YRC Worldwide Reports Second Quarter 2009 Results

- Finalized Bank Amendment Represents another Step in the Company's
Comprehensive Plan

OVERLAND PARK, Kan., July 30 /PRNewswire-FirstCall/ -- YRC Worldwide Inc.
(Nasdaq: YRCW) today reported its results for the second quarter and provided
an update on its comprehensive plan. For the quarter, the company announced a
loss per share of $3.53, excluding significant charges as detailed below, and
a loss per share of $5.20 when including the charges. By comparison, the
company reported earnings per share in the second quarter of 2008 of $.23,
when excluding a curtailment gain related to the harmonization of retirement
plans across the company for its non-contractual employees, and earnings per
share of $.62 when including the curtailment gain.

"The second quarter was focused on executing our comprehensive plan to realize
efficiencies from the YRC integration, restore financial strength and position
our operating companies for future success," stated Bill Zollars, Chairman,
President and CEO of YRC Worldwide. "As a result of the March integration of
Yellow and Roadway, the further rightsizing of our networks in relation to
volumes and the overall economic environment, we recorded some significant
charges that we believe are not reflective of the underlying operating results
of our company. Although we will continue to enhance the efficiencies of our
networks, we do not expect to record charges of this magnitude going forward."

Summary of Second Quarter Results
The following table provides a reconciliation of our loss before taxes, as
reported, to our loss before taxes, excluding significant charges, for the
second quarter of 2009. See footnotes at the end of this release for further
information.

Amount
Pre-Tax Per
Amount Share(3)
------- -------
(in (net of
millions) tax)

Loss as reported $(369) $(5.20)
Workers' compensation accrual adjustments (33) (0.46)
Rerate adjustments (12) (0.16)
Bad debt and other reserve accruals (13) (0.18)
Integration impact (21) (0.29)
Reorganization costs and gains on property
disposals (14) (0.20)
Equity investment impairment (noncash) (30) (0.51)
Union employee stock awards 9 0.13
---- ----
Significant charges(1) (114) (1.67)
---- -----
Loss excluding significant charges(2) $(255) $(3.53)
----- ------

YRC Worldwide also reported aggregated cash and available unused capacity
under the credit facilities of $218 million at June 30, 2009, including $165
million of cash and cash equivalents. In addition, the company had $95
million in the revolver reserve created pursuant to the company's credit
agreement at June 30, 2009. The company completed $127 million of sale and
financing leaseback transactions and closed on $14 million of excess
properties during the second quarter.

The equity investment impairment of $30 million noted in the significant
charges table related entirely to the company's August 2008 65% investment in
Shanghai Jiayu Logistics, one of the largest providers of truckload and
less-than-truckload ground transportation services in China. This write-down
was primarily a result of the declining economy in China and around the world.

Segment Information

Key segment information for the second quarter 2009 compared to the second
quarter 2008 included:

-- YRC National Transportation total shipments per day down 37.1% and
total
tonnage per day down 39.4%. The company continues to right size its
network to support current and future shipment volumes. Total revenue
per hundredweight, including fuel surcharge, down 13.1%, when
adjusting
for rerates of $12 million not attributed to the second quarter
revenue,
and down 14.2% without adjusting for these items. Excluding fuel
surcharge and adjusted for $12 million in rerates, and mix, total
revenue per hundredweight for YRC National Transportation was down
about
1.5%.

-- YRC Regional Transportation total shipments per day down 22.0% and
total
tonnage per day down 26.4%. Total revenue per hundredweight,
including
fuel surcharge, down 11.9%. Excluding fuel surcharge, total revenue
per
hundredweight for YRC Regional Transportation was down about one
percent.

"We continue to win new business, and customers have returned shipments to our
networks, though it has not happened as quickly or at the levels we were
initially expecting," said Zollars. "Although misinformation about our
financial stability creates noise in the marketplace, many of our key
customers stand firmly behind our plans and show their support with their
business every day. We believe that as we continue to make significant
progress on our plans, the tremendous support of our employees, lenders and
other stakeholders can provide all of our customers with the confidence they
need to completely return."

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

Comprehensive Plan Update

YRC Worldwide also announced today additional progress in its comprehensive
plan to realize efficiencies from the YRC integration, restore financial
strength, and position its operating companies for future success. The
company's progress report includes updates on subsequent events since the
close of the June 30, 2009 reporting period. These events focus on three key
areas of its comprehensive plan.

