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SECURITIES AND EXCHANGE COMMISSION
                                                        Washington, D.C. 20549


                                                              FORM 8-K

                                                          CURRENT REPORT
                                               Pursuant to Section 13 or 15(d) of the
                                                 Securities Exchange Act of 1934
                                     Date of Report (Date of earliest event reported) February 13, 2006




                                            YRC Worldwide Inc.
                                                  (Exact name of registrant as specified in its charter)




                   Delaware                                              0-12255                            48-0948788
            (State or other jurisdiction                        (Commission File Number)                     (IRS Employer
                 of incorporation)                                                                         Identification No.)

                                             10990 Roe Avenue, Overland Park, Kansas 66211
                                                   (Address of principal executive offices) (Zip Code)

                                     Registrant’s telephone number, including area code (913) 696-6100


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
YRC Worldwide Inc. (“YRC Worldwide” or the “company”) has released its results of operations and financial condition for the
three- and twelve- months ended December 31, 2005, filed as Exhibit 99.1 to this Form 8-K.
On January 26, 2006, the company previously released its results of operations for the three- and twelve-months ended December 31,
2005 by filing a news release announcing those results on Form 8–K. In that release, the company originally stated that its reported
diluted earnings per share (“EPS”) was $5.12 for the twelve-months ended December 31, 2005 and $1.34 for the three-months ended
December 31, 2005. In that release, the company also originally stated that diluted adjusted EPS was $5.28 for the twelve-months
ended December 31, 2005 and $1.39 for the three-months ended December 31, 2005.
In the results of operations filed with this Form 8-K, the company has revised its reported diluted EPS to $5.07 for the twelve-months
ended December 31, 2005 and to $1.30 for the three-months ended December 31, 2005. In addition, the company has revised its
diluted adjusted EPS to $5.25 for the twelve-months ended December 31, 2005 and to $1.37 for the three-months ended
December 31, 2005.
The revision to previously released results was entirely related to the treatment of specific foreign currency accounting entries for
Reimer Express, a Canadian subsidiary of Roadway Express. The revision was made to other nonoperating expenses when finalizing
the company’s consolidated financial statements and had no impact on operating income.
The company has corrected its process in accounting for these currency entries and does not expect this change to impact future
earnings. Consistent with the guidance that the company provided on January 26, 2006, YRC Worldwide expects full year 2006 EPS
to be between $6.15 and $6.30, with first quarter 2006 EPS between $1.00 and $1.05.
Additionally, the company’s gross capital expenditures for 2005 were $305 million rather than the $350 million estimate provided on
the company’s January 27, 2006 earnings conference call. When including USF gross capital expenditures for the full year 2005,
YRC Worldwide had total gross capital expenditures of $380 million rather than the $425 million estimate provided on the earnings
call.
The preceding disclosures contain references to ‘reported’ and ‘adjusted’ EPS. The reported numbers include property gains, one-time
charges related to the acquisition of USF Corporation, a Roadway pre-acquisition foreign currency adjustment, and executive
severance, while adjusted numbers exclude these items. The company adjusts for these items when evaluating operating performance
to more accurately compare the results of its core operations among periods. In 2005, the company also excluded the impact of an
increase to its effective tax rate as it primarily related to a change in the accounting treatment of Roadway deferred taxes established
at the acquisition date. This is not expected to impact the tax rate in future periods. For a complete reconciliation from reported EPS
to adjusted EPS, refer to the Supplemental Financial Information included in this Form 8-K under Exhibit 99.1.
This Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. The words “expects” and similar expressions are intended to
identify forward-looking statements. It is important to note that the company’s actual future results, revenue and EPS could differ
materially from those projected in the forward-looking statements because of a number of factors, including (without limitation),
inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the company
bases its fuel surcharge, competitor pricing activity, expense volatility, including (without limitation) expense volatility due to
changes in rail service or pricing for rail service, ability to capture cost reductions, including (without limitation) those cost reduction
opportunities arising from acquisitions, the company’s ability to improve productivity results at its Roadway Express subsidiary and
its resulting effects on efficiencies, service and yield, a downturn in general or regional economic activity, changes in equity and debt
markets, effects of a terrorist attack, and labor relations, including (without limitation), the impact of work rules, any obligations to
multi-employer health, welfare and pension plans, wage requirements and employee satisfaction.
Item 9.01 Financial Statements and Exhibits
     (a)   Financial statements of businesses acquired.
           Not applicable
     (b)   Pro forma financial information.
           Not applicable
     (c)   Exhibits.
           99.1   Consolidated Financial Statements.
Information in this Current Report that is being furnished pursuant to Item 2.02 shall not be deemed “filed” for the purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information
furnished pursuant to Item 2.02 in this Current Report shall not be incorporated by reference into any registration statement pursuant
to the Securities Act of 1933, as amended.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.

