Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Debt Investor Presentation (November 2009)
16 slides from Yellow's debt investor presentation, Nov 10, 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 11, 2009
Exhibit 99.1 Tim Wicks President & Chief Operating Officer Investor Presentation November 11, 2009
Slide 3: Important Information about the Exchange Offer
IMPORTANT INFORMATION ABOUT THE EXCHANGE OFFER • IMPORTANT INFORMATION ABOUT THE EXCHANGE 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 lett
Slide 4: Discussion Topics
Discussion Topics Comprehensive Plan / Key Stakeholders Liquidity Programs Bank Amendment and ABS Renewal Note Exchange Operating Environment Labor Contract Cost Reductions/Performance Initiatives Sequential Operating Improvement Legislation Proving the Critics Wrong 3
Slide 5: Comprehensive Plan / Key Stakeholders
Comprehensive Plan / Key Stakeholders Start with balance sheet liquidity, moving to operating liquidity Restore financial strength Position company for future success Keystakeholders– withthesupportofkeystakeholders, we’veconsistently proven critics wrong by executing our comprehensive plan. Custome
Slide 6: 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 Program $165 million at September 2009, net of $15 million in asset sales Represents d
Slide 7: 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 No EBITDA covenan
Slide 8: Note Exchange
Note Exchange Address upcoming maturities Reduce debt and improve capital structure Potential to improve credit rating, post exchange Reduction in letters of credit to support work comp programs Resulting improvement in liquidity Outstanding notes Total par: $536.8 million USF notes: $150 million, d
Slide 9: Operating Environment
Operating Environment Economy Remains Challenging Stabilized, no sustained positive momentum No expectation of near-term growth Believe we have seen the bottom Volume Trends Stabilized since first quarter Relatively small variations, beyond seasonal movements, in month-over- month sequential changes
Slide 10: Labor Contract
Labor Contract Ratification of labor contract changes during the third quarter Additional 5% wage reduction, aggregate 15%, in August and September Pension contribution cessation for 18 months, contributions resume in 2011 No repayment is required for pension contribution cessation Q3 reflects most
Slide 11: 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 expected to begin Q4 2009 Expect to be at $150 million annual run rate by end of 2009 Expect to be at the $200 mil
Slide 12: Sequential Operating Improvement
Sequential Operating Improvement Q3 operating results improved as compared to Q2 Operating Income adjusted to exclude net gain Operating Income, adjusted * (Dollars in millions) on disposals improved $172 million Operating Cash Flow improved $77 million Q2 OI, adj National Regional Logistics Q3 OI,
Slide 13: Legislation
Legislation Pension Reform We remain interested in discussing the treatment of “orphans” We currently fund the pension obligations for thousands of participants who never worked for YRCW Bi-partisan legislation introduced • The Preserve Benefits and Jobs Act of 2009, sponsored by Rep. Earl Pomeroy (
Slide 14: 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 adjust covenants in credit agreements Lenders agree to ‘self-help’ sale and leaseback real estate program Company successfully executes on excess real estate sales and sale leaseback
Slide 15: Proving the Critics Wrong
Proving the Critics Wrong Upcoming milestones that will raise critics comments Successful completion of note exchange Improvement in credit rating, post note exchange Further improvement in operating results, creating operating liquidity Market share recovery Pension reform Asa resultofsuccessfully
Slide 16: 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
YRC Worldwide — Debt Investor Presentation (November 2009) on 6ix