Bank Amendment

The company finalized today an amendment to its credit agreement with its
lender group. The amendment eliminates the third quarter 2009 earnings before
interest, taxes, depreciation and amortization (EBITDA) covenant and
establishes a fourth quarter 2009 EBITDA covenant of $15 million and a first
quarter 2010 EBITDA covenant of $20 million. Also, under the amendment, the
company can retain 100% of asset sales between July 31, 2009 and August 31,
2009, up to $50 million (subject to certain conditions) and the minimum
liquidity covenant during that same period has been eliminated. The company
and its lenders continue active dialogue in regard to the company's progress
on its strategic actions and will evaluate the need for longer-term
modifications to the credit agreement.

"We have continued to receive support from our lenders as we manage through
this severe economic downturn and the implementation of our recovery plan,"
stated Tim Wicks, Executive Vice President and CFO of YRC Worldwide. "We
believe their actions demonstrate their belief in the value of this company
and its potential as the benefits of our strategic plans become more
reflective in our results."

Pension Fund Progress

YRC Worldwide has reached agreement with the company's International
Brotherhood of Teamsters ("IBT") multi-employer defined benefit pension funds
to provide certain of the company's real estate as collateral in lieu of
pension contribution payments during the second quarter. The company
previously announced that it had finalized agreements with funds totaling $94
million, and the remaining funds have joined as participants in the same
agreement for a total deferral of $128 million.

Teamsters Voting on Contract Modifications

The company's employees represented by the IBT are currently voting on
modifying our labor agreement, and the results of the vote are expected in
early August. Upon ratification of the modification, the company expects an
immediate benefit to monthly operating income and cash flow of approximately
$45 million per month, increasing to $50 million per month in 2010.

Outlook

The company expects gross capital expenditures of about $65 million in 2009
and over $100 million of cash proceeds from sales of excess properties. Sale
and financing leaseback transactions are expected to generate over $300
million of cash proceeds in 2009. Excluding payments related to sale and
financing leaseback transactions, we expect interest expense of approximately
$35 to $40 million in the third quarter of 2009.

"We have seen signs of encouragement in the economy including stabilization in
our absolute volumes, though we think it is too early to confirm that this is
the bottom of the recession," Zollars stated. "We remain optimistic that
economic improvement could happen earlier than expected but we do not have it
reflected in our financial plans until we progress through 2010."

Review of Financial Results

YRC Worldwide Inc. will host a conference call for shareholders and the
investment community today beginning at 4:30pm ET, 3:30pm CT.

The conference call will be open to listeners via the YRC Worldwide Internet
site yrcw.com. An audio playback will be available after the call also via
the YRC Worldwide web site.

* * * * *

1. These significant charges primarily resulted from the company's
internal initiatives to enhance its position in the market (including
the
integration of the company's Yellow Transportation and Roadway
networks and footprint changes to its Holland network), reserve
accruals
and an equity investment impairment arising from the extreme economic
conditions. Management excludes these charges when evaluating core
performance of its operations.
2. The loss excluding significant charges is considered a non-GAAP
financial
measure. Generally, a non-GAAP financial measure is a numerical
measure
of a company's performance, financial position or cash flows that
either excludes or includes amounts that are not normally included or
excluded in the most directly comparable measure calculated and
presented
in accordance with generally accepted accounting principles. In
evaluating our net loss excluding significant charges, you should be
aware that we may incur charges and other items such as those
identified
in the table above. Our presentation of net loss excluding significant
charges should not be construed as an inference that our future results
will be unaffected by unusual or nonrecurring items. Our net loss
excluding significant charges should not be considered in isolation or
as
a better measurement than the loss as reported in accordance with
generally accepted accounting principles.

