Yellow Corporation (NASDAQ: YRCW) announced today that it has
changed its name from YRC Worldwide Inc. to Yellow Corporation and
it will begin trading under the NASDAQ ticker symbol YELL effective
February 8, 2021. The Company’s LTL brands Holland, New Penn,
Reddaway and YRC Freight, as well as HNRY Logistics continue to
operate under their existing names.
“As we continue our transformation into a
super-regional, LTL freight carrier, it is the right time to
reintroduce the Yellow Corporation name and modernize the holding
company brand,” said Darren Hawkins, Chief Executive Officer. Once
we announced our plans to rebrand, our customers and employees
shared their excitement. The Yellow brand is synonymous with the
LTL industry and we are honored to continue its proud legacy of
service with one of the largest, most comprehensive logistics and
LTL networks in North America.
“Migrating to one Yellow technology platform and
creating one Yellow network are the key enablers of our enterprise
transformation strategy, which is to provide a superior customer
experience under one Yellow brand.”
The Company also reported results for fourth
quarter and year ended December 31, 2020.
Fourth quarter 2020 operating revenue was $1.165
billion and operating income was $13.7 million. In comparison,
operating revenue in fourth quarter 2019 was $1.160 billion and
operating income was $9.8 million, which included a $10.1 million
net gain on property disposals.
Operating revenue for full year 2020 was $4.514
billion and operating income was $56.5 million, which included a
$45.3 million net gain on property disposals. This compares to full
year 2019 operating revenue of $4.871 billion and operating income
of $16.2 million, which included a $13.7 million net gain on
property disposals and $8.2 million for a non-cash impairment
charge related to the write-down of an intangible asset.
Net loss for fourth quarter 2020 was $18.7
million, or $0.37 per share compared to net loss of $15.3 million,
or $0.46 per share, in fourth quarter 2019. Full year net loss for
2020 was $53.5 million, or $1.28 per share, compared to a full year
net loss in 2019 of $104.0 million, or $3.13 per share, which
included a $11.2 million loss on extinguishment of debt associated
with a refinancing of the Company’s term loan
agreement.
Hawkins continued “During the fourth quarter
volume and pricing continued to improve in a tighter capacity
environment. As the industrial and retail segments of the economy
rebound a shortage of drivers is keeping a lid on LTL capacity.
Overall, the industry is stable and well positioned for a strong
2021.
“With a strong liquidity position of $440
million at the end of 2020, along with the next $176 million of
CARES Act loan Tranche B funds that we received in January, we are
positioned to continue making significant investments into our
business. We expect capital expenditures in 2021 to be in the range
of $450 million to $550 million, with planned investments in
tractors, trailers, technology, box trucks, containers, liftgates
and other assets. Much of the new equipment is expected to enhance
safety and improve fuel efficiency.
“In addition to a robust capital expenditure
plan our key priorities in 2021 include meeting our customers’
evolving needs, mitigating increased purchased transportation
expense and remaining focused on hiring and training drivers in a
capacity constrained marketplace.
“During a challenging and unprecedented 2020,
our nearly 30,000 employees persevered, continuing their essential
service for our customers and the communities we serve with a proud
sense of patriotism. They are heroes and their dedication and
commitment are greatly appreciated. I have never been prouder of
our team,” concluded Hawkins.
Financial Update
- On a non-GAAP basis, the Company
generated Adjusted EBITDA of $57.9 million in fourth quarter 2020,
a $10.6 million increase compared to $47.3 million in the prior
year comparable quarter (as detailed in the reconciliation below).
Last twelve months (LTM) Adjusted EBITDA was $191.9 million
compared to $210.6 million in 2019 (as detailed in the
reconciliation below).
- In fourth quarter 2020 the Company
invested $99.2 million in capital expenditures which is equal to
8.5% of operating revenue. This compares to $31.7 million in
capital expenditures and $18.5 million in capital value equivalent
in new operating leases, for a total of $50.2 million and 4.3% of
operating revenue in fourth quarter 2019.
