Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Investor Presentation (November 2010)
20 slides from Yellow's investor presentation, Nov 16, 2010
Slide 1: Investor Presentation November 2010
Exhibit 99.1 Investor Presentation November 2010
Slide 2: Overview
Overview • Opening Comments • Strategy • Stakeholder Support • New Labor Contract • Operating Improvements and Key Milestones • Liquidity • Summary 2
Slide 3: Business Segments
Business Segments • The company’s National and Regional networks provide the most comprehensive North American network and flexible solutions to meet its customers’ diverse transportation needs • Sale of YRC Logistics allows YRCW to focus on its core businesses • Customers maintain access to logisti
Slide 4: National and Regional Networks
National and Regional Networks Strategy:Achieve competitive cost base and enhanced customer mix management, resulting in improved earnings and cash flows 4
Slide 5: Stakeholder Support
Stakeholder Support • Stakeholders alignment to ensure future success • Liquidity programs • Sale of assets • Deferral of pension contributions • Lender flexibility • Addressed 2010 bond obligations • Converted $470 million of bonds to equity • Refinanced remaining bonds with $70 million of new 6% n
Slide 6: Labor Contract Overview
Labor Contract Overview • Extended by two years from 2013 to March 31, 2015 • Re-entry of YRCW companies into multi-employer pension plans in June 2011, at a more affordable level of contribution • Sustains the current competitive cost structure and improves future operating leverage, as workchanges
Slide 7: Key Financial Recovery Milestones…to Date
Key Financial Recovery Milestones…to Date • 2Q and 3Q 2009sequential – improvement in adjusted EBITDA • 4Q 2009 s–equential and year-over-year improvement in adjusted EBITDA • March 2010volume – growth returns • April 2010 breakeven – adjusted EBITDA • 2Q 2010 p– ositive adjusted EBITDA quarter, fir
Slide 8: Year-Over-Year Operating Improvement
Year-Over-Year Operating Improvement Operating Loss Adjusted EBITDA (in millions) (in millions) • Cost actions, price discipline, and customer mix management • Expect YRCW to be adjusted EBITDA positive in 4Q 2010 Adjusted EBITDA is a non-GAAP measure that reflects the company’s earnings before inte
Slide 9: Tonnage Per Day Trends
Tonnage Per Day Trends • Sequential volume improvement trends • National up 1.2% from 2Q 2010; second consecutive sequential increase • Regional up 2.1% from 2Q 2010; year-over-year up 9% • Market share stabilized during 2Q & 3Q; now positioned for future profitable growth 9
Slide 10: Liquidity
Liquidity • Stable liquidity position • Proactive actions to fund working capital for revenue growth • DSO improvement 3 days year-over-year • Renewal of $325 million asset-backed securitization through October 2011 Note: Revolver reserves are subject to the terms of the company’s credit agreement w
Slide 11: Summary
Summary • Strategic focus on core business • Improving operational performance • Stakeholder alignment • Customer confidence 11
Slide 12: Appendix
Appendix YRC Worldwide MAKING GLOBAL COMMERCE WORK, BY CONNECTING PEOPLE, PLACES AND INFORMATION,
Slide 13: 2010 Expectations
2010 Expectations • YRCW positive adjusted EBITDA and be well within credit agreement financial covenants in 4Q 2010 • Gross capital expenditures of $20 to $30 million • Excess property sales of $70 to $80 million • Sale and financing leasebacks approximately $50 million • Effective income tax rate
Slide 14: Common Share Recap Pre-Split and Post-Split
Common Share Recap Pre-Split and Post-Split Authorized Outstanding 6% Notes Options/RSU’s Available (1) (2) (3) Jun 30 2 billion 1.124 billion 202 million/ 350 million 324 million $70M Post 1:25 Split Jun 30 80 million 45 million 8 million 14 million 13 million (pro forma) Sep 30 80 million 47.5 mil
Slide 15: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA SUPPLEMENTAL FINANCIAL INFORMATION YRC Worldwide Inc. and Subsidiaries (Amounts in thousands) (Unaudited) For the Three and Nine Months Ended September 30 Three Months Nine Months 2010 2009 2010 2009 Operating revenue $ 1,136,836 $ 1,203,977 $ 3,243,081 $ 3,820,916 Opera
Slide 16: 2010 Consolidated Operating Cash Flows
2010 Consolidated Operating Cash Flows YRC Worldwide Inc. and Subsidiaries (Amounts in thousands) (Unaudited) 1Q 2010 2Q 2010 3Q 2010 Reconciliation of Adjusted EBITDA to net cash from (used in) operating activities: Adjusted EBITDA $ (51,034) $ 39,917 $ 44,334 Add back amounts included in Adjusted
Slide 17: Forward-Looking Statements
Forward-Looking Statements Thispresentation containsforward-lookingstatements withinthe meaningof Section27Aof theSecuritiesActof 1933,as amended, andSection21Eof the SecuritiesExchangeActof 1934,as amended.Thewords“believe,”“expect,”“continue,” andsimilarexpressions areintendedto identifyforward-lo
Slide 18: Forward-Looking Statements
Forward-Looking Statements limitation)to terminate, amendorrenegotiatepriorcontractualcommitments, the accuracyof the company’s estimates of itsspendingrequirements,changes in thecompany’sstrategicdirection,theneedto replaceanyunanticipated lossesin capitalassets,approvalof theaffectedunionizedemplo
Slide 19: Forward-Looking Statements
Forward-Looking Statements • Thecompanyexpectsto begindiscussions to restructure thedebtunderits creditagreement, whichmayincludeadditionalcapitalinvestment (debtand/or equity)bythirdpartiesin a recapitalization. Thenewlaborcontractprovidesthefollowing: o TNFINCwouldhavetherightto approve thevarious
Slide 20: Forward-Looking Statements
Forward-Looking Statements Thecompany’sexpectations regardingthe continuedsupportof its stakeholders are onlyits expectations regardingthismatter. Whetherthe company’s stakeholders continueto supportthecompanyincluding(amongotherthings)to continuedeferralarrangements in 2011orto restructure obligati
YRC Worldwide — Investor Presentation (November 2010) on 6ix