Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Investor Presentation (November 2015)
25 slides from Yellow's investor presentation, Nov 10, 2015
Slide 1: YRC Worldwide Inc. Investor Presentation November 2015
YRC Worldwide Inc. Investor Presentation November 2015 Exhibit 99.1
Slide 2: Forward Looking Disclosures
Forward Looking Disclosures 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 YRC Worldw
Slide 3: Introduction
Introduction YRC Worldwide is one of the largest less-than-truckload (LTL) carriers in North America and generates approximately $5 billion of annual revenue by providing services under a portfolio of four subsidiaries Approximately 23% of the public carrier market share by tonnage Providing the bro
Slide 4: YRC Freight and Regional Transportation
YRC Freight and Regional Transportation Formed by the combination of Yellow Transportation and Roadway Express Roadway acquired in 2003 and integrated in 2009 Branded as YRC Freight in 2012 Focused on longer-haul LTL shipping Three distinct carriers serving separate regions Holland, Reddaway and New
Slide 5: Diversified Customer Base
Diversified Customer Base Long-standing and stable relationships with a large, diversified base of customers Customers range from Fortune 1000 global corporations to small, privately-held businesses Top 5 customers account for approximately 10% of total revenue Recognized by customers as leading ope
Slide 6: North American Market Share
North American Market Share Market share stable since 2010 23% market share by tonnage (public LTL carriers only) YRC Freight and YRC Regional’s combined networks cover all 50 states, Puerto Rico, Canada and Mexico Broad footprint with service to over 250,000 customers Scale is important for an LTL
Slide 7: Highly Experienced Management
Highly Experienced Management 24 years of industry experience Prior to being named President of YRC Freight, Darren was Senior Vice President of Sales for the Company James Welch CEO, YRCW Jamie Pierson CFO, YRCW Scott Ware President, Holland 34 years of experience in the transportation and logistic
Slide 8: Company history and Adjusted EBITDA timeline
2003 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015 Yellow acquired Roadway for $1.1 billion (debt financed) Included New Penn and Reimer Acquired USF for $1.3 billion (debt financed) Included Holland, Reddaway and Glen Moore Acquired 50% stake in JHJ Chinese logistics operation James Welch named
Slide 9: 2014 Refinancing & Turnaround
2014 Refinancing & Turnaround Term Loan – retired on 2/13/14 ABL Term A – retired on 2/13/14 Capital Leases ABL Term B – retired on 2/13/14 CDA Note Series A Notes - $90.9M redeemed on 1/31/14 Remaining defeased on 2/12/14 Series B Notes - $51.8M converted to equity on 1/31/14 6% Convertible Senior
Slide 10: Leverage Ratio
Leverage Ratio Steady progress every year since 2010 YRCW is on much stronger footing as a result of reduced debt and increased earnings This progress is being recognized by rating agencies as evidenced by an upgrade to the Company’s corporate credit rating by Standard & Poor’s Note: Funded debt bal
Slide 11: No Near-Term Maturities
No Near-Term Maturities Focus on Operational Execution Runway February 2014 Refinancing February Term Loan, ABL March IBT (MOU) December CDA Significant extension of debt maturities provides longer runway to continue operational turnaround
Slide 12: Recent Events: 3Q 2015 Financial and Operational Highlights
Recent Events 3Q 2015 Financial and Operational Highlights Adjusted EBITDA of $99.1 million compared to $81.6 million in 2014 Fifth consecutive quarter of year-over-year improvement LTM Adjusted EBITDA of $344.3 million compared to $226.2 million of LTM reported in 3Q 2014 Highest LTM results in sev
Slide 13: YOY Revenue per Shipment and Revenue per cwt
YOY Revenue per Shipment and Revenue per cwt Both segments experiencing positive pricing growth driven by a focused effort on improving yield and further supported by a favorable industry pricing environment Note: Percent change calculation based on unrounded figures and not the rounded figures pres
Slide 14: YOY Volume
YOY Volume YOY decrease at YRCF due to shift away from minimum charge and lighter shipments and toward higher yielding business YOY decrease at Regional is primarily due to efforts to better manage capacity Note: Percent change calculation based on unrounded figures and not the rounded figures prese
Slide 15: Segment Adjusted EBITDA
Segment Adjusted EBITDA ($ in millions) YRC Freight improvement driven by increased yield, partially offset by lower volume and lower productivity Regional’s performance driven by increased yield, partially offset by decreased volumes, lower productivity and higher equipment lease costs Third Quarte
Slide 16: Consolidated (YRCW) Adjusted EBITDA
Consolidated (YRCW) Adjusted EBITDA ($ in millions) Improved EBITDA and margin growth due to yield growth and strong base pricing environment, partially offset by lower volume, lower productivity, and higher equipment lease costs Highest LTM EBITDA since 2008 Third Quarter 3Q15 Note: Percent change
Slide 17: Opportunity for EBITDA Margin Growth & Further Deleveraging
Opportunity for EBITDA Margin Growth & Further Deleveraging Significant opportunity for both segments to achieve margin improvements Assuming current market performance of an OR of 91 to 93, the long-term EBITDA margin segment goals are as follows: YRCF= 7.2% (equivalent to an OR of 95 – 96) Regiona
Slide 18: Reinvestment in the Business
Reinvestment in the Business After several years of curtailing investment in the business, capital spending has resumed Fleet replenishment through operating leases beginning in 2013 Increased leasing activity due to greater financing options resulting from the Company’s improved financial condition
Slide 19: Reinvestment in the Business
Reinvestment in the Business YRCW’s goal is to more aggressively replenish the fleet through a combined approach of purchasing and leasing new tractors and trailers Further roll-out of dimensioning technology Retrofitting existing fleet with in-cab collision avoidance systems to enhance safety Table
Slide 20: Forward Looking Considerations
Forward Looking Considerations Plan to continue investing back into the business to enhance shareholder value Teamster contract (memorandum of understanding) in place through March 2019 Wage increases of $0.34 per hour each year from 2016 - 2018 Required contributions to pension plans remain at $1.7
Slide 21: Compelling Investment Thesis
Compelling Investment Thesis Strong Industry Position Simplified & Stable Capital Structure Diversified Business Model National Footprint / Tremendous Asset Base Experienced Management Team Turnaround Still Has Legs Via Margin Expansion Reinvestment Back into the Business Flexible supply chain focus
Slide 22: Investor Relations Information
Investor Relations Information NASDAQ: YRCW www.yrcw.com Company contact: Tony Carreño Vice President – Investor Relations (913) 696-6108 tony.carreno@yrcw.com
Slide 23: Appendix
rr UN YRC Worldwide i Appendix
Slide 24: EBITDA Reconciliation – Consolidated
EBITDA Reconciliation – Consolidated (a) As required under our Term Loan Agreement, other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA
Slide 25: EBITDA Reconciliation – Segment
EBITDA Reconciliation – Segment (a) As required under our Term Loan, other nonoperating, net, shown above does not include the impact of non-cash foreign currency gains or losses.
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