Yellow Corporation (NASDAQ: YELL) reported results for the second
quarter ended June 30, 2021. Operating revenue was $1.313 billion
and operating income was $27.0 million. In comparison, operating
revenue in the second quarter 2020 was $1.015 billion and operating
loss was $4.6 million, which included a $6.0 million net gain on
property disposals.
Net loss for second quarter 2021 was $9.4
million, or $0.18 per share, compared to net loss of $37.1 million,
or $1.09 per share, in second quarter 2020.
On a non-GAAP basis, the Company generated
Adjusted EBITDA of $82.9 million in second quarter 2021, a $45.0
million increase compared to $37.9 million in the prior year
comparable quarter (as detailed in the reconciliation below). Last
twelve months Adjusted EBITDA as of June 30, 2021, was $216.0
million compared to $183.1 million as of June 30, 2020 (as detailed
in the reconciliation below).
“I am pleased with the yield progress in the
second quarter and look forward to continued operational
efficiencies,” said Darren Hawkins, Chief Executive Officer.
“Strong customer demand and an industry-wide shortage of qualified
drivers are contributing to tight capacity and a favorable yield
environment. Sequentially, LTL revenue per hundredweight increased
7.6% in the second quarter 2021 compared to first quarter 2021 and
16.2% compared to a year ago. This contributed to a nearly 30%
increase in second quarter revenue compared to last year when the
U.S. economy was severely impacted by the initial stages of the
COVID-19 pandemic. With inventories below normal levels and U.S.
manufacturing expected to return to full strength once the
microchip shortage ends, demand for LTL capacity is positioned to
remain strong into 2022.
“Our yield strategy is also helping us manage
near-term headwinds from higher purchased transportation expense.
We are executing plans to reduce the use of local cartage and over
the road purchased transportation and expect to see improvement as
we move forward.
“We are making steady progress towards One
Yellow and the multi-year transformation remains on schedule. Two
of our companies are now operating on One Yellow technology
platform with the conversion of the others expected to be completed
by the end of the year. Moving to a single technology platform sets
the stage for a fully integrated network. I am excited for what One
Yellow means for our customers, employees and shareholders. We will
go to market as a super-regional carrier with enhanced service in
the 1, 2 and 3-day lanes nationwide and provide customers with
choice, simplicity, speed, visibility and reliability.
“We are continuing to invest in Yellow with one
of the largest capital expenditure plans in Company history.
Through the first half of 2021, we have acquired more than 1,800
tractors, 2,200 trailers and 400 containers. The investments are
expected to enhance safety, improve fuel efficiency, reduce
maintenance expense and augment our sustainability efforts. We
maintained our strong liquidity position during the second quarter
helping us narrow 2021 capital expenditures guidance range from
$450 million to $550 million to $480 million to $530 million,”
concluded Hawkins.
Financial Update
- In second quarter 2021, the Company
invested $143.8 million in capital expenditures. This compares to
$11.7 million in capital expenditures in second quarter 2020.
Operational Update
- The operating ratio for second
quarter 2021 was 97.9 compared to 100.5 in second quarter
2020.
- Including fuel surcharge, second
quarter 2021 LTL revenue per hundredweight increased 16.2% and LTL
revenue per shipment increased 15.8% compared to the same period in
2020. Excluding fuel surcharge, second quarter LTL revenue per
hundredweight increased 12.0% and LTL revenue per shipment
increased 11.6%.
- Second quarter 2021 LTL tonnage per
workday increased 8.3% when compared to second 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 $423.2 million as of June 30,
2021, compared to $302.6 million as of June 30, 2020, an increase
of $120.6 million.
- The Company’s outstanding debt was
$1.594 billion as of June 30, 2021, an increase of $684.1 million
compared to $909.8 million as of June 30, 2020.
- For the six months ended June 30,
2021, cash used in operating activities was $12.7 million compared
to cash provided by operating activities of $213.6 million in
2020.
