Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Investor Presentation (February 2018)
40 slides from Yellow's investor presentation, Feb 13, 2018
Slide 1: YRC Worldwide Investor Presentation February 2018
YRC WORLDWIDE INVESTOR PRESENTATION Investor presentation February 2018 Exhibit 99.1
Slide 2: Forward-looking statements and non-GAAP disclaimer
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: Portfolio of four operating 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
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. FY 2017 Revenue $3.1 Billion FY 2017 Adjusted EBITDA $138 Million # of Custome
Slide 6: Regional carriers: Holland, Reddaway, New Penn
YRC WORLDWIDE INVESTOR PRESENTATION For next-day and time-sensitive services, we have three distinct regional carriers: Holland, Reddaway and New Penn. All three brands are well established in their respective regions. FY 2017 Revenue $1.8 Billion FY 2017 Adjusted EBITDA $136 Million # of Customers
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 (31 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) 89 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 4Q17 Financial Results In 4Q17, operating revenue increased 5.3% to $1.2 billion compared to 4Q16. 4Q17 Adjusted EBITDA was $58.5 million compared $57.7 million a year ago. CDA Notes Maturity Extended Contribution deferral agreement
Slide 17: 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 18: Financial update
° YRC Worldwide FINANCIAL UPDATE
Slide 19: Simplified capital structure
YRC WORLDWIDE INVESTOR PRESENTATION Since 2013 debt obligations reduced by $435.2 million and cash interest payments reduced by ~$40 million per year. (a) Average effective interest rate as of December 31, 2017 Term Loan ABL Term A Capital Leases ABL Term B Contribution Deferral Agreement (CDA) Note
Slide 20: Extension of maturities
YRC WORLDWIDE INVESTOR PRESENTATION Significant extension of maturities provides runway to continue operational transformation. Focused on Operational Execution Runway 3.3 years February 2018 IBT (MOU) March ABL Facility June Term Loan July CDA Notes December No near-term maturities
Slide 21: Leverage ratio
YRC WORLDWIDE INVESTOR PRESENTATION Growing into capital structure. Continue to de-risk the balance sheet. Funded Debt to Adjusted EBITDA ratio down 5.2 turns. Note: Funded debt balances based on par value Leverage ratio
Slide 22: Reinvesting in the business
YRC WORLDWIDE INVESTOR PRESENTATION 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
Slide 23: Technology investment
YRC WORLDWIDE INVESTOR PRESENTATION 4x increase in technology investment from 2013 to 2017. 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 technol
Slide 24: Opportunity for operating ratio improvement
YRC WORLDWIDE INVESTOR PRESENTATION Assuming current market performance of an operating ratio of approximately 91, the long-term goals are: YRC Regional: ~95% YRC Freight: ~97% Note: The peer group’s FY 2017 Operating Ratio includes ODFL, SAIA LTL, ABFS, FDXF and XPO LTL. FY 2017 (amounts in million
Slide 25: Plan to achieve operating ratio goals
YRC WORLDWIDE INVESTOR PRESENTATION 1 Plan to achieve operating ratio goals Delivering Award Winning Service and Partnering with Our Customers YRC Freight’s network enhancement transitioned eight terminals to regional distribution centers and implemented use of utility employees 2 Enhancing Employee
Slide 26: 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 27: How we plan to move freight, our company, and your investment
YRC WORLDWIDE INVESTOR PRESENTATION How we plan to move freight, our company, and your investment. 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 Simplified
Slide 28: Investor relations
YRC WORLDWIDE INVESTOR PRESENTATION YRCW yrcw.com Tony Carreño Vice President – Investor Relations (913) 696-6108 tony.carreno@yrcw.com Investor relations
Slide 29: Appendix
° YRC Worldwide APPENDIX
Slide 30: YRCW senior management
YRC WORLDWIDE INVESTOR PRESENTATION James Welch Chief Executive Officer, YRCW More than 37 years of industry experience and a 34-year veteran of the Company. Returned to the Company in 2011 to become CEO. Darren Hawkins President, Chief Operating Officer, YRCW More than 28 years of industry experien
Slide 31: 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 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 $105 million(a). Expense included in EBITDA. Not impacted by changes in
Slide 33: Single-employer pension plans
YRC WORLDWIDE INVESTOR PRESENTATION Certain employees not covered by collective bargaining agreements. Plans closed to new participants effective January 1, 2004 with benefit accrual for active employees frozen effective July 1, 2008. Future funding requirements are primarily driven by movements in
Slide 34: Credit ratings and covenants
YRC WORLDWIDE INVESTOR PRESENTATION YRCW’s credit ratings as of December 31, 2017: Standard & Poor’s Corporate Family Rating was B- with Stable outlook Moody’s Investor Service Corporate Family Rating was B3 with Positive outlook 3.38x LTM as of 4Q 2017 Credit facility covenants
Slide 35: Consolidated
YRC WORLDWIDE INVESTOR PRESENTATION consolidated
Slide 36: Cash flow
YRC WORLDWIDE INVESTOR PRESENTATION Focused on improving cash flows while simultaneously increasing reinvestment into the Company. (a) Free cash flow = operating cash flow less acquisitions of property and equipment, net of disposals Cash flow
Slide 37: Fourth quarter and full-year 2017 volume and yield
YRC WORLDWIDE INVESTOR PRESENTATION Fourth quarter and full-year 2017 volume and yield (a) Percent change based on unrounded figures and not the rounded figures presented
Slide 38: EBITDA reconciliation (consolidated)
YRC WORLDWIDE INVESTOR PRESENTATION (a) As required under our Term Loan Agreement, other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA ($ in millions) Ebitda reconciliation (consolidated)
Slide 39: EBITDA reconciliation (segment)
YRC WORLDWIDE INVESTOR PRESENTATION (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 ($ in millions) EBitda reconciliation (segment)
Slide 40: Free cash flow reconciliation
YRC WORLDWIDE INVESTOR PRESENTATION ($ in millions) Free cash flow reconciliation
YRC Worldwide — Investor Presentation (February 2018) on 6ix