                                                                 YRC Worldwide Inc.
                                                                    (Registrant)

Date: February 13, 2006                                          By: /s/ Donald G. Barger, Jr.

                                                                     Donald G. Barger, Jr.
                                                                     Senior Vice President and Chief
                                                                     Financial Officer
EXHIBIT INDEX
Exhibit
Number    Description

99.1      Consolidated Financial Statements.
Exhibit 99.1
                                              CONSOLIDATED BALANCE SHEETS
                                               YRC Worldwide Inc. and Subsidiaries
                                            (Amounts in thousands except per share data)
                                                                                           December 31,     December 31,
                                                                                               2005             2004

                                                                                           (Unaudited)
ASSETS
CURRENT ASSETS:
    Cash and cash equivalents                                                              $      82,361    $ 106,489
    Accounts receivable, net                                                                   1,164,383      778,596
    Prepaid expenses and other                                                                   230,888      168,356

           Total current assets                                                                1,477,632     1,053,441

PROPERTY AND EQUIPMENT:
    Cost                                                                                       3,607,415     2,672,289
    Less - accumulated depreciation                                                            1,401,623     1,249,571

           Net property and equipment                                                          2,205,792     1,422,718

OTHER ASSETS:
    Goodwill                                                                                   1,234,065       632,141
    Intangibles, net                                                                             713,677       468,310
    Other assets                                                                                 103,023        50,559

           Total assets                                                                    $5,734,189       $3,627,169

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
    Accounts payable                                                                       $ 393,934        $ 307,089
    Wages, vacations, and employees’ benefits                                                522,882          427,731
    Other current and accrued liabilities                                                    372,988          210,519
    Asset backed securitization (“ABS”) borrowings                                           374,970              —
    Current maturities of contingently convertible notes                                         —            250,000
    Current maturities of long-term debt                                                         —              4,400

           Total current liabilities                                                           1,664,774     1,199,739

OTHER LIABILITIES:
    Long-term debt, less current portion                                                       1,113,085       403,535
    Deferred income taxes, net                                                                   387,220       319,839
    Claims and other liabilities                                                                 632,622       489,865

           Total other liabilities                                                             2,132,927     1,213,239

SHAREHOLDERS’ EQUITY:
    Common stock, $1 par value per share                                                          60,450        51,303
    Preferred stock, $1 par value per share                                                          —             —
    Capital surplus                                                                            1,172,139       694,504
    Retained earnings                                                                            838,614       550,484
    Accumulated other comprehensive loss                                                         (27,610)      (33,159)
    Unamortized equity awards                                                                    (17,485)      (10,479)
    Treasury stock, at cost (3,158 and 2,066 shares)                                             (89,620)      (38,462)

           Total shareholders’ equity                                                          1,936,488     1,214,191

           Total liabilities and shareholders’ equity                                      $5,734,189       $3,627,169
STATEMENTS OF CONSOLIDATED OPERATIONS
                                              YRC Worldwide Inc. and Subsidiaries
                                      For the Three and Twelve Months Ended December 31
                                           (Amounts in thousands except per share data)
                                                          (Unaudited)
                                                                               Three Months                   Twelve Months

                                                                            2005          2004             2005             2004

OPERATING REVENUE                                                       $2,483,100    $1,774,137       $8,741,557     $6,767,485

