Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Investor Presentation (May 2010)
14 slides from Yellow's investor presentation, May 25, 2010
Slide 1: Investor Presentation
Exhibit 99.2 Investor Presentation May 2010
Slide 2: Discussion Topics
Discussion Topics • New Directors and Annual Shareholder Meeting • Multi-Employer Pension Reform • Operating Improvement • Cost Reductions • Capital Structure • 2010 Expectations 2
Slide 3: New Directors / Annual Shareholder Meeting
New Directors / Annual Shareholder Meeting Effective May 11, 2010, the Board of Directors elected Marnie S. Gordon, Beverly K. Goulet, Mark E. Holliday, John A. Lamar, Eugene I. Davis, Dennis E. Foster and William L. Trubeck the to fill vacancies left by the resigning directors Teresa Ghilarducci ha
Slide 4: Multi-Employer Pension Reform
Multi-Employer Pension Reform • Temporary relief in the form of amortization extension is expected to pass soon • The joint labor management coalition has conducted hundreds of Capitol Hill visits • Congress hears our message, and the issue has bipartisan support • Senate HELP Committee hearing set
Slide 5: 2010 Consolidated Operating Trends
2010 Consolidated Operating Trends • Sequential improvement continues into April • April at adjusted EBITDA break even • Expect YRCW adjusted EBITDA positive in 2Q10 • Expect Regional segment to be operating income positive in 2Q10 • Volume growth, revenue mix management and cost actions Adjusted EB
Slide 6: Total Headcount Scaling / 2010 Cost Out
Total Headcount Scaling / 2010 Cost Out 2010 Cost OutRun – Rate • SG&A reductions • Operational process improvements • Safety improvements • Successfully scaling headcounts • Streamlined organization • Process improvements Note: Above 2010 cost out program is incremental to 3Q09 results; 4Q09 and 1Q
Slide 7: Debt / Liquidity
Debt / Liquidity • Debt is primarily lender borrowings and letters of credit obligations • Credit agreement matures August 2012 • 364-day asset-backed securitization facility matures October 2010 • New block requires two-thirds lender vote • Liquidity required to fund working capital to support sequ
Slide 8: Common Shares and Post-Split Range
Common Shares and Post-Split Range • Shareholder-approved reverse stock split range of ratios is 1:25 to 1:5 • Timing and ratio at discretion of the YRCW Board Authorized Outstanding $70M Options /RSU’s Teamster Remaining @ 3.31.2010 6% Notes @ 12.31.2009 Options @ 3.31.2010 (1) $.43/share (3) $.48/
Slide 9: 2010 Expectations
2010 Expectations • YRCW positive adjusted EBITDA in 2Q • Regional Transportation segment operating income positive in 2Q • Gross capital expenditures of approximately $50 million • Real estate sales in the range of $25 to $50 million • Sale and financing leasebacks of up to $50 million, primarily t
Slide 10: Forward-Looking Statements
Forward-Looking Statements 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 ExchangeActof 1934,as amended.Thewords“believe,”“expect,”“continue,” and similarexpressions are intendedto i
Slide 11: Forward-Looking Statements
Forward-Looking Statements Thecompany’s expectations regardingitsabilityto closeontheremaining $20.2millionof 6%notesareonlyitsexpectations regardingthismatter.Theclosingof the second $20.2 million of the 6% notes is subject to a number of conditions, including (among others), a determination of the
Slide 12: Forward-Looking Statements
Forward-Looking Statements The company’s expectations regarding future asset dispositions and sale and financing leasebacks of real estate are only its expectations regarding these matters. Actual dispositions and sale and financing leasebacks will be determined by the availability of capital and wi
Slide 13: Operating Loss to Adjusted EBITDA
Operating Loss to Adjusted EBITDA $ in millions Jan '10 Feb '10 Mar '10 Q1 '10 Consolidated Operating revenue $ 323 $ 329 $ 412 $ 1,063 Operating loss $ (49) $ (42) $ (146) $ (237) Depreciation and amortization 17 17 18 52 Equity based compensation expense 1 1 108 110 Letter of credit expense 3 3 3
Slide 14: Operating Loss to Adjusted EBITDA
Operating Loss to Adjusted EBITDA $ in millions Jan '10 Feb '10 Mar '10 Q1 '10 National Workdays 20.0 20.0 23.0 63.0 Operating revenue $ 203 $ 206 $ 254 $ 663 Operating loss $ (39) $ (33) $ (113) $ (185) Depreciation and amortization 9 9 9 27 Equity based compensation expense - - 83 83 Letter of cre