Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Investor Presentation (February 2006)
15 slides from Yellow's investor presentation, Feb 15, 2006
Slide 1: Investor Presentation February 2006
Investor Presentation February 2006 Investor Presentation February 2006 Exhibit 99.1
Slide 2: What We Do
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.
Slide 3: Company Facts
3 Company Facts Company Facts 41.3 million Annual shipments 2.0 billion Annual highway miles 26.6 million Annual tons 90,000 Trailers 27,000 Trucks 1,000 worldwide Locations 70,000 Employees $10 billion Revenue
Slide 4: Strategic Actions
4 • 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 forwarding
Slide 5: Asset-Based Service Portfolio
5 • Comprehensive next-day nationwide • Extensive national networks • Truckload • Premium services Expedited Time Definite Exhibit Based on shipments Asset-Based Service Portfolio Asset-Based Service Portfolio Well balanced North American portfolio of services. 3 Days 20% 4+ Days 20% 2 Days 30% Next
Slide 6: YRC Regional Transportation Primary Service Coverage
6 USF Reddaway USF Bestway USF Holland New Penn Motor Express Note: USF Holland does not have direct coverage or facility locations in Florida, North Dakota, or South Dakota. Those states are served through interline carriers. YRC Regional Transportation Primary Service Coverage YRC Regional Transpo
Slide 7: Non-Asset-Based Service Portfolio
7 Non-Asset-Based Service Portfolio Non-Asset-Based Service Portfolio • Contract logistics • Truckload brokerage • Global shipment management in over 70 countries
Slide 8: 2005 Record Results
8 Reported Revenue (in billions) Adjusted EPS* 2002 2003 2004 2005 2002 2003 2004 2005 $2.27 Highest revenue in company history; 28% growth over 2004 Record earnings per share; more than 5 times 2002 EPS $3.1 $6.8 $8.7 $3.96 $5.25 *Adjustments primarily related to property gains/losses, acquisition,
Slide 9: YRCW Margin Trends
9 In 2005 we had a 93.8% operating ratio; a 90 basis point improvement over 2004. We are well on our way toward an OR in the low 90’s assuming a good economy. 3.6% 2.2% 2.9% 4.0% 1.7% 2.1% 4.0% 5.3% 6.2% -0.4% 1.1% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 A 5% margin was once considere
Slide 10: Planned Cost Reductions
10 $50 $155 $285 $400 $450 2004A 2005A 2006E 2007E 2008E Calendar Year Benefit (in millions) Early cost reductions primarily related to consolidation of back-office functions, optimization of technology and purchasing leverage. Future periods focus on optimizing operations and improving efficiencies
Slide 11: 2006 Earnings Guidance
11 $300 million Depreciation/amortization 38.1% Effective tax rate 61 million Diluted shares $82 million Interest expense $10 billion Revenue $6.15 - $6.30 per share EPS 2006 Earnings Guidance 2006 Earnings Guidance We expect record results to continue in 2006 with double-digit revenue and EPS growt
Slide 12: Capital Structure
12 Debt to Capital (net of cash) We expect to reduce debt by $100 million in 2006, with our debt-to-cap near our targeted range of 35% by the end of the year. Over 60% of our debt is at fixed rates, which is good in a rising interest-rate environment. Investment grade ratings at S&P and Fitch; one n
Slide 13: Capital Expenditures
13 66% 65% Gross cap ex in 2005, including USF for the entire year, approximated $380 million. We expect 2006 gross cap ex between $450 and $475 million, primarily related to replacement of revenue equipment. Capital Expenditures Capital Expenditures 12% 15% 19% 19% 1% 3% 2005A 2006E Revenue Equipme
Slide 14: 2006 Investments
14 Network Improvements Roadway Express Change of Operations Less handling; more direct loading Right mix of labor Yellow Transportation Next-Day Expansion Initial rollout in early 2005 has been very successful We continue to evaluate the best locations for the next phase Rail Business Model Changes
Slide 15: Forward-looking statements
15 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 words "expect," “projec
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