Operational Update
- The operating ratio for fourth
quarter 2020 was 98.8 compared to 99.2 in fourth quarter 2019.
- Fourth quarter LTL revenue per
hundredweight, excluding fuel surcharge, increased 2.2% and LTL
revenue per shipment increased 4.8% compared to the same period in
2019. Including fuel surcharge, fourth quarter LTL revenue per
hundredweight decreased 0.7% and LTL revenue per shipment increased
1.8%.
- Fourth quarter 2020 LTL tonnage per
day increased 2.4% when compared to fourth quarter 2019.
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 $440.2 million as of December
31, 2020 compared to $80.4 million in the prior year, an increase
of $359.8 million.
- The Company’s outstanding debt was
$1.284 billion as of December 31, 2020, an increase of $381.2
million compared to $902.8 million as of December 31, 2019.
- For full year 2020, cash provided
by operating activities was $122.5 million compared to $21.5
million in 2019.
Key Information – Fourth
quarter 2020 compared to fourth quarter 2019
|
|
|
2020 |
|
|
2019 |
|
Percent Change(a) |
Workdays |
|
|
60.5 |
|
|
62.0 |
|
|
Operating revenue (in millions) |
|
$ |
1,164.5 |
|
$ |
1,159.5 |
|
0.4% |
|
Operating income (in
millions) |
|
$ |
13.7 |
|
$ |
9.8 |
|
39.8% |
|
Operating ratio |
|
|
98.8 |
|
|
99.2 |
|
0.4 pp |
|
LTL tonnage per workday (in
thousands) |
|
|
40.22 |
|
|
39.28 |
|
2.4% |
|
LTL shipments per workday (in
thousands) |
|
|
69.03 |
|
|
69.10 |
|
(0.1)% |
|
LTL picked up revenue per
hundredweight incl FSC |
|
$ |
21.46 |
|
$ |
21.60 |
|
(0.7)% |
|
LTL picked up revenue per
hundredweight excl FSCLTL picked up revenue per shipment incl
FSCLTL picked up revenue per shipment excl FSCLTL weight/shipment
(in pounds) |
|
$$$ |
19.462502271,165 |
|
$$$ |
19.042462161,137 |
|
2.2%1.8%4.8%2.5% |
|
Total tonnage per workday (in
thousands) |
|
|
51.81 |
|
|
49.82 |
|
4.0% |
|
Total shipments per workday (in
thousands) |
|
|
70.88 |
|
|
70.68 |
|
0.3% |
|
Total picked up revenue per
hundredweight incl FSC |
|
$ |
18.33 |
|
$ |
18.50 |
|
(1.0)% |
|
Total picked up revenue per
hundredweight excl FSCTotal picked up revenue per shipment incl
FSCTotal picked up revenue per shipment excl FSCTotal
weight/shipment (in pounds) |
|
$$$ |
16.672682441,462 |
|
$$$ |
16.372612311,410 |
|
1.9%2.7%5.6%3.7% |
|
|
|
|
|
|
|
|
Key Information – Full year
2020 compared to full year 2019
|
|
|
2020 |
|
|
2019 |
|
Percent Change(a) |
Workdays |
|
|
253.0 |
|
|
251.5 |
|
|
Operating revenue (in millions) |
|
$ |
4,513.7 |
|
$ |
4,871.2 |
|
(7.3)% |
|
Operating income (in
millions) |
|
$ |
56.5 |
|
$ |
16.2 |
|
NM |
|
Operating ratio |
|
|
98.7 |
|
|
99.7 |
|
1.0 pp |
|
LTL tonnage per workday (in
thousands) |
|
|
38.91 |
|
|
41.01 |
|
(5.1)% |
|
LTL shipments per workday (in
thousands) |
|
|
67.12 |
|
|
72.55 |
|
(7.5)% |
|
LTL picked up revenue per
hundredweight incl FSC |
|
$ |
20.82 |
|
$ |
21.61 |
|
(3.6)% |
|
LTL picked up revenue per
hundredweight excl FSCLTL picked up revenue per shipment incl
FSCLTL picked up revenue per shipment excl FSCLTL weight/shipment
