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10990 Roe Avenue
Overland Park, KS 66211
Phone 913 696 6100 Fax 913 696 6116
News Release


                                           January 28, 2008

             YRC Worldwide Reports Fourth Quarter and Full-Year 2007 Earnings

OVERLAND PARK, KAN. --- YRC Worldwide Inc. (NASDAQ: YRCW) today announced diluted
earnings per share (“EPS”) for the full year 2007 of $1.88, excluding previously announced
impairment charges of $12.77 per share, reorganization and settlement costs of $.24 per share,
technology charges of $.11 per share and gains on property disposals of $.07 per share. When
including these items, full-year 2007 results were a loss per share of $11.17 compared to EPS of
$4.74 in 2006.

For the fourth quarter, EPS was $.01 when excluding the impairment charges of $12.88 per share,
reorganization costs of $.09 per share, technology charges of $.11 per share and gains on property
disposals of $.08 per share. When including these items, the fourth quarter was a loss of $12.99 per
share compared to EPS of $.80 per share in the fourth quarter of 2006.

The per share amounts without the excluded items above are non-GAAP measures, which should not
be construed as a better measure than the GAAP net loss or EPS also presented above. The
company excludes the items listed when evaluating core performance as they are not related to
ongoing operations or are a one-time occurrence.

“The economic environment was challenging throughout 2007 and it was increasingly so in the fourth
quarter,” stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. “Looking forward, we
expect the first quarter to also be difficult given it is seasonally the softest and we don’t anticipate the
economy improving in the near term. As the largest less-than-truckload provider, we are well
positioned to benefit from economic recovery, when it occurs.”

Key segment information for the fourth quarter 2007 included:
• YRC National Transportation LTL revenue per hundredweight up 5.7% from fourth quarter 2006
   and LTL tonnage per day down 8.0%
• YRC Regional Transportation LTL revenue per hundredweight up 3.4% compared to last year and
   LTL tonnage per day down 2.9%
• YRC Logistics revenue consistent with last year despite the weak economy

Additional statistical information is available on the company’s website at yrcw.com under Investors,
Earnings Releases & Operating Statistics.

As mentioned above, the company reported significant charges in the fourth quarter that it does not
consider when evaluating core performance. The impairment charges of $782 million were a result of
the company’s annual impairment review of goodwill and certain other intangible assets arising from
its acquisitions. The reorganization costs of $9 million primarily related to executive severance
charges that were recorded in the Corporate segment. The technology charges of $8 million related
to the alignment of projects with the company’s technology strategy going forward that resulted in
abandonment of certain projects that then could no longer be capitalized. These charges were
primarily reported in the YRC National Transportation segment as amortization expense.
Review of Financial Results
YRC Worldwide Inc. (NASDAQ: YRCW) will host an analyst meeting for shareholders and the
investment community today, January 28, 2008, at 2:00pm ET at the Waldorf-Astoria, 301 Park
Avenue, New York, NY. For those not attending, the meeting will be available in listen-only mode by
dialing 1.888.609.3912 or via streetevents.com and the YRC Worldwide Internet site yrcw.com.
Following the management presentation, there will be a broadcast Q&A session in which questions
will be taken from those in attendance.

An audio playback will be available after the call via StreetEvents and the YRC Worldwide web sites.

                                               *    *    *    *    *

This news release 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
“expect,” “believe,” “expectations,” and similar expressions are intended to identify forward-looking statements.

The company’s outlook for the economy and its impact on the company’s business results are only its
expectations regarding these matters. Actual economic activity and business results could differ materially from
the company’s outlook as it is dependent on many factors, including (among others) 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, changes in equity and debt
markets, a downturn in general or regional economic activity, effects of a terrorist attack, labor relations,
including (without limitation), the impact of work rules, work stoppages, strikes or other disruptions, any
obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction,
and the risk factors that are from time to time included in the company’s reports filed with the Securities and
Exchange Commission (the “SEC”), including the company’s Annual Report on Form 10-K for the year ended
December 31, 2006.

YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the
world, is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway,
Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The
enterprise provides global transportation services, transportation management solutions and logistics
management. The portfolio of brands represents a comprehensive array of services for the shipment of
industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park,
Kansas, YRC Worldwide employs approximately 60,000 people.