Key Information – Second
quarter 2021 compared to second quarter 2020
|
|
2021 |
|
2020 |
|
PercentChange(a) |
Workdays |
|
64.0 |
|
63.0 |
|
|
Operating revenue (in millions) |
|
$ |
1,313.1 |
|
$ |
1,015.4 |
|
29.3% |
Operating income (loss) (in
millions) |
|
$ |
27.0 |
|
$ |
(4.6) |
|
NM* |
Operating ratio |
|
97.9 |
|
100.5 |
|
2.6 pp |
LTL tonnage per workday (in
thousands) |
|
39.24 |
|
36.24 |
|
8.3% |
LTL shipments per workday (in
thousands) |
|
69.05 |
|
63.53 |
|
8.7% |
LTL picked up revenue per
hundredweight incl FSC |
|
$ |
23.67 |
|
$ |
20.36 |
|
16.2% |
LTL picked up revenue per
hundredweight excl FSC |
|
$ |
20.70 |
|
$ |
18.48 |
|
12.0% |
LTL picked up revenue per
shipment incl FSC |
|
$ |
269 |
|
$ |
232 |
|
15.8% |
LTL picked up revenue per
shipment excl FSC |
|
$ |
235 |
|
$ |
211 |
|
11.6% |
LTL weight/shipment (in
pounds) |
|
1,137 |
|
1,141 |
|
(0.4)% |
Total tonnage per workday (in
thousands) |
|
51.06 |
|
46.44 |
|
10.0% |
Total shipments per workday
(in thousands) |
|
71.10 |
|
65.44 |
|
8.7% |
Total picked up revenue per
hundredweight incl FSC |
|
$ |
20.01 |
|
$ |
17.40 |
|
14.9% |
Total picked up revenue per
hundredweight excl FSC |
|
$ |
17.57 |
|
$ |
15.85 |
|
10.8% |
Total picked up revenue per
shipment incl FSC |
|
$ |
287 |
|
$ |
247 |
|
16.3% |
Total picked up revenue per
shipment excl FSC |
|
$ |
252 |
|
$ |
225 |
|
12.2% |
Total weight/shipment (in
pounds) |
|
1,436 |
|
1,419 |
|
1.2% |
(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, August 4, 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
ASSETS |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
372.1 |
|
|
$ |
439.3 |
|
|
|
Restricted amounts held in escrow |
|
|
52.2 |
|
|
|
38.7 |
|
|
|
Accounts receivable, net |
|
|
633.6 |
|
|
|
505.0 |
|
|
|
Prepaid expenses and other |
|
|
50.8 |
|
|
|
46.8 |
|
|
|
|
Total
current assets |
|
|
1,108.7 |
|
|
|
1,029.8 |
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT: |
|
|
|
|
|
|
Cost |
|
|
3,099.5 |
|
|
|
2,795.5 |
|
|
|
Less - accumulated depreciation |
|
|
(2,033.4 |
) |
|
|
(2,031.3 |
) |
|
|
|
Net property
and equipment |
|
|
1,066.1 |
|
|
|
764.2 |
|
|
|
|
|
|
|
|
|
|
Deferred income taxes, net |
|
|
2.0 |
|
|
|
0.9 |
|
|
Pension |
|
|
|
68.9 |
|
|
|
63.2 |
|
|
Operating lease right-of-use assets |
|
|
219.3 |
|
|
|
276.0 |
|
|
Other assets |
|
|
26.2 |
|
|
|
51.7 |
|
|
|
|
Total
assets |
|
$ |
2,491.2 |
|
|
$ |
2,185.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
Accounts payable |
|
$ |
216.0 |
|
|
$ |
160.7 |
|
|
|
Wages, vacations, and employee benefits |
|
|
242.7 |
|
|
|
214.6 |
|
|
|
Current operating lease liabilities |
|
|
98.5 |
|
|
|
114.2 |
|
|
|