(in pounds) |
|
$$$ |
18.782412181,159 |
|
$$$ |
19.052442151,131 |
|
(1.4)%(1.2)%1.1%2.6% |
|
Total tonnage per workday (in
thousands) |
|
|
49.76 |
|
|
51.47 |
|
(3.3)% |
|
Total shipments per workday (in
thousands) |
|
|
68.96 |
|
|
74.17 |
|
(7.0)% |
|
Total picked up revenue per
hundredweight incl FSC |
|
$ |
17.82 |
|
$ |
18.66 |
|
(4.5)% |
|
Total picked up revenue per
hundredweight excl FSCTotal picked up revenue per shipment incl
FSCTotal picked up revenue per shipment excl FSCTotal
weight/shipment (in pounds) |
|
$$$ |
16.132572331,443 |
|
$$$ |
16.502592291,388 |
|
(2.3)%(0.7)%1.6%4.0% |
|
(a) Percent
change based on unrounded figures and not the rounded figures
presentedReview of Financial Results
Yellow Corporation will host a conference call
with the investment community today, Thursday, February 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. Words such as “will,”
“expect,” “intend,” “anticipate,” “believe,” “could,” “would,”
“should,” “may,” “project,” “forecast,” “look forward,” “propose,”
“plan,” “designed,” “enable,” and similar expressions which speak
only as of the date the statement was made are intended to identify
forward-looking statements. 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. Our future financial condition and results could differ
materially from those predicted in such forward-looking statements
because of a number of factors, including (without limitation)
general economic factors and transportation industry-specific
economic conditions, including the impact of COVID-19; our ability
to generate sufficient liquidity to satisfy our cash needs and
future cash commitments, including (without limitation) the impact
of COVID-19 on our results of operations, financial condition
and cash flows; our obligations related to our indebtedness and
lease and pension funding requirements, and our ability to achieve
increased cash flows through improvement in operations; our failure
to comply with the covenants in the documents governing our
existing and future indebtedness; customer demand in the retail and
manufacturing sectors; business risks and increasing costs
associated with the transportation industry, including increasing
equipment, operational and technology costs and disruption from
natural disasters; competition and competitive pressure on pricing;
the risk of labor disruptions or stoppages, if our relationship
with our employees and unions were to deteriorate; increasing
pension expense and funding obligations, subject to interest rate
volatility; increasing costs relating to our self-insurance claims
expenses; our ability to finance the maintenance, acquisition and
replacement of revenue equipment and other necessary capital
expenditures; 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; impediments to our operations and business resulting
from anti-terrorism measures; the impact of claims and litigation
expense to which we are or may become exposed; failure to realize
the expected benefits and costs savings from our performance and