Investor Contact:   Sheila Taylor                            Media Contact:    Suzanne Dawson
                    YRC Worldwide Inc.                                         Linden Alschuler & Kaplan
                    913.696.6108                                               212.329.1420
                    sheila.taylor@yrcw.com                                     sdawson@lakpr.com
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
                                                               2007               2006             2007              2006

OPERATING REVENUE                                     $   2,348,738    $   2,407,663      $    9,621,316    $   9,918,690

OPERATING EXPENSES:
   Salaries, wages and employees' benefits                1,407,304        1,395,285           5,741,078        5,735,720
   Operating expenses and supplies                          489,762          440,943           1,864,957        1,819,030
   Purchased transportation                                 277,629          278,752           1,089,041        1,090,504
   Depreciation and amortization                             74,035           61,904             255,603          274,184
   Other operating expenses                                  98,382          118,122             437,323          435,876
   Gains on property disposals, net                          (7,381)          (8,443)             (5,820)          (8,360)
   Reorganization and settlements                             8,731           13,366              22,385           26,302
   Impairment charges                                       781,875                -             781,875                -

        Total operating expenses                          3,130,337           2,299,929       10,186,442        9,373,256

OPERATING INCOME (LOSS)                                    (781,599)           107,734          (565,126)          545,434

NONOPERATING (INCOME) EXPENSES:
   Interest expense                                          24,241             21,076           88,760             87,760
   Other                                                     (3,426)             3,754           (2,169)             1,718

        Nonoperating expenses, net                           20,815             24,830           86,591             89,478

INCOME (LOSS) BEFORE INCOME TAXES                          (802,414)            82,904          (651,717)          455,956
INCOME TAX PROVISION (BENEFIT)                              (66,643)            36,445           (13,336)          179,324

NET INCOME (LOSS)                                     $    (735,771)   $        46,459    $     (638,381)   $      276,632


AVERAGE SHARES OUTSTANDING-BASIC                             56,658             57,144           57,154             57,361
AVERAGE SHARES OUTSTANDING-DILUTED                           56,658             57,938           57,154             58,339

BASIC EARNINGS (LOSS) PER SHARE                       $      (12.99)   $           0.81   $       (11.17)   $         4.82

DILUTED EARNINGS (LOSS) PER SHARE                     $      (12.99)   $           0.80   $       (11.17)   $         4.74
SEGMENT FINANCIAL INFORMATION
                                                        YRC Worldwide Inc. and Subsidiaries
                                               For the Three and Twelve Months Ended December 31
                                                              (Amounts in thousands)
                                                                   (Unaudited)



                                                                 Three Months                                       Twelve Months
                                                                                   a                                                    a
                                                        2007               2006            %               2007                 2006           %

Operating revenue:
  YRC National Transportation                  $    1,636,887     $   1,678,131         (2.5)      $   6,657,770       $   6,878,505         (3.2)
  YRC Regional Transportation                                                                          2,369,603           2,441,364
                                                      564,684           570,526         (1.0)                                                (2.9)
                                                                                        (0.1)                                                 2.2
  YRC Logistics                                       162,349           162,558                          623,208             609,742
  Eliminations                                        (15,182)           (3,552)                         (29,265)            (10,921)
    Consolidated                                    2,348,738         2,407,663         (2.4)          9,621,316           9,918,690         (3.0)

Operating income (loss):
  YRC National Transportation                         (56,920)         101,721          n/m              159,331            423,285         (62.4)
  YRC Regional Transportation                        (715,201)          19,148           n/m            (706,669)           142,228          n/m
  YRC Logistics                                                                        (93.6)                                               (62.4)
                                                          489            7,618                             5,142             13,682
  Corporate and other                                  (9,967)         (20,753)                          (22,930)           (33,761)
    Consolidated                               $     (781,599)    $    107,734           n/m       $    (565,126)      $    545,434          n/m

Operating ratio:
  YRC National Transportation                         103.5%              93.9%                           97.6%                93.8%
  YRC Regional Transportation                           n/m               96.6%                            n/m                 94.2%
    YRC Logistics                                      99.7%              95.3%                           99.2%                97.8%
    Consolidated                                      133.3%              95.5%                          105.9%                94.5%




(Gains) losses on property disposals, net:
   YRC National Transportation                 $       (3,381)    $      (5,685)                   $      (8,341)      $      (6,352)
   YRC Regional Transportation                         (3,747)           (2,859)                          (1,453)             (3,015)
    YRC Logistics                                         824               101                              714                  89
    Corporate and other                                (1,077)                -                            3,260                 918
    Consolidated                                       (7,381)           (8,443)                          (5,820)             (8,360)

