Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Investor Presentation (February 2016)
30 slides from Yellow's investor presentation, Feb 8, 2016
Slide 1: YRC Worldwide Inc. Investor Presentation February 2016
YRC Worldwide Inc. Investor Presentation February 2016 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 $4.8 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 b
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: 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 6: Diversified Customer Base
Diversified Customer Base Long-standing and stable relationships with a large, diversified base of customers Customers range from Fortune 500 companies to small, privately-held businesses Recognized by customers as leading operator YRC Freight received Walmart’s national LTL carrier of the year awar
Slide 7: Highly Experienced Senior Management
Highly Experienced Senior 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 l
Slide 8: Refinancing & Turnaround
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 Notes
Slide 9: Leverage Ratio
Leverage Ratio Steady progress every year since 2010 Funded Debt to Adjusted EBITDA ratio down 3.7x EBITDA cushion for leverage covenant is approximately $79M YRCW is on much stronger footing as a result of reduced debt and increased earnings Note: Funded debt balances based on par value 11.88x 8.54
Slide 10: 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 transformation
Slide 11: Recent Events: 2015 Financial and Operational Highlights
Recent Events 2015 Financial and Operational Highlights Adjusted EBITDA of $333.3 million compared to $244.5 million in 2014 Highest YTD Adjusted EBITDA since 2008 Executed strategy of prioritizing freight mix, yield improvements and profitability over market share and tonnage Improved 2015 consolid
Slide 12: 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= 7.6% (equivalent to an OR of 95 – 96) Regiona
Slide 13: Reinvesting in the Business
Reinvesting 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 14: Competitive Strengths
Competitive Strengths YRCW’s competitive strengths provide a platform for continued improvement and long-term growth
Slide 15: Highly experienced employees throughout North America
~32,000 highly experienced employees throughout North America Typical LTL driving distance contributes to stable workforce and low turnover YRCW drivers covered over 940 million miles in 2015 The equivalent of more than 168,000 round trips between New York and Los Angeles Long-term relationships wit
Slide 16: Network of terminals, tractors and trailers
YRC Freight operates a large hub and spoke network Regional carriers operate direct loading and quick sort networks YRCW Totals 384 terminals ~15,000 tractors ~41,000 trailers Reinvesting in the business by replenishing the fleet through a combined approach of purchasing and leasing Acquired over 1,
Slide 17: Technological tools for safety, efficiency and productivity
Implementing technological tools for continuous improvement in safety, efficiency, and productivity In-Cab Safety Recorders Dimensioners Dock Supervisor Tablets Logistics Planning Technology Kronos Workforce Management Competitive Strengths
Slide 18: Award-winning customer service with flexible supply chain
The result is award-winning customer service with a flexible supply chain that provides the broadest coverage throughout North America Competitive Strengths
Slide 19: 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 focused on ensuring customers can
Slide 20: Forward Looking Considerations
Forward Looking Considerations Plan to continue investing back into the business through combined purchasing and leasing to enhance shareholder value Installation of in-cab safety equipment in all company’s tractors expected to be substantially complete by the end of 1Q 2016 International Brotherhoo
Slide 21: Key Financial Results
NB Worldwide i Key Financial Results
Slide 22: 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 23: 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 24: Segment Adjusted EBITDA
Segment Adjusted EBITDA ($ in millions) Improved performance at both segments driven by yield improvement and impact of investment in high ROI generating technologies, partially offset by lower volume, productivity and higher lease equipment lease costs Note: Percent change calculation based on unro
Slide 25: Consolidated (YRCW) Adjusted EBITDA
Consolidated (YRCW) Adjusted EBITDA ($ in millions) Improved performance driven by yield improvement and impact of investment in high ROI generating technologies, partially offset by lower volume, productivity and higher lease equipment lease costs Highest YTD EBITDA since 2008 Note: Percent change
Slide 26: 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 27: Appendix
NB Worldwide i Appendix
Slide 28: Company history and historical Adjusted EBITDA
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 29: EBITDA Reconciliation – Consolidation
(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 EBITDA Reconciliation – Consolidation
Slide 30: 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. EBITDA Reconciliation – Segment
YRC Worldwide — Investor Presentation (February 2016) on 6ix