EX-99.1 2 dex991.htm YRC WORLDWIDE INC. INVESTOR PRESENTATION SLIDE SHOW YRC Worldwide Inc. Investor Presentation slide show
Investor Presentation
Investor Presentation
March  2010
Exhibit 99.1


2
Discussion Topics
Discussion Topics
Accomplishments
Operating Improvement
Cost Reductions
Capital Structure
Customer Confidence
Critical Success Factors


3
Accomplishments -
Business Performance
Accomplishments -
Business Performance
Integration of Yellow and Roadway legacy networks
Right-sized to market volumes by removing redundant facilities
Service improvement
Turnaround of Regional Transportation
Cost reductions
Two labor contract amendments; market adjustment
Equity awards
Headcount scaling to volumes
Functional organization structure and improved processes
Reducing breakeven point
Sequential improvement, and now year-over-year improvement


4
Accomplishments -
Balance Sheet
Accomplishments -
Balance Sheet
Credit agreement amendments
Asset-backed securitization facility renewals
Liquidity self-help program -
$636 million
Sale of surplus property -
$133 million
Sale/Leasebacks -
$332 million
Pension contribution deferrals -
$171 million
Debt-for-equity exchange
New notes satisfy remaining note obligations


YRCW Consolidated Operating Trends
YRCW Consolidated Operating Trends
5
EBITDA, as adjusted*, and Qtr/Qtr Revenue
(EBITDA dollars in millions / % change in Qtr/Qtr Operating Revenue)
*EBITDA, as adjusted, is a non-GAAP measure that reflects the company’s
“Consolidated
EBITDA”
as
defined
in
the
company’s
Credit
Agreement.
These
amounts are used for internal management purposes in connection with the
Credit Agreement and should not be construed as a better measurement than
operating
income,
as
defined
by
generally
accepted
accounting
principles.
See
Page
13
for
a
reconciliation
of
EBITDA,
as
adjusted
to
operating
income
(loss).
Improvement driven across all
operating companies
Qtr/Qtr, and now Yr/Yr improvement
Lowering breakeven point
Improved service capabilities


6
2009 Performance / 2010 Cost Program
2009 Performance / 2010 Cost Program
Note: 4Q09 as reported gross benefit $15 million; cost program excludes
benefits from network changes; 4Q09 network consolidations expected to
produce $20 million annual benefit in 2010.
2010 Cost Program, now $300 million
SG&A reductions
Safety improvements
Operational process improvements
2009 Performance
Successfully scaling headcount
Integration
Functional organization
Process improvements


7
Debt Reduction
Debt Reduction
Note1: Cash-based maturities of $814M consist of: Remaining Notes $67M, IDB $6M, Pension Debt $153M, and Revolver/Term Loan/ABS (bank debt) $588M
Note 2: Self-help liquidity program added: Pension Debt of $153M (net of asset sale pay downs) and Sale/Leaseback debt of $319M; total $472M
Achieved a $217 million reduction in total balance sheet debt
Cash-based debt maturities reduced $536 million
New notes satisfy remaining notes obligation
$536m
$217m


8
Outstanding Shares
Outstanding Shares
12.30 Pro forma is prior to completion of the debt-for-equity exchange;  outstanding common
shares approximately 60 million
12.31 Pro forma is after the completion of the debt-for-equity exchange; pro forma common
shares approximately 1 billion (as converted)
02.23 Pro forma is after the $70 million funding related to the new notes; pro forma common
shares approximately 1.2 billion (as converted)
Note:  Pro forma market value of YRCW stock using $ 0.43 conversion rate from new  notes
Note exchange increased our
market cap by more than $400
million
Outstanding shares approximately
1 billion, after conversion of
preferred stock
Expect to effect a reverse stock
split during Q2, approved range is
25:1 to 5:1
Post-split outstanding shares at
40 million  to 200 million vs.
1 billion currently 


