Yellow Corporation · OTC:YELLQ
Yellow — Yellow Roadway — Bear Stearns conference, September 8-9, 2004
17 slides from Yellow's conference presentation, Sep 7, 2004
Slide 1: Bear Stearns
Bear Stearns September 8 - 9, 2004
Slide 2: Who We Are
Who We Are A leading transportation services provider that offers a full range of regional, national and international services for the movement of industrial, commercial and retail goods, primarily through centralized management and customer facing organizations. A leading transportation services p
Slide 3: What We Do
What We Do Exact Express® Definite Delivery® Standard Ground™ Standard Ground Regional Advantage Standard Ground Truckload Exhibit Services Time Advantage® Time Critical Standard LTL Volume Delivery Special Shipping Services Exhibit Transportation Services International Forwarding & Customs Brokerag
Slide 4: What We Offer
What We Offer Yellow Roadway offers its clients expansive resources Over 50,000 employees Over 800 service facilities Over 18,000 tractors Over 70,000 trailers Over 550 technology professionals Dedicated to the Yellow Roadway Core Purpose Making global commerce work by connecting people, places and
Slide 5: Less-than-Truckload Market Share
Less-than-Truckload Market Share Revenue ($billions) $0 $1 $2 $3 $4 $5 $6 $7 Yellow Roadway USF Con-Way Fed Ex Overnite ABF SCST ODFL Central 2003 results from company Form 10-Ks
Slide 6: Large and Diverse Customer Base
Large and Diverse Customer Base
Slide 7: Independent Recognition
Independent Recognition #1 In Our Industry - 2 Years In A Row
Slide 8: 3-Year Relative Stock Performance
3-Year Relative Stock Performance Percentage Improvement -6.8 23.4 35.6 45.8 53.0 104.8 142.8 S&P500 USFC UPS ABFS CNF FDX YELL USFC = USF Corp; UPS = United Parcel Service; ABFS = Arkansas Best Corporation; CNF = CNF Inc.; FDX = FedEx Corporation; YELL = Yellow Roadway Corporation Results measured
Slide 9: Stock Performance Since Announcement of Roadway Acquisition
Stock Performance Since Announcement of Roadway Acquisition Roadway acquisition announced July 8, 2003 Deal closed December 11, 2003 $23 $30 $36 $34 $40 $43 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Aug-04 Our stock price has increased over 80% since we announced the Roadway acquisition.
Slide 10: Strategy Overview
Strategy Overview 10 15 20 25 30 35 40 45 50 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Stock Price New CEO Spin Off SCS Transportation Roadway Acquisition Announcement Formation of Meridian IQ Equity Offering New Management Team Roadway Acquisition Closed 5-Year Labor Agreement
Slide 11: Roadway Acquisition Strategic Rationale
Roadway Acquisition Strategic Rationale Growth Significant resources, capabilities and market reach Large customer bases with limited overlap Enhanced Profitability Leverage best practices opportunities “Develop it once, use it twice” The Right Partner Continued investments in both companies’ brands
Slide 12: Synergy Update
Synergy Update $0 $100 $300 $200 2003 2004 2005 2006 Synergy Timeline Run Rate Synergies at Year-End (millions) Examples: Near-term synergies Purchased transportation Equipment and parts purchasing Technology acquisition & licensing Duplicate infrastructure Best practices opportunities Longer-term s
Slide 13: 2004 Financial Performance
2004 Financial Performance $6.1 billion $6.7 billion 2003 Pro Forma 2004 Actual/Projected Full year revenue +9% $0.79 per share $3.70 - $3.75 per share 2003 Pro Forma 2004 Actual/Projected Full year EPS +370%* Projected Actual 2004 results include actual through June 30 and projected from July 1 thr
Slide 14: Debt Reduction of Over $150 Million in 2004
Debt Reduction of Over $150 Million in 2004 48% 42% 38% 12/31/2003 6/30/2004 Est. 12/31/04 Debt to Capital Ratio Convertible notes, $400 Roadway senior notes, $246 Term loan, $75 ABS, $57 Other, $13 Debt Composition at 6/30/04
Slide 15: 2004 Guidance
2004 Guidance 3rd quarter 2004 Earnings per share guidance increased Updated EPS guidance $1.30 - $1.35 per share Original EPS guidance $1.20 - $1.25 per share Full year 2004 Consolidated revenue $6.7 billion Earnings per share $3.70 - $3.75 per share Cost synergies $40 - $50 million during 2004 $80
Slide 16: Summary
Summary Well positioned for a strong 2004 — and beyond All business units are performing well Sizeable cost synergies are available We are focused on execution Economic conditions are favorable
Slide 17: Forward-Looking Statements
Forward-Looking Statements This presentation, and oral statements made regarding the subjects of this presentation, contains forwardlooking 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
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