Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — JPMorgan Aviation & Transportation Conference 2009
17 slides from Yellow's conference presentation, Mar 11, 2009
Slide 1: Bill Zollars, Chairman, President & CEO - JPMorgan Aviation & Transportation Conference
Exhibit 99.1 Bill Zollars Chairman, President & CEO JPMorgan Aviation & Transportation Conference March 11, 2009
Slide 2: Overview
Overview YRC Worldwide is a $9 billion provider of global transportation services, transportation management solutions, and logistics management with nearly 53,000 employees worldwide. 2
Slide 3: Operating Environment Update
Operating Environment Update • Economy remains very weak No significant signs of near-term improvement • Volume declines have accelerated across our business units Primarily a function of the economy and its impact on our customers Business mix improvements also accelerated volume declines, though i
Slide 4: Internal Initiatives
Internal Initiatives • Integration of Yellow Transportation and Roadway, now YRC Largest, most comprehensive service offering in the industry $200 million run-rate operating income improvement by early in the fourth quarter • Union and nonunion compensation reductions $220 $- 250 million annual cost
Slide 5: YRC Integration
YRC Integration • Yellow and Roadway were fully integrated on March 1 • One national network with nearly 450 service centers throughout the US, Canada and Mexico • One workforce of around 35,000 • One sales force with over 800 professionals • One integrated technology platform 5
Slide 6: Integration Targets
Integration Targets Number of National Annual Run Rate Benefit 704 Operations* (in millions) $200 $175 551 ~450 ~430 $75 $10 12/31/2003 12/31/2008 3/1/2009 12/31/2009 1Q09 2Q09 3Q09 4Q09 • YRC has more operations than either Yellow or Roadway had individually yet over 250 fewer than at the original
Slide 7: Integration Details
Integration Details 12/31/08 12/31/09 Actual Expected* Facilities: 521 430 Employees: 37,000 34,000 Trucks: 16,700 14,000 Trailers: 62,500 53,000 Annual linehaul miles:1.3 billion 1.2 billion • Significant reductions occurred around the March 1 cutover, including nearly 2,000 employees and 70 facili
Slide 8: Integration Dashboard
Integration Dashboard Technology Conversion Labor Relations Physical Asset Movement ProductivitiesLinehaul/P&D – Visibility on Transition Shipments (Yellow -> YRC) Volume of Customer Calls Weather Impact on Network Stability • Overall the integration is going as expected with significant progress ea
Slide 9: Employee Retention
Employee Retention • Concerns have been raised Voluntary Turnover* about employee morale based 2.2% Compensation reductions on questionable sources 1.9% 1.8% implemented 1.6% • These charts show recent, statistically valid employee data 1.2% • As a reminder, our union employees overwhelmingly voted
Slide 10: Tim Wicks, Executive Vice President & CFO
Tim Wicks Executive Vice President & CFO
Slide 11: Liquidity
Liquidity • 2008 highlights: Free Cash Flow* $185 million in free cash flow (in millions) Even in a Asset proceeds of $128 million $287 recession we $253 can generate $235 positive cash Reduced net debt* by $140 million $185 $325 million of cash at 12/31/08 • 2009 expectations: Another $100 million
Slide 12: Capital Expenditures
Capital Expenditures • 2009 cap ex significantly less due Gross Capital Expenditures to integration (in millions) Older equipment in process of $378 $394 being removed, enhancing average age of fleet $305 $249* • After $100 million of expected asset proceeds, net cap ex around $130 $30 million • We
Slide 13: Recent Bank Amendment
Recent Bank Amendment • Finalized on February 12 with support of entire lending group • Covers revolving credit facility and ABS facility • Lenders are supportive given our “self-help” steps Improvements are entirely based on our internal actions We did not assume any economic improvement in our pro
Slide 14: Liquidity & Debt Pay Down
Liquidity & Debt Pay Down (in millions) Potential Liquidity Transactions YRCW Retains Bank Debt Repayment $810 = $510 + $300 NAT Company Retains 100% $150 $150 Company Retains 100% Captive $160 $160 Next $300 $150 $150 Company Retains 50% of Asset Sales $50 Next $200 $150 of Asset Company Retains 25
Slide 15: Financial Covenants/Interest
Financial Covenants/Interest • Financial Covenants No leverage ratio or minimum interest coverage until first quarter 2011 Minimum cumulative EBITDA starting 2nd quarter 2009 • Minimum $45 million in 2nd quarter; we expect $60 million of D&A st • Noearningscovenantinthe1 quarter2009 Maximum capital
Slide 16: Summary
Summary • We feel good about the bank amendment and the flexibilities it provides to help us manage through the recession • Recent assessments by “insiders” support management’s conviction Our lending group confirmed their support with the recent amendment Our external auditors issued a clean opinio
Slide 17: Forward-Looking Statements
Forward-Looking Statements • This presentation 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 “should,” “anticipate,” “expect,” “can,” “will,” and similar e
YRC Worldwide — JPMorgan Aviation & Transportation Conference 2009 on 6ix