Yellow Corporation · OTC:YELLQ
Yellow — Investor Presentation (November 2021)
23 slides from Yellow's investor presentation, Nov 30, 2021
Slide 1: Yellow Corporation Investor Presentation Fourth Quarter 2021
Yellow Corporation Investor Presentation Fourth Quarter 2021 EX 99.1
Slide 2: Disclaimer and forward-looking statements
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 Yellow Corporation (the “Company” or “
Slide 3: Yellow At a Glance
Yellow At a Glance Premium LTL transportation & Logistics Services Provider 2nd largest 5th largest $5.0B ~30,000 ~17.5M 317 ~13,500 ~42,000 LTL Carrier in North America Trucking Company in North America Revenue LTM 3Q21 Employees Shipments Transported LTM 3Q21 Terminals Tractors Trailers
Slide 4: Roadmap to One Yellow
Pre-Transformation Super-Regional Carrier Integrated nationwide LTL service YELLOW Service Centers Border Gateway Legend Roadmap to One Yellow Simplify Sales Team Streamline enterprise-wide sales team to provide customers a single point of contact for all brands Realign Operational Leadership Struct
Slide 5: Next Step: Pick Up & Delivery
Next Step: Pick Up & Delivery In the Northeast, we have 60 terminal operations in the “Shared Space” between New Penn (regional service) and YRC Freight (longhaul service) Future state will streamline operations and reduce duplicity in pickups and delivery operations Customer benefit is one driver c
Slide 6: Example of Network Optimization (continued)
New Penn Billerica (regional) and YRC Freight Boston (longhaul) scenario. Terminals are 11.3 miles from each other Once optimization is complete, efficiencies are gained through improved asset utilization and lower overall miles Yellow Billerica, MA Current State After P&D Optimization Yellow Boston
Slide 7: Expanded Regional Next-Day Service
San Antonio Little Rock Richmond Moving to a super-regional network includes expanding regional next-day service that leverages YRC Freight’s national coverage Offers customers faster transit times and a more streamlined supply chain Expanded Regional Next-Day Service
Slide 8: Multi-employer pension plans
Approximately 79% of employees are represented by the IBT and covered by collective bargaining agreements 2021 total annual cash contributions approximately $134 million Contributions made to 29 multi-employer pension plans with various levels of underfunding. Multiemployer Pension plans are separat
Slide 9: Single-Employer Pension Plans (Non-Union)
Certain employees not covered by collective bargaining agreements Plans closed to new participants effective January 1, 2004 with benefit accrual for active employees frozen effective July 1, 2008. As of December 31, 2020 the net funded status is fully funded, meaning aggregate fair value of the ass
Slide 10: Financial Results
Financial Results Revenue Operating Income (in millions) (in millions) $62 $4,977 S31 $4,871 $53 : $4,509 $4,514 2019 3020 LTM 2020 3021 LTM 2019 3020 LTM 2020 3021 LTM aC
Slide 11: Financial Results
Financial Results Adjusted EBITDA (in millions) $440 $409 = Cash and Cash Equivalents and Managed Accessibility (in millions) $454 3021 LTM 12/31/2019 9/30/2020 12/31/2020 9/30/2021
Slide 12: Reinvesting in the Business
$480 - $530 CapEx Equivalent as a percentage of revenue 2020 CapEx Equivalent includes less than $1M of capital value of leases (a) (a) (a) (b) 2021 capital expenditures guidance range of $480 million - $530 million includes investments in tractors, trailers, technology, box trucks, containers, lift
Slide 13: CARES Act Funding
Equity U.S. Treasury received 15.94 million shares of common stock and is the Company’s largest shareholder with approximately 30% of outstanding shares Debt U.S. Treasury loan provided two tranches totaling $700 million in aggregate principal commitments Tranche A for $300 million covered deferred
Slide 14: Capital Structure Overview
Term Loan Lease Financing Obligations CDA Notes UST Tranche A UST Tranche B (in millions) UST Tranche A carries a variable interest rate based on the Eurodollar rate, which is currently determined by the 1, 2, 3 or 6-month USD Libor with a floor of 1.0%, plus a fixed margin of 3.5%. 1.5% is paid in
Slide 15: Yellow Value Proposition
Strong industry position with one of the largest, most comprehensive logistics and LTL networks in North America with local, regional, national and international capabilities Multi-year enterprise transformation to One Yellow on schedule for completion in 2022, expected to create operational efficie
Slide 16: Appendix
(YELLOW / Appendix
Slide 17: Cash Flow
(c) Free cash flow = operating cash flow less acquisitions of property and equipment, net of cash proceeds from disposals During FY 2019, the Company recognized cash proceeds on the sale of terminals of approximately $22 million During FY 2020, the Company recognized cash proceeds on the sale of ter
Slide 18: Capital Structure and Labor Timeline
Largest debt instruments and the labor agreement mature at various dates in 2024 IBT March ABL Facility January Term Loan June CDA Notes December UST Loan September Capital Structure and Labor Timeline
Slide 19: LTM Adjusted EBITDA Covenant
(in millions) LTM Adjusted EBITDA Covenant $248 LTM as of 3Q21 COVENANT WAIVER THROUGH 3Q21
Slide 20: Operating Statistics – Third Quarter
(a) Percent change based on unrounded figures and not the rounded figures presented Operating Statistics – Third Quarter
Slide 21: Operating Statistics – First Three Quarters
(a) Percent change based on unrounded figures and not the rounded figures presented Operating Statistics – First Three Quarters
Slide 22: Adjusted EBITDA Reconciliation
(in millions) Adjusted EBITDA Reconciliation
Slide 23: Investor Relations contact
www.myyellow.com Tony Carreño Vice President - Investor Relations (913) 696-6108 investor@myyellow.com