OPERATING EXPENSES:
    Salaries, wages and employees’ benefits                              1,389,651     1,064,447        5,111,113         4,172,144
    Operating expenses and supplies                                        435,428       273,118        1,438,426         1,011,864
    Purchased transportation                                               304,605       206,070          991,157           752,788
    Depreciation and amortization                                           69,714        44,722          250,562           171,468
    Other operating expenses                                               132,076        78,287          406,348           302,167
    Gains on property disposals, net                                        (5,042)       (3,957)          (5,388)           (4,547)
    Acquisition and executive severance charges                              2,952           —             13,029               —

           Total operating expenses                                      2,329,384     1,662,687        8,205,247         6,405,884

OPERATING INCOME                                                            153,716       111,450          536,310         361,601

NONOPERATING (INCOME) EXPENSES:
   Interest expense                                                          20,618            9,506        63,371          43,954
   Write off of deferred debt issuance costs                                    —                —             —            18,279
   Other                                                                      2,164              999           676           1,705

           Nonoperating expenses, net                                        22,782           10,505        64,047          63,938

INCOME BEFORE INCOME TAXES                                                  130,934       100,945          472,263         297,663
INCOME TAX PROVISION                                                         54,087        37,600          184,133         113,336

NET INCOME                                                              $    76,847   $       63,345   $ 288,130      $ 184,327

AVERAGE SHARES OUTSTANDING-BASIC                                             57,864           48,617        54,358          48,149
AVERAGE SHARES OUTSTANDING-DILUTED                                           59,376           51,170        56,905          49,174
BASIC EARNINGS PER SHARE                                                $      1.33   $         1.30   $      5.30    $        3.83
DILUTED EARNINGS PER SHARE                                              $      1.30   $         1.24   $      5.07    $        3.75
STATEMENTS OF CONSOLIDATED CASH FLOWS
                                            YRC Worldwide Inc. and Subsidiaries
                                          For the Twelve Months Ended December 31
                                                    (Amounts in thousands)
                                                                                          2005          2004

                                                                                    (Unaudited)
OPERATING ACTIVITIES:
        Net cash from operating activities                                          $     497,677     $ 435,718

INVESTING ACTIVITIES:
    Acquisition of property and equipment                                                (304,718)     (201,818)
    Proceeds from disposal of property and equipment                                       48,283        37,529
    Acquisition of companies, net of cash acquired                                       (753,892)      (10,463)
    Investment in affiliate                                                               (46,043)          —
    Other                                                                                  12,075         4,494

           Net cash used in investing activities                                        (1,044,295)    (170,258)

FINANCING ACTIVITIES:
    ABS borrowings, net                                                                   374,970       (71,500)
    Issuance (repayment) of long-term debt                                                190,561      (175,044)
    Debt issuance costs                                                                    (4,245)       (2,938)
    Proceeds from exercise of stock options                                                11,203        15,859
    Treasury stock repurchase                                                             (49,999)          —
    Other                                                                                     —            (514)

           Net cash provided by (used in) financing activities                            522,490      (234,137)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                      (24,128)      31,323
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                            106,489       75,166

CASH AND CASH EQUIVALENTS, END OF PERIOD                                            $      82,361     $ 106,489
SUPPLEMENTAL FINANCIAL INFORMATION
                                              YRC Worldwide Inc. and Subsidiaries
                                            For the Three Months Ended December 31
                                           (Amounts in thousands except per share data)
                                                           (Unaudited)
                                                                                                           Three Months

                                                                                                2005              2004         %

Operating revenue:
     Yellow Transportation                                                                $ 886,541           $ 824,491        7.5
     Roadway Express                                                                        865,072             822,227        5.2
     YRC Regional Transportation                                                            584,381              69,470       n/m
     Meridian IQ                                                                            153,485              59,861       n/m
     Corporate and other                                                                     (6,379)             (1,912)

Consolidated                                                                                  2,483,100         1,774,137
Reported operating income (loss):
     Yellow Transportation                                                                      64,547             55,728     15.8
     Roadway Express                                                                            62,600             54,840     14.2
     YRC Regional Transportation                                                                30,138              8,668     n/m
     Meridian IQ                                                                                 4,245              1,484     n/m
     Corporate and other                                                                        (7,814)            (9,270)