(Gains) losses on reorganization and settlements:
   YRC National Transportation                            610                -                            6,693               4,309
   YRC Regional Transportation                            777                -                            7,857                   -
    YRC Logistics                                         624               77                            3,335               7,057
    Corporate and other                                 6,720           13,289                            4,500              14,936
    Consolidated                                        8,731           13,366                           22,385              26,302

Impairment charges:
   YRC National Transportation                        76,554                  -                          76,554                    -
   YRC Regional Transportation                       705,321                  -                         705,321                    -
    YRC Logistics                                          -                  -                               -                    -
    Corporate and other                                    -                  -                               -                    -
    Consolidated                               $     781,875      $           -                    $    781,875        $           -


a   The 2006 amounts for YRC National Transportation, YRC Regional Transportation and Corporate and other have been adjusted to conform with the
    current year presentations, such that YRC National Transportation includes the results of Yellow Transportation and Roadway, including
    eliminations; YRC Regional Transportation excludes USF Red Star and USF Dugan as those business units were reallocated to the Corporate and
    other segment in the second quarter of 2006 and Corporate and other includes USF Red Star and USF Dugan and excludes any eliminations
    related to YRC National Transportation.
Selected Financial Data
                                              YRC Worldwide Inc. and Subsidiaries
                                          (Amounts in thousands unless otherwise noted)
                                                           (Unaudited)

                                                                                 For the Twelve Months Ended December 31,
                                                                                               2007                   2006
Net cash from operating activities                                             $            392,598      $         532,304
Net cash used in investing activities                                                      (341,087)              (328,971)
Net cash used in financing activities                                                       (69,669)              (209,303)
Gross capital expenditures                                                                 (393,763)              (377,687)
Net capital expenditures                                                                   (338,424)              (303,057)
Proceeds from exercise of stock options                                                       6,530                  5,686
Free cash flow a                                                                             60,704                234,933


                                                                                       December 31,                 December 31,
                                                                                               2007                        2006
Cash and cash equivalents                                                      $              58,233         $            76,391
Accounts receivable, net                                                                   1,073,915                   1,190,818
Net property and equipment                                                                 2,380,473                   2,269,846
Total assets                                                                               4,996,021                   5,952,237
Asset backed securitization borrowings                                                       180,000                     225,000
Current maturities of long-term debt                                                         231,955                         -
Long-term debt, less current portion                                                         822,048                   1,058,496
Total debt                                                                                 1,234,003                   1,283,496
Total shareholders' equity                                                                 1,612,305                   2,192,549
Debt to capitalization b                                                                       43.4%                       36.9%




a Management uses free cash flow as an indication of the cash available to fund additional capital expenditures, to reduce outstanding
  debt (including current maturities), or to invest in our growth strategies. Free cash flow is calculated as net cash from operating
  activities plus stock option proceeds less net capital expenditures. This measurement is used for internal management purposes and
  should not be construed as a better measurement than net cash from operating activities as defined by generally accepted accounting
  principles.


b We calculate debt to capitalization as total debt divided by total debt plus total shareholders' equity.

