Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Investor Presentation (November 2018)
40 slides from Yellow's investor presentation, Nov 5, 2018
Slide 1: Investor presentation November 2018
YRC WORLDWIDE INVESTOR PRESENTATION Investor presentation November 2018 Exhibit 99.1
Slide 2: Disclaimer and forward-looking statements
YRC WORLDWIDE INVESTOR PRESENTATION 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 YR
Slide 3: One of the largest LTL carriers in North America
From the time we began traveling the roads more than 90 years ago, we have used a combination of extraordinary service, technology and good old fashioned hard work to evolve into the company we are today. YRC WORLDWIDE INVESTOR PRESENTATION One of the largest less-than-truckload (LTL) carriers in No
Slide 4: Our family of companies
Providing services under a portfolio of four operating companies. YRC WORLDWIDE INVESTOR PRESENTATION Collectively, we have approximately 20 - 25% of the public carrier market by tonnage. We provide the broadest coverage and more service capability throughout North America than any competitor. To pu
Slide 5: YRC Freight: North America. Delivered.
YRC WORLDWIDE INVESTOR PRESENTATION YRC Freight serves manufacturing, wholesale, retail and government customers throughout North America. When customers need longer-haul LTL shipping solutions, YRC Freight is the expert. LTM 3Q18 Revenue $3.2 Billion LTM 3Q18 Adjusted EBITDA $157 Million # of Custo
Slide 6: Regional expertise
YRC WORLDWIDE INVESTOR PRESENTATION For next-day and time-sensitive services, we have three distinct regional carriers: Reddaway, Holland and New Penn. All three brands are well established in their respective regions. LTM 3Q18 Revenue $1.9 Billion LTM 3Q18 Adjusted EBITDA $131 Million # of Customer
Slide 7: Our customers
The company you keep says a lot about you. YRC WORLDWIDE INVESTOR PRESENTATION And we work with some very good companies. We’re fortunate to have stable, long-standing relationships with some of the greatest companies in the world, from large Fortune 500 companies to small, privately-held businesses
Slide 8: Customer awards and recognition
YRC WORLDWIDE INVESTOR PRESENTATION Unishippers Global Logistics 2017 Midwest Regional LTL Carrier of the Year Logistics Management Quest for Quality Award Winner (32 times) Walmart, Unishippers, Avery Dennison, Echo Group Logistics and Worldwide Express Regional Carrier of the Year Parker Hannifin,
Slide 9: Competitive strengths
Competitive strengths YRC Worldwide’s competitive strengths provide a platform for continued improvement and long-term growth.
Slide 10: Our people
YRC WORLDWIDE INVESTOR PRESENTATION ~32,000 highly experienced employees throughout North America. ~17,000 drivers safely and efficiently moving freight throughout our network. ~ 14 year average tenure of union employees. Less than 15% union employee turnover. More than 250,000 long-term relationshi
Slide 11: Our dedication
YRC WORLDWIDE INVESTOR PRESENTATION Typical LTL driving distance contributes to stable workforce and low turnover. ~940 million miles covered in 2017 (the equivalent of more than 167,000 round trips between New York and Los Angeles). 1,970 active accident-free 1 million mile drivers 642 active accid
Slide 12: Our networks
YRC WORLDWIDE INVESTOR PRESENTATION YRC Freight Service Center Our NetworkS Reddaway Service Center New Penn Service Center Holland Service Center Border Gateways
Slide 13: Our assets
YRC WORLDWIDE INVESTOR PRESENTATION YRC Freight operates a modernized national network. Regional carriers operate direct loading and quick sort networks. 384 terminals ~21,000 doors ~14,000 tractors ~45,000 trailers Reinvesting in the business by replenishing the fleet through a combined approach of
Slide 14: Our technology