Consolidated                                                                                   153,716            111,450
Adjustments to operating income by segment a :
     Yellow Transportation                                                                       (4,275)           (2,329)
     Roadway Express                                                                             (1,193)           (1,668)
     YRC Regional Transportation                                                                  3,363                40
     Meridian IQ                                                                                    (26)              —
     Corporate and other                                                                             41               —

Consolidated                                                                                     (2,090)           (3,957)
Adjusted operating income (loss) a:
     Yellow Transportation                                                                      60,272             53,399     12.9
     Roadway Express                                                                            61,407             53,172     15.5
     YRC Regional Transportation                                                                33,501              8,708     n/m
     Meridian IQ                                                                                 4,219              1,484     n/m
     Corporate and other                                                                        (7,773)            (9,270)

Consolidated                                                                              $ 151,626           $ 107,493
Reported operating ratio:
     Yellow Transportation                                                                         92.7%             93.2%
     Roadway Express                                                                               92.8%             93.3%
     YRC Regional Transportation                                                                   94.8%             87.5%
     Consolidated                                                                                  93.8%             93.7%
Adjusted operating ratio:
     Yellow Transportation                                                                         93.2%             93.5%
     Roadway Express                                                                               92.9%             93.5%
     YRC Regional Transportation                                                                   94.3%             87.5%
     Consolidated                                                                                  93.9%             93.9%
Reconciliation of reported diluted earnings per share (EPS) to adjusted diluted EPS:
Reported diluted EPS                                                                      $        1.30       $       1.24
Gains on property disposals                                                                       (0.05)             (0.05)
Acquisition charges                                                                                0.03                —
Pre-acquisition foreign currency adjustment d                                                      0.02                —
Change in effective tax rate c               0.07        —
Contingent convertible dilution impact       —          0.05

Adjusted diluted EPS                     $   1.37   $   1.24
SUPPLEMENTAL FINANCIAL INFORMATION
                                              YRC Worldwide Inc. and Subsidiaries
                                            For the Twelve Months Ended December 31
                                           (Amounts in thousands except per share data)
                                                           (Unaudited)
                                                                                                          Twelve Months

                                                                                                2005                2004        %

Operating revenue:
     Yellow Transportation                                                                $3,421,310          $3,180,590        7.6
     Roadway Express                                                                       3,321,064           3,119,927        6.4
     YRC Regional Transportation                                                           1,570,828 b           260,572       n/m
     Meridian IQ                                                                             447,563 b           213,199       n/m
     Corporate and other                                                                     (19,208)             (6,803)

Consolidated                                                                                  8,741,557           6,767,485
Reported operating income (loss):
     Yellow Transportation                                                                     255,329             191,546     33.3
     Roadway Express                                                                           209,122             158,334     32.1
     YRC Regional Transportation                                                                85,794 b            33,897     n/m
     Meridian IQ                                                                                15,167 b             3,738     n/m
     Corporate and other                                                                       (29,102)            (25,914)

Consolidated                                                                                   536,310             361,601
Adjustments to operating income by segment a :
     Yellow Transportation                                                                       (7,108)             (3,113)
     Roadway Express                                                                              1,159              (1,466)
     YRC Regional Transportation                                                                  8,838                  32
     Meridian IQ                                                                                    (37)                —
     Corporate and other                                                                          4,789                 —

Consolidated                                                                                      7,641              (4,547)
Adjusted operating income (loss) a:
     Yellow Transportation                                                                     248,221             188,433     31.7
     Roadway Express                                                                           210,281             156,868     34.0
     YRC Regional Transportation                                                                94,632              33,929     n/m
     Meridian IQ                                                                                15,130               3,738     n/m
     Corporate and other                                                                       (24,313)            (25,914)

Consolidated                                                                              $ 543,951           $ 357,054
Reported operating ratio:
     Yellow Transportation                                                                         92.5%               94.0%
     Roadway Express                                                                               93.7%               94.9%
     YRC Regional Transportation                                                                   94.5%               87.0%
     Consolidated                                                                                  93.9%               94.7%
Adjusted operating ratio:
     Yellow Transportation                                                                         92.7%               94.1%
     Roadway Express                                                                               93.7%               95.0%
     YRC Regional Transportation                                                                   94.0%               87.0%
     Consolidated                                                                                  93.8%               94.7%
Reconciliation of reported diluted EPS to adjusted diluted EPS:
Reported diluted EPS                                                                      $        5.07       $        3.75
Gains on property disposals                                                                       (0.06)              (0.06)
Acquisition charges                                                                                0.10                 —
Executive severance                                                                                0.04                 —
Pre-acquisition foreign currency adjustment d       0.02        —
Change in effective tax rate c                      0.08        —
Contingent convertible dilution impact              —          0.03
Write off debt issuance costs - nonoperating        —          0.24

