Yellow Corporation (NASDAQ: YELL) reported results for the first
quarter ended March 31, 2021. Operating revenue was $1.198 billion
and operating loss was $27.6 million, which included a $1.0 million
net loss on property disposals. In comparison, operating revenue in
the first quarter 2020 was $1.150 billion and operating income was
$28.0 million, which included a $39.3 million net gain on property
disposals.
Net loss for first quarter 2021 was $63.3
million, or $1.26 per share, compared to net income of $4.3
million, or $0.13 per share, in first quarter 2020.
“The severe winter weather, including a
generational storm in the southern United States, significantly
impacted our first quarter results,” said Darren Hawkins, Chief
Executive Officer. “In February, roughly two-thirds of the 322
terminals in our network were either closed or had limited
operations for some period. Our linehaul operations were also
impacted by suspended service at various times. The recovery period
to get the network fully back in cycle had a long tail that lasted
into March and we estimate the unfavorable impact to operating
income in the first quarter was approximately $16 million.
“With the impact of the winter weather behind
us, LTL capacity remains tight driven by an improving economy and
consumer optimism. We continue to see a strong yield
environment.
“As previously indicated, we expect near-term
headwinds from higher purchased transportation expense primarily
attributable to the use of local cartage and over the road
purchased transportation, both of which are more expensive in a
tight capacity environment. We continue to expand our nationwide
recruiting efforts including holding more than two dozen hiring
events and increasing the number of driving academy locations to
17. We also took delivery of more than 1,100 tractors, 1,600
trailers and 140 containers during the first quarter as part of our
$450 million to $550 million capital expenditures plan in 2021. As
we hire drivers and bring on additional revenue equipment, we
expect to use less local cartage and over the road purchased
transportation.
“We are in the process of executing the
migration of our operating companies to One Yellow technology
platform. We are also focused on optimizing the network to create
One Yellow network and to expand and enhance service in the 1, 2
and 3-day lanes nationwide. The transformation to One Yellow
remains on schedule to be completed in the middle of 2022.
“The passage of the American Rescue Plan Act of
2021 will strengthen eligible multiemployer pension plans that are
currently severely underfunded and substantially mitigate their
unfunded liabilities. The Act and the relief it provides will
protect the hard-earned benefits of retirees from many companies
and many industries including members of the Yellow team,”
concluded Hawkins.
Financial Update
- On a non-GAAP basis, the Company
generated Adjusted EBITDA of $13.2 million in first quarter 2021,
compared to $34.1 million in the prior year comparable quarter (as
detailed in the reconciliation below). Last twelve months Adjusted
EBITDA as of March 31, 2021 was $171.0 million compared to $214.6
million as of March 31, 2020 (as detailed in the reconciliation
below).
- In first quarter 2021, the Company
invested $202.4 million in capital expenditures. This compares to
$12.4 million in capital expenditures and $0.7 million in capital
value equivalent in new operating leases for a total of $13.1
million in first quarter 2020.
Operational Update
- The operating ratio for first
quarter 2021 was 102.3 compared to 97.6 in first quarter 2020.
- Excluding fuel surcharge, first
quarter 2021 LTL revenue per hundredweight increased 6.9% and LTL
revenue per shipment increased 5.6% compared to the same period in
2020. Including fuel surcharge, first quarter LTL revenue per
hundredweight increased 6.7% and LTL revenue per shipment increased
5.4%.
- First quarter 2021 LTL tonnage per
workday increased 0.5% when compared to first quarter 2020.
Liquidity Update
- The Company’s available liquidity,
which is comprised of cash and cash equivalents and Managed
Accessibility (as detailed in the supplemental information provided
below) under its ABL facility, was $423.0 million as of March 31,
2021 compared to $118.0 million as of March 31, 2020, an increase
of $305.0 million.
- The Company’s outstanding debt was
$1.462 billion as of March 31, 2021, an increase of $582.1 million
compared to $879.9 million as of March 31, 2020.
- For the three months ended March
31, 2021 cash used in operating activities was $38.8 million
compared to $15.6 million in 2020.