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yrc worldwide4Q07_Release

  • 1. 10990 Roe Avenue Overland Park, KS 66211 Phone 913 696 6100 Fax 913 696 6116 News Release January 28, 2008 YRC Worldwide Reports Fourth Quarter and Full-Year 2007 Earnings OVERLAND PARK, KAN. --- YRC Worldwide Inc. (NASDAQ: YRCW) today announced diluted earnings per share (“EPS”) for the full year 2007 of $1.88, excluding previously announced impairment charges of $12.77 per share, reorganization and settlement costs of $.24 per share, technology charges of $.11 per share and gains on property disposals of $.07 per share. When including these items, full-year 2007 results were a loss per share of $11.17 compared to EPS of $4.74 in 2006. For the fourth quarter, EPS was $.01 when excluding the impairment charges of $12.88 per share, reorganization costs of $.09 per share, technology charges of $.11 per share and gains on property disposals of $.08 per share. When including these items, the fourth quarter was a loss of $12.99 per share compared to EPS of $.80 per share in the fourth quarter of 2006. The per share amounts without the excluded items above are non-GAAP measures, which should not be construed as a better measure than the GAAP net loss or EPS also presented above. The company excludes the items listed when evaluating core performance as they are not related to ongoing operations or are a one-time occurrence. “The economic environment was challenging throughout 2007 and it was increasingly so in the fourth quarter,” stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. “Looking forward, we expect the first quarter to also be difficult given it is seasonally the softest and we don’t anticipate the economy improving in the near term. As the largest less-than-truckload provider, we are well positioned to benefit from economic recovery, when it occurs.” Key segment information for the fourth quarter 2007 included: • YRC National Transportation LTL revenue per hundredweight up 5.7% from fourth quarter 2006 and LTL tonnage per day down 8.0% • YRC Regional Transportation LTL revenue per hundredweight up 3.4% compared to last year and LTL tonnage per day down 2.9% • YRC Logistics revenue consistent with last year despite the weak economy Additional statistical information is available on the company’s website at yrcw.com under Investors, Earnings Releases & Operating Statistics. As mentioned above, the company reported significant charges in the fourth quarter that it does not consider when evaluating core performance. The impairment charges of $782 million were a result of the company’s annual impairment review of goodwill and certain other intangible assets arising from its acquisitions. The reorganization costs of $9 million primarily related to executive severance charges that were recorded in the Corporate segment. The technology charges of $8 million related to the alignment of projects with the company’s technology strategy going forward that resulted in abandonment of certain projects that then could no longer be capitalized. These charges were primarily reported in the YRC National Transportation segment as amortization expense.
  • 2. Review of Financial Results YRC Worldwide Inc. (NASDAQ: YRCW) will host an analyst meeting for shareholders and the investment community today, January 28, 2008, at 2:00pm ET at the Waldorf-Astoria, 301 Park Avenue, New York, NY. For those not attending, the meeting will be available in listen-only mode by dialing 1.888.609.3912 or via streetevents.com and the YRC Worldwide Internet site yrcw.com. Following the management presentation, there will be a broadcast Q&A session in which questions will be taken from those in attendance. An audio playback will be available after the call via StreetEvents and the YRC Worldwide web sites. * * * * * This news release 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 “expect,” “believe,” “expectations,” and similar expressions are intended to identify forward-looking statements. The company’s outlook for the economy and its impact on the company’s business results are only its expectations regarding these matters. Actual economic activity and business results could differ materially from the company’s outlook as it is dependent on many factors, including (among others) 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, changes in equity and debt markets, a downturn in general or regional economic activity, effects of a terrorist attack, labor relations, including (without limitation), the impact of work rules, work stoppages, strikes or other disruptions, any obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction, and the risk factors that are from time to time included in the company’s reports filed with the Securities and Exchange Commission (the “SEC”), including the company’s Annual Report on Form 10-K for the year ended December 31, 2006. YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people. Investor Contact: Sheila Taylor Media Contact: Suzanne Dawson YRC Worldwide Inc. Linden Alschuler & Kaplan 913.696.6108 212.329.1420 sheila.taylor@yrcw.com sdawson@lakpr.com