3. Loss per share, net income (loss) and amounts per share presented in
this
release and the accompanying financial statements are preliminary and
are
subject to change in the company's Quarterly Report on Form 10-Q for
the three months ended June 30, 2009 when it is filed with the
Securities
and Exchange Commission ("SEC") based upon changes to the
income tax provision (benefit) in the company's statement of
consolidated operations for the three months ended June 30, 2009. The
income tax provision (benefit) for this period has been determined, in
part, based on the company's current forecast and forecasted tax
rate. These forecasts are subject to varying assumptions, including
various economic activity assumptions and the other factors listed in
the
Forward-Looking Statements section below. Updates to these forecasts
prior to the filing of the company's Form 10-Q could result in
changes to the income tax provision (benefit) and the resulting changes
to the loss per share, net income (loss) and amounts per share
presented
in this release and the accompanying Statement of Operations for the
three months ended June 30, 2009, prepaid expenses and other, deferred
income taxes, net, and retained earnings (deficit) in the Consolidated
Balance Sheet at June 30, 2009 and net loss, deferred income tax
benefit,
net, other operating assets and other operating liabilities in the
Statement of Consolidated Cash Flows for the three months ended June
30,
2009.

Forward-Looking Statements:
This news release and statements made on the conference call for shareholders
and the investment community contain 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,"
"expected," "should," "will," "can," and similar expressions are intended to
identify forward-looking statements. It is important to note that the
company's actual future results could differ materially from those projected
in such forward-looking statements because of a number of 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 the
integration of the Yellow Transportation and Roadway networks, 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 SEC,
including the company's Annual Report on Form 10-K for the year ended December
31, 2008.

The company's expectations regarding its cost reductions and operating income
and service improvements, including the effectiveness of the integration of
the company's national networks in responding to the economy, and the timing
of achieving that improvement, could differ materially from those projected in
such forward-looking statements based on a number of factors, including (among
others) the factors identified in the immediately preceding paragraph, the
ability to identify and implement cost reductions in the time frame needed to
achieve these expectations, the success of the company's operating plans, the
need to spend additional capital to implement cost reduction opportunities,
including (without limitation) to terminate, amend or renegotiate prior
contractual commitments, the accuracy of the company's estimates of its
spending requirements, changes in the company's strategic direction, the need
to replace any unanticipated losses in capital assets, approval of the
affected unionized employees of changes needed to complete the integration
under the company's union agreements, the readiness of employees to utilize
new combined processes, the effectiveness of deploying existing technology
necessary to facilitate the combination of processes, the ability of the
company to receive expected price for its services and customer acceptance of
those services.

The company's expectations regarding the expected monthly benefits to
operating income and cash flow resulting from the modification to its labor
agreement are only its expectations regarding these matters. Actual savings
will be determined by actual levels of employment. In addition, a number of
Teamster bargaining units and bargaining units represented by other unions are
not subject to our labor agreement, known as the National Master Freight
Agreement. The Company's estimates of cost savings also assumes that a
significant number of these additional bargaining units ratify similar
proposals.

The company's expectations regarding future asset dispositions and sale and
financing leasebacks of real estate (including the expectation of the receipt
in 2009 of over $100 million in sales proceeds from excess properties and over
$300 million in proceeds from sale and financing leaseback transactions) are
only its expectations regarding these matters. Actual dispositions and sale
and financing leasebacks will be determined by the availability of capital and
willing buyers and counterparties in the market and the outcome of discussions
to enter into and close any such transactions on negotiated terms and
conditions, including (without limitation) usual and ordinary closing
conditions such as favorable title reports or opinions and favorable
environmental assessments of specific properties.

The company's expectations regarding its gross capital expenditures are only
its expectations regarding these items. Actual expenditures could differ
materially based on a number of factors, including (among others) the factors
identified in the preceding paragraphs.

The company's expectations regarding its interest expense are only its
expectations regarding this expense. Actual interest expense could differ
based on a number of factors, including (among others) the company's revenue
and profitability results and the factors that affect revenue and
profitability results (including the risk factors that are from time to time
included in the company's reports filed with the SEC, including the company's
annual report on Form 10-K for the year ended December 31, 2008), the amount
and character of, and the interest rate on, the company's outstanding debt and
any financings the company may enter into in the future and lease expense for
sale/leasebacks treated as interest.

* * * * *

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 YRC, YRC Reimer, YRC Glen Moore, YRC
Logistics, New Penn, Holland and Reddaway. YRC Worldwide has the largest, most
comprehensive network 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. The company is
headquartered in Overland Park, Kan.