YRC WORLDWIDE INVESTOR PRESENTATION Implementing tools for continuous improvement in safety, efficiency, and productivity. In-Cab Safety Technology (in service) 95 Dimensioners (in service) Dock Supervisor Tablets (in service) Quintiq Pickup and Delivery Route Optimization Software (full implementat
Slide 15: People, networks, technology, assets, dedication
The result is award-winning customer service with a flexible supply chain that provides the broadest coverage throughout North America. YRC WORLDWIDE INVESTOR PRESENTATION Our PEOPLE Our NETWORKS Our TECHNOLOGY Our ASSETS Our DEDICATION
Slide 16: Update on recent events
YRC WORLDWIDE INVESTOR PRESENTATION 1 2 3 4 Update on Recent events CEO Succession Plan Completed Darren Hawkins appointed Chief Executive Officer. Prior to this appointment, he served as President and Chief Operating Officer at YRCW after serving as President of YRC Freight. He replaced James Welch
Slide 17: Financial update
° YRC Worldwide FINANCIAL UPDATE
Slide 18: Consolidated results
YRC WORLDWIDE INVESTOR PRESENTATION Consolidated (a) The Company adopted ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, beginning in January 1, 2018, with a retrospective application. This requires a reclassification to non-operatin
Slide 19: Simplified capital structure
YRC WORLDWIDE INVESTOR PRESENTATION Since 2013, debt obligations reduced by $456.9 million and cash interest payments reduced by ~$40 million per year. (a) Average effective interest rate as of September 30, 2018 Term Loan ABL Term A Capital Leases ABL Term B Contribution Deferral Agreement (CDA) No
Slide 20: Extension of maturities
YRC WORLDWIDE INVESTOR PRESENTATION Significant extension of maturities provides runway to continue operational transformation. Focused on Operational Execution Runway 2.6 years November 2018 IBT (MOU) March ABL Facility June Term Loan July CDA Notes December No near-term maturities
Slide 21: Reinvesting in the business: fleet
YRC WORLDWIDE INVESTOR PRESENTATION After several years of curtailing investment in the business, capital spending has resumed. Fleet replenishment primarily through operating leases beginning in 2013. Increased leasing activity due to greater financing options resulting from the Company’s improved
Slide 22: Reinvesting in the business: technology
YRC WORLDWIDE INVESTOR PRESENTATION 4x increase in technology investment from 2013 to LTM 3Q18. Recent Technology & Other CapEx investments include: Dimensioners(a) Mobileye and Lytx in-cab safety technology(a) Pickup and delivery handheld units Upgraded forklift technology PROS yield management tec
Slide 23: Opportunity for operating ratio improvement
YRC WORLDWIDE INVESTOR PRESENTATION Assuming current market performance of an operating ratio of approximately 90, the goals for the coming years are: YRC Regional: ~95% YRC Freight: ~97% Note: The peer group’s LTM 3Q18 Operating Ratio includes ABFS, FDXF, ODFL, SAIA LTL, and XPO LTL. LTM 3Q18 (amou
Slide 24: Plan to achieve operating ratio goals
YRC WORLDWIDE INVESTOR PRESENTATION 1 Plan to achieve operating ratio goals Volume and Yield Growth Economic Growth Continued market price rationalization 2 Delivering Award Winning Service and Partnering with our Customers YRC Freight’s network enhancement transitioned eight terminals to regional d
Slide 25: Forward looking considerations
YRC WORLDWIDE INVESTOR PRESENTATION Plan to continue investing back into the business through combined purchasing and leasing to enhance shareholder value. International Brotherhood of Teamsters memorandum of understanding (MOU) in place through March 2019. Annual wage increases of $0.34 per hour in
Slide 26: How we plan to move your investment forward
YRC WORLDWIDE INVESTOR PRESENTATION How we plan to move freight, our company, and your investment forward. YRC Worldwide provides the opportunity to invest in a portfolio of four proud and distinct LTL operating companies. Experienced Leadership Team Strong Industry Position Tremendous Asset Base Si
Slide 27: Investor relations