operational improvement initiatives; our ability to attract and
retain qualified drivers and increasing costs of driver
compensation; a significant privacy breach or IT system disruption;
risks of operating in foreign countries; our dependence on key
employees; seasonality; 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; limitations on our operations, our
financing opportunities, potential strategic transactions,
acquisitions or dispositions resulting from restrictive covenants
in the documents governing our existing and future indebtedness;
fluctuations in the price of our common stock; dilution from future
issuances of our common stock; our intention not to pay dividends
on our common stock; 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 our 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 Contact: |
Mike Kelley |
|
913-696-6121 |
|
mike.kelley@myellow.com |
SOURCE: Yellow Corporation
CONSOLIDATED BALANCE
SHEETS |
Yellow Corporation
and Subsidiaries |
(Amounts in millions
except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
|
(Unaudited) |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
439.3 |
|
|
$ |
109.2 |
|
Restricted amounts held in escrow |
|
38.7 |
|
|
|
- |
|
Accounts receivable, net |
|
505.0 |
|
|
|
464.4 |
|
Prepaid expenses and other |
|
46.8 |
|
|
|
44.6 |
|
Total current assets |
|
1,029.8 |
|
|
|
618.2 |
|
|
|
|
|
PROPERTY AND
EQUIPMENT: |
|
|
|
Cost |
|
2,795.5 |
|
|
|
2,761.6 |
|
Less - accumulated depreciation |
|
(2,031.3 |
) |
|
|
(1,991.3 |
) |
Net property and equipment |
|
764.2 |
|
|
|
770.3 |
|
|
|
|
|
Deferred
income taxes, net |
|
0.9 |
|
|
|
0.6 |
|
Pension |
|
63.2 |
|
|
|
6.1 |
|
Operating
lease right-of-use assets |
|
276.0 |
|
|
|
386.0 |
|
Other
assets |
|
51.7 |
|
|
|
50.4 |
|
Total assets |
$ |
2,185.8 |
|
|
$ |
1,831.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
Accounts payable |
$ |
160.7 |
|
|
$ |
163.7 |
|
Wages, vacations, and employee benefits |
|
214.6 |
|
|
|
195.9 |
|
Current operating lease liabilities |
|
114.2 |
|
|
|
120.8 |
|
Other current and accrued liabilities |
|
207.2 |
|
|
|
167.5 |
|
Current maturities of long-term debt |
|
4.0 |
|
|
|
4.1 |
|
Total current liabilities |
|
700.7 |
|
|
|
652.0 |
|
|
|
|
|
OTHER
LIABILITIES: |
|
|
|
Long-term debt, less current portion |
|
1,221.4 |
|
|
|
858.1 |
|
Pension and postretirement |
|
16.7 |
|
|
|
236.5 |
|
Operating lease liabilities |
|
172.6 |
|
|
|
246.3 |
|
Claims and other liabilities |
|
297.7 |
|
|
|
279.9 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
SHAREHOLDERS' DEFICIT: |
|
|
|
Cumulative preferred stock, $1 par value per share |
|
- |
|
|
|
- |
|
Common stock, $0.01 par value per share |
|
0.5 |
|
|
|
0.3 |
|
Capital surplus |
|
2,383.6 |
|
|
|
2,332.9 |
|
Accumulated deficit |
|
(2,365.9 |
) |
|
|
(2,312.4 |
) |
Accumulated other comprehensive loss |
|
(148.8 |
) |
|
|
(369.3 |
) |
Treasury stock, at cost |
|
(92.7 |
) |
|
|
(92.7 |
) |
Total shareholders' deficit |
|
(223.3 |
) |
|
|
(441.2 |
) |
Total liabilities and shareholders' deficit |
$ |
2,185.8 |
|
|
$ |
1,831.6 |