Other current and accrued liabilities |
|
|
242.7 |
|
|
|
207.2 |
|
|
|
Current maturities of long-term debt |
|
|
4.9 |
|
|
|
4.0 |
|
|
|
|
Total
current liabilities |
|
|
804.8 |
|
|
|
700.7 |
|
|
|
|
|
|
|
|
|
|
OTHER LIABILITIES: |
|
|
|
|
|
|
Long-term debt, less current portion |
|
|
1,518.8 |
|
|
|
1,221.4 |
|
|
|
Operating lease liabilities |
|
|
128.7 |
|
|
|
172.6 |
|
|
|
Claims and other liabilities |
|
|
325.3 |
|
|
|
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 |
|
|
2,386.3 |
|
|
|
2,383.6 |
|
|
|
Accumulated deficit |
|
|
(2,438.6 |
) |
|
|
(2,365.9 |
) |
|
|
Accumulated other comprehensive loss |
|
|
(141.9 |
) |
|
|
(148.8 |
) |
|
|
Treasury stock, at cost |
|
|
(92.7 |
) |
|
|
(92.7 |
) |
|
|
|
Total shareholders' deficit |
|
|
(286.4 |
) |
|
|
(223.3 |
) |
|
|
|
Total
liabilities and shareholders' deficit |
|
$ |
2,491.2 |
|
|
$ |
2,185.8 |
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF
CONSOLIDATED COMPREHENSIVE LOSS |
Yellow Corporation
and Subsidiaries |
For the Three and
Six Months Ended June 30 |
(Amounts in millions
except per share data, shares in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six Months |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING REVENUE |
$ |
1,313.1 |
|
|
$ |
1,015.4 |
|
|
$ |
2,511.5 |
|
|
$ |
2,165.8 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Salaries, wages and employee benefits |
|
751.3 |
|
|
|
647.9 |
|
|
|
1,475.1 |
|
|
|
1,368.1 |
|
|
Fuel, operating expenses and supplies |
|
217.0 |
|
|
|
162.7 |
|
|
|
420.5 |
|
|
|
370.7 |
|
|
Purchased transportation |
|
210.3 |
|
|
|
126.0 |
|
|
|
410.3 |
|
|
|
262.2 |
|
|
Depreciation and amortization |
|
35.0 |
|
|
|
34.2 |
|
|
|
68.3 |
|
|
|
69.9 |
|
|
Other operating expenses |
|
72.2 |
|
|
|
55.2 |
|
|
|
136.6 |
|
|
|
116.8 |
|
|
(Gains) losses on property disposals, net |
|
0.3 |
|
|
|
(6.0 |
) |
|
|
1.3 |
|
|
|
(45.3 |
) |
|
|
Total
operating expenses |
|
1,286.1 |
|
|
|
1,020.0 |
|
|
|
2,512.1 |
|
|
|
2,142.4 |
|
OPERATING INCOME (LOSS) |
|
27.0 |
|
|
|
(4.6 |
) |
|
|
(0.6 |
) |
|
|
23.4 |
|
|
|
|
|
|
|
|
|
|
|
NONOPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Interest expense |
|
37.7 |
|
|
|
40.2 |
|
|
|
73.6 |
|
|
|
68.5 |
|
|
Non-union pension and postretirement benefits |
|
(1.1 |
) |
|
|
(1.6 |
) |
|
|
(2.4 |
) |
|
|
(3.2 |
) |
|
Other, net |
|
(0.3 |
) |
|
|
1.4 |
|
|
|
(0.3 |
) |
|
|
(1.2 |
) |
|
|
Nonoperating
expenses, net |
|
36.3 |
|
|
|
40.0 |
|
|
|
70.9 |
|
|
|
64.1 |
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES |
|
(9.3 |
) |
|
|
(44.6 |
) |
|
|
(71.5 |
) |
|
|
(40.7 |
) |
INCOME TAX EXPENSE (BENEFIT) |
|
0.1 |
|
|
|
(7.5 |
) |
|
|
1.2 |
|
|
|
(7.9 |
