Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — BB&T Transportation Conference 2008
16 slides from Yellow's conference presentation, Feb 13, 2008
Slide 1: Bill Zollars, BB&T Transportation Conference
Exhibit 99.1 Bill Zollars Chairman, President & CEO BB&T Transportation Conference February 13, 2008
Slide 2: Opening
Opening • Slides covered today are available on our web site, www.yrcw.com, under the Investor Relations section • Forward looking statements Statements made by management during this presentation that are not purely historical are forward-looking statements within the meaning of the Private Litigat
Slide 3: What We Do
What We Do YRC Worldwide is a $9.6 billion provider of 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. 3
Slide 4: Regional Action Plan Summary
Regional Action Plan Summary • Extended footprints in USF Holland and USF Reddaway have created significant profitability challenges • To better serve the overall customer base and provide expected operating results, the following actions are being taken: USF Holland will close 6 service centers loc
Slide 5: Regional Action Plan Current Footprint
Regional Action Plan Current Footprint 5
Slide 6: Regional Action Plan Future Footprint
Regional Action Plan Future Footprint 6
Slide 7: Regional Action Plan Expected Results
Regional Action Plan Expected Results • Impacts approximately 5% of the YRC Regional segment revenue • The financial benefit is a significant component of the previously announced $50 million profit improvement plan, in addition to: Linehaul improvements Yield initiatives • Over 600 tractors and 1,2
Slide 8: Labor Agreement Summary
Labor Agreement Summary • Ratified February 11 by IBT membership • 5-year agreement • Contract addresses opportunities for growth, new services and contemporary network designs • More effectively aligns resources with growth opportunities and with business volumes • Allows for more efficient matchin
Slide 9: Labor Agreement Operational Competitiveness Provisions
Labor Agreement Operational Competitiveness Provisions • Utility Employee Ability to establish a driver-qualified position that works across all job classifications of local and over-the-road functions • No restrictions on type of freight handled • Enables more competitive and efficient freight move
Slide 10: Labor Agreement Operational Competitiveness Provisions
Labor Agreement Operational Competitiveness Provisions • Truckload substitute service Purchased transportation as a % of Opportunity to convert total linehaul miles increasingly expensive rail miles 28.0% 28.0% 28.0% 28.0% 28.0% to more reliable road service 4.0% 4.0% 6.5% 7.0% 9.0% Allows for growt
Slide 11: Labor Agreement Economic Provisions
Labor Agreement Economic Provisions • Total Increases Compounded annual increase of$1.50 approximately 3.8% over the life $1.45 $1.45 $1.40 $1.40 of the contract (weighted average of wages, pension and health care increases) Net economic impact of 3.0% - 3.5% over the life of the contract, very simi
Slide 12: Continued Progress
Continued Progress Asset-based companies Roadway USF YRC National NAT Sales Tech (1) (2) ESG (3) (4) (5) (6) 2003 2004 2005 2006 2007 2008 2009 Acquisition phase Integration phase Synergy phase (1) Roadway acquisition closed on 12/11/03 (2) USF acquisition closed on 5/24/05 (3) Formed YRC National T
Slide 13: 2008 Action Plan
2008 Action Plan 6.1% 5.3% 5.5% • Improving margins at the peaks 4.5% and troughs of the economic cycle Continued network efficiencies 3.2% Reduce $50 million of overhead 2.3% Implementation of labor contract 1.8% 1.5% provisions • Benefits both National and Regional segments 2000 2001 2002 2003 200
Slide 14: Financial Position: Bank Covenant/Debt Position
Financial Position Bank Covenant/Debt Position • Leverage ratio Total debt cannot exceed 3.0x trailing 12-month EBITDA* We are well inside the covenant; 2.5x at 12/31/07 • Total debt levels are expected to remain at or below current levels throughout 2008 Ability to control the amount and timing of
Slide 15: Summary
Summary • We are aggressively responding to a LTL Segment* challenging economic cycle and are well positioned for 2008 and beyond Clear strategic direction YRCW New labor contract Growth opportunities Prudent management of cash flows and costs Others Significant footprint and market presence * Compa
Slide 16: Forward-Looking Statements/GAAP vs. Non-GAAP Measures
Forward-Looking Statements/ GAAP vs. Non-GAAP Measures • Forward-Looking Statements: Page 14 contains “forward-lookingwithin statements” the meaning of the Securities Act and the Securities Exchange Act, identified by the word “expected”. These are only our expectations regarding our debt levels. Ac