Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Debt Investor Presentation (November 2009)
12 slides from Yellow's debt investor presentation, Nov 17, 2009
Slide 1: Important Information about the Exchange Offer
Important Information about the Exchange Offer This communication is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any security. An exchange offer will only be made by means of a prospectus, a letter of transmittal and other offer documents, as de
Slide 2: Investor Presentation November 2009
Exhibit 99.1 Investor Presentation November 2009
Slide 3: Important Information About the Exchange Offer
IMPORTANT INFORMATION ABOUT THE EXCHANGE OFFER IMPORTANT INFORMATION ABOUT THEEXCHANGE OFFER This presentation is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any security. An exchange offer will only be made by means of a prospectus, a letter of
Slide 4: Discussion Topics
Discussion Topics Sequential Operating Improvement Labor Contract Cost Reductions/Performance Initiatives Liquidity Programs Bank Amendment and ABS Renewal Note Exchange 3
Slide 5: Sequential Operating Improvement
Sequential Operating Improvement YRC National Improvement Operating Income, Adjusted* Labor contract changes Q2 OI, adj National (Dollars in millions) Regional Logistics Q3 OI, adj Network resizing and stabilization YRC Regional Profitable - 108 Holland led turnaround - 48 -14 Q1: Eliminated overlap
Slide 6: Labor Contract
Labor Contract Ratification of labor contract changes Additional 5% wage reduction 18 months pension contribution cessation, no repayment Q3 reflects most but not all of the benefit $82 million benefit was realized Expect additional $35 million benefit $22 million in expense prior to ratifications d
Slide 7: Cost Reductions/Performance Initiatives
Cost Reductions/Performance Initiatives Functional Organization Structure Streamlines and speeds decision making; improves efficiencies 2011 Cost Reduction Goal of $200 Million Benefits beginning Q4 2009 Expect to be at $150 million annual run rate by end of 2009 Expect to be at the $200 million run
Slide 8: Liquidity Programs
Liquidity Programs Excess Property Sales $105 million through Q3; $125 million 2009 Sale/Leasebacks $305 million through Q3; $350 million 2009 2010 transactions will be done on opportunistic basis Pension Deferral $165 million at September 2009, net of $15 million in asset sales Represents debt obli
Slide 9: Bank Amendment and ABS Renewal
Bank Amendment and ABS Renewal Credit Facility Amendment 100% approval by all 18 lenders Facility remains at $950 million through 2012 Upon note exchange, the lenders will defer interest & fees through at least the end of 2010; $20 million per quarter Access to $106 million reserve, post note exchan
Slide 10: Note Exchange
Note Exchange Outstanding notes $536.8 million Address 2010 and 2012 maturities or put rights Reduce debt and improve capital structure Bank and pension fund amendments state 95% exchange requirement S-4 filed Initially issue combination of common and convertible preferred stock Assuming 100% exchan
Slide 11: People Said We Couldn't Do It!
People Said We Couldn’t Do It! Comprehensive plan milestones accomplished that critics said would not happen: Lenders agree to ‘self-help’ sale and sale leaseback real estate programs Banks give up their collateral to pension plans who agree to defer contributions Union employees ratify labor contra
Slide 12: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements This presentation contains forward-looking statements. The words “believe,” “will,” “expect,” “anticipate” and similar expressions are intended to identify forward-looking statements. It is important to note that any exchange will be subject to a
YRC Worldwide — Debt Investor Presentation (November 2009) on 6ix