, the re-handling of freight and less than optimal use of purchased transportation. The year-over-year decline in profitability can also be attributed to a $7.5 million increase in expense related to bodily injury claims as well as a $2.9 million increase in cargo claims expense when compared to the second quarter of 2013. The increase in our bodily injury claims expense was driven by an increase in outstanding claims and an increase in development of prior year claims that remain unsettled.
"In order to improve network performance during the quarter, we opened three terminals, increased the use of purchased transportation and increased the utilization of part-time dock employees," stated Darren Hawkins, YRC Freight President. "Additionally, our plans to convert three current terminals to distribution centers in the third quarter remain on target which we anticipate will better balance our capacity and match it to increasing demand.
"Overall, the freight environment in which we are currently operating bodes well for YRC Freight. From a macro perspective, we are experiencing a robust pricing environment, and at YRC Freight specifically we are being disciplined in obtaining pricing increases on lower margin accounts," continued Hawkins.
"As the second quarter progressed, we achieved significant contractual negotiated pricing increases and in July we continue to see these levels of increases. With continued improvement in the economy and our service levels, we expect our ability to increase pricing should remain strong," said Hawkins.
"In the second quarter, we continued to follow through with our commitment to invest in technology by installing 13 of the 40 planned dimensioners in the YRC Freight network. These dimensioners allow us the ability to cost each shipment based on the actual cubic volume of the shipment," said Hawkins. "Also, we implemented a new third-party customer relationship management (CRM) tool. This solution is designed to allow us to drive sales productivity, customer satisfaction and loyalty," concluded Hawkins.
Regional Transportation Second Quarter Results
Even with 1.5 fewer workdays, operating revenue for the Regional segment grew by 6.9% during the second quarter of 2014 as compared to the same period in 2013. The increase is due to the growth in the overall economy and continued tightness of capacity in certain regions of the country. "I am satisfied with the execution of our Regional carriers as they continue to demonstrate strength in the marketplace by growing revenue and increasing yield and volume," said Welch.
Profitability for the Regional segment was impacted by increased purchased local cartage and the increased use of short-term revenue equipment rentals to handle the increase in volume as well as an increase in revenue equipment expense related to new equipment leases. Additionally, profitability was negatively impacted by a $3.0 million increase in expense related to bodily injury and property damage claims and a $1.4 million increase in cargo claims expense. The increase in bodily injury and property damage claims expense was driven by an increase in outstanding claims and an increase in development of prior year claims that remain unsettled.
"During the second quarter, pricing increases for our Regional carriers continued and provided increased profitability. With the strong demand for our Regional carrier service, we anticipate that the pricing momentum will continue and will provide them the opportunity to produce favorable results in the second half of 2014," said Welch.
Key Segment Information - second quarter 2014 compared to the second quarter of 2013PercentYRC Freight20142013ChangeWorkdays63.564.0 Operating revenues (in millions)$842.1$797.65.6%Operating loss (in millions)(0.3)(8.5)96.5%Operating ratio100.0101.11.1ppTotal tonnage per day (in thousands)28.2926.715.9%Total shipments per day (in thousands)48.3546.124.8%Revenue per hundredweight$23.36$23.320.2%Revenue per shipment$273$2701.2% Percent Regional Transportation20142013ChangeWorkdays62.564.0 Operating revenues (in millions)$475.5$444.96.9%Operating income (in millions)23.225.2(7.9)%Operating ratio95.194.3(0.8)ppTotal tonnage per day (in thousands)32.8630.796.7%Total shipments per day (in thousands)44.9142.356.0%Revenue per hundredweight$11.58$11.302.5%Revenue per shipment$169$1643.2%
As of June 30, 2014, we had cash and cash equivalents and availability under our ABL Facility totaling $253.2 million, and cash and cash equivalents and amounts able to be drawn under our ABL Facility totaling $209.4 million. The amount which is actually able to be drawn is limited by certain financial covenants in the ABL Facility. For comparison, as of March 31, 2014, we had cash and cash equivalents and availability of $223.0 million, and cash and cash equivalents and amounts able to be drawn totaling $183.2 million. For the six months ended June 30, 2014, cash used in operating activities was $55.6 million as compared to cash used in operating activities of $18.2 million for the six months ended June 30, 2013.