9
Customer Confidence
Customer Confidence
In January, an independent research firm conducted a survey
of key transportation decision-makers and influencers across
YRCW’s entire customer base to better understand:
Anticipated  business volumes in 2010; and
Intent to use YRCW
5,700 respondents
83% are sole or shared transportation decision-makers
62% optimistic their 2010 business levels will increase
85% intend to increase or maintain their YRCW volumes


10
Customer Confidence
Customer Confidence


11
Critical Success Factors
Critical Success Factors
Factor
Expectation or Potential Uncertainty
Economic recovery
Modest growth vs. no growth or decline
Diesel prices
Stable vs. run-up in price
Return of customers
Timing and degree of market share regained
Cost initiatives
On or better than target
Revenue mix
Rate and timing of improvements
Service levels
Continuation of current exceptional performance
Process improvements
SWAT teams continue to drive performance
Sales team structure
New design improves market penetration


12
Forward-Looking Statements
Forward-Looking Statements
This
presentation
contains
forward-looking
statements.
The
words
“improvements,”
“believe,”
“will,”
“expect,”
“anticipate”
and
similar
expressions
are
intended
to
identify
forward-looking statements.
The company’s future results could differ materially from any results projected in such forward-looking statements because of a number of
factors, including (among others) inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the company bases its
fuel
surcharge,
competitor
pricing
activity,
expense
volatility,
including
(without
limitation)
expense
volatility
due
to
changes
in
rail
service
or
pricing
for
rail
service,
ability
to
capture cost reductions, changes in equity and debt markets, a downturn in general or regional economic activity, effects of a terrorist attack, labor relations, including
(without limitation), the impact of work rules, work stoppages, strikes or other disruptions, any obligations to multi-employer health, welfare and pension plans, wage
requirements and employee satisfaction, and the risk factors that are from time to time included in the company’s reports filed with the SEC, including the company’s Annual
Report on Form 10-K.
The
company’s
expectations
regarding
the
incremental
cost
savings
due
to
facility
closures
are
only
its
expectations
regarding
this
matter.
Actual
savings
could
differ
based on a number of factors including (among others) the company’s ability to enter into, and the terms of, lease termination agreements for the leased properties, our
ability to enter into agreements to sell the owned properties and our ability to identify all costs related to the closing of the facilities.
The
company’s
expectations
regarding
the
timing
and
ratio
of
a
reverse
stock
split
are
only
its
expectations
regarding
these
matters.
The
actual
timing
and
ratio
of
any
reverse stock split approved by the company’s board of directors could differ based on a number of factors including (among others) the closing bid price of the company’s
common stock and the factors that affect the price of the company’s common stock including (among others) actual or expected fluctuations in the company’s operating
results, changes in general economic condition or conditions in the company’s industry generally, changes in conditions in the financial markets, the effect of any issuance
of
additional
shares
of
the
company’s
common
stock.
The
agreements
related
to
the
company’s
new
6%
convertible
senior
notes
due
2014
restrict
the
company
from
implementing a reverse stock split prior to April 24, 2010.
The
company’s
expectations
regarding
the
second
closing
of
the
new
notes
are
only
its
expectations
regarding
this
matter.
The
closing
of
the
second
$20.2
million
of
the
notes is subject to a number of conditions, including (among others), a determination of the outcome of the company’s litigation with respect to its outstanding 5% and
3.375% contingent convertible notes.
The
company’s
expectations
regarding
the
timing
and
degree
of
market
share
regained
are
only
its
expectations
regarding
these
matters.
Actual
timing
and
degree
of
market
share regained could differ based on a number of factors including (among others) the company’s ability to persuade existing customers to increase shipments with the
company
and
to
attract
new
customers,
and
the
factors
that
affect
revenue
results
(including
the
risk
factors
that
are
from
time
to
time
included
in
the
company’s
reports
filed
with the SEC, including the Company’s annual report on Form 10-K).
The company’s
expectations
regarding
the
rate
and
timing
of
revenue
mix
improvements
are
only
its
expectations
regarding
these
matters.
Actual
rate
and
timing
of
revenue
mix improvements could differ based on a number of factors including (among others) general economic trends and excess capacity within the industry, and the factors that
affect
revenue
results
(including
the
risk
factors
that
are
from
time
to
time
included
in
the
company’s
reports
filed
with
the
SEC,
including
the
Company’s
annual
report
on
Form 10-K).


