Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — BB&T Capital Markets Transportation Conference 2009
13 slides from Yellow's conference presentation, Feb 11, 2009
Slide 1: Bill Zollars, Chairman, President & CEO, BB&T Capital Markets Transportation Conference
Exhibit 99.1 Bill Zollars Chairman, President & CEO BB&T Capital Markets Transportation Conference February 11, 2009
Slide 2: Brand Recognition
Brand Recognition YRC Worldwide is a $9 billion provider of global transportation services, transportation management solutions, and logistics management through a portfolio of successful brands. 2
Slide 3: 2008 – a Platform for Opportunity
2008 –a Platform for Opportunity • Last year was challenging for most industries, specifically transportation • Our scale and position in the market led to financial headwinds that ultimately accelerated some significant opportunities Integration of Yellow Transportation and Roadway, now marketed as
Slide 4: Financial Benefits
Financial Benefits • The actions put in place in 2008 exceeded our goal of $100 million of cost savings Unfortunately the economic recession overshadowed the benefits • The 2009 actions should result in even more improvements $200 million run rate by early in the fourth quarter from the National int
Slide 5: Integration Status
Integration Status Planning Stage First Wave Second Wave Combined numerous Smaller end-of-line Larger facilities & physical locations facilities distribution centers Focus on P&D and Focus on P&D and Dedicated team dock functions linehaul functions working on data conversion for 2 years Technology u
Slide 6: Integration Numbers
Integration Numbers Number of National Annual Run Rate Benefit Operations* (in millions) $200 704 $175 551 ~450 ~430 $75 $10 12/31/03 12/31/08 3/31/09 12/31/09 1Q09 2Q09 3Q09 4Q09 • After integration YRC will have more operations than either Yellow or Roadway had individually yetover250fewerthanatth
Slide 7: Integration Example
Integration Example Before Integration After Integration (2 Facilities, 2 Operations) (1 Facility, 1 Operation) Tucson, AZ Tucson, AZ R Y YRC Tucson, AZ - Actual Results: Before Integration After Integration Yellow Roadway YRC Change Management 4 3 5 -28.6% P&D Drivers 8 10 13 -27.8% Tractors 10 10
Slide 8: Tim Wicks, Executive Vice President & CFO
Tim Wicks Executive Vice President & CFO
Slide 9: Liquidity
Liquidity • 2008 highlights: • $185 million in free cash flow Free Cash Flow* (in millions) • Asset proceeds of $128 million Even in a $287 recession we • Reduced net debt* by $140 million can generate $253 $235 positive cash • $325 million of cash at 12/31/08 $185 • 2009 expectations: • Another $10
Slide 10: Capital Expenditures
Capital Expenditures • 2009 cap ex significantly less due Gross Capital Expenditures to integration (in millions) • Older equipment will be $378 $394 removed, enhancing average age of fleet $305 $246* • After $100 million of expected asset proceeds, net cap ex around $130 $30 million • We will conti
Slide 11: Bank Discussions
Bank Discussions • Discussions are progressing well and we still expectan to finalize amendment by mid-February • This will include the early renewal of our ABS facility • The banks are very supportive of our strategic initiatives to improve our financial condition and enhance our market position •
Slide 12: Summary
Summary • Despite the continued downturn in the economy, YRC has unique levers to enhance its market position and improve its financial condition The integration of Yellow and Roadway should significantly reduce our cost base while enhancing service to our customers The flexibilities in our labor ag
Slide 13: Forward-Looking Statements
Forward-Looking Statements • Thispresentation contains forward-looking statements withinthemeaning ofSection27AoftheSecurities Actof1933,asamended, andSection21EoftheSecurities Exchange Actof1934,asamended. Thewords“should,” “expectations,” “expect,” “can,”“will,”andsimilarexpressions areintended to
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