Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Investor Presentation (March 2010)
13 slides from Yellow's investor presentation, Mar 9, 2010
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation March 2010
Slide 2: Discussion Topics
Discussion Topics • Accomplishments • Operating Improvement • Cost Reductions • Capital Structure • Customer Confidence • Critical Success Factors 2
Slide 3: Accomplishments: Business Performance
Accomplishments Business - Performance • Integration of Yellow and Roadway legacy networks Right-sized to market volumes by removing redundant facilities Service improvement • Turnaround of Regional Transportation • Cost reductions Two labor contract amendments; market adjustment Equity awards Headc
Slide 4: Accomplishments: Balance Sheet
Accomplishments Balance - Sheet • Credit agreement amendments •Asset-backed securitization facility renewals • Liquidity self-help program $636- million • Sale of surplus property $133- million • Sale/Leasebacks $332 - million • Pension contribution deferrals $171- million • Debt-for-equity exchange
Slide 5: YRCW Consolidated Operating Trends
YRCW Consolidated Operating Trends EBITDA, as adjusted*, and Qtr/Qtr Revenue (EBITDA dollars in millions / % change in Qtr/Qtr Operating Revenue) • Improvement driven across all operating companies • Qtr/Qtr, and now Yr/Yr improvement • Lowering breakeven point • Improved service capabilities *EBITD
Slide 6: 2009 Performance / 2010 Cost Program
2009 Performance / 2010 Cost Program 2010 Cost Program, now $300 million • SG&A reductions • Safety improvements • Operational process improvements 2009 Performance •Successfully scaling headcount •Integration •Functional organization •Process improvements Note: 4Q09 as reported gross benefit $15 mi
Slide 7: Debt Reduction
Debt Reduction • Achieved a $217 million reduction in total balance sheet debt • Cash-based debt maturities reduced $536 million • New notes satisfy remaining notes obligation $217m $536m Note1: Cash-based maturities of $814M consist of: Remaining Notes $67M, IDB $6M, Pension Debt $153M, and Revolve
Slide 8: Outstanding Shares
Outstanding Shares • Note exchange increased our market cap by more than $400 million • Outstanding shares approximately 1 billion, after conversion of preferred stock • Expect to effect a reverse stock split during Q2, approved range is 25:1 to 5:1 • 12.30 Pro forma is prior to completion of the de
Slide 9: Customer Confidence
Customer Confidence • In January, an independent research firm conducted a survey of key transportation decision-makers and influencers across YRCW’s entire customer base to better understand: • Anticipated business volumes in 2010; and • Intent to use YRCW • 5,700 respondents • 83% are sole or shar
Slide 10: Customer Confidence
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Slide 11: Critical Success Factors
Critical Success Factors Factor Expectation or Potential Uncertainty Economic recovery Modest growth vs. no growth or decline Diesel prices Stable vs. run-up in price Return of customersTiming and degree of market share regained Cost initiatives On or better than target Revenue mix Rate and timing o
Slide 12: Forward-Looking Statements
Forward-Looking Statements Thispresentation containsforward-looking statements. Thewords“improvements,” “believe,” “will,”“expect,”“anticipate” andsimilarexpressions areintendedto identify forward-looking statements. The company’s future results could differ materially from any results projected in
Slide 13: Operating Income (Loss) to EBITDA, As Adjusted
Operating Income (Loss) to EBITDA, As Adjusted Operating Income (Loss) to EBITDA, as adjusted $ in millions Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Consolidated Operating revenue $ 1,929 $ 1,503 $ 1,328 $ 1,306 $ 1,146 Operating income (loss), as reported $ (335) $ (379) $ (300) $ (118) $ (95) Non-oper i