Adjusted diluted EPS                            $   5.25   $   3.96
Management excludes these items when evaluating operating income and segment performance to more accurately compare the
a
    results of our core operations among periods. This measurement should not be construed as a better measurement than operating
    income as defined by generally accepted accounting principles. Adjustments presented in the 2005 period herein consist of
    property gains and losses, acquisition related charges and executive severance charges. Adjustments presented in the 2004
    period herein consist of property gains and losses.
    Includes the revenue and operating income of USF operating companies since May 25, 2005, the date of acquisition.
b

    Management excluded the impact of an increase to its effective tax rate as it primarily related to a change in the accounting
c
    treatment of Roadway deferred taxes established at the acquisition date. This is not expected to impact the tax rate in future
    periods.
    Management excluded the portion of a foreign currency adjustment related to the Roadway financial statements prior to the
d
    acquisition. As the company can no longer apply purchase accounting to increase goodwill related to this acquisition, the
    adjustment was recorded directly to the income statement. This adjustment, recorded in other nonoperating expenses on the
    Statements of Consolidated Operations, was not related to 2005 performance.

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yrc worldwide4Q05_release_revised

  • 1. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) February 13, 2006 YRC Worldwide Inc. (Exact name of registrant as specified in its charter) Delaware 0-12255 48-0948788 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 10990 Roe Avenue, Overland Park, Kansas 66211 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code (913) 696-6100 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  • 2. Item 2.02 Results of Operations and Financial Condition YRC Worldwide Inc. (“YRC Worldwide” or the “company”) has released its results of operations and financial condition for the three- and twelve- months ended December 31, 2005, filed as Exhibit 99.1 to this Form 8-K. On January 26, 2006, the company previously released its results of operations for the three- and twelve-months ended December 31, 2005 by filing a news release announcing those results on Form 8–K. In that release, the company originally stated that its reported diluted earnings per share (“EPS”) was $5.12 for the twelve-months ended December 31, 2005 and $1.34 for the three-months ended December 31, 2005. In that release, the company also originally stated that diluted adjusted EPS was $5.28 for the twelve-months ended December 31, 2005 and $1.39 for the three-months ended December 31, 2005. In the results of operations filed with this Form 8-K, the company has revised its reported diluted EPS to $5.07 for the twelve-months ended December 31, 2005 and to $1.30 for the three-months ended December 31, 2005. In addition, the company has revised its diluted adjusted EPS to $5.25 for the twelve-months ended December 31, 2005 and to $1.37 for the three-months ended December 31, 2005. The revision to previously released results was entirely related to the treatment of specific foreign currency accounting entries for Reimer Express, a Canadian subsidiary of Roadway Express. The revision was made to other nonoperating expenses when finalizing the company’s consolidated financial statements and had no impact on operating income. The company has corrected its process in accounting for these currency entries and does not expect this change to impact future earnings. Consistent with the guidance that the company provided on January 26, 2006, YRC Worldwide expects full year 2006 EPS to be between $6.15 and $6.30, with first quarter 2006 EPS between $1.00 and $1.05. Additionally, the company’s gross capital expenditures for 2005 were $305 million rather than the $350 million estimate provided on the company’s January 27, 2006 earnings conference call. When including USF gross capital