  • 3. 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 2007 2006 2007 2006 OPERATING REVENUE $ 2,348,738 $ 2,407,663 $ 9,621,316 $ 9,918,690 OPERATING EXPENSES: Salaries, wages and employees' benefits 1,407,304 1,395,285 5,741,078 5,735,720 Operating expenses and supplies 489,762 440,943 1,864,957 1,819,030 Purchased transportation 277,629 278,752 1,089,041 1,090,504 Depreciation and amortization 74,035 61,904 255,603 274,184 Other operating expenses 98,382 118,122 437,323 435,876 Gains on property disposals, net (7,381) (8,443) (5,820) (8,360) Reorganization and settlements 8,731 13,366 22,385 26,302 Impairment charges 781,875 - 781,875 - Total operating expenses 3,130,337 2,299,929 10,186,442 9,373,256 OPERATING INCOME (LOSS) (781,599) 107,734 (565,126) 545,434 NONOPERATING (INCOME) EXPENSES: Interest expense 24,241 21,076 88,760 87,760 Other (3,426) 3,754 (2,169) 1,718 Nonoperating expenses, net 20,815 24,830 86,591 89,478 INCOME (LOSS) BEFORE INCOME TAXES (802,414) 82,904 (651,717) 455,956 INCOME TAX PROVISION (BENEFIT) (66,643) 36,445 (13,336) 179,324 NET INCOME (LOSS) $ (735,771) $ 46,459 $ (638,381) $ 276,632 AVERAGE SHARES OUTSTANDING-BASIC 56,658 57,144 57,154 57,361 AVERAGE SHARES OUTSTANDING-DILUTED 56,658 57,938 57,154 58,339 BASIC EARNINGS (LOSS) PER SHARE $ (12.99) $ 0.81 $ (11.17) $ 4.82 DILUTED EARNINGS (LOSS) PER SHARE $ (12.99) $ 0.80 $ (11.17) $ 4.74
  • 4. SEGMENT FINANCIAL INFORMATION YRC Worldwide Inc. and Subsidiaries For the Three and Twelve Months Ended December 31 (Amounts in thousands) (Unaudited) Three Months Twelve Months a a 2007 2006 % 2007 2006 % Operating revenue: YRC National Transportation $ 1,636,887 $ 1,678,131 (2.5) $ 6,657,770 $ 6,878,505 (3.2) YRC Regional Transportation 2,369,603 2,441,364 564,684 570,526 (1.0) (2.9) (0.1) 2.2 YRC Logistics 162,349 162,558 623,208 609,742 Eliminations (15,182) (3,552) (29,265) (10,921) Consolidated 2,348,738 2,407,663 (2.4) 9,621,316 9,918,690 (3.0) Operating income (loss): YRC National Transportation (56,920) 101,721 n/m 159,331 423,285 (62.4) YRC Regional Transportation (715,201) 19,148 n/m (706,669) 142,228 n/m YRC Logistics (93.6) (62.4) 489 7,618 5,142 13,682 Corporate and other (9,967) (20,753) (22,930) (33,761) Consolidated $ (781,599) $ 107,734 n/m $ (565,126) $ 545,434 n/m Operating ratio: YRC National Transportation 103.5% 93.9% 97.6% 93.8% YRC Regional Transportation n/m 96.6% n/m 94.2% YRC Logistics 99.7% 95.3% 99.2% 97.8% Consolidated 133.3% 95.5% 105.9% 94.5% (Gains) losses on property disposals, net: YRC National Transportation $ (3,381) $ (5,685) $ (8,341) $ (6,352) YRC Regional Transportation (3,747) (2,859) (1,453) (3,015) YRC Logistics 824 101 714 89 Corporate and other (1,077) - 3,260 918 Consolidated (7,381) (8,443) (5,820) (8,360) (Gains) losses on reorganization and settlements: YRC National Transportation 610 - 6,693 4,309 YRC Regional Transportation 777 - 7,857 - YRC Logistics 624 77 3,335 7,057 Corporate and other 6,720 13,289 4,500 14,936 Consolidated 8,731 13,366 22,385 26,302 Impairment charges: YRC National Transportation 76,554 - 76,554 - YRC Regional Transportation 705,321 - 705,321 - YRC Logistics - - - - Corporate and other - - - - Consolidated $ 781,875 $ - $ 781,875 $ - a The 2006 amounts for YRC National Transportation, YRC Regional Transportation and Corporate and other have been adjusted to conform with the current year presentations, such that YRC National Transportation includes the results of Yellow Transportation and Roadway, including eliminations; YRC Regional Transportation excludes USF Red Star and USF Dugan as those business units were reallocated to the Corporate and other segment in the second quarter of 2006 and Corporate and other includes USF Red Star and USF Dugan and excludes any eliminations related to YRC National Transportation.
  • 5. Selected Financial Data YRC Worldwide Inc. and Subsidiaries (Amounts in thousands unless otherwise noted) (Unaudited) For the Twelve Months Ended December 31, 2007 2006 Net cash from operating activities $ 392,598 $ 532,304 Net cash used in investing activities (341,087) (328,971) Net cash used in financing activities (69,669) (209,303) Gross capital expenditures (393,763) (377,687) Net capital expenditures (338,424) (303,057) Proceeds from exercise of stock options 6,530 5,686 Free cash flow a 60,704 234,933 December 31, December 31, 2007 2006 Cash and cash equivalents $ 58,233 $ 76,391 Accounts receivable, net 1,073,915 1,190,818 Net property and equipment 2,380,473 2,269,846 Total assets 4,996,021 5,952,237 Asset backed securitization borrowings 180,000 225,000 Current maturities of long-term debt 231,955 - Long-term debt, less current portion 822,048 1,058,496 Total debt 1,234,003 1,283,496 Total shareholders' equity 1,612,305 2,192,549 Debt to capitalization b 43.4% 36.9% a Management uses free cash flow as an indication of the cash available to fund additional capital expenditures, to reduce outstanding debt (including current maturities), or to invest in our growth strategies. Free cash flow is calculated as net cash from operating activities plus stock option proceeds less net capital expenditures. This measurement is used for internal management purposes and should not be construed as a better measurement than net cash from operating activities as defined by generally accepted accounting principles. b We calculate debt to capitalization as total debt divided by total debt plus total shareholders' equity.