Operating Income (Loss) to EBITDA, As Adjusted
Operating Income (Loss) to EBITDA, As Adjusted
13
Workdays are the number of calendar days during each quarter exclusive of weekends and holidays.
EBITDA margin is EBITDA divided by operating revenue expressed as a percentage.
EBITDA per workday is EBITDA divided by the workdays.
Operating Income (Loss)  to EBITDA, as adjusted
$ in millions
Q4 '08
Q1 '09
Q2 '09
Q3 '09
Q4 '09
Consolidated
Operating revenue
$      1,929
$      1,503
$      1,328
$      1,306
$      1,146
Operating income (loss), as reported
$        (335)
$        (379)
$        (300)
$        (118)
$          (95)
Non-oper
inc (exp)
4
(4)
(0)
(3)
(2)
(Gains)
losses
on
property
disposals,
net
(addback
to
OI)
(10)
2
(1)
(11)
0
Impairment
(addback
to OI)
200
-
-
-
-
Depreciation
&
amortization
(addback
to
OI)
70
66
64
61
63
Letter of credit expense
(addback
incl
in sal, wages & ben
and
other oper
exp)
2
5
9
9
9
Non-cash stock comp
(addback
incl
in sal, wages & ben)
1
32
(7)
2
2
Interest income
(addback
incl
in non-oper
exp)
(3)
(0)
(0)
(0)
(0)
JHJ/Jiayu
joint venture (inc) exp
(addback
incl
in non-oper
exp)
(1)
1
1
1
1
Feb '09 amdmt/waiver exp
(addback
incl
in non-oper
exp)
-
2
-
-
-
EBITDA
$          (73)
$        (275)
$        (234)
$          (59)
$          (22)
EBITDA margin
-3.8%
-18.3%
-17.6%
-4.5%
-2.0%
National
Workdays
61.5
62.5
63.5
64.0
61.5
Operating revenue
$      1,359
$      1,023
$         874
$         849
$         744
Operating income (loss), as reported
$        (243)
$        (300)
$        (239)
$        (122)
$          (90)
Non-oper
inc (exp)
0
1
0
(1)
(0)
(Gains) losses on property disposals, net
(addback
to OI)
(10)
1
(2)
(11)
(1)
Impairment
(addback
to OI)
141
-
-
-
-
Depreciation & amortization
(addback
to OI)
35
33
32
31
34
Letter of credit expense
1
4
7
7
7
Non-cash stock comp
(0)
22
(6)
(0)
0
Interest income
(0)
(0)
(0)
(0)
(0)
EBITDA
$          (77)
$        (239)
$        (207)
$          (95)
$          (50)
EBITDA margin
-5.6%
-23.3%
-23.7%
-11.2%
-6.8%
EBITDA per workday -
$000's
$         (1,247)
$     (3,816)
$     (3,267)
$     (1,491)
$        (821)
Regional
Workdays
63.5
65.5
62.5
64.0
59.5
Operating revenue
$         419
$         355
$         338
$         339
$         291
Operating income (loss), as reported
$          (24)
$          (74)
$          (48)
$             0
$            (5)
Non-oper
inc (exp)
(2)
0
(0)
(0)
0
(Gains) losses on property disposals, net
(addback
to OI)
(1)
0
1
(0)
1
Depreciation & amortization
(addback
to OI)
16
17
17
16
16
Letter of credit expense
1
1
2
2
2
Non-cash stock comp
-
6
(2)
-
0
Interest income
(0)
(0)
0
(0)
(0)
EBITDA
$          (10)
$          (50)
$          (31)
$           18
$           15
EBITDA margin
-2.4%
-14.1%
-9.1%
5.4%
5.2%
EBITDA per workday -
$000's
$         (156)
$         (762)
$         (490)
$        286
$         254