Key Information – First
quarter 2021 compared to first quarter 2020
|
|
2021 |
|
|
|
2020 |
|
Percent Change(a) |
Workdays |
|
63.5 |
|
|
|
65.5 |
|
|
Operating revenue (in
millions) |
$ |
1,198.4 |
|
|
$ |
1,150.4 |
|
4.2 |
% |
Operating income (loss) (in
millions) |
$ |
(27.6 |
) |
|
$ |
28.0 |
|
NM* |
|
Operating ratio |
|
102.3 |
|
|
|
97.6 |
|
(4.7) pp |
|
LTL tonnage per workday (in
thousands) |
|
39.02 |
|
|
|
38.85 |
|
0.5 |
% |
LTL shipments per workday (in
thousands) |
|
67.13 |
|
|
|
66.00 |
|
1.7 |
% |
LTL picked up revenue per
hundredweight incl FSC |
$ |
22.00 |
|
|
$ |
20.63 |
|
6.7 |
% |
LTL picked up revenue per
hundredweight excl FSC |
$ |
19.53 |
|
|
$ |
18.27 |
|
6.9 |
% |
LTL picked up revenue per
shipment incl FSC |
$ |
256 |
|
|
$ |
243 |
|
5.4 |
% |
LTL picked up revenue per
shipment excl FSC |
$ |
227 |
|
|
$ |
215 |
|
5.6 |
% |
LTL weight/shipment (in
pounds) |
|
1,163 |
|
|
|
1,177 |
|
(1.2 |
)% |
Total tonnage per workday (in
thousands) |
|
50.64 |
|
|
|
49.37 |
|
2.6 |
% |
Total shipments per workday (in
thousands) |
|
68.98 |
|
|
|
67.57 |
|
2.1 |
% |
Total picked up revenue per
hundredweight incl FSC |
$ |
18.60 |
|
|
$ |
17.65 |
|
5.4 |
% |
Total picked up revenue per
hundredweight excl FSC |
$ |
16.56 |
|
|
$ |
15.69 |
|
5.6 |
% |
Total picked up revenue per
shipment incl FSC |
$ |
273 |
|
|
$ |
258 |
|
5.9 |
% |
Total picked up revenue per
shipment excl FSC |
$ |
243 |
|
|
$ |
229 |
|
6.1 |
% |
Total weight/shipment (in
pounds) |
|
1,468 |
|
|
|
1,461 |
|
0.5 |
% |
(a) |
|
Percent change based on unrounded figures and not the rounded
figures presented |
* |
|
Not meaningful |
Review of Financial Results
Yellow Corporation will host a conference call
with the investment community today, Wednesday, May 5, 2021,
beginning at 5:00 p.m. ET.
A live audio webcast of the conference call and
presentation slides will be available on Yellow Corporation’s
website www.myyellow.com. A replay of the webcast will also be
available at www.myyellow.com
Non-GAAP Financial Measures
EBITDA is a non-GAAP measure that reflects the
company’s earnings before interest, taxes, depreciation, and
amortization expense. Adjusted EBITDA is a non-GAAP measure that
reflects EBITDA, and further adjusts for letter of credit fees,
equity-based compensation expense, net gains or losses on property
disposals, restructuring charges, transaction costs related to
issuances of debt, non-recurring consulting fees, non-cash
impairment charges and the gains or losses from permitted
dispositions, discontinued operations, and certain non-cash
expenses, charges and losses (provided that if any of such non-cash
expenses, charges or losses represents an accrual or reserve for
potential cash items in any future period, the cash payment in
respect thereof in such future period will be subtracted from
Adjusted EBITDA in such future period to the extent paid). Adjusted
EBITDA as used herein is defined as Consolidated EBITDA in our UST
Credit Agreements and Term Loan Agreement (collectively, the “TL
Agreements”). EBITDA and Adjusted EBITDA are used for internal
management purposes as a financial measure that reflects the
company’s core operating performance. In addition, management uses
Adjusted EBITDA to measure compliance with financial covenants in
our TL Agreements and to determine certain incentive compensation.
We believe our presentation of EBITDA and Adjusted EBITDA is useful
to investors and other users as these measures represent key
supplemental information our management uses to compare and
evaluate our core underlying business results, particularly in
light of our leverage position and the capital-intensive nature of
our business. Further, EBITDA is a measure that is commonly used by
other companies in our industry and provides a comparison for
investors to evaluate the performance of the companies in the
industry. Additionally, Adjusted EBITDA helps investors to
understand how the company is tracking against our financial
covenants in our TL Agreements.