CONSOLIDATED BALANCE SHEETS
YRC Worldwide Inc. and Subsidiaries
(Amounts in thousands except per share data)

June 30, December 31,
2009 2008
---- ----
ASSETS (Unaudited)

CURRENT ASSETS:
Cash and cash equivalents $164,509 $325,349
Accounts receivable, net 670,078 837,055
Prepaid expenses and other 197,081 298,101
------- -------
Total current assets 1,031,668 1,460,505
--------- ---------

PROPERTY AND EQUIPMENT:
Cost 3,878,625 3,977,881
Less - accumulated depreciation 1,815,400 1,776,904
--------- ---------
Net property and equipment 2,063,225 2,200,977
--------- ---------

OTHER ASSETS:
Intangibles, net 175,177 184,769
Other assets 148,250 119,862
------- -------
Total assets $3,418,320 $3,966,113
========== ==========

LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIT)

CURRENT LIABILITIES:
Accounts payable $250,767 $333,910
Wages, vacations, and employees'
benefits 314,983 356,410
Other current and accrued
liabilities 392,328 489,994
Current maturities of long-
term debt 769,769 562,321
------- -------
Total current liabilities 1,727,847 1,742,635
--------- ---------

OTHER LIABILITIES:
Long-term debt, less current
portion 832,952 787,415
Deferred income taxes, net 126,530 242,663
Pension and post retirement 380,767 370,031
Claims and other liabilities 423,192 341,918

Commitments and Contingencies

SHAREHOLDERS' EQUITY (DEFICIT):
Common stock, $1 par value
per share 62,600 62,413
Preferred stock, $1 par value
per share - -
Capital surplus 1,263,267 1,239,586
Retained earnings (deficit) (1,138,080) (555,261)
Accumulated other
comprehensive loss (168,018) (172,550)
Treasury stock, at cost (3,079
shares) (92,737) (92,737)
------- -------
Total shareholders' equity (deficit) (72,968) 481,451
------- -------
Total liabilities and
shareholders' equity
(deficit) $3,418,320 $3,966,113
========== ==========

STATEMENTS OF CONSOLIDATED OPERATIONS
YRC Worldwide Inc. and Subsidiaries
For the Three and Six Months Ended June 30
(Amounts in thousands except per share data)
(Unaudited)

Three Months Six Months
------------ ----------
2009 2008 2009 2008
---- ---- ---- ----

OPERATING REVENUE $1,328,080 $2,398,728 $2,830,875 $4,631,320
---------- ---------- ---------- ----------

OPERATING EXPENSES:
Salaries, wages and
employees'
benefits 1,012,357 1,332,137 2,179,356 2,685,283
Operating expenses
and supplies 309,374 538,664 676,666 1,024,893
Purchased
transportation 164,070 281,938 339,254 536,250
Depreciation and
amortization 64,449 63,435 130,718 126,748
Other operating
expenses 78,542 105,803 183,247 218,568
(Gains) losses on
property
disposals, net (1,006) 3,053 587 6,539
Reorganization and
settlements - 2,444 - 15,228
--- ----- --- ------
Total operating
expenses 1,627,786 2,327,474 3,509,828 4,613,509
--------- --------- --------- ---------
OPERATING INCOME (LOSS) (299,706) 71,254 (678,953) 17,811
-------- ------ -------- ------

NONOPERATING (INCOME)
EXPENSES:
Interest expense 38,414 18,877 70,633 38,216
Equity investment
impairment 30,374 - 30,374 -
Other 171 (1,863) 3,872 (3,834)
--- ------ ----- ------
Nonoperating
expenses, net 68,959 17,014 104,879 34,382
------ ------ ------- ------

INCOME (LOSS) BEFORE
INCOME TAXES (368,665) 54,240 (783,832) (16,571)
INCOME TAX PROVISION
(BENEFIT) (59,628) 18,461 (201,013) (5,980)
------- ------ -------- ------
NET INCOME (LOSS) $(309,037) $35,779 $(582,819) $(10,591)
========= ======= ========= ========

AVERAGE SHARES
OUTSTANDING-
BASIC 59,480 57,122 59,427 57,000
AVERAGE SHARES
OUTSTANDING-
DILUTED 59,480 58,193 59,427 57,000
BASIC EARNINGS (LOSS)
PER
SHARE $(5.20) $0.63 $(9.81) $(0.19)
DILUTED EARNINGS (LOSS)
PER SHARE $(5.20) $0.62 $(9.81) $(0.19)

STATEMENTS OF CONSOLIDATED CASH FLOWS
YRC Worldwide Inc. and Subsidiaries
For the Six Months Ended June 30
(Amounts in thousands)
(Unaudited)

