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YELLOW FREIGHT ANNOUNCES FIRST QUARTER FINANCIAL RESULTS

 YELLOW FREIGHT ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
 OVERLAND PARK, Kan., April 24 /PRNewswire/ -- George E. Powell III, president and chief executive officer of Yellow Freight System, Inc. of Delaware (NASDAQ: YELL), reported to shareholders today that operating revenue rose in the first quarter by 1 percent to $566,036,000 compared to the same period of 1991. Income, before the impact of a one-time charge, increased to $13,063,000, or $.47 per share, compared to $5,581,000, or $.20 per share, for the first quarter last year. The operating ratio for the company improved from 97.9 in the first quarter of 1991 to 95.5 in this year's first quarter. During the quarter the company recorded a nonoperating charge of $11,500,000, or $.41 per share, to after tax earnings. This charge, which had no impact on cash flow, is the cumulative effect of a change in the company's revenue recognition policy.
 Prior to January 1, 1992, the company's motor carrier subsidiaries recognized revenue when a shipment was picked up and expenses as incurred. They had used this method, which has been a common accounting policy throughout the transportation industry, since before the company went public in 1959. Recently the Emerging Issues Task Force of the Financial Accounting Standards Board concluded this method was no longer acceptable. Since January 1, 1992 revenue has been recognized on a percentage completion basis while expenses are recognized as incurred. Had this accounting change been applied retroactively, we estimate net income for the first quarter of 1991 would have been $2,758,000, or $.10 per share. The estimated full year 1991 net income would have been $28,454,000, or $1.01 per share, versus the $.95 per share that was reported.
 Powell told shareholders that, "During the first quarter of 1992 Yellow Freight System, Inc., the company's principal motor carrier subsidiary, succeeded in improving profitability by increasing yields and controlling costs. Because Yellow continues to resist additional price discounting, it has retained almost all the benefits of the January 1 rate increase." After adjusting for the fuel surcharge that averaged 1 percent in the first quarter of 1991, Yellow's revenue yields in the first quarter of 1992 were 5 percent higher than in the same quarter last year. The year-to-year comparison was helped by the fact that the rate increase in 1991 was not implemented until April.
 According to Powell, "Profit margins in this year's first quarter also reflect the efforts of Yellow's employees who have significantly reduced operating and administrative expenses while improving freight handling and terminal office efficiency. These accomplishments were achieved without any reduction in Yellow's traditionally high levels of customer service." There was a decline in both less-than-truckload (LTL) and total tonnage of 1 percent in the first quarter compared to the same quarter last year. Weak economic conditions and Yellow's strong commitment to improving account profitability were the primary causes for the decline.
 Effective April 1, in accordance with the current labor contract, wages and benefits for Yellow's employees represented by the International Brotherhood of Teamsters increased 3.5 percent.
 For 2 1/2 years Yellow has been discussing its desire to enter regional trucking markets with the Teamsters. On April 15 negotiations were reluctantly discontinued after the union publicly rejected Yellow's proposals that would have permitted entry into these markets.
 At their annual meeting today, the shareholders of Yellow Freight System, Inc. of Delaware reelected David H. Hughes and George E. Powell, Jr. and elected M. Reid Armstrong, executive vice president of the company, to the Board of Directors.
 STATEMENTS OF CONSOLIDATED INCOME
 Yellow Freight System, Inc. of Delaware and Subsidiaries
 For the Three Months Ended March 31, 1992 and 1991
 (Amounts in thousands except per share data)
 (Unaudited)
 First Quarter
 1992 1991
 OPERATING REVENUE $566,036 $560,757
 OPERATING EXPENSES:
 Salaries, wages and employees' benefits 382,610 376,820
 Operating expenses and supplies 68,944 81,027
 Operating taxes and licenses 21,200 21,006
 Claims and insurance 13,156 12,650
 Communications and utilities 8,275 8,265
 Depreciation 30,750 31,417
 Purchased transportation and rents 15,829 17,817
 Total operating expenses 540,764 549,002
 INCOME FROM OPERATIONS 25,272 11,755
 NONOPERATING EXPENSES:
 Interest expense 3,117 3,450
 Other, net 1,742 223
 Nonoperating expenses, net 4,859 3,673
 INCOME BEFORE INCOME TAXES 20,413 8,082
 PROVISION FOR INCOME TAXES 7,350 2,501
 INCOME BEFORE CUMULATIVE EFFECT
 OF ACCOUNTING CHANGE 13,063 5,581
 CUMULATIVE EFFECT OF CHANGE IN
 REVENUE RECOGNITION METHOD (11,500) ---
 NET INCOME $ 1,563 $ 5,581
 AVERAGE COMMON SHARES OUTSTANDING 28,086 28,090
 EARNINGS PER SHARE:
 Income before cumulative effect
 of accounting change $ .47 $ .20
 Net Income $ .06 $ .20
 OPERATING RATIO 95.5 97.9
 Pro forma amounts assuming the accounting
 change was applied retroactively:
 Net Income $ 13,063 $ 2,758
 Earnings Per Share $ .47 $ .10
 -0- 4/24/92
 /CONTACT: Phillip A. Spangler of Yellow Freight System, Inc. of Delaware, 913-345-1020/
 (YELL) CO: Yellow Freight System, Inc. of Delaware ST: Kansas IN: TRN SU: ERN


MC -- DV003 -- 2402 04/24/92 11:29 EDT
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Date:Apr 24, 1992
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