EBITDA and Adjusted EBITDA have the following
limitations:
- EBITDA does not reflect the interest expense or the cash
requirements necessary to service interest or fund principal
payments on our outstanding debt;
- Adjusted EBITDA does not reflect the interest expense or the
cash requirements necessary to service interest or fund principal
payments on our outstanding debt, letter of credit expenses,
restructuring charges, transaction costs related to debt, non-cash
charges, charges or losses (subject to the conditions above), or
nonrecurring consulting fees, among other items;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will have to be replaced
in the future and EBITDA and Adjusted EBITDA do not reflect any
cash requirements for such replacements;
- Equity-based compensation is an element of our long-term
incentive compensation program for certain employees, although
Adjusted EBITDA excludes employee equity-based compensation expense
when presenting our ongoing operating performance for a particular
period; and
- Other companies in our industry may calculate Adjusted EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, our non-GAAP
measures should not be considered a substitute for performance
measures calculated in accordance with GAAP. We compensate for
these limitations by relying primarily on our GAAP results and
using our non-GAAP measures as secondary measures. The company has
provided reconciliations of its non-GAAP measures to GAAP net
income (loss) within the supplemental financial information in this
release.
Cautionary Note on Forward-Looking
Statements
This news release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
and Section 21E of the Exchange Act. Forward-looking statements
include those preceded by, followed by or characterized by words
such as “will,” “expect,” “intend,” “anticipate,” “believe,”
“could,” “should,” “may,” “project,” “forecast,” “propose,” “plan,”
“designed,” “estimate,” “enable,” and similar expressions which
speak only as of the date the statement was made. Forward-looking
statements are inherently uncertain, are based upon current
beliefs, assumptions and expectations of Company management and
current market conditions, and are subject to significant business,
economic, competitive, regulatory and other risks, uncertainties
and contingencies, known and unknown, many of which are beyond our
control. Readers are cautioned not to place undue reliance on any
forward-looking statements. Our future financial condition and
results could differ materially from those predicted in such
forward-looking statements because of a number of business,
financial and liquidity, and common stock related factors,
including (without limitation) the risk of labor disruptions or
stoppages, if our relationship with our employees and unions were
to deteriorate; general economic factors, including (without
limitation) impacts of COVID-19 and customer demand in the retail
and manufacturing sectors; the widespread outbreak of an illness or
any other communicable disease, including the effects of pandemics
comparable to COVID-19, or any other public health crisis, as well
as regulatory measures implemented in response to such events;
interruptions to our computer and information technology systems
and sophisticated cyber-attacks; business risks and increasing
costs associated with the transportation industry, including
increasing equipment, operational and technology costs and
disruption from natural disasters, and impediments to our
operations and business resulting from anti-terrorism measures; our
ability to attract and retain qualified drivers and increasing
costs of driver compensation; competition and competitive pressure
on pricing; changes in pension expense and funding obligations,
subject to interest rate volatility; increasing costs relating to
our self-insurance claims expenses; our ability to comply and the
cost of compliance with, or liability resulting from violation of,
federal, state, local and foreign laws and regulations, including
(without limitation) labor laws and laws and regulations regarding
the environment and climate change initiatives; the impact of
claims and litigation expense to which we are or may become
exposed; that we may not realize the expected benefits and costs
savings from our performance and operational improvement
initiatives; a significant privacy breach or IT system disruption;
our dependence on key employees; our ability to finance the
maintenance, acquisition and replacement of revenue equipment and
other necessary capital expenditures; seasonality and the impact of
weather; shortages of fuel and changes in the cost of fuel or the
index upon which we base our fuel surcharge and the effectiveness
of our fuel surcharge program in protecting us against fuel price
volatility; risks of operating in foreign countries; our failure to
comply with the covenants in the documents governing our existing
and future indebtedness; our ability to generate sufficient
liquidity to satisfy our indebtedness and cash interest payment
obligations, lease obligations and pension funding obligations;
fluctuations in the price of our common stock; dilution from future
issuances of our common stock; we are not permitted to pay
dividends on our common stock in the foreseeable future; that we
have the ability to issue preferred stock that may adversely affect
the rights of holders of our common stock; and other risks and
contingencies, including (without limitation) the risk factors that
are included in our reports filed with the SEC, including those
described under “Risk Factors” in our annual report on Form 10-K
and quarterly reports on Form 10-Q.
About Yellow Corporation
Yellow Corporation has one of the largest, most
comprehensive logistics and less-than-truckload (LTL) networks in
North America with local, regional, national, and international
capabilities. Through its teams of experienced service
professionals, Yellow Corporation offers industry-leading expertise
in flexible supply chain solutions, ensuring customers can ship
industrial, commercial, and retail goods with confidence. Yellow
Corporation, headquartered in Overland Park, Kan., is the holding
company for a portfolio of LTL brands including Holland, New Penn,
Reddaway, and YRC Freight, as well as the logistics company HNRY
Logistics.
