Yellow Corporation · OTC:YELLQ
Yellow — YRC Worldwide — Deutsche Bank Transportation Conference 2012
34 slides from Yellow's conference presentation, Sep 6, 2012
Slide 1: YRC Worldwide Inc. Deutsche Bank Transportation Conference
Exhibit 99.1 YRC Worldwide Inc. Deutsche Bank Transportation Conference September 6, 2012 1
Slide 2: Forward-looking Statements
Forward-looking Statements 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. Words “will,” such “expect, as” “ intend, ” “ anticipate, ” “ believe, ” “
Slide 3: Table of Contents
Table of Contents I. Introduction i. Company Overview and History ii. Operating Company Descriptions II. July 2011 Transaction i. Transaction Details ii. Board of Directors / Management Team iii. Organizational and Operational Changes iv. YRC Freight “Flywheel” III. 2Q12 Financial Update i. Financia
Slide 4: I. Introduction
i. YRC Worldwide | I. Introduction
Slide 5: 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 23% of the public carrier market share, providing the broadest coverage and more
Slide 6: YRC Worldwide Tearsheet
YRC Worldwide Tearsheet Revenue $5.0B Locations 431 U.S. and Canada Trucks 15,000 Trailers 51,000 Annual tons 14.1M Annual shipments 21.9M Annual miles 1.1B 6
Slide 7: Company History
Company History 1919 Reddaway founded 1924 Yellow Cab and Transit Company founded 1929 Holland Motor Express founded 1930 Roadway Express launched 1931 New Penn begins operations 1952 Reimer Express begins service in Winnipeg 1959 Yellow Transit becomes a public company 1986 Glen Moore begins operat
Slide 8: Market Share Stabilized and Holding Steady
Market ShareStabilized – and Holding Steady Source: Public filings (Form 10-K, Form 10-Q and earnings releases) Market Share Among Public Carriers (Total Tonnage per Day) Roadrunner 2.1% 2.1% 2.0% 2.0% 2.1% 2.2% 2.1% 2.1% 2.1% Vitran 4.9% 4.8% 5.0% 5.3% 5.4% 5.2% 5.3% 5.5% 5.4% ABF 5.3% 5.7% 5.6% 5.
Slide 9: Segment Descriptions
Segment Descriptions YRCW has two YRCFreightiscomprised of themergedYellowTransportation andRoadway.YRC Freight(YRCF)offersa rangeof servicesforthetransportation of industrial, major segments commercial and retail goods in regional, national and international markets, primarily serving domestic as t
Slide 10: YRC Freight
YRC Freight YRCFreightwascreatedthroughtheMarch2009 integration of the Yellow Transportation and Roadway networks, combining two companies with more than 80 years experience each • Customers: ~ 200,000* • Service Centers: 282** • Dock doors: ~ 15,600 • Average Length of Haul: ~ 1,300 miles • Average
Slide 11: Regional Transportation
Regional Transportation Regional Transportation provides transportation service to customers in the regional and next-day markets and is comprised of Holland, Reddaway and New Penn – Holland provides local next-day, regional and expedited services through a network located in the Central, Southeaste
Slide 12: II. July 2011 Transaction
i. YRC Worldwide | ll. July 2011 Transaction
Slide 13: July 2011 Transaction
July 2011 Transaction In July 2011, the restructuring was completed – New Board seated – New CEO placed • New Management structure / team followed – Additional liquidity provided – Extended maturities on all major credit facilities to late 2014 / early 2015 New Management team changed strategic focu
Slide 14: Board of Directors
Board of Directors DIRECTOR NAME POSITION SINCE COMMITTEE(S) COMPANY James E. Hoffman Retired President 2011 Compensation + Alliant Energy Resources James L. Welch Chief Executive Officer 2011 YRC Worldwide Inc. Raymond J. Bromark Retired Partner 2011 Audit/Ethics * PricewaterhouseCoopers LLP North
Slide 15: Management Team
Management Team James L. Welch Chief Executive Officer – As chief executive officer, James Welch leads YRC Worldwide and its operating companies. During his 33-year tenure in the transportation and logistics industry, Welch has established a proven track record of leading organizations through diffi
Slide 16: Management Team
Management Team Jeffrey A. Rogers President, YRC Freight – Jeff Rogers is president of YRC Freight, a leading transporter of industrial, commercial and retail goods that specializes in less-than-truckload solutionsforbusinesses acrossNorthAmerica.A28-yearveteranofthefreighttransportation industry, R
Slide 17: Management Team
Management Team Thomas J. “TJ” O’Connor President, Reddaway – T.J.O’ConnorleadsReddaway,a YRCWorldwidesubsidiarythathasbuilta long-standing traditionofreliable,next- day and two-day delivery services for less-than-truckload shipments in the western United States and Canada, including Alaska and Hawa
Slide 18: Streamlined Holding Company