expenditures for the full year 2005, YRC Worldwide had total gross capital expenditures of $380 million rather than the $425 million estimate provided on the earnings call. The preceding disclosures contain references to ‘reported’ and ‘adjusted’ EPS. The reported numbers include property gains, one-time charges related to the acquisition of USF Corporation, a Roadway pre-acquisition foreign currency adjustment, and executive severance, while adjusted numbers exclude these items. The company adjusts for these items when evaluating operating performance to more accurately compare the results of its core operations among periods. In 2005, the company also excluded the impact of an increase to its effective tax rate as it primarily related to a change in the accounting treatment of Roadway deferred taxes established at the acquisition date. This is not expected to impact the tax rate in future periods. For a complete reconciliation from reported EPS to adjusted EPS, refer to the Supplemental Financial Information included in this Form 8-K under Exhibit 99.1. This Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “expects” and similar expressions are intended to identify forward-looking statements. It is important to note that the company’s actual future results, revenue and EPS could differ materially from those projected in the forward-looking statements because of a number of factors, including (without limitation), inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the company bases its fuel surcharge, competitor pricing activity, expense volatility, including (without limitation) expense volatility due to changes in rail service or pricing for rail service, ability to capture cost reductions, including (without limitation) those cost reduction opportunities arising from acquisitions, the company’s ability to improve productivity results at its Roadway Express subsidiary and its resulting effects on efficiencies, service and yield, a downturn in general or regional economic activity, changes in equity and debt markets, effects of a terrorist attack, and labor relations, including (without limitation), the impact of work rules, any obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction.
  • 3. Item 9.01 Financial Statements and Exhibits (a) Financial statements of businesses acquired. Not applicable (b) Pro forma financial information. Not applicable (c) Exhibits. 99.1 Consolidated Financial Statements. Information in this Current Report that is being furnished pursuant to Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information furnished pursuant to Item 2.02 in this Current Report shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended.
  • 4. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. YRC Worldwide Inc. (Registrant) Date: February 13, 2006 By: /s/ Donald G. Barger, Jr. Donald G. Barger, Jr. Senior Vice President and Chief Financial Officer
  • 5. EXHIBIT INDEX Exhibit Number Description 99.1 Consolidated Financial Statements.
  • 6. Exhibit 99.1 CONSOLIDATED BALANCE SHEETS YRC Worldwide Inc. and Subsidiaries (Amounts in thousands except per share data) December 31, December 31, 2005 2004 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 82,361 $ 106,489 Accounts receivable, net 1,164,383 778,596 Prepaid expenses and other 230,888 168,356 Total current assets 1,477,632 1,053,441 PROPERTY AND EQUIPMENT: Cost 3,607,415 2,672,289 Less - accumulated depreciation 1,401,623 1,249,571 Net property and equipment 2,205,792 1,422,718 OTHER ASSETS: Goodwill 1,234,065 632,141 Intangibles, net 713,677 468,310 Other assets 103,023 50,559 Total assets $5,734,189 $3,627,169 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 393,934 $ 307,089 Wages, vacations, and employees’ benefits 522,882 427,731 Other current and accrued liabilities 372,988 210,519 Asset backed securitization (“ABS”) borrowings 374,970 — Current maturities of contingently convertible notes — 250,000 Current maturities of long-term debt — 4,400 Total current liabilities 1,664,774 1,199,739 OTHER LIABILITIES: Long-term debt, less current portion 1,113,085 403,535 Deferred income taxes, net 387,220 319,839 Claims and other liabilities 632,622 489,865 Total other liabilities 2,132,927 1,213,239 SHAREHOLDERS’ EQUITY: Common stock, $1 par value per share 60,450 51,303 Preferred stock, $1 par value per share — — Capital surplus 1,172,139 694,504 Retained earnings 838,614 550,484 Accumulated other comprehensive loss (27,610) (33,159) Unamortized equity awards (17,485) (10,479) Treasury stock, at cost (3,158 and 2,066 shares) (89,620) (38,462) Total shareholders’ equity 1,936,488 1,214,191 Total liabilities and shareholders’ equity $5,734,189 $3,627,169
