Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Cowen Conference 2015
18 slides from Yellow's conference presentation, Sep 10, 2015
Slide 1: YRC Worldwide Inc. Cowen Conference
Exhibit 99.1 YRC Worldwide Inc. Cowen Conference September 10, 2015 1
Slide 2: Disclaimer
Disclaimer The information in this presentation is summary in nature and may not contain all information that is important to you. The Recipient acknowledges and agrees that (i) no representation or warranty regarding the material contained in this presentation is made by YRC Worldwide Inc. (the “Co
Slide 3: Introduction
Introduction YRC Worldwide is one of the largest less-than-truckload (LTL) carriers in North America and generates approximately $5B of revenue by providing services under a portfolio of four subsidiaries Approximately 24% of the public carrier market share by tonnage Providing the broadest coverage
Slide 4: YRC Freight and Regional Transportation
YRC Freight and Regional Transportation YRC Freight YRC Regional Formed by the combination of Yellow Transportation Three distinct carriers serving separate regions and Roadway Express – Holland, Reddaway and New Penn – Well established brands with long histories – Roadway acquired in 2003 and integ
Slide 5: Diversified Customer Base
Diversified Customer Base Long-standing and stable relationships with a large, diversified base of customers – Customers range from Fortune 1000 global corporations to small, privately-held businesses – Top 5 customers account for ~10% of total revenue Recognized by customers as leading operator – R
Slide 6: Largest LTL Operator in North America
Largest LTL Operator in North America Market share stability Market Share by Tonnage (Public LTL 24% market share by tonnage (public LTL Carriers Only) 23.7% 23.7% 25.0% carriers only) 20.0% 16.2% 13.1% 15.0% YRC Freight and YRC Regional’s combined 10.0% 5.6% 6.2% 9.1% networks cover all 50 states,
Slide 7: YOY Revenue per Shipment and Revenue per cwt
YOY Revenue per Shipment and Revenue per cwt YRCF Revenue per Shipment Regional Revenue per Shipment (x-FSC) (x-FSC) $260 $250 $155 $152 $250 +9.8% $150 +6.5% $240 $143 $228 $145 $230 $220 $140 $210 $135 2Q14 2Q15 2Q14 2Q15 YRCF Revenue per cwt (x-FSC) Regional Revenue per cwt (x-FSC) $21.00 $20.70
Slide 8: YOY Volume
YOY Volume YRC Freight Shipments per Day Regional Shipments per Day 50.00 48.35 50.00 -9.1% 43.95 44.91 -4.7% 45.00 45.00 42.82 40.00 40.00 35.00 35.00 2Q14 2Q15 2Q14 2Q15 YRC Freight Tonnage per Day Regional Tonnage per Day 29.00 34.00 32.86 28.29 -3.5% 31.71 -6.2% 32.00 27.00 26.53 30.00 28.00 25.
Slide 9: Segment Adjusted EBITDA
Segment Adjusted EBITDA ($ in millions) YRCF 2Q Adjusted EBITDA Regional 2Q Adjusted EBITDA $60.0 $56.6 $60.0 $53.1 +34.4% $50.0 $50.0 $42.1 $40.0 +147.0% $40.0 $30.0 $21.5 $30.0 $20.0 $20.0 $10.0 $10.0 $.0 $.0 2Q14 2Q15 2Q14 2Q15 YRCF LTM Adjusted EBITDA Regional LTM Adjusted EBITDA $200.0 $165.0 $
Slide 10: YRCW Adjusted EBITDA
YRCW Adjusted EBITDA ($ in millions) 2Q Adjusted EBITDA 2Q Adjusted EBITDA Margin $120.0 $109.4 10.0% 8.7% $100.0 +$46.4M 8.0% +390bps $80.0 $63.0 6.0% 4.8% $60.0 4.0% $40.0 2.0% $20.0 $.0 0.0% 2Q14 2Q15 2Q14 2Q15 LTM Adjusted EBITDA LTM Adjusted EBITDA Margin $350.0 $326.8 7.0% 6.6% $300.0 +120.3M
Slide 11: Leverage Ratio
Leverage Ratio Funded Debt / Adjusted EBITDA 14.0x 11.9x 12.0x 3.6x reduction 10.0x since 2010 8.5x 8.0x 5.8x 6.0x 5.3x 4.6x 3.9x 4.0x 3.3x 2.0x 0.0x 2010 2011 2012 2013 2014 LTM LTM 1Q15 2Q15 Note: Funded debt balances based on par value Steady progress every year since 2010 – Lowest implied levera
Slide 12: Opportunity for EBITDA Margin Growth
Opportunity for EBITDA Margin Growth Today, despite YoY improvement, YRC Freight’s LTM 2Q15 EBITDA Margin EBITDA margin still lags the industry 14.0% – 2Q15 = 5.9% 12.0% 10.5% – LTM 2Q15= 4.5% 10.0% 2.2% 8.0% 7.2% YRC Regionals while better still lag the industry 12.4% 6.0% 2.7% on a current basis a
Slide 13: Re-investment in the Business
Re-investment in the Business After several years of curtailing investment in the business, CapEx Equivalent capital spending has resumed $250 $213 Fleet replenishment through operating leases beginning in 2013 $200 $179 Increased leasing activity due to greater financing options $137 $142 $150 $126
Slide 14: YRC Freight 2015 Initiatives
YRC Freight 2015 Initiatives Safety Service o Additional field safety trainers and the deployment o Driver recruiting, hiring and training through of in-cab technology that includes adaptive cruise military partnership, dock to drive program, and control, stability control and lane departure central
Slide 15: YRCW – Investment Thesis
YRCW –Investment Thesis Strong Industry Position Turnaround National Still Has Legs Footprint / Via Margin Tremendous Expansion Asset Base Experienced Diversified Management Business Team Model Stable Capital Structure 15
Slide 16: Appendix
| Appendix YRC Worldwide
Slide 17: EBITDA Reconciliation Consolidated
EBITDA Reconciliation Consolidated – YRCW Consolidated 2Q15 2Q14 LTM 2Q15 LTM 2Q14 Reconciliation of net loss to adjusted EBITDA: Net income (loss) $ 26.0 $ (4.9) $ 11.8 $ (119.0) Interest expense, net 27.9 31.6 115.0 172.4 Income tax expense (benefit) 2.3 (7.9) (0.4) (43.4) Depreciation and amortiz
Slide 18: EBITDA Reconciliation Segment
EBITDA Reconciliation Segment – YRC Freight segment 2Q15 2Q14 1H15 1H14 LTM 2Q15 LTM 2Q14 Reconciliation of operating income (loss) to adjusted EBITDA: Operating income (loss) $ 22.5 $ (0.3) $ 22.7 $ (32.8) $ 56.0 $ (57.9) Depreciation and amortization 23.3 24.9 47.2 49.6 95.6 102.8 EBITDA 45.8 24.6