Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Morgan Keegan & Company Equity Conference (September 2006)
11 slides from Yellow's conference presentation, Sep 6, 2006
Slide 1: Morgan Keegan & Company Equity Conference
Exhibit 99.1 Morgan Keegan & Company Equity Conference Bill ZollarsChairman, – President & CEO YRC Worldwide Inc. September 7, 2006
Slide 2: What We Do
What We Do YRC Worldwide provides global transportation services, transportation management solutions, and logistics management through a portfolio of successful brands. We can handle any shipment, any where at any speed. 2
Slide 3: Company Facts
Company Facts Revenue $10 billion Employees 70,000 Locations 1,000 worldwide Trucks 27,000 Trailers 90,000 Annual tons 26.6 million Annual shipments 41.3 million Annual highway miles 2.0 billion 3
Slide 4: Strategic Actions
Strategic Actions September 2002 Spin-off of SCS Transportation (nonunion Saia and Jevic) December 2003 Acquisition of Roadway Corporation ($1.2 billion, 50% cash / 50% stock) May 2005 Acquisition of USF Corporation ($1.5 billion, 65% cash / 35% stock) September 2005 Finalized China-based freight fo
Slide 5: Service Portfolio
Service Portfolio Asset-based services: Comprehensive next day nationwide Extensive national networks Truckload Premium services Expedited Time Definite Exhibit Non-asset-based services: Contract logistics Global shipment management Truckload brokerage 5
Slide 6: Record Results
Record Results $10 $5.65-$5.85 $5.25 $8.7 $6.8 $3.96 $2.27 $2.6 $3.1 $1.03 2002 2003 2004 2005 2006E 2002 2003 2004 2005 2006E Reported Revenue Adjusted EPS* (in billions) rd 2006 is expected to be our 3 straight year of record revenue and EPS 2005 record EPS is greater than 5 times 2002, with more
Slide 7: Margin Trends
Margin Trends 6.4% 6.2% 5.3% 4.0% 4.0% 3.6% recession- 2.9% still solidly profitable 2.2% 2.1% 1.7% 1.1% -0.4% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006E In 2005 we posted a 93.8% operating ratio; a 90 basis point improvement over 2004. 2006 is expected to be around 430 basis point
Slide 8: Planned Cost Reductions
Planned Cost Reductions $450 $400 Calendar Year Benefit $285 (in millions) $155 $50 2004A 2005A 2006E 2007E 2008E Note: 2006 through 2008 are current company estimates Early cost reductions primarily related to consolidation of back-office functions, optimization of technology and purchasing leverag
Slide 9: Capital Structure
Capital Structure Debt to Capital NOPAT/ROCC (net of cash) Cost of Capital 11.4% 11.9% 11.8% ~11% 45.5% 41.5% ~37% 7.1% 6/30/05 6/30/06 12/31/06 2002 2003 2004 2005 2006E We expect to reduce debt by $100 million in 2006, with a debt-to-cap near our targeted range of 35%. th For the 4 straight year,
Slide 10: 2006 Guidance
2006 Guidance EPS $5.65 - $5.85 per share Revenue $10 billion Depreciation/amortization $300 million Interest expense $90 - $92 million Effective tax rate 38.3% Diluted shares 59 million Gross cap ex $375 - $400 million We expect record results to continue in 2006 with double-digit revenue and solid
Slide 11: Forward-Looking Statements
Forward-Looking Statements This presentation, and oral statements made regarding the subjects of this presentation, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The
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