2009 2008
---- ----
OPERATING ACTIVITIES:
Net income (loss) $(582,819) $(10,591)
Noncash items included in net
income (loss):
Depreciation and amortization 130,718 126,748
Stock compensation expense 26,754 5,527
Pension settlement charge 5,755 -
Curtailment gain - (34,460)
Equity investment impairment 30,374 -
Losses on property disposals, net 587 6,508
Deferred income tax provision
(benefit), net (199,086) 11,288
Other noncash items 15,060 (3,015)
Changes in assets and liabilities, net:
Accounts receivable 166,976 (42,165)
Accounts payable (82,270) (13,573)
Other operating assets 67,695 23,429
Other operating liabilities 176,839 40,891
------- ------
Net cash provided by (used in) operating
activities (243,417) 110,587
-------- -------

INVESTING ACTIVITIES:
Acquisition of property and equipment (26,026) (77,018)
Proceeds from disposal of property and
equipment 37,533 11,079
Other (198) (4,201)
---- ------
Net cash provided by (used in) investing
activities 11,309 (70,140)
------ -------

FINANCING ACTIVITIES:
Asset backed securitization borrowings
(payments), net 58,042 (40,000)
Issuance of long-term debt 284,201 5,876
Repayment of long-term debt (223,449) -
Debt issuance costs (47,526) (3,282)
Proceeds from exercise of stock options - 50
------ -------
Net cash provided by (used in) financing
activities 71,268 (37,356)
------ -------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (160,840) 3,091
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 325,349 58,233
------- ------
CASH AND CASH EQUIVALENTS, END OF PERIOD $164,509 $61,324
======== =======

SUPPLEMENTAL CASH FLOW INFORMATION
Pension contribution deferral
transfer to debt $133,227 $-

SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Three and Six Months Ended June 30
(Amounts in thousands)
(Unaudited)

SEGMENT INFORMATION

Three Months Six Months
------------ ----------
2009 2008 % 2009 2008 %
---- ---- --- ---- ---- ---

Operating revenue:
YRC National
Transport-
ation $873,738 $1,692,842 (48.4) $1,896,348 $3,252,688 (41.7)
YRC Regional
Transportation 337,855 533,565 (36.7) 693,023 1,046,019 (33.7)
YRC Logistics 101,816 159,832 (36.3) 213,936 309,585 (30.9)
YRC Truckload 27,545 31,520 (12.6) 53,521 57,058 (6.2)
Eliminations (12,874) (19,031) (25,953) (34,030)
------- ------- ------- -------
Consolidated 1,328,080 2,398,728 (44.6) 2,830,875 4,631,320 (38.9)

Operating income
(loss):
YRC National
Transport-
ation (239,477) 74,559 (539,248) 67,314
YRC Regional
Transportation (48,346) 2,136 (122,471) (35,499)
YRC Logistics (7,957) 1,874 (11,401) 795
YRC Truckload (2,371) (3,938) (4,617) (8,989)
Corporate and
other (1,555) (3,377) (1,216) (5,810)
------ ------ ------ ------
Consolidated $(299,706) $71,254 $(678,953) $17,811

(Gains) losses on
property disposals,
net:
YRC National
Transportation $(1,702) $3,064 $(390) $4,173
YRC Regional
Transportation 662 (686) 873 1,006
YRC Logistics 34 (6) 28 61
YRC Truckload - 693 76 971
Corporate and
other - (12) - 328
--- --- --- ---
Consolidated $(1,006) $3,053 $587 $6,539

SUPPLEMENTAL INFORMATION
June 30, December 31,
Current debt 2009 2008
---- ----
Asset backed securitization
borrowings $205,042 $147,000
Lease financing obligations 1,347 -
Pension contribution deferral
obligation 27,000 -
Other long-term debt 536,380 415,321
------- -------
Total current debt 769,769 562,321

Long-term debt, less current portion
Lease financing obligations 279,568 -
Pension contribution deferral
obligation 101,443 -
Other long-term debt 451,941 787,415
------- -------
Total long-term debt, less current
portion $832,952 $787,415

SOURCE YRC Worldwide Inc.

Investors: Sheila Taylor, YRC Worldwide Inc., +1-913-696-6108,
sheila.taylor@yrcw.com; Media: Suzanne Dawson, Linden Alschuler & Kaplan,
+1-212-329-1420, sdawson@lakpr.com