YRC WORLDWIDE INVESTOR PRESENTATION YRCW yrcw.com Bri Simoneau Vice President and Controller investor@yrcw.com Investor relations
Slide 28: Appendix
° YRC Worldwide APPENDIX
Slide 29: Executive management
YRC WORLDWIDE INVESTOR PRESENTATION Darren Hawkins Chief Executive Officer, YRCW More than 28 years of industry experience. Returned to the Company in 2013 and served as President of YRC Freight prior to being appointed Chief Operating Officer at YRCW. Stephanie Fisher Chief Financial Officer, YRCW
Slide 30: Experienced senior management
YRC WORLDWIDE INVESTOR PRESENTATION Scott Ware President, Holland More than 31 years of industry experience. Prior to being named President of Holland, was Vice President of Operations and Linehaul for the Company. Howard Moshier President, New Penn More than 30 years of industry experience. Prior t
Slide 31: YRC Freight's network enhancement
YRC WORLDWIDE INVESTOR PRESENTATION Seattle Portland Tracy Salt Lake City Denver Phoenix Bloomington Kansas City Oklahoma City Jackson Indianapolis Houston Memphis Nashville Chicago Dallas St. Paul San Antonio Omaha South Bend St. Louis Atlanta Charlotte Akron Harrisburg Buffalo Maybrook Richmond Ha
Slide 32: Multi-employer pension plans
YRC WORLDWIDE INVESTOR PRESENTATION Employees covered by collective bargaining agreements. Required contractual contributions anticipated to be an average of $2.22 per hour in 2018(a). 2018 cash contributions to be approximately $105 million(a). Expense included in EBITDA. Not impacted by changes in
Slide 33: Single-employer pension plans
YRC WORLDWIDE INVESTOR PRESENTATION Certain employees not covered by collective bargaining agreements. Plans closed to new participants effective January 1, 2004 with benefit accrual for active employees frozen effective July 1, 2008. Future funding requirements are primarily driven by movements in
Slide 34: Leverage ratio
Growing into capital structure. Continue to de-risk the balance sheet. Funded Debt to Adjusted EBITDA ratio down 2.21 turns. Note: Funded debt balances based on par value Leverage ratio YRC WORLDWIDE INVESTOR PRESENTATION
Slide 35: Credit ratings and covenants
YRCW’s credit ratings as of September 30, 2018: Standard & Poor’s Corporate Family Rating was B- with Stable outlook Moody’s Investor Service Corporate Family Rating was B3 with Positive outlook 3.13x LTM as of 3Q 2018 Credit facility covenants YRC WORLDWIDE INVESTOR PRESENTATION
Slide 36: Cash flow
YRC WORLDWIDE INVESTOR PRESENTATION Focused on improving cash flows while simultaneously increasing reinvestment into the Company. Cash flow Free cash flow = operating cash flow less acquisitions of property and equipment, cash proceeds from disposals The Company adopted ASU 2016-09, Improvements to
Slide 37: Key segment information
Key Segment Information (a) Percent change based on unrounded figures and not the rounded figures presented YRC WORLDWIDE INVESTOR PRESENTATION
Slide 38: EBITDA reconciliation (consolidated)
(a) Certain reclassifications have been made to prior years to conform to current year presentation (b) As required under our Term Loan Agreement, Other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA ($ in millions) Ebitda reconciliation (consolidated) YR
Slide 39: EBITDA reconciliation (segment)
($ in millions) EBitda reconciliation (segment) YRC WORLDWIDE INVESTOR PRESENTATION (a) Certain reclassifications have been made to prior years to conform to current year presentation (b) As required under our Term Loan Agreement, Other, net, shown above consists of the impact of certain items to be
Slide 40: Free cash flow reconciliation
YRC WORLDWIDE INVESTOR PRESENTATION ($ in millions) Free cash flow reconciliation The Company adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, beginning in January 1, 2017, with a retrospective application. The new standard requires an employer to classify as a financing
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