) |
NET LOSS |
|
(9.4 |
) |
|
|
(37.1 |
) |
|
|
(72.7 |
) |
|
|
(32.8 |
) |
OTHER COMPREHENSIVE INCOME, NET OF TAX |
|
3.3 |
|
|
|
3.2 |
|
|
|
6.9 |
|
|
|
4.5 |
|
COMPREHENSIVE LOSS |
$ |
(6.1 |
) |
|
$ |
(33.9 |
) |
|
$ |
(65.8 |
) |
|
$ |
(28.3 |
) |
|
|
|
|
|
|
|
|
|
|
AVERAGE COMMON SHARES OUTSTANDING - BASIC |
|
50,751 |
|
|
|
34,021 |
|
|
|
50,555 |
|
|
|
33,906 |
|
AVERAGE COMMON SHARES OUTSTANDING - DILUTED |
|
50,751 |
|
|
|
34,021 |
|
|
|
50,555 |
|
|
|
33,906 |
|
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE - BASIC |
$ |
(0.18 |
) |
|
$ |
(1.09 |
) |
|
$ |
(1.44 |
) |
|
$ |
(0.97 |
) |
LOSS PER SHARE - DILUTED |
$ |
(0.18 |
) |
|
$ |
(1.09 |
) |
|
$ |
(1.44 |
) |
|
$ |
(0.97 |
) |
|
|
|
|
|
|
|
|
|
|
OPERATING RATIO (a): |
|
97.9 |
% |
|
|
100.5 |
% |
|
|
100.0 |
% |
|
|
98.9 |
% |
|
|
|
|
|
|
|
|
|
|
(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 Six Months Ended June
30 |
|
(Amounts in millions) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net loss |
|
$ |
(72.7 |
) |
|
$ |
(32.8 |
) |
|
|
Adjustments to reconcile net loss to cash flows from operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
68.3 |
|
|
|
69.9 |
|
|
|
|
Lease amortization and accretion expense |
|
71.1 |
|
|
|
83.5 |
|
|
|
|
Lease
payments |
|
|
(74.6 |
) |
|
|
(55.7 |
) |
|
|
|
Paid-in-kind
interest |
|
|
4.6 |
|
|
|
38.8 |
|
|
|
|
Debt-related
amortization |
|
|
11.5 |
|
|
|
6.0 |
|
|
|
|
Equity-based compensation and employee benefits expense |
|
8.6 |
|
|
|
10.5 |
|
|
|
|
Non-union pension settlement charge |
|
0.3 |
|
|
|
- |
|
|
|
|
(Gains) losses on property disposals, net |
|
1.3 |
|
|
|
(45.3 |
) |
|
|
|
Deferred income tax benefit, net |
|
(1.0 |
) |
|
|
0.1 |
|
|
|
|
Other non-cash items, net |
|
0.8 |
|
|
|
(1.2 |
) |
|
|
Changes in assets and liabilities, net: |
|
|
|
|
|
|
Accounts
receivable |
|
|
(128.5 |
) |
|
|
(31.9 |
) |
|
|
|
Accounts
payable |
|
|
44.0 |
|
|
|
22.0 |
|
|
|
|
Other
operating assets |
|
|
1.2 |
|
|
|
8.6 |
|
|
|
|
Other
operating liabilities |
|
|
52.4 |
|
|
|
141.1 |
|
|
|
|
Net cash provided by (used in) operating activities |
|
(12.7 |
) |
|
|
213.6 |
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
Acquisition of property and equipment |
|
(346.2 |
) |
|
|
(24.1 |
) |
|
|
Proceeds from disposal of property and equipment |
|
0.6 |
|
|
|
54.1 |
|
|
|
|
Net cash provided by (used in) investing activities |
|
(345.6 |
) |
|
|
30.0 |
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
|
|
Issuance of long-term debt, net |
|
306.3 |
|
|
|
- |
|
|
|
Repayment of long-term debt |
|
|
(1.1 |
) |
|
|
(28.2 |
) |
|
|
Debt issuance costs |
|
|
(0.2 |
) |
|
|
(3.8 |
) |
|
|