Please visit our website at www.myyellow.com for
more information.
Investor
Contact: |
|
Tony
Carreño |
|
|
913-696-6108 |
|
|
investor@myyellow.com |
|
|
|
Media Contacts: |
|
Mike Kelley |
|
|
913-696-6121 |
|
|
mike.kelley@myyellow.com |
|
|
|
|
|
Heather Nauert |
|
|
Heather.nauert@myyellow.com |
CONSOLIDATED BALANCE SHEETS |
|
Yellow Corporation and Subsidiaries |
|
(Amounts in millions except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
ASSETS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
381.4 |
|
|
$ |
439.3 |
|
|
Restricted amounts held in
escrow |
31.4 |
|
|
38.7 |
|
|
Accounts receivable, net |
579.9 |
|
|
505.0 |
|
|
Prepaid expenses and
other |
65.5 |
|
|
46.8 |
|
|
Total current assets |
1,058.2 |
|
|
1,029.8 |
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT: |
|
|
|
|
|
|
Cost |
2,977.1 |
|
|
2,795.5 |
|
|
Less - accumulated
depreciation |
(2,031.3 |
) |
|
(2,031.3 |
) |
|
Net property and equipment |
945.8 |
|
|
764.2 |
|
|
|
|
|
|
|
|
Deferred income
taxes, net |
2.0 |
|
|
0.9 |
|
Pension |
66.0 |
|
|
63.2 |
|
Operating lease
right-of-use assets |
246.4 |
|
|
276.0 |
|
Other assets |
36.1 |
|
|
51.7 |
|
|
Total assets |
$ |
2,354.5 |
|
|
$ |
2,185.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Accounts payable |
$ |
214.6 |
|
|
$ |
160.7 |
|
|
Wages, vacations, and employee
benefits |
222.6 |
|
|
214.6 |
|
|
Current operating lease
liabilities |
108.1 |
|
|
114.2 |
|
|
Other current and accrued
liabilities |
228.2 |
|
|
207.2 |
|
|
Current maturities of
long-term debt |
4.4 |
|
|
4.0 |
|
|
Total current liabilities |
777.9 |
|
|
700.7 |
|
|
|
|
|
|
|
|
OTHER
LIABILITIES: |
|
|
|
|
|
|
Long-term debt, less current
portion |
1,391.1 |
|
|
1,221.4 |
|
|
Operating lease
liabilities |
148.5 |
|
|
172.6 |
|
|
Claims and other
liabilities |
318.2 |
|
|
314.4 |
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
DEFICIT: |
|
|
|
|
|
|
Cumulative preferred stock, $1
par value per share |
- |
|
|
- |
|
|
Common stock, $0.01 par value
per share |
0.5 |
|
|
0.5 |
|
|
Capital surplus |
2,385.4 |
|
|
2,383.6 |
|
|
Accumulated deficit |
(2,429.2 |
) |
|
(2,365.9 |
) |
|
Accumulated other
comprehensive loss |
(145.2 |
) |
|
(148.8 |
) |
|
Treasury stock, at cost |
(92.7 |
) |
|
(92.7 |
) |
|
Total shareholders' deficit |
(281.2 |
) |
|
(223.3 |
) |
|
Total liabilities and shareholders' deficit |
$ |
2,354.5 |
|
|
$ |
2,185.8 |
|
|
|
|
|
|
|
|
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) |
|
Yellow Corporation and Subsidiaries |
|
For the Three Months Ended March 31 |
|
(Amounts in millions except per share data, shares in
thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
OPERATING REVENUE |
$ |
1,198.4 |
|
|
$ |
1,150.4 |
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
Salaries, wages and employee
benefits |
723.8 |
|
|
720.2 |
|
|
Fuel, operating expenses and
supplies |
203.5 |
|
|
208.0 |
|
|
Purchased transportation |
200.0 |
|
|
136.2 |
|
|
Depreciation and
amortization |
33.3 |
|
|
35.7 |
|
|
Other operating expenses |
64.4 |
|
|
61.6 |
|
|
(Gains) losses on property
disposals, net |
1.0 |
|
|
(39.3 |
) |
|
Total operating expenses |
1,226.0 |
|
|
1,122.4 |
|
OPERATING INCOME
(LOSS) |