Review of Financial Results
YRCW will host a conference call with the investment community today, Thursday, July 31, 2014, beginning at 4:30 p.m. EDT, 3:30 p.m. CDT. The call will be available to listeners as a live webcast and as a replay via the YRC Worldwide website yrcw.com.
Non-GAAP Financial Measures
Adjusted EBITDA (defined in our credit facilities as Consolidated EBITDA) is a non-GAAP measure that reflects the company's earnings before interest, taxes, depreciation, and amortization expense, and further adjusted for letter of credit fees, equity-based compensation expense, net gains or losses on property disposals and certain other items, including restructuring professional fees, expenses associated with certain lump sum payments to our IBT employees and results of permitted dispositions and discontinued operations as defined in the company's credit facilities. Adjusted EBITDA is used for internal management purposes as a financial measure that reflects the company's core operating performance. In addition, management uses adjusted EBITDA to measure compliance with financial covenants in the company's credit facilities. Free cash flow and adjusted free cash flow are non-GAAP measures that reflect the company's operating cash flow minus gross capital expenditures and operating cash flow minus gross capital expenditures, excluding the restructuring professional fees included in operating cash flow, respectively. However, these financial measures should not be construed as better measurements than operating cash flow, net income or earnings per share, as defined by generally accepted accounting principles (GAAP).
Adjusted EBITDA, free cash flow and adjusted free cash flow have the following limitations:
- Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to fund restructuring professional fees, letter of credit fees, service interest or principal payments on our outstanding debt or fund our lump sum payments to our IBT employees required under the ratified MOU;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements;
- Equity-based compensation is an element of our long-term incentive compensation program, although adjusted EBITDA excludes certain employee equity-based compensation expense when presenting our ongoing operating performance for a particular period;
- Adjusted free cash flow excludes the cash usage by the company's restructuring professional fees, debt issuance costs, equity issuance costs and principal payments on our outstanding debt and the resulting reduction in the company's liquidity position from those cash outflows;
- Other companies in our industry may calculate adjusted EBITDA differently than we do, limiting their usefulness as a comparative measure.
Because of these limitations, adjusted EBITDA, free cash flow and adjusted free cash flow should not be considered a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using adjusted EBITDA, free cash flow and adjusted free cash flow as a secondary measure. The company has provided reconciliations of its non-GAAP measures, adjusted EBITDA, free cash flow and adjusted free cash flow, to GAAP operating income (loss) within the supplemental financial information in this release.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as "will," "expect," "intend," "anticipate," "believe," "project," "forecast," "propose," "plan," "designed," "enable," and similar expressions are intended to identify forward-looking statements. Forward-looking statements are inherently uncertain and are subject to significant business, economic, competitive, regulatory and other risks, uncertainties and contingencies, known and unknown, many of which are beyond our control. Our future financial condition and results could differ materially from those predicted in such forward-looking statements because of a number of factors, including (without limitation) our ability to generate sufficient cash flows and liquidity to fund operations and satisfy our cash needs and future cash commitments, including (without limitation) our obligations related to our substantial indebtedness and lease and pension funding requirements; the success of our management team in implementing its strategic plan and operational and productivity improvements, including (without limitation) our continued ability to meet high on-time and quality delivery performance standards, and the impact of those improvements to meet our future liquidity and profitability; our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures; potential increase in our operating lease obligations resulting from our decision to defer the purchase of new revenue equipment; changes in equity and debt markets; inclement weather; price and availability of fuel; sudden changes in the cost of fuel or the index upon which we base our fuel surcharge and the effectiveness of our fuel surcharge program in protecting us against fuel price volatility; competition and competitive pressure on service and pricing; expense volatility, including (without limitation) volatility due to changes in purchased transportation service or pricing for purchased transportation; our ability to comply and the cost of compliance with federal, state, local and foreign laws and regulations, including (without limitation) laws and regulations for the protection of employee safety and health and the environment; terrorist attack; labor relations, including (without limitation) our ability to attract and retain qualified drivers, the continued support of our union employees with respect to our strategic plan, the impact of work rules, work stoppages, strikes or other disruptions, our obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction; the impact of claims and litigation to which we are or may become exposed; and other risks and contingencies, including (without limitation) the risk factors that are included in our reports filed with the SEC, including those described under "Risk Factors" in our annual report on Form 10-K and quarterly reports on Form 10-Q.
