Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Deutsche Bank Leveraged Finance Conference 2015
23 slides from Yellow's conference presentation, Sep 30, 2015
Slide 1: YRC Worldwide Inc. Deutsche Bank Leveraged Finance Conference
Exhibit 99.1 YRC Worldwide Inc. Deutsche Bank Leveraged Finance Conference September 30, 2015 1
Slide 2: Disclaimer
Disclaimer 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 Worldwide Inc. (the “Co
Slide 3: Introduction
Introduction YRC Worldwide is one of the largest less-than-truckload (LTL) carriers in North America and generates approximately $5B of revenue by providing services under a portfolio of four subsidiaries Approximately 24% of the public carrier market share by tonnage Providing the broadest coverage
Slide 4: YRC Freight and Regional Transportation
YRC Freight and Regional Transportation YRC Freight YRC Regional Formed by the combination of Yellow TransportationThree distinct carriers serving separate regions and Roadway Express – Holland, Reddaway and New Penn – Well established brands with long histories – Roadway acquired in 2003 and integr
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: Largest LTL Operator in North America
Largest LTL Operator in North America Market share stability Market Share by Tonnage (Public LTL Carriers Only) 24% 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
Slide 7: Highly Experienced Management
Highly Experienced Management James Welch 34 years of experience in the Scott Ware 27 years of industry CEO transportation and logistics experience President, Holland industry Prior to being named President Returned to the Company in of Holland, Scott was vice mid 2011 to become CEO president of ope
Slide 8: YRCW Timeline
YRCW Timeline James Welch Former CEO Zollars announced retirement departed CEO, CFO, COO, CAO and CMO depart in 2011 Yellow acquired Roadway for James Welch named CEO; Acquired 65% New Board of Directors seated, $1.1 billion (debt financed) stake in Jiayu including 2 IBT appointees Included New Penn
Slide 9: 2014 Refinancing & Turnaround
2014 Refinancing & Turnaround $1,361.3M $1,400.0 5% Convertible Notes 6%Convertible SeniorNotes–retiredon1/31/14 $1,221.0M Series B Notes $51.8M - converted to equity on 1/31/14 5% Convertible Notes Series B Notes $1,200.0 Series A Notes Series A Notes$90.9M - redeemed on 1/31/14 $1,089.2M Remaining
Slide 10: Leverage Ratio
Leverage Ratio Funded Debt / Adjusted EBITDA 14.0x 12.0x 3.6x reduction 10.0x since 2010 8.0x 6.0x 4.0x 2.0x 0.0x 2010 2011 2012 2013 2014 LTM LTM 1Q15 2Q15 Note: Funded debt balances based on par value Steady progress every year since 2010 YRCW is on much stronger footing as a result of reduced deb
Slide 11: No Near-Term Maturities
No Near-Term Maturities Series B Notes February exchanged for equity Term Loan, in March 2015 ABL Redeemed Series A Notes in August 2014 March 4-Year Runway IBT (MOU) February 2014 Refinancing Operational Execution December CDA 2014 2015 2016 2017 2018 2019 2020 Significant extension of debt maturit
Slide 12: YOY Revenue per Shipment and Revenue per cwt
YOY Revenue per Shipment and Revenue per cwt YRCF Revenue per Shipment Regional Revenue per Shipment (x-FSC) (x-FSC) $260 $250 $155 $152 $250 +9.8% $150 +6.5% $240 $143 $228 $145 $230 $220 $140 $210 $135 2Q14 2Q15 2Q14 2Q15 YRCF Revenue per cwt (x-FSC) Regional Revenue per cwt (x-FSC) $21.00 $20.70
Slide 13: YOY Volume
YOY Volume YRC Freight Shipments per Day Regional Shipments per Day 50.00 48.35 50.00 -9.1% 44.91 45.00 43.95 -4.7% 45.00 42.82 40.00 40.00 35.00 35.00 2Q14 2Q15 2Q14 2Q15 YRC Freight Tonnage per Day Regional Tonnage per Day 29.00 34.00 32.86 28.29 -3.5% 31.71 32.00 -6.2% 30.00 27.00 26.53 28.00 26.