(27.6 |
) |
|
28.0 |
|
|
|
|
|
|
|
|
NONOPERATING
EXPENSES: |
|
|
|
|
|
|
Interest expense |
35.9 |
|
|
28.3 |
|
|
Non-union pension and
postretirement benefits |
(1.3 |
) |
|
(1.6 |
) |
|
Other, net |
- |
|
|
(2.6 |
) |
|
Nonoperating expenses, net |
34.6 |
|
|
24.1 |
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAXES |
(62.2 |
) |
|
3.9 |
|
INCOME TAX EXPENSE
(BENEFIT) |
1.1 |
|
|
(0.4 |
) |
NET INCOME
(LOSS) |
(63.3 |
) |
|
4.3 |
|
OTHER
COMPREHENSIVE INCOME, NET OF TAX |
3.6 |
|
|
1.3 |
|
COMPREHENSIVE INCOME (LOSS) |
$ |
(59.7 |
) |
|
$ |
5.6 |
|
|
|
|
|
|
|
|
AVERAGE COMMON
SHARES OUTSTANDING - BASIC |
50,358 |
|
|
33,791 |
|
AVERAGE COMMON
SHARES OUTSTANDING - DILUTED |
50,358 |
|
|
35,630 |
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
PER SHARE - BASIC |
$ |
(1.26 |
) |
|
$ |
0.13 |
|
EARNINGS (LOSS)
PER SHARE - DILUTED |
$ |
(1.26 |
) |
|
$ |
0.12 |
|
|
|
|
|
|
|
|
OPERATING RATIO (a): |
102.3 |
% |
|
97.6 |
% |
|
|
|
|
|
|
|
(a) Operating
ratio is calculated as (i) 100 percent (ii) minus the result of
dividing operating income by operating revenue or (iii) plus the
result of dividing operating loss by operating revenue, and
expressed as a percentage |
STATEMENTS OF CONSOLIDATED CASH FLOWS |
|
Yellow Corporation and Subsidiaries |
|
For the Three Months Ended March 31 |
|
(Amounts in millions) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES: |
|
|
|
|
|
|
Net income (loss) |
$ |
(63.3 |
) |
|
$ |
4.3 |
|
|
Adjustments to reconcile net
income (loss) to cash flows from operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
33.3 |
|
|
35.7 |
|
|
Lease amortization and accretion expense |
36.9 |
|
|
43.1 |
|
|
Lease payments |
(37.7 |
) |
|
(38.1 |
) |
|
Paid-in-kind interest |
2.3 |
|
|
- |
|
|
Debt-related amortization |
5.7 |
|
|
3.3 |
|
|
Equity-based compensation and employee benefits expense |
5.1 |
|
|
5.6 |
|
|
(Gains) losses on property disposals, net |
1.0 |
|
|
(39.3 |
) |
|
Deferred income tax benefit, net |
(1.0 |
) |
|
(0.4 |
) |
|
Other non-cash items, net |
0.7 |
|
|
0.7 |
|
|
Changes in assets and
liabilities, net: |
|
|
|
|
|
|
Accounts receivable |
(74.9 |
) |
|
(61.0 |
) |
|
Accounts payable |
36.1 |
|
|
14.9 |
|
|
Other operating assets |
(4.0 |
) |
|
(3.9 |
) |
|
Other operating liabilities |
21.0 |
|
|
19.5 |
|
|
Net cash used in operating activities |
(38.8 |
) |
|
(15.6 |
) |
|
|
|
|
|
|
|
INVESTING
ACTIVITIES: |
|
|
|
|
|
|
Acquisition of property and
equipment |
(202.4 |
) |
|
(12.4 |
) |
|
Proceeds from disposal of
property and equipment |
0.4 |
|
|
45.0 |
|
|
Net cash provided by (used in) investing activities |
(202.0 |
) |
|
32.6 |
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES: |
|
|
|
|
|
|
Issuance of long-term debt,
net |
176.5 |
|
|
- |
|
|
Repayment of long-term
debt |
(0.5 |
) |
|
(20.1 |
) |
|
Debt issuance costs |
(0.1 |
) |
|
- |
|
|
Payments for tax withheld on
equity-based compensation |
(0.3 |
) |
|
(0.2 |
) |
|
Net cash provided by (used in) financing activities |
175.6 |
|
|
(20.3 |
) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED
AMOUNTS HELD IN ESCROW |
(65.2 |
) |
|
(3.3 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW,
BEGINNING OF PERIOD |