About YRC Worldwide
YRC Worldwide Inc., headquartered in Overland Park, Kan., is the holding company for a portfolio of successful companies including YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn. YRC Worldwide has one of the largest, most comprehensive less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. Through its team of experienced service professionals, YRC Worldwide offers industry-leading expertise in heavyweight shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence.
Please visit our website at www.yrcw.com for more information.CONSOLIDATED BALANCE SHEETSYRC Worldwide Inc. and Subsidiaries(Amounts in millions except share and per share data) June 30,December 31, 20142013ASSETS (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 173.9 $ 176.3Restricted amounts held in escrow 128.3 90.1Accounts receivable, net 556.6 460.9Prepaid expenses and other 100.7 70.6Total current assets 959.5 797.9 PROPERTY AND EQUIPMENT: Cost 2,831.3 2,844.2Less - accumulated depreciation (1,800.2) (1,754.4)Net property and equipment 1,031.1 1,089.8 OTHER ASSETS: Intangibles, net 70.5 79.8Restricted amounts held in escrow -- 0.6Deferred income taxes, net 18.4 18.3Other assets 100.0 78.5Total assets $ 2,179.5 $ 2,064.9 LIABILITIES AND SHAREHOLDERS' DEFICIT CURRENT LIABILITIES: Accounts payable $ 206.2 $ 176.7Wages, vacations, and employees' benefits 224.0 191.2Deferred income taxes, net 18.6 18.6Other current and accrued liabilities 197.7 189.5Current maturities of long-term debt 111.8 8.6Total current liabilities 758.3 584.6 OTHER LIABILITIES: Long-term debt, less current portion 1,083.4 1,354.8Deferred income taxes, net 1.8 1.8Pension and postretirement 359.9 384.8Claims and other liabilities 338.5 336.3Commitments and contingencies SHAREHOLDERS' DEFICIT: Preferred stock, $1.00 par value per share -- --Common stock, $0.01 par value per share 0.3 0.1Capital surplus 2,287.9 1,964.4Accumulated deficit (2,247.4) (2,154.2)Accumulated other comprehensive loss (310.5) (315.0)Treasury stock, at cost (410 shares) (92.7) (92.7) Total shareholders' deficit (362.4) (597.4)Total liabilities and shareholders' deficit $ 2,179.5 $ 2,064.9 STATEMENTS OF CONSOLIDATED COMPREHENSIVE LOSSYRC Worldwide Inc. and SubsidiariesFor the Three and Six Months Ended June 30(Amounts in millions except per share data, shares in thousands)(Unaudited) Three MonthsSix Months 2014201320142013 OPERATING REVENUE $ 1,317.6 $ 1,242.5 $ 2,528.5 $ 2,405.0 OPERATING EXPENSES: Salaries, wages and employees' benefits 740.7 717.5 1,466.4 1,398.5Operating expenses and supplies 292.0 285.8 575.7 553.6Purchased transportation 159.8 125.7 291.7 240.6Depreciation and amortization 41.0 43.5 82.0 87.1Other operating expenses 70.6 54.4 131.4 104.2(Gains) losses on property disposals, net (6.5) 1.3 (6.3) (3.2)Total operating expenses 1,297.6 1,228.2 2,540.9 2,380.8OPERATING INCOME (LOSS) 20.0 14.3 (12.4) 24.2 NONOPERATING (INCOME) EXPENSES: Interest expense 31.7 41.9 89.9 81.1Gain on extinguishment of debt -- -- (11.2) --Other, net 1.1 (2.5) (4.0) (2.8)Nonoperating expenses, net 32.8 39.4 74.7 78.3 LOSS BEFORE INCOME TAXES (12.8) (25.1) (87.1) (54.1)INCOME TAX BENEFIT (7.9) (10.0) (12.0) (14.5)NET LOSS (4.9) (15.1) (75.1) (39.6)AMORTIZATION OF BENEFICIAL CONVERSION FEATURE ON PREFERRED STOCK -- -- (18.1) -- NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (4.9) $ (15.1) $ (93.2) $ (39.6) NET LOSS $ (4.9) $ (15.1) $ (75.1) $ (39.6)OTHER COMPREHENSIVE INCOME, NET OF TAX 3.6 2.1 4.5 5.2 COMPREHENSIVE LOSS ATTRIBUTABLE TO YRC WORLDWIDE INC. $ (1.3) $ (13.0) $ (70.6) $ (34.4) AVERAGE COMMON SHARES OUTSTANDING-BASIC 30,612 8,784 26,501 8,583AVERAGE COMMON SHARES OUTSTANDING-DILUTED 30,612 8,784 26,501 8,583 NET LOSS PER SHARE - BASIC $ (0.16) $ (1.72) $ (3.52) $ (4.62)NET LOSS PER SHARE - DILUTED $ (0.16) $ (1.72) $ (3.52) $ (4.62) STATEMENTS OF CONSOLIDATED CASH FLOWSYRC Worldwide Inc. and SubsidiariesFor the Six Months Ended June 30(Amounts in millions)(unaudited) 20142013 OPERATING ACTIVITIES: Net loss $ (75.1) $ (39.6)Noncash items included in net loss: Depreciation and amortization 82.0 87.1Gain on extinguishment of debt (11.2) --Paid-in-kind interest on Series A Notes and Series B Notes 12.7 16.1Amortization of deferred debt costs 4.9 3.3Amortization of premiums and discounts on debt 20.1 4.2Equity based compensation expense 9.1 4.0Deferred income tax benefit, net (1.1) (0.8)Gains on property disposals, net (6.3) (3.2)Other noncash items, net (3.7) (1.1)Changes in assets and liabilities, net: Accounts receivable (95.5) (65.5)Accounts payable 22.3 5.5Other operating assets (15.8) 0.4Other operating liabilities 2.0 (28.6)Net cash used in operating activities (55.6) (18.2) INVESTING ACTIVITIES: Acquisition of property and equipment (24.7) (39.1)Proceeds from disposal of property and equipment 7.3 4.2Restricted escrow receipts (deposits), net (37.5) 12.8Other 5.3 1.8Net cash used in investing activities (49.6) (20.3) FINANCING ACTIVITIES: Issuance of long-term debt 693.0 0.3Repayment of long-term debt (795.7) (4.6)Debt issuance costs (27.4) --Equity issuance costs (17.1) --Equity issuance proceeds 250.0 --Net cash provided by (used in) financing activities 102.8 (4.3)NET DECREASE IN CASH AND CASH EQUIVALENTS (2.4) (42.8)CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 176.3 208.7CASH AND CASH EQUIVALENTS, END OF PERIOD $ 173.9 $ 165.9 SUPPLEMENTAL CASH FLOW INFORMATION Interest paid $ (67.7) $ (57.2)Income tax refund, net 9.9 11.8 SUPPLEMENTAL FINANCIAL INFORMATIONYRC Worldwide Inc. and SubsidiariesFor the Three and Six Months Ended June 30(Amounts in millions)(Unaudited) SEGMENT INFORMATION Three MonthsSix Months 2014 2013%2014 2013% Operating revenue: YRC Freight $ 842.1 $ 797.6 5.6 $ 1,598.9 $ 1,551.4 3.1Regional Transportation 475.5 444.9 6.9 929.6 853.6 8.9Other, net of eliminations -- -- -- -- Consolidated 1,317.6 1,242.5 6.0 2,528.5 2,405.0 5.1 Operating income (loss): YRC Freight (0.3) (8.5) (32.8) (6.1) Regional Transportation 23.2 25.2 31.1 37.2 Corporate and other (2.9) (2.4) (10.7) (6.9) Consolidated $ 20.0 $ 14.3 $ (12.4) $ 24.2 Operating ratio: YRC Freight100.0%101.1% 102.1%100.4% Regional Transportation95.1%94.3% 96.7%95.6% Consolidated98.5%98.8% 100.5%99.0% 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. SUPPLEMENTAL INFORMATION Book As of June 30, 2014 Par ValueDiscountValue New term loan $ 696.5 $ (6.5) $ 690.0 ABL facility - (capacity $450M; borrowing base $446.8M; availability $79.3M; amount able to be drawn $35.5M) -- -- -- Series A Notes 88.8 (5.4) 83.4 Series B Notes 16.9 (1.8) 15.1 Secured Second A&R CDA 47.8 -- 47.8 Unsecured Second A&R CDA 73.2 -- 73.2 Lease financing obligations 285.5 -- 285.5 Other 0.2 -- 0.2 Total debt $ 1,208.9 $ (13.7) $ 1,195.2 Premium/Book As of December 31, 2013 Par Value(Discount)Value Restructured term loan $ 298.1 $ 37.7 $ 335.8 ABL facility - Term A - (capacity $175M; borrowing base $156.5M; availability $51.5M) 105.0 (2.1) 102.9 ABL facility - Term B - (capacity $219.9M; borrowing base $219.9M; availability $0) 219.9 (3.9) 216.0 Series A Notes 177.8 (17.8) 160.0 Series B Notes 69.2 (10.5) 58.7 6% convertible senior notes 69.4 (1.1) 68.3 Pension contribution deferral obligations 124.2 (0.2) 124.0 Lease financing obligations 297.5 -- 297.5 Other 0.2 -- 0.2 Total debt $ 1,361.3 $ 2.1 $ 1,363.4 SUPPLEMENTAL FINANCIAL INFORMATIONYRC Worldwide Inc. and SubsidiariesFor the Three and Six Months Ended June 30(Amounts in millions)(Unaudited) Three Months Six Months 2014 20132014 2013Reconciliation of operating income (loss) to adjusted EBITDA: Operating income (loss) $ 20.0 $ 14.3 $ (12.4) $ 24.2Depreciation and amortization 41.0 43.5 82.0 87.1(Gains) losses on property disposals, net (6.5) 1.3 (6.3) (3.2)Letter of credit expense 2.1 8.9 7.3 17.8Restructuring professional fees -- 1.5 1.1 2.8Permitted dispositions and other -- (0.2) 0.1 (0.1)Equity based compensation expense 2.5 3.0 9.1 4.0Amortization of ratification bonus 5.2 -- 5.2 --Other nonoperating, net (a) (1.3) 1.8 (0.3) 1.7Adjusted EBITDA $ 63.0 $ 74.1 $ 85.8 $ 134.3 (a) Other nonoperating, net excludes the impact of earnings (loss) of our equity method investment as well as non-cash foreign currency gains or losses. Three Months Six Months Adjusted EBITDA by segment:2014 20132014 2013 YRC Freight $ 21.5 $ 30.0 $ 17.8 $ 63.6 Regional Transportation 42.1 42.5 68.0 71.5 Corporate and other (0.6) 1.6 0.0 (0.8)Adjusted EBITDA $ 63.0 $ 74.1 $ 85.8 $ 134.3 Three Months Six Months 2014 20132014 2013Reconciliation of adjusted EBITDA to adjusted free cash flow (deficit): Adjusted EBITDA $ 63.0 $ 74.1 $ 85.8 $ 134.3Total restructuring professional fees -- (1.5) (1.1) (2.8)Cash paid for interest (28.3) (28.7) (67.7) (57.2)Cash paid for letter of credit fees (0.1) (9.0) (4.1) (15.0)Working capital cash flows excluding income tax, net (30.3) (36.4) (78.4) (89.3)Net cash provided by (used) in operating activities before income taxes 4.3 (1.5) (65.5) (30.0)Cash (paid for) received from income taxes, net (3.7) (2.8) 9.9 11.8Net cash provided by (used