Payments for tax withheld on equity-based compensation |
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
|
Net cash provided by (used in) financing activities |
|
304.6 |
|
|
|
(32.6 |
) |
|
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED
AMOUNTS HELD IN ESCROW |
|
(53.7 |
) |
|
|
211.0 |
|
|
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 |
$ |
424.3 |
|
|
$ |
320.2 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
|
Interest paid |
|
$ |
(56.1 |
) |
|
$ |
(22.1 |
) |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
FINANCIAL INFORMATION |
|
Yellow Corporation
and Subsidiaries |
|
(Amounts in
millions) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: Total Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitment |
|
Debt
Issue |
|
|
|
|
|
As of June 30, 2021 |
|
Par Value |
|
Discount |
|
Fee |
|
Costs |
|
Book Value |
|
|
|
Term
Loan |
|
$ |
612.9 |
|
$ |
(18.0 |
) |
|
$ |
- |
|
|
$ |
(8.0 |
) |
|
$ |
586.9 |
|
|
|
|
ABL
Facility |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
Tranche A
UST Credit Agreement |
|
|
306.7 |
|
|
- |
|
|
|
(15.3 |
) |
|
|
(4.0 |
) |
|
|
287.4 |
|
|
|
|
Tranche B
UST Credit Agreement |
|
|
381.1 |
|
|
- |
|
|
|
(19.5 |
) |
|
|
(5.1 |
) |
|
|
356.5 |
|
|
|
|
Secured
Second A&R CDA |
|
|
24.1 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
24.1 |
|
|
|
|
Unsecured
Second A&R CDA |
|
|
43.9 |
|
|
- |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
43.8 |
|
|
|
|
Lease
financing obligations |
|
|
225.2 |
|
|
- |
|
|
|
- |
|
|
|
(0.2 |
) |
|
|
225.0 |
|
|
|
|
Total debt |
|
$ |
1,593.9 |
|
$ |
(18.0 |
) |
|
$ |
(34.8 |
) |
|
$ |
(17.4 |
) |
|
$ |
1,523.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
Cash and
cash equivalents |
|
|
|
|
|
|
|
$ |
372.1 |
|
|
$ |
439.3 |
|
|
|
|
Changes to
restricted cash |
|
|
|
|
|
|
|
|
- |
|
|
|
(3.1 |
) |
|
|
|
Managed
Accessibility (a) |
|
|
|
|
|
|
|
|
51.1 |
|
|
|
4.0 |
|
|
|
|
Total Cash and cash equivalents and
Managed Accessibility |
|
|
|
|
$ |
423.2 |
|
|
$ |
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. If eligible
receivables fall below the threshold management uses to measure
availability, which is 10% of the borrowing line, the credit
agreement governing the ABL Facility permits adjustments from the
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 and
Six Months Ended June 30 |
(Amounts in
millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six Months |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Reconciliation of net loss to Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
Net loss |
$ |
(9.4 |
) |
|
$ |
(37.1 |
) |
|
$ |
(72.7 |
) |
|
$ |
(32.8 |
) |
|
Interest expense, net |
