Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Stephens' Fall Investment Conference 2008
16 slides from Yellow's conference presentation, Nov 19, 2008
Slide 1: Stephens' Fall Investment Conference
Exhibit 99.1 Bill Zollars Chairman, President & CEO Stephens’ Fall Investment Conference November 19, 2008
Slide 2: Brand Recognition
Brand Recognition YRCWorldwide generates morethan$9billionofrevenuethrough globaltransportation services, transportationmanagement solutions, andlogisticsmanagement undera portfolioofsuccessful brands. 2
Slide 3: YRC Worldwide Strategy
YRC Worldwide Strategy Accelerating Our National Integration De-levering & Liquidity Initiatives One operating company with a combined Early note redemptions national network Sale-leaseback strategies for core operating Further opportunities for growth facilities Teamster collaboration Cash proceeds
Slide 4: Accelerating Our Integration
Accelerating Our Integration • What does it mean? YellowandRoadway networks willbecombined,significantly reducing fixedcosts andenhancing serviceperformance Localsalesteamsjoinforcestosellservicesofbothbrands • Why now? Economic downturn hascreatedenoughcapacityinthenetworks tointegrate withoutinter
Slide 5: Integration Approach
Integration Approach Planning Stage First Wave Second Wave Combined numerous Smaller end-of-line Larger facilities & physical locations facilities distribution centers Dedicated team Focus on P&D and Focus on P&D and working on data dock functions linehaul functions conversion for 2 years Full proce
Slide 6: What Makes Our Integration Different?
What Makes Our Integration Different? Yellow + Roadway Previous LTL Integrations Combined back-offices, exchanged technology & best practices Created a common management team Combined corporate sales team Negotiated key labor flexibilities & aligned National networks Phased-in approach to integrate
Slide 7: National Networks
National Networks Yellow and Roadway networks before integration Yellow Terminals Roadway Terminals National network after integration YRC Inc. Terminals 7
Slide 8: Customer Support for Integration
Customer Support for Integration • Manyofourlargercustomers haveexpressed supportforthe benefitsoftheintegration, including amongothers: Wal-Mart General Electric Wolseley-Ferguson Hallmark Levitron L’Oreal Tomkins Siemens Embarq 8
Slide 9: Integration Financial Targets
Integration Financial Targets Amounts are cumulative 4Q08 1Q09 2Q09 3Q09 4Q09 Consolidated Operations 80 120 150 330 450 Facilities Eliminated (30) (70) (90) (130) (150) * Annual Run Rate Savings (millions) $ - $ 10 $ 50 $ 120 $ 200 * After initial integration is complete, we will continue to optimi
Slide 10: Integration Example Wichita, KS
Integration Example Wichita, KS Kansas Kansas City City KANSAS KANSAS Linehaul Linehaul R Y YRC Before Integration After Integration (2 Facilities, 2 Operations) (1 Facility, 1 Operation) • Current labor cost opportunity for P&D, dock and linehaul is around $3 billion annually 10
Slide 11: Integration Example Kansas City Metro
Integration Example Kansas City Metro Kansas Kansas City City YRC R Y YRC KANSAS MISSOURI KANSAS MISSOURI Before Integration After Integration (Large, overlapping coverage areas) (Condensed, strategic coverage areas) 11
Slide 12: Other Cost Savings Initiatives
Other Cost Savings Initiatives • $50millionimprovement attheRegional companies 3Q08operatingincomeimproved by$23millioncomparedto1Q08 Whenaccounting forcontractual rateincreases of$15millionandvolume/yield reductions of$12million,theRegional companiesimproved byatleast$50million • $50millionsavingsi
Slide 13: De-Levering Initiatives
De-Levering Initiatives • Continual reduction in debt $1.49 • Reduced net debt by $95 million since year end $1.28 $1.23 $1.18 • Expect at least an additional <$1.08 $100 million in fourth quarter • Evaluating other opportunities • Sale/leaseback packages • Debt-for-debt exchanges 12/31/200512/31/20
Slide 14: Leverage Ratio
Leverage Ratio LTM as of Bank Limit 3.75x 9/30/08 (in millions) Book EBITDA* $ (1,243.5) Adjustments: Impairment 1,604.9 Reorganization** 20.0 Property gains (16.3) Other 7.5 a 2.50x 2.79x 2.99x 3.18x Bank EBITDA 372.6 Total Book Debt 1,183.7 Adjustments 2.1 b Bank Debt $ 1,185.8 4Q07 1Q08 2Q08 3Q08
Slide 15: Summary
Summary • Despitethedownturn intheeconomy, YRChasuniqueleversto enhanceitsmarketpositionandimproveitsfinancialcondition • Nationalintegration isunderwayandproceedingverywell Wecontinuallyevaluatethetimelineandaccelerate whereit makessense Customerresponsehasbeenveryfavorable Teamstercollaboration ha
Slide 16: Forward-Looking Statements
Forward-Looking Statements • Thispresentation containsforward-looking statements withinthemeaningof Section27Aof theSecurities Actof 1933,asamended, andSection21E of theSecurities Exchange Actof 1934,asamended. Thewords"expect,"“expected,” "will,”“projected,” andsimilarexpressionsareintendedto ident
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