in) operating activities 0.6 (4.3) (55.6) (18.2)Acquisition of property and equipment (13.0) (21.9) (24.7) (39.1)Total restructuring professional fees -- 1.5 1.1 2.8Adjusted free cash flow (deficit) $ (12.4) $ (24.7) $ (79.2) $ (54.5) SUPPLEMENTAL FINANCIAL INFORMATIONYRC Worldwide Inc. and SubsidiariesFor the Three and Six Months Ended June 30(Amounts in millions)(Unaudited) Three MonthsSix MonthsYRC Freight segment2014 20132014 2013Reconciliation of operating loss to adjusted EBITDA: Operating loss $ (0.3) $ (8.5) $(32.8) $ (6.1)Depreciation and amortization 24.9 27.9 49.6 55.9(Gains) losses on property disposals, net (6.7) 1.0 (6.9) (3.5)Letter of credit expense 1.4 7.2 5.0 14.6Amortization of ratification bonus 3.3 -- 3.3 --Other nonoperating, net (a) (1.1) 2.4 (0.4) 2.7Adjusted EBITDA $21.5 $30.0 $ 17.8 $63.6 (a) Other nonoperating, net excludes the impact of non-cash foreign currency gains or losses. Three MonthsSix MonthsRegional Transportation segment2014 20132014 2013Reconciliation of operating income to adjusted EBITDA: Operating income $23.2 $25.2 $ 31.1 $37.2Depreciation and amortization 16.2 15.6 32.6 31.1Losses on property disposals, net 0.2 0.1 0.6 0.1Letter of credit expense 0.6 1.6 1.8 3.0Amortization of ratification bonus 1.9 -- 1.9 Other nonoperating, net -- -- -- 0.1Adjusted EBITDA $42.1 $42.5 $ 68.0 $71.5 Three MonthsSix MonthsCorporate and other segment2014 20132014 2013Reconciliation of operating loss to adjusted EBITDA: Operating loss $ (2.9) $ (2.4) $(10.7) $ (6.9)Depreciation and amortization (0.1) -- (0.2) 0.1Losses on property disposals, net -- 0.2 -- 0.2Letter of credit expense 0.1 0.1 0.5 0.2Restructuring professional fees -- 1.5 1.1 2.8Permitted dispositions and other -- (0.2) 0.1 (0.1)Equity based compensation expense 2.5 3.0 9.1 4.0Other nonoperating, net (a) (0.2) (0.6) 0.1 (1.1)Adjusted EBITDA $ (0.6) $ 1.6 $ 0.0 $ (0.8) (a) Other nonoperating, net excludes the impact of earnings (loss) of our equity method investment as well as non-cash foreign currency gains or losses. SUPPLEMENTAL FINANCIAL INFORMATIONYRC Worldwide Inc. and SubsidiariesFor the Trailing Twelve Months Ended June 30, 2014(Amounts in millions)(Unaudited) 2014Reconciliation of operating income (loss) to adjusted EBITDA: Operating loss $ (8.2)Depreciation and amortization 167.2Gains on property disposals, net (5.3)Letter of credit expense 23.4Restructuring professional fees 10.3Permitted dispositions and other 1.8Equity based compensation expense 10.9Amortization of ratification bonus 5.2Other nonoperating, net (a) 1.2Adjusted EBITDA $ 206.5 (a) Other nonoperating, net excludes the impact of earnings (loss) of our equity method investment as well as non-cash foreign currency gains or losses. YRC Worldwide Inc.Segment StatisticsQuarterly Comparison YRC Freight Y/YSequential 2Q142Q131Q14% (b)% (b)Workdays 63.5 64.0 63.0 Total picked up revenue (in millions) (a) $ 839.2 $ 797.5 $ 755.9 5.2 11.0Total tonnage (in thousands) 1,796 1,710 1,646 5.1 9.1Total tonnage per day (in thousands) 