|
37.6 |
|
|
|
40.2 |
|
|
|
73.4 |
|
|
|
68.4 |
|
|
Income tax expense (benefit) |
|
0.1 |
|
|
|
(7.5 |
) |
|
|
1.2 |
|
|
|
(7.9 |
) |
|
Depreciation and amortization |
|
35.0 |
|
|
|
34.2 |
|
|
|
68.3 |
|
|
|
69.9 |
|
|
EBITDA |
|
63.3 |
|
|
|
29.8 |
|
|
|
70.2 |
|
|
|
97.6 |
|
|
Adjustments for TL Agreements: |
|
|
|
|
|
|
|
|
(Gains) losses on property disposals, net |
|
0.3 |
|
|
|
(6.0 |
) |
|
|
1.3 |
|
|
|
(45.3 |
) |
|
Non-cash reserve changes(a) |
|
4.7 |
|
|
|
2.7 |
|
|
|
2.9 |
|
|
|
3.0 |
|
|
Letter of credit expense |
|
2.1 |
|
|
|
1.6 |
|
|
|
4.2 |
|
|
|
3.2 |
|
|
Permitted dispositions and other |
|
0.1 |
|
|
|
- |
|
|
|
0.8 |
|
|
|
0.2 |
|
|
Equity-based compensation expense |
|
0.6 |
|
|
|
1.2 |
|
|
|
2.7 |
|
|
|
3.2 |
|
|
Non-union pension settlement charge |
|
0.3 |
|
|
|
- |
|
|
|
0.3 |
|
|
|
- |
|
|
Other, net |
|
0.9 |
|
|
|
2.1 |
|
|
|
1.9 |
|
|
|
0.5 |
|
|
Expense amounts subject to 10% threshold(b): |
|
|
|
|
|
|
|
|
COVID-19 |
|
- |
|
|
|
3.7 |
|
|
|
- |
|
|
|
3.9 |
|
|
Other, net |
|
8.3 |
|
|
|
2.8 |
|
|
|
12.9 |
|
|
|
5.7 |
|
|
Adjusted EBITDA prior to 10% threshold |
|
80.6 |
|
|
|
37.9 |
|
|
|
97.2 |
|
|
|
72.0 |
|
|
Adjustments pursuant to TTM calculation(b) |
|
2.3 |
|
|
|
- |
|
|
|
(1.1 |
) |
|
|
- |
|
|
Adjusted EBITDA |
$ |
82.9 |
|
|
$ |
37.9 |
|
|
$ |
96.1 |
|
|
$ |
72.0 |
|
|
|
|
|
|
|
|
|
|
|
|
(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 June 30 |
(Amounts in
millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve Months |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
Reconciliation of net loss to Adjusted
EBITDA: |
|
|
|
|
|
Net
loss |
$ |
(93.4 |
) |
|
$ |
(64.1 |
) |
|
|
Interest expense, net |
|
140.6 |
|
|
|
124.0 |
|
|
|
Income tax benefit |
|
(10.5 |
) |
|
|
(11.6 |
) |
|
|
Depreciation and amortization |
|
133.3 |
|
|
|
143.8 |
|
|
|
EBITDA |
|
170.0 |
|
|
|
192.1 |
|
|
|
Adjustments
for TL Agreements: |
|
|
|
|
|
(Gains) losses on property disposals, net |
|
1.3 |
|
|
|
(54.4 |
) |
|
|
Non-cash reserve changes(a) |
|
2.8 |
|
|
|
3.1 |
|
|
|
Letter of credit expense |
|
8.3 |
|
|
|
6.5 |
|
|
|
Permitted dispositions and other |
|
0.9 |
|
|
|
0.4 |
|
|
|
Equity-based compensation expense |
|
4.2 |
|
|
|
6.1 |
|
|
|
Loss on extinguishment of debt |
|
- |
|
|
|
11.2 |
|
|
|
Non-union pension settlement charge |
|
3.9 |
|
|
|
1.8 |
|
|
|
Other, net |
|
4.9 |
|
|
|
1.3 |
|
|
|
Expense amounts subject to 10% threshold(b): |
|
|
|
|
|
COVID-19 |
|
- |
|
|
|
3.9 |
|
|
|
Other, net |
|
24.5 |
|
|
|
11.1 |
|
|
|
Adjusted
EBITDA prior to 10% threshold |
|
220.8 |
|
|
|
183.1 |
|
|
|
Adjustments pursuant to TTM calculation(b) |
|
(4.8 |
) |
|
|
- |
|
|
|
Adjusted