  • 7.
  • 8. STATEMENTS OF CONSOLIDATED OPERATIONS YRC Worldwide Inc. and Subsidiaries For the Three and Twelve Months Ended December 31 (Amounts in thousands except per share data) (Unaudited) Three Months Twelve Months 2005 2004 2005 2004 OPERATING REVENUE $2,483,100 $1,774,137 $8,741,557 $6,767,485 OPERATING EXPENSES: Salaries, wages and employees’ benefits 1,389,651 1,064,447 5,111,113 4,172,144 Operating expenses and supplies 435,428 273,118 1,438,426 1,011,864 Purchased transportation 304,605 206,070 991,157 752,788 Depreciation and amortization 69,714 44,722 250,562 171,468 Other operating expenses 132,076 78,287 406,348 302,167 Gains on property disposals, net (5,042) (3,957) (5,388) (4,547) Acquisition and executive severance charges 2,952 — 13,029 — Total operating expenses 2,329,384 1,662,687 8,205,247 6,405,884 OPERATING INCOME 153,716 111,450 536,310 361,601 NONOPERATING (INCOME) EXPENSES: Interest expense 20,618 9,506 63,371 43,954 Write off of deferred debt issuance costs — — — 18,279 Other 2,164 999 676 1,705 Nonoperating expenses, net 22,782 10,505 64,047 63,938 INCOME BEFORE INCOME TAXES 130,934 100,945 472,263 297,663 INCOME TAX PROVISION 54,087 37,600 184,133 113,336 NET INCOME $ 76,847 $ 63,345 $ 288,130 $ 184,327 AVERAGE SHARES OUTSTANDING-BASIC 57,864 48,617 54,358 48,149 AVERAGE SHARES OUTSTANDING-DILUTED 59,376 51,170 56,905 49,174 BASIC EARNINGS PER SHARE $ 1.33 $ 1.30 $ 5.30 $ 3.83 DILUTED EARNINGS PER SHARE $ 1.30 $ 1.24 $ 5.07 $ 3.75
  • 9. STATEMENTS OF CONSOLIDATED CASH FLOWS YRC Worldwide Inc. and Subsidiaries For the Twelve Months Ended December 31 (Amounts in thousands) 2005 2004 (Unaudited) OPERATING ACTIVITIES: Net cash from operating activities $ 497,677 $ 435,718 INVESTING ACTIVITIES: Acquisition of property and equipment (304,718) (201,818) Proceeds from disposal of property and equipment 48,283 37,529 Acquisition of companies, net of cash acquired (753,892) (10,463) Investment in affiliate (46,043) — Other 12,075 4,494 Net cash used in investing activities (1,044,295) (170,258) FINANCING ACTIVITIES: ABS borrowings, net 374,970 (71,500) Issuance (repayment) of long-term debt 190,561 (175,044) Debt issuance costs (4,245) (2,938) Proceeds from exercise of stock options 11,203 15,859 Treasury stock repurchase (49,999) — Other — (514) Net cash provided by (used in) financing activities 522,490 (234,137) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (24,128) 31,323 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 106,489 75,166 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 82,361 $ 106,489
  • 10. SUPPLEMENTAL FINANCIAL INFORMATION YRC Worldwide Inc. and Subsidiaries For the Three Months Ended December 31 (Amounts in thousands except per share data) (Unaudited) Three Months 2005 2004 % Operating revenue: Yellow Transportation $ 886,541 $ 824,491 7.5 Roadway Express 865,072 822,227 5.2 YRC Regional Transportation 584,381 69,470 n/m Meridian IQ 153,485 59,861 n/m Corporate and other (6,379) (1,912) Consolidated 2,483,100 1,774,137 Reported operating income (loss): Yellow Transportation 64,547 55,728 15.8 Roadway Express 62,600 54,840 14.2 YRC Regional Transportation 30,138 8,668 n/m Meridian IQ 4,245 1,484 n/m Corporate and other (7,814) (9,270) Consolidated 153,716 111,450 Adjustments to operating income by segment a : Yellow Transportation (4,275) (2,329) Roadway Express (1,193) (1,668) YRC Regional Transportation 3,363 40 Meridian IQ (26) — Corporate and other 41 — Consolidated (2,090) (3,957) Adjusted operating income (loss) a: Yellow Transportation 60,272 53,399 12.9 Roadway