478.0 |
|
|
109.2 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW, END
OF PERIOD |
$ |
412.8 |
|
|
$ |
105.9 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION |
|
|
|
|
|
Interest
paid |
$ |
(27.3 |
) |
|
$ |
(8.6 |
) |
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL INFORMATION |
|
Yellow Corporation and Subsidiaries |
|
(Amounts in millions) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: Total Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitment |
|
|
Debt Issue |
|
|
|
|
As of March 31, 2021 |
|
Par Value |
|
Discount |
|
|
Fee |
|
|
Costs |
|
|
Book Value |
|
Term Loan |
|
$ |
613.0 |
|
$ |
(19.5 |
) |
|
$
- |
|
|
$ |
(8.6 |
) |
|
$ |
584.9 |
|
ABL Facility |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Tranche A UST Credit
Agreement |
|
304.4 |
|
- |
|
|
(16.5 |
) |
|
(4.3 |
) |
|
283.6 |
|
Tranche B UST Credit
Agreement |
|
251.3 |
|
- |
|
|
(13.8 |
) |
|
(3.6 |
) |
|
233.9 |
|
Secured Second A&R
CDA |
|
24.1 |
|
- |
|
|
- |
|
|
(0.1 |
) |
|
24.0 |
|
Unsecured Second A&R
CDA |
|
43.9 |
|
- |
|
|
- |
|
|
(0.1 |
) |
|
43.8 |
|
Lease financing
obligations |
|
225.5 |
|
- |
|
|
- |
|
|
(0.2 |
) |
|
225.3 |
|
Total debt |
|
$ |
1,462.2 |
|
$ |
(19.5 |
) |
|
$ |
(30.3 |
) |
|
$ |
(16.9 |
) |
|
$ |
1,395.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitment |
|
|
Debt Issue |
|
|
|
|
As of December 31, 2020 |
|
Par Value |
|
Discount |
|
|
Fee |
|
|
Costs |
|
|
Book Value |
|
Term Loan |
|
$ |
613.0 |
|
$ |
(21.0 |
) |
|
$
- |
|
|
$ |
(9.3 |
) |
|
$ |
582.7 |
|
ABL Facility |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Tranche A UST Credit
Agreement |
|
302.3 |
|
- |
|
|
(17.7 |
) |
|
(4.6 |
) |
|
280.0 |
|
Tranche B UST Credit
Agreement |
|
74.8 |
|
- |
|
|
(4.4 |
) |
|
(1.2 |
) |
|
69.2 |
|
Secured Second A&R
CDA |
|
24.1 |
|
- |
|
|
- |
|
|
(0.1 |
) |
|
24.0 |
|
Unsecured Second A&R
CDA |
|
43.9 |
|
- |
|
|
- |
|
|
(0.1 |
) |
|
43.8 |
|
Lease financing
obligations |
|
225.9 |
|
- |
|
|
- |
|
|
(0.2 |
) |
|
225.7 |
|
Total
debt |
|
$ |
1,284.0 |
|
$ |
(21.0 |
) |
|
$ |
(22.1 |
) |
|
$ |
(15.5 |
) |
|
$ |
1,225.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: Liquidity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
$ |
381.4 |
|
|
$ |
439.3 |
|
Changes to restricted
cash |
|
|
|
|
|
|
|
|
|
- |
|
|
(3.1 |
) |
Managed Accessibility (a) |
|
|
|
|
|
|
|
|
|
41.6 |
|
|
4.0 |
|
Total Cash and cash equivalents and Managed
Accessibility |
|
|
|
|
|
|
|
$ |
423.0 |
|
|
$ |
440.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Managed
Accessibility represents the maximum amount we would access on the
ABL Facility and is adjusted for eligible receivables plus eligible
borrowing base cash measured for the applicable period. Based on
the eligible receivable’s management uses to measure availability,
which is 10% of the borrowing line, the credit agreement governing
the ABL Facility permits adjustments from eligible borrowing base
cash to restricted cash prior to the compliance measurement date
which is 15 days from the period close. |
SUPPLEMENTAL FINANCIAL INFORMATION |
|
Yellow Corporation and Subsidiaries |
|
For the Three Months Ended March 31 |
|
(Amounts in millions) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