EBITDA |
$ |
216.0 |
|
|
$ |
183.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For explanations of footnotes (a) and (b), please refer to previous
page. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yellow
Corporation and Subsidiaries |
|
|
Statistics |
|
|
Quarterly
Comparison |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y |
|
Sequential |
|
|
2Q21 |
|
2Q20 |
|
1Q21 |
|
% (a) |
|
% (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workdays |
|
64.0 |
|
|
|
63.0 |
|
|
63.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL picked up revenue (in millions) |
$ |
1,188.8 |
|
|
$ |
929.8 |
|
$ |
1,090.6 |
|
|
27.9 |
|
|
9.0 |
|
|
LTL tonnage (in thousands) |
|
2,511 |
|
|
|
2,283 |
|
|
2,478 |
|
|
10.0 |
|
|
1.3 |
|
|
LTL tonnage per workday (in thousands) |
|
39.24 |
|
|
|
36.24 |
|
|
39.02 |
|
|
8.3 |
|
|
0.6 |
|
|
LTL shipments (in thousands) |
|
4,419 |
|
|
|
4,003 |
|
|
4,263 |
|
|
10.4 |
|
|
3.7 |
|
|
LTL shipments per workday (in thousands) |
|
69.05 |
|
|
|
63.53 |
|
|
67.13 |
|
|
8.7 |
|
|
2.9 |
|
|
LTL picked up revenue/cwt. |
$ |
23.67 |
|
|
$ |
20.36 |
|
$ |
22.00 |
|
|
16.2 |
|
|
7.6 |
|
|
LTL picked up revenue/cwt. (excl. FSC) |
$ |
20.70 |
|
|
$ |
18.48 |
|
$ |
19.53 |
|
|
12.0 |
|
|
6.0 |
|
|
LTL picked up revenue/shipment |
$ |
269 |
|
|
$ |
232 |
|
$ |
256 |
|
|
15.8 |
|
|
5.2 |
|
|
LTL picked up revenue/shipment (excl. FSC) |
$ |
235 |
|
|
$ |
211 |
|
$ |
227 |
|
|
11.6 |
|
|
3.6 |
|
|
LTL weight/shipment (in pounds) |
|
1,137 |
|
|
|
1,141 |
|
|
1,163 |
|
|
(0.4 |
) |
|
(2.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in millions) (b) |
$ |
1,307.6 |
|
|
$ |
1,018.4 |
|
$ |
1,196.3 |
|
|
28.4 |
|
|
9.3 |
|
|
Total tonnage (in thousands) |
|
3,268 |
|
|
|
2,926 |
|
|
3,216 |
|
|
11.7 |
|
|
1.6 |
|
|
Total tonnage per workday (in thousands) |
|
51.06 |
|
|
|
46.44 |
|
|
50.64 |
|
|
10.0 |
|
|
0.8 |
|
|
Total shipments (in thousands) |
|
4,550 |
|
|
|
4,122 |
|
|
4,380 |
|
|
10.4 |
|
|
3.9 |
|
|
Total shipments per workday (in thousands) |
|
71.10 |
|
|
|
65.44 |
|
|
68.98 |
|
|
8.7 |
|
|
3.1 |
|
|
Total picked up revenue/cwt. |
$ |
20.01 |
|
|
$ |
17.40 |
|
$ |
18.60 |
|
|
14.9 |
|
|
7.6 |
|
|
Total picked up revenue/cwt. (excl. FSC) |
$ |
17.57 |
|
|
$ |
15.85 |
|
$ |
16.56 |
|
|
10.8 |
|
|
6.1 |
|
|
Total picked up revenue/shipment |
$ |
287 |
|
|
$ |
247 |
|
$ |
273 |
|
|
16.3 |
|
|
5.2 |
|
|
Total picked up revenue/shipment (excl. FSC) |
$ |
252 |
|
|
$ |
225 |
|
$ |
243 |
|
|
12.2 |
|
|
3.8 |
|
|
Total weight/shipment (in pounds) |
|
1,436 |
|
|
|
1,419 |
|
|
1,468 |
|
|
1.2 |
|
|
(2.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)Reconciliation of operating revenue to