|
|
|
|
|
STATEMENTS OF
CONSOLIDATED COMPREHENSIVE INCOME (LOSS) |
Yellow Corporation
and Subsidiaries |
For the Three and
Twelve Months Ended December 31 |
(Amounts in millions
except per share data, shares in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months |
|
Twelve Months |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
OPERATING REVENUE |
$ |
1,164.5 |
|
|
$ |
1,159.5 |
|
|
$ |
4,513.7 |
|
|
$ |
4,871.2 |
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
Salaries, wages and employee benefits |
|
681.4 |
|
|
|
707.0 |
|
|
|
2,770.1 |
|
|
|
2,963.7 |
|
Fuel, operating expenses and supplies |
|
173.0 |
|
|
|
205.9 |
|
|
|
719.1 |
|
|
|
889.0 |
|
Purchased transportation |
|
199.5 |
|
|
|
149.2 |
|
|
|
638.8 |
|
|
|
614.2 |
|
Depreciation and amortization |
|
32.5 |
|
|
|
36.7 |
|
|
|
134.9 |
|
|
|
152.4 |
|
Other operating expenses |
|
64.4 |
|
|
|
61.0 |
|
|
|
239.6 |
|
|
|
241.2 |
|
Gains on property disposals, net |
|
- |
|
|
|
(10.1 |
) |
|
|
(45.3 |
) |
|
|
(13.7 |
) |
Impairment charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8.2 |
|
Total operating expenses |
|
1,150.8 |
|
|
|
1,149.7 |
|
|
|
4,457.2 |
|
|
|
4,855.0 |
|
OPERATING
INCOME |
|
13.7 |
|
|
|
9.8 |
|
|
|
56.5 |
|
|
|
16.2 |
|
|
|
|
|
|
|
|
|
NONOPERATING
EXPENSES: |
|
|
|
|
|
|
|
Interest expense |
|
34.0 |
|
|
|
28.1 |
|
|
|
135.9 |
|
|
|
111.2 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11.2 |
|
Non-union pension and postretirement benefits |
|
(2.0 |
) |
|
|
0.3 |
|
|
|
(6.3 |
) |
|
|
3.1 |
|
Other, net |
|
1.2 |
|
|
|
(0.1 |
) |
|
|
- |
|
|
|
(1.0 |
) |
Nonoperating expenses, net |
|
33.2 |
|
|
|
28.3 |
|
|
|
129.6 |
|
|
|
124.5 |
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES |
|
(19.5 |
) |
|
|
(18.5 |
) |
|
|
(73.1 |
) |
|
|
(108.3 |
) |
INCOME TAX
EXPENSE (BENEFIT) |
|
(0.8 |
) |
|
|
(3.2 |
) |
|
|
(19.6 |
) |
|
|
(4.3 |
) |
NET INCOME
(LOSS) |
|
(18.7 |
) |
|
|
(15.3 |
) |
|
|
(53.5 |
) |
|
|
(104.0 |
) |
OTHER
COMPREHENSIVE INCOME (LOSS), NET OF TAX |
|
118.0 |
|
|
|
(46.1 |
) |
|
|
220.5 |
|
|
|
(37.0 |
) |
COMPREHENSIVE INCOME (LOSS) |
$ |
99.3 |
|
|
$ |
(61.4 |
) |
|
$ |
167.0 |
|
|
$ |
(141.0 |
) |
|
|
|
|
|
|
|
|
AVERAGE
COMMON SHARES OUTSTANDING - BASIC |
|
50,121 |
|
|
|
33,349 |
|
|
|
41,694 |
|
|
|
33,252 |
|
AVERAGE
COMMON SHARES OUTSTANDING - DILUTED |
|
50,121 |
|
|
|
33,349 |
|
|
|
41,694 |
|
|
|
33,252 |
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSS) PER SHARE - BASIC |
$ |
(0.37 |
) |
|
$ |
(0.46 |
) |
|
$ |
(1.28 |
) |
|
$ |
(3.13 |
) |
EARNINGS
(LOSS) PER SHARE - DILUTED |
$ |
(0.37 |
) |
|
$ |
(0.46 |
) |
|
$ |
(1.28 |
) |
|
$ |
(3.13 |
) |
|
|
|
|
|
|
|
|
OPERATING
RATIO (a): |
|
98.8 |
% |
|
|
99.2 |
% |
|
|
98.7 |
% |
|
|
99.7 |
% |
|
|
|
|
|
|
|
|
(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 Twelve
Months Ended December 31 |
(Amounts in
millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
OPERATING
ACTIVITIES: |
|
|
|
Net income (loss) |
$ |
(53.5 |
) |
|
$ |
(104.0 |
) |
Adjustments to reconcile net income (loss) to cash flows from