2021 |
|
|
2020 |
|
Reconciliation of net
income (loss) to Adjusted EBITDA: |
|
|
|
|
|
Net income (loss) |
$ |
(63.3 |
) |
|
$ |
4.3 |
|
Interest expense, net |
35.8 |
|
|
28.2 |
|
Income tax expense (benefit) |
1.1 |
|
|
(0.4 |
) |
Depreciation and amortization |
33.3 |
|
|
35.7 |
|
EBITDA |
6.9 |
|
|
67.8 |
|
Adjustments for TL
Agreements: |
|
|
|
|
|
(Gains) losses on property disposals, net |
1.0 |
|
|
(39.3 |
) |
Non-cash reserve changes(a) |
(1.8 |
) |
|
0.3 |
|
Letter of credit expense |
2.1 |
|
|
1.6 |
|
Permitted dispositions and other |
0.7 |
|
|
0.2 |
|
Equity-based compensation expense |
2.1 |
|
|
2.0 |
|
Other, net |
1.0 |
|
|
(1.6 |
) |
Expense amounts subject to 10% threshold(b): |
|
|
|
|
|
COVID-19 |
- |
|
|
0.2 |
|
Other, net |
4.6 |
|
|
2.9 |
|
Adjusted EBITDA prior to 10%
threshold |
16.6 |
|
|
34.1 |
|
Adjustments pursuant to TTM calculation(b) |
(3.4 |
) |
|
- |
|
Adjusted EBITDA |
$ |
13.2 |
|
|
$ |
34.1 |
|
|
|
|
|
|
|
(a) Non-cash
reserve changes reflect the net non-cash reserve charge for union
and non-union vacation, with such non-cash reserve adjustment to be
reduced by cash charges in a future period when paid. |
(b) Pursuant
to the TL Agreements, Adjusted EBITDA limits certain adjustments in
aggregate to 10% of the trailing-twelve-month ("TTM") Adjusted
EBITDA, prior to the inclusion of amounts subject to the 10%
threshold, for each period ending. Such adjustments include, but
are not limited to, restructuring charges, integration costs,
severance, and non-recurring charges. The limitation calculation is
updated quarterly based on TTM Adjusted EBITDA, and any necessary
adjustment resulting from this limitation, if applicable, will be
presented here. The sum of the quarters may not necessarily
equal TTM Adjusted EBITDA due to the expiration of adjustments from
prior periods. |
SUPPLEMENTAL FINANCIAL INFORMATION |
|
Yellow Corporation and Subsidiaries |
|
For the Trailing Twelve Months Ended March 31 |
|
(Amounts in millions) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve Months |
|
|
2021 |
|
|
2020 |
|
Reconciliation of net
loss to Adjusted EBITDA: |
|
|
|
|
|
Net loss |
$ |
(121.1 |
) |
|
$ |
(50.6 |
) |
Interest expense, net |
143.2 |
|
|
111.6 |
|
Income tax expense (benefit) |
(18.1 |
) |
|
5.0 |
|
Depreciation and amortization |
132.5 |
|
|
148.1 |
|
EBITDA |
136.5 |
|
|
214.1 |
|
Adjustments for TL
Agreements: |
|
|
|
|
|
Gains on property disposals, net |
(5.0 |
) |
|
(54.6 |
) |
Non-cash reserve changes(a) |
0.8 |
|
|
16.4 |
|
Letter of credit expense |
7.8 |
|
|
6.5 |
|
Permitted dispositions and other |
0.8 |
|
|
0.4 |
|
Equity-based compensation expense |
4.8 |
|
|
6.0 |
|
Loss on extinguishment of debt |
- |
|
|
11.2 |
|
Non-union pension settlement charge |
3.6 |
|
|
1.8 |
|
Other, net |
6.1 |
|
|
0.2 |
|
Expense amounts subject to 10% threshold(b): |
|
|
|
|
|
COVID-19 |
3.7 |
|
|
0.2 |
|
Other, net |
19.0 |
|
|
12.4 |
|
Adjusted EBITDA prior to 10%
threshold |
178.1 |
|
|
214.6 |
|
Adjustments pursuant to TTM calculation(b) |
(7.1 |
) |
|
- |
|
Adjusted EBITDA |
$ |
171.0 |
|
|
$ |
214.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
For explanations