total picked up revenue (in millions): |
|
|
|
|
|
|
|
Operating
revenue |
$ |
1,313.1 |
|
|
$ |
1,015.4 |
|
$ |
1,198.4 |
|
|
|
|
|
|
|
Change in
revenue deferral and other |
|
(5.5 |
) |
|
|
3.0 |
|
|
(2.1 |
) |
|
|
|
|
|
|
Total picked
up revenue |
$ |
1,307.6 |
|
|
$ |
1,018.4 |
|
$ |
1,196.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yellow
Corporation and Subsidiaries |
|
|
Statistics |
|
|
YTD
Comparison |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y |
|
|
|
2021 |
|
|
2020 |
|
|
% (a) |
|
|
|
|
|
|
|
|
|
|
|
Workdays |
|
127.5 |
|
|
|
128.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL picked up revenue (in millions) |
$ |
2,279.4 |
|
|
$ |
1,979.3 |
|
|
15.2 |
|
|
LTL tonnage (in thousands) |
|
4,989 |
|
|
|
4,827 |
|
|
3.4 |
|
|
LTL tonnage per workday (in thousands) |
|
39.13 |
|
|
|
37.57 |
|
|
4.2 |
|
|
LTL shipments (in thousands) |
|
8,682 |
|
|
|
8,325 |
|
|
4.3 |
|
|
LTL shipments per workday (in thousands) |
|
68.10 |
|
|
|
64.79 |
|
|
5.1 |
|
|
LTL picked up revenue/cwt. |
$ |
22.84 |
|
|
$ |
20.50 |
|
|
11.4 |
|
|
LTL picked up revenue/cwt. (excl. FSC) |
$ |
20.12 |
|
|
$ |
18.37 |
|
|
9.5 |
|
|
LTL picked up revenue/shipment |
$ |
263 |
|
|
$ |
238 |
|
|
10.4 |
|
|
LTL picked up revenue/shipment (excl. FSC) |
$ |
231 |
|
|
$ |
213 |
|
|
8.6 |
|
|
LTL weight/shipment (in pounds) |
|
1,149 |
|
|
|
1,160 |
|
|
(0.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in millions) (b) |
$ |
2,503.9 |
|
|
$ |
2,159.8 |
|
|
15.9 |
|
|
Total tonnage (in thousands) |
|
6,484 |
|
|
|
6,159 |
|
|
5.3 |
|
|
Total tonnage per workday (in thousands) |
|
50.85 |
|
|
|
47.93 |
|
|
6.1 |
|
|
Total shipments (in thousands) |
|
8,930 |
|
|
|
8,548 |
|
|
4.5 |
|
|
Total shipments per workday (in thousands) |
|
70.04 |
|
|
|
66.52 |
|
|
5.3 |
|
|
Total picked up revenue/cwt. |
$ |
19.31 |
|
|
$ |
17.53 |
|
|
10.1 |
|
|
Total picked up revenue/cwt. (excl. FSC) |
$ |
17.07 |
|
|
$ |
15.77 |
|
|
8.3 |
|
|
Total picked up revenue/shipment |
$ |
280 |
|
|
$ |
253 |
|
|
11.0 |
|
|
Total picked up revenue/shipment (excl. FSC) |
$ |
248 |
|
|
$ |
227 |
|
|
9.1 |
|
|
Total weight/shipment (in pounds) |
|
1,452 |
|
|
|
1,441 |
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Reconciliation of operating revenue to
total picked up revenue (in millions): |
|
|
|
|
Operating
revenue |
$ |
2,511.5 |
|
|
$ |
2,165.8 |
|
|
|
|
|
Change in
revenue deferral and other |
|
(7.6 |
) |
|
|
(6.0 |
) |
|
|
|
|
Total picked
up revenue |
$ |
2,503.9 |
|
|
$ |
2,159.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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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