Express 61,407 53,172 15.5 YRC Regional Transportation 33,501 8,708 n/m Meridian IQ 4,219 1,484 n/m Corporate and other (7,773) (9,270) Consolidated $ 151,626 $ 107,493 Reported operating ratio: Yellow Transportation 92.7% 93.2% Roadway Express 92.8% 93.3% YRC Regional Transportation 94.8% 87.5% Consolidated 93.8% 93.7% Adjusted operating ratio: Yellow Transportation 93.2% 93.5% Roadway Express 92.9% 93.5% YRC Regional Transportation 94.3% 87.5% Consolidated 93.9% 93.9% Reconciliation of reported diluted earnings per share (EPS) to adjusted diluted EPS: Reported diluted EPS $ 1.30 $ 1.24 Gains on property disposals (0.05) (0.05) Acquisition charges 0.03 — Pre-acquisition foreign currency adjustment d 0.02 —
  • 11. Change in effective tax rate c 0.07 — Contingent convertible dilution impact — 0.05 Adjusted diluted EPS $ 1.37 $ 1.24
  • 12. SUPPLEMENTAL FINANCIAL INFORMATION YRC Worldwide Inc. and Subsidiaries For the Twelve Months Ended December 31 (Amounts in thousands except per share data) (Unaudited) Twelve Months 2005 2004 % Operating revenue: Yellow Transportation $3,421,310 $3,180,590 7.6 Roadway Express 3,321,064 3,119,927 6.4 YRC Regional Transportation 1,570,828 b 260,572 n/m Meridian IQ 447,563 b 213,199 n/m Corporate and other (19,208) (6,803) Consolidated 8,741,557 6,767,485 Reported operating income (loss): Yellow Transportation 255,329 191,546 33.3 Roadway Express 209,122 158,334 32.1 YRC Regional Transportation 85,794 b 33,897 n/m Meridian IQ 15,167 b 3,738 n/m Corporate and other (29,102) (25,914) Consolidated 536,310 361,601 Adjustments to operating income by segment a : Yellow Transportation (7,108) (3,113) Roadway Express 1,159 (1,466) YRC Regional Transportation 8,838 32 Meridian IQ (37) — Corporate and other 4,789 — Consolidated 7,641 (4,547) Adjusted operating income (loss) a: Yellow Transportation 248,221 188,433 31.7 Roadway Express 210,281 156,868 34.0 YRC Regional Transportation 94,632 33,929 n/m Meridian IQ 15,130 3,738 n/m Corporate and other (24,313) (25,914) Consolidated $ 543,951 $ 357,054 Reported operating ratio: Yellow Transportation 92.5% 94.0% Roadway Express 93.7% 94.9% YRC Regional Transportation 94.5% 87.0% Consolidated 93.9% 94.7% Adjusted operating ratio: Yellow Transportation 92.7% 94.1% Roadway Express 93.7% 95.0% YRC Regional Transportation 94.0% 87.0% Consolidated 93.8% 94.7% Reconciliation of reported diluted EPS to adjusted diluted EPS: Reported diluted EPS $ 5.07 $ 3.75 Gains on property disposals (0.06) (0.06) Acquisition charges 0.10 — Executive severance 0.04 —
  • 13. Pre-acquisition foreign currency adjustment d 0.02 — Change in effective tax rate c 0.08 — Contingent convertible dilution impact — 0.03 Write off debt issuance costs - nonoperating — 0.24 Adjusted diluted EPS $ 5.25 $ 3.96
  • 14. Management excludes these items when evaluating operating income and segment performance to more accurately compare the a results of our core operations among periods. This measurement should not be construed as a better measurement than operating income as defined by generally accepted accounting principles. Adjustments presented in the 2005 period herein consist of property gains and losses, acquisition related charges and executive severance charges. Adjustments presented in the 2004 period herein consist of property gains and losses. Includes the revenue and operating income of USF operating companies since May 25, 2005, the date of acquisition. b Management excluded the impact of an increase to its effective tax rate as it primarily related to a change in the accounting c treatment of Roadway deferred taxes established at the acquisition date. This is not expected to impact the tax rate in future periods. Management excluded the portion of a foreign currency adjustment related to the Roadway financial statements prior to the d acquisition. As the company can no longer apply purchase accounting to increase goodwill related to this acquisition, the adjustment was recorded directly to the income statement. This adjustment, recorded in other nonoperating expenses on the Statements of Consolidated Operations, was not related to 2005 performance.