of footnotes (a) and (b), please refer to previous
page. |
Yellow Corporation and Subsidiaries |
|
Statistics |
|
Quarterly Comparison |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y |
|
|
Sequential |
|
|
|
1Q21 |
|
|
1Q20 |
|
|
4Q20 |
|
|
% (a) |
|
|
% (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workdays |
|
63.5 |
|
|
|
65.5 |
|
|
|
60.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL picked up
revenue (in millions) |
$ |
1,090.6 |
|
|
$ |
1,049.6 |
|
|
$ |
1,044.6 |
|
|
3.9 |
|
|
4.4 |
|
LTL tonnage (in
thousands) |
|
2,478 |
|
|
|
2,544 |
|
|
|
2,434 |
|
|
(2.6 |
) |
|
1.8 |
|
LTL tonnage per
workday (in thousands) |
|
39.02 |
|
|
|
38.85 |
|
|
|
40.22 |
|
|
0.5 |
|
|
(3.0 |
) |
LTL shipments (in
thousands) |
|
4,263 |
|
|
|
4,323 |
|
|
|
4,176 |
|
|
(1.4 |
) |
|
2.1 |
|
LTL shipments per
workday (in thousands) |
|
67.13 |
|
|
|
66.00 |
|
|
|
69.03 |
|
|
1.7 |
|
|
(2.7 |
) |
LTL picked up
revenue/cwt. |
$ |
22.00 |
|
|
$ |
20.63 |
|
|
$ |
21.46 |
|
|
6.7 |
|
|
2.5 |
|
LTL picked up
revenue/cwt. (excl. FSC) |
$ |
19.53 |
|
|
$ |
18.27 |
|
|
$ |
19.46 |
|
|
6.9 |
|
|
0.4 |
|
LTL picked up
revenue/shipment |
$ |
256 |
|
|
$ |
243 |
|
|
$ |
250 |
|
|
5.4 |
|
|
2.3 |
|
LTL picked up
revenue/shipment (excl. FSC) |
$ |
227 |
|
|
$ |
215 |
|
|
$ |
227 |
|
|
5.6 |
|
|
0.1 |
|
LTL
weight/shipment (in pounds) |
|
1,163 |
|
|
|
1,177 |
|
|
|
1,165 |
|
|
(1.2 |
) |
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total picked up
revenue (in millions) (b) |
$ |
1,196.3 |
|
|
$ |
1,141.4 |
|
|
$ |
1,148.8 |
|
|
4.8 |
|
|
4.1 |
|
Total tonnage (in
thousands) |
|
3,216 |
|
|
|
3,234 |
|
|
|
3,134 |
|
|
(0.5 |
) |
|
2.6 |
|
Total tonnage per
workday (in thousands) |
|
50.64 |
|
|
|
49.37 |
|
|
|
51.81 |
|
|
2.6 |
|
|
(2.2 |
) |
Total shipments
(in thousands) |
|
4,380 |
|
|
|
4,426 |
|
|
|
4,289 |
|
|
(1.0 |
) |
|
2.1 |
|
Total shipments
per workday (in thousands) |
|
68.98 |
|
|
|
67.57 |
|
|
|
70.88 |
|
|
2.1 |
|
|
(2.7 |
) |
Total picked up
revenue/cwt. |
$ |
18.60 |
|
|
$ |
17.65 |
|
|
$ |
18.33 |
|
|
5.4 |
|
|
1.5 |
|
Total picked up
revenue/cwt. (excl. FSC) |
$ |
16.56 |
|
|
$ |
15.69 |
|
|
$ |
16.67 |
|
|
5.6 |
|
|
(0.6 |
) |
Total picked up
revenue/shipment |
$ |
273 |
|
|
$ |
258 |
|
|
$ |
268 |
|
|
5.9 |
|
|
2.0 |
|
Total picked up
revenue/shipment (excl. FSC) |
$ |
243 |
|
|
$ |
229 |
|
|
$ |
244 |
|
|
6.1 |
|
|
(0.2 |
) |
Total
weight/shipment (in pounds) |
|
1,468 |
|
|
|
1,461 |
|
|
|
1,462 |
|
|
0.5 |
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)Reconciliation of operating revenue to
total picked up revenue (in millions): |
|
Operating revenue |
$ |
1,198.4 |
|
|
$ |
1,150.4 |
|
|
$ |
1,164.5 |
|
|
|
|
|
|
|
|
Change in revenue deferral and
other |
|
(2.1 |
) |
|
|
(9.0 |
) |
|
|
(15.7 |
) |
|
|
|
|
|
|
|
Total picked up revenue |
$ |
1,196.3 |
|
|
$ |
1,141.4 |
|
|
$ |
1,148.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Percent
change based on unrounded figures and not the rounded figures
presented. |
(b) Does not
equal financial statement revenue due to revenue recognition
adjustments between accounting periods and the impact of other
revenue. |
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