Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Bear Stearns Global Transportation Conference 2006
13 slides from Yellow's conference presentation, May 8, 2006
Slide 1: Bear Stearns Global Transportation Conference
Bear Stearns Global Transportation Conference May 9, 2006 Exhibit 99.1 * *
Slide 2: What We Do
2 What We Do YRC Worldwide provides 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.
Slide 3: Company Facts
3 Company Facts 41.3 million Annual shipments 2.0 billion Annual highway miles 26.6 million Annual tons 90,000 Trailers 27,000 Trucks 1,000 worldwide Locations 70,000 Employees $10 billion Revenue
Slide 4: Strategic Actions
4 • September 2002 Spin-off of SCS Transportation (nonunion Saia and Jevic) • December 2003 Acquisition of Roadway Corporation ($1.2 billion, 50% cash / 50% stock) • May 2005 Acquisition of USF Corporation ($1.5 billion, 65% cash / 35% stock) • September 2005 Finalized China-based freight forwarding
Slide 5: Asset-Based Service Portfolio
5 • Comprehensive next-day nationwide • Extensive national networks • Truckload • Premium services Expedited Time Definite Exhibit Based on shipments Asset-Based Service Portfolio Well balanced North American portfolio of services. 3 Days 20% 4+ Days 20% 2 Days 30% Next Day 30%
Slide 6: YRC Regional Transportation Primary Service Coverage
6 USF Reddaway USF Bestway USF Holland New Penn Motor Express Note: USF Holland does not have direct coverage or facility locations in Florida, North Dakota, or South Dakota. Those states are served through interline carriers. YRC Regional Transportation Primary Service Coverage
Slide 7: Non-Asset-Based Service Portfolio
7 Non-Asset-Based Service Portfolio • Contract logistics • Truckload brokerage • Global shipment management in over 70 countries
Slide 8: Record Results: Reported Revenue and Adjusted EPS
8 Reported Revenue (in billions) Adjusted EPS* 2002 2003 2004 2005 2006E 2002 2003 2004 2005 2006E $2.27 2006 is expected to be our 3 rd straight year of record revenue and EPS 2005 record EPS is greater than 5 times 2002, with more than double the number of shares $3.1 $6.8 $8.7 $3.96 $5.25 *Adjust
Slide 9: YRCW Margin Trends
9 In 2005 we posted a 93.8% operating ratio; a 90 basis point improvement over 2004. 3.6% 2.2% 2.9% 4.0% 1.7% 2.1% 4.0% 5.3% 6.2% 6.3% -0.4% 1.1% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006E A 5% margin was once considered unattainable by a national carrier YRCW Margin Trends recessi
Slide 10: Planned Cost Reductions
10 $50 $155 $285 $400 $450 2004A 2005A 2006E 2007E 2008E Calendar Year Benefit (in millions) Early cost reductions primarily related to consolidation of back-office functions, optimization of technology and purchasing leverage. Future periods focus on optimizing operations and improving efficiencies
Slide 11: Debt to Capital
11 Debt to Capital (net of cash) We expect to reduce debt by $100 million in 2006, with our debt-to-cap near our targeted range of 35% by the end of the year. $100 million stock repurchase announced in April; balanced with $100 million debt pay down Investment grade ratings at S&P and Fitch; one not
Slide 12: 2006 Guidance
12 59 million Diluted shares $425 - $450 million Gross cap ex $300 million Depreciation/amortization 38.1% Effective tax rate $85 million Interest expense $10 billion Revenue $5.65 - $5.85 per share EPS 2006 Guidance We expect record results to continue in 2006 with double-digit revenue and solid EP
Slide 13: Forward-Looking Statements
13 This presentation, and oral statements made regarding the subjects of this presentation, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," “projec
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