Streamlined Holding Company Former Structure New Structure YRCW YRCW Corporate Corporate • CEO / CFO team • Legal team • CEO / CFO team • Sales • Security team • Legal team • Customer Care • Quality team • HR • Security team • IT • Equipment Services YRC Freight Holland New Penn Reddaway Glen Moore
Slide 19: YRCF – Strategic Direction
YRCF –Strategic Direction The last several years of activities have largely been focused on – The integration of Yellow and Roadway into YRCF in March 2009 – Dramatic capacity and cost reductions to right-size the company (facilities, equipment and employees) – Financial restructuring efforts, inclu
Slide 20: YRCF – Path Forward "The Flywheel"
YRCF –Path Forward “The Flywheel” Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Improve service quality Consistent performance (on-time P&D, undamaged, recover quickly) Get “in cycle” Perform on Time-Critical shipments TQM “Win hearts and mi
Slide 21: YRCF – On-Standard Service
YRCF –On-Standard Service Focus is on maintaining momentum created in On-Standard Service Percent the first quarter of 2012 85.0% - Mantra: “Pick it up on time, deliver it on time 80.0% and don’t bust it. Consistently.” 75.0% On-Standard Service Percent appears to have 70.0% stabilized at or above 8
Slide 22: III. 2Q12 Financial Update
III. 2Q12 Financial Update 22
Slide 23: YOY Volume Down at YRC Freight, Up at Regional
YOY VolumeDown – at YRC Freight, Up at Regional YRC Freight Tonnage per Day Regional Tonnage per Day 32.00 32.00 30.42K 29.14K +4.4% 30.00 28.66K -3.3% 27.72K 30.00 28.00 28.00 26.00 26.00 24.00 24.00 22.00 22.00 20.00 20.00 2Q11 2Q12 2Q11 2Q12 YRC Freight Shipments per Day Regional Shipments per Da
Slide 24: YOY Yield Improved across the board
YOY Yield Improved – across the board YRC Freight Revenue per cwt Regional Revenue per cwt $23.40 $23.24 $11.30 $11.12 $23.20 $11.10 +2.4% $23.00 +2.9% $10.90 $10.86 $22.80 $22.57 $10.70 $22.60 $22.40 $10.50 $22.20 $10.30 2Q11 2Q12 2Q11 2Q12 YRC Freight Revenue per Shipment Regional Revenue per Ship
Slide 25: YRCW Revenue
YRCW Revenue ($ in millions) 2Q Comparison $1,300.0 $1,280.0 $1,257.2 (1) (0.5%) $1,260.0 $1,250.8 $1,240.0 $1,220.0 $1,200.0 2Q11 2Q12 Lower volume at YRCF, lower FSC and the inclusion of disposed truckload operations in 2Q11 offset by modestly higher yield led to a slight decline in YOY revenue Fo
Slide 26: YRCW Adjusted EBITDA
YRCW Adjusted EBITDA ($ in millions) Reconciliation of Operating Income to Adjusted EBITDA 2Q11 2Q12 Operating revenue $ 1,257.2 $ 1,250.8 Adjusted operating ratio 99.0% 98.3% Reconciliation of operating income to adjusted EBITDA: 2Q Adjusted EBITDA Operating income (loss) $ (5.6) $ 15.5 (Gains) los
Slide 27: YRCW Adjusted EBITDA (pro forma for Pension)
YRCW Adjusted EBITDA (pro forma for Pension) ($ in thousands) 70,098 $80 64,528 54,648 $60 40,400 47,287 39,878 41,286 $40 15,318 $20 $ (1,305) ($20) ($40) (37,239) ($60) ($80) ($100) ($120) 1Q 2Q 3Q 4Q 2010 2011 2012 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 1 Adj. EBITDA Reported (37,239)
Slide 28: Free Cash Flow and Liquidity
1 Free Cash Flow and Liquidity ($ in millions) Three months 2012 2011 Change Adjusted EBITDA Total restructuring professional fees $ 70.1 (2.5) $ 64.5 (18.1) $ 5.6 15.6 Total Liquidity Cash paid for interest (28.8) (10.3) (18.5) Cash paid for letter of credit fees (9.5) - (9.5) $249 Working capital
Slide 29: Liquidity
Liquidity ($ in millions) $275 $279 $277 $241 $249 $218 $194 $171 $161 $165 $173 $154 $134 $96 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 July 2011 transaction significantly enhanced liquidity via Series B Notes proceeds and increased ABL availability Best second quarter l
Slide 30: IV. Conclusion
i. YRC Worldwide | IV. Conclusion
Slide 31: Conclusion
Conclusion Subsequent to the July 2011 transaction – A new Board was seated – A new Management team was placed – Laser-like focus on North American LTL operations – One corporate headquarters with one culture, one vision and one mission – Reorganizing “corporate” to support overall strategy and incr
Slide 32: Conclusion 2Q12 Financial Results
Conclusion2Q12 – Financial Results On a year-over-year basis 1 Revenue increased 1.6% rd AdjustedEBITDApositively compingforthe3 consecutive yearand reported highest quarterly EBITDA in four years New management team executing on non-quantitative commitments AND exceeding forecast Overall, much prog
Slide 33: V. Appendix
i. YRC Worldwide | V. Appendix
Slide 34: Operating Income to Adjusted EBITDA
Operating Income to Adjusted EBITDA Reconciliation of Operating Income to Adjusted EBITDA 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Operating income (loss) $ (232.2) $ 49.5 $ (17.3) $ (27.9) $ (68.4) $ (5.6) $ (26.1) $ (38.1) $ (48.8) $ 15.5 (Gains) losses on property disposals, net 8.5 (2.8
YRC Worldwide — Deutsche Bank Transportation Conference 2012 on 6ix