28.29 26.71 26.13 5.9 8.2Total shipments (in thousands) 3,070 2,952 2,772 4.0 10.8Total shipments per day (in thousands) 48.35 46.12 44.00 4.8 9.9Total picked up revenue/cwt. $ 23.36 $ 23.32 $ 22.96 0.2 1.8Total picked up revenue/shipment $ 273 $ 270 $ 273 1.2 0.2Total weight/shipment (in pounds) 1,170 1,159 1,188 1.0 (1.5) (a) Reconciliation of operating revenue to total picked up revenue (in millions): Operating revenue $ 842.1 $ 797.6 $ 756.8 Change in revenue deferral and other (2.9) (0.1) (0.9) Total picked up revenue $ 839.2 $ 797.5 $ 755.9 Regional Transportation Y/YSequential 2Q142Q131Q14% (b)% (b)Workdays 62.5 64.0 67.0 Total picked up revenue (in millions) (a) $ 475.6 $ 445.1 $ 454.4 6.9 4.7Total tonnage (in thousands) 2,054 1,970 2,015 4.2 1.9Total tonnage per day (in thousands) 32.86 30.79 30.08 6.7 9.2Total shipments (in thousands) 2,807 2,710 2,706 3.6 3.7Total shipments per day (in thousands) 44.91 42.35 40.38 6.0 11.2Total picked up revenue/cwt. $ 11.58 $ 11.30 $ 11.28 2.5 2.7Total picked up revenue/shipment $ 169 $ 164 $ 168 3.2 0.9Total weight/shipment (in pounds) 1,463 1,454 1,490 0.6 (1.8) (a) Reconciliation of operating revenue to total picked up revenue (in millions): Operating revenue $ 475.5 $ 444.9 $ 454.1 Change in revenue deferral and other 0.1 0.2 0.3 Total picked up revenue $ 475.6 $ 445.1 $ 454.4 (a) Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods.(b) Percent change based on unrounded figures and not rounded figures presented. YRC Worldwide Inc.Segment StatisticsAnnual Comparison YRC Freight YTDYTDY/Y 2Q142Q13% (b)Workdays 126.5 126.5 Total picked up revenue (in millions) (a) $1,595.2 $1,554.4 2.6Total tonnage (in thousands) 3,443 3,315 3.8Total tonnage per day (in thousands) 27.21 26.21 3.8Total shipments (in thousands) 5,842 5,716 2.2Total shipments per day (in thousands) 46.18 45.18 2.2Total picked up revenue/cwt. $ 23.17 $ 23.44 (1.2)Total picked up revenue/shipment $ 273 $ 272 0.4Total weight/shipment (in pounds) 1,179 1,160 1.6 (a) Reconciliation of operating revenue to total picked up revenue (in millions):Operating revenue $1,598.9 $1,551.4 Change in revenue deferral and other (3.7) 3.0 Total picked up revenue $1,595.2 $1,554.4 Regional Transportation YTDYTDY/Y 2Q142Q13% (b)Workdays 129.5 126.5 Total picked up revenue (in millions) (a) $ 930.0 $ 854.1 8.9Total tonnage (in thousands) 4,069 3,802 7.0Total tonnage per day (in thousands) 31.42 30.05 4.5Total shipments (in thousands) 5,512 5,190 6.2Total shipments per day (in thousands) 42.57 41.03 3.7Total picked up revenue/cwt. $ 11.43 $ 11.23 1.7Total picked up revenue/shipment $ 169 $ 165 2.5Total weight/shipment (in pounds) 1,476 1,465 0.8 (a) Reconciliation of operating revenue to total picked up revenue (in millions):Operating revenue $ 929.6 $ 853.6 Change in revenue deferral and other 0.4 0.5 Total picked up revenue $ 930.0 $ 854.1 (a) Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods.(b) Percent change based on unrounded figures and not rounded figures presented.