Slide 14: Segment Adjusted EBITDA
SegmentAdjusted EBITDA ($ in millions) YRCF 2Q Adjusted EBITDA Regional 2Q Adjusted EBITDA $60.0 $56.6 $60.0 $53.1 +34.4% $50.0 $50.0 $42.1 $40.0 +147.0% $40.0 $30.0 $21.5 $30.0 $20.0 $20.0 $10.0 $10.0 $.0 $.0 2Q14 2Q15 2Q14 2Q15 YRCF LTM Adjusted EBITDA Regional LTM Adjusted EBITDA $200.0 $165.0 $1
Slide 15: Consolidated (YRCW) Adjusted EBITDA
Consolidated (YRCW)Adjusted EBITDA ($ in millions) 2Q Adjusted EBITDA 2Q Adjusted EBITDA Margin $120.0 $109.4 8.7% 10.0% $100.0 +$46.4M +390bps 8.0% 4.8% $80.0 $63.0 6.0% $60.0 4.0% $40.0 $20.0 2.0% $.0 0.0% 2Q14 2Q15 2Q14 2Q15 LTM Adjusted EBITDA LTM Adjusted EBITDA Margin $350.0 $326.8 7.0% 6.6% $
Slide 16: Opportunity for EBITDA Margin Growth & Further Deleveraging
Opportunity for EBITDA Margin Growth & Further Deleveraging Significant opportunity for both segments to LTM 2Q15 EBITDA Margin achieve margin improvements 14.0% 10.5% – Assuming current market performance of an 12.0% OR of 91 to 93, the long-term EBITDA margin segment 10.0% 7.2% 2.2% goals are as f
Slide 17: Re-investment in the Business
Re-investment in the Business After several years of curtailing investment in the CapEx Equivalent business, capital spending has resumed $250 $213 $200 $179 Fleet replenishment through operating leases $142 beginning in 2013 $150 $137 $126 $100 $100 $75 $70 $72 $72 Increased leasing activity due to
Slide 18: Re-investment in the Business
Re-investment 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 Tabl
Slide 19: LTL Demand Fundamentals Remain Favorable
LTL Demand Fundamentals Remain Favorable LTL Tonnage Index vs. Industrial Production Index Based on market research, LTL freight 110 volumes are highly correlated with IPI 105 Although IPI has been somewhat flat in 2015100 95 partially due to severe weather in 1Q15, 90 strengthening labor market and
Slide 20: YRCW – Investment Thesis
YRCW –Investment Thesis Strong Industry Position Turnaround National Still Has Legs Footprint / Via Margin Tremendous Expansion Asset Base Experienced Diversified Management Business Team Model Re-investment Simplified & Back into the Stable Capital Business Structure 20
Slide 21: Appendix
| Appendix YRC Worldwide
Slide 22: EBITDA Reconciliation – Consolidated
EBITDA Reconciliation Consolidated – YRCW Consolidated 2Q15 2Q14 LTM 2Q15 LTM 2Q14 Reconciliation of net loss to adjusted EBITDA: Net income (loss) $ 26.0 $ (4.9) $ 11.8 $ (119.0) Interest expense, net 27.9 31.6 115.0 172.4 Income tax expense (benefit) 2.3 (7.9) (0.4) (43.4) Depreciation and amortiz
Slide 23: EBITDA Reconciliation – Segment
EBITDA Reconciliation Segment – YRC Freight segment 2Q15 2Q14 1H15 1H14 LTM 2Q15 LTM 2Q14 Reconciliation of operating income (loss) to adjusted EBITDA: Operating income (loss) $ 22.5 $ (0.3) $ 22.7 $ (32.8) $ 56.0 $ (57.9) Depreciation and amortization 23.3 24.9 47.2 49.6 95.6 102.8 EBITDA 45.8 24.6
YRC Worldwide — Deutsche Bank Leveraged Finance Conference 2015 on 6ix