operating activities: |
|
|
|
Depreciation and amortization |
|
134.9 |
|
|
|
152.4 |
|
Lease amortization and accretion expense |
|
160.9 |
|
|
|
168.0 |
|
Lease payments |
|
(135.0 |
) |
|
|
(155.1 |
) |
Paid-in-kind interest |
|
42.4 |
|
|
|
- |
|
Debt-related amortization |
|
17.5 |
|
|
|
6.7 |
|
Equity-based compensation and employee benefits expense |
|
21.8 |
|
|
|
18.6 |
|
Non-union pension settlement charge |
|
3.6 |
|
|
|
1.8 |
|
Gains on property disposals, net |
|
(45.3 |
) |
|
|
(13.7 |
) |
Loss on extinguishment of debt |
|
- |
|
|
|
11.2 |
|
Impairment charges |
|
- |
|
|
|
8.2 |
|
Deferred income tax benefit, net |
|
(14.9 |
) |
|
|
(3.0 |
) |
Other non-cash items, net |
|
0.9 |
|
|
|
(0.3 |
) |
Changes in assets and liabilities, net: |
|
|
|
Accounts receivable |
|
(40.4 |
) |
|
|
7.1 |
|
Accounts payable |
|
(3.6 |
) |
|
|
(14.8 |
) |
Other operating assets |
|
(23.9 |
) |
|
|
(1.5 |
) |
Other operating liabilities |
|
57.1 |
|
|
|
(60.1 |
) |
Net cash provided by operating activities |
|
122.5 |
|
|
|
21.5 |
|
|
|
|
|
INVESTING
ACTIVITIES: |
|
|
|
Acquisition of property and equipment |
|
(140.6 |
) |
|
|
(143.2 |
) |
Proceeds from disposal of property and equipment |
|
56.1 |
|
|
|
25.9 |
|
Net cash provided by (used in) investing activities |
|
(84.5 |
) |
|
|
(117.3 |
) |
|
|
|
|
FINANCING
ACTIVITIES: |
|
|
|
Issuance of long-term debt, net |
|
374.8 |
|
|
|
570.0 |
|
Repayment of long-term debt |
|
(31.4 |
) |
|
|
(579.0 |
) |
Debt issuance costs |
|
(12.0 |
) |
|
|
(12.7 |
) |
Payments for tax withheld on equity-based compensation |
|
(0.6 |
) |
|
|
(0.9 |
) |
Net cash provided by (used in) financing activities |
|
330.8 |
|
|
|
(22.6 |
) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND
RESTRICTED AMOUNTS HELD IN ESCROW |
|
368.8 |
|
|
|
(118.4 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW,
BEGINNING OF PERIOD |
|
109.2 |
|
|
|
227.6 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW, END
OF PERIOD |
$ |
478.0 |
|
|
$ |
109.2 |
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
Interest
paid |
$ |
(67.6 |
) |
|
$ |
(106.8 |
) |
Letter of
credit fees paid |
|
(7.1 |
) |
|
|
(6.8 |
) |
Income tax
payment, net |
|
(1.2 |
) |
|
|
(3.7 |
) |
|
|
|
|
SUPPLEMENTAL
FINANCIAL INFORMATION |
Yellow Corporation
and Subsidiaries |
(Amounts in
millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: Total Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitment |
|
Debt
Issue |
|
|
As of December 31, 2019 |
|
Par Value |
|
Discount |
|
Fee |
|
Costs |
|
Book Value |
Term Loan |
|
$ |
600.0 |
|
$ |
(28.1 |
) |
|
$ |
- |
|
|
$ |
(12.0 |
) |
|
$ |
559.9 |
|
ABL Facility |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Secured Second A&R CDA |
|
|
26.0 |
|
|
- |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
25.9 |
|
Unsecured Second A&R CDA |
|
|
45.2 |
|
|
- |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
45.1 |
|
Lease financing obligations |
|
|
231.6 |
|
|
- |
|
|
|
- |
|
|
|
(0.3 |
) |
|
|
231.3 |
|
Total debt |
|
$ |
902.8 |
|
$ |
(28.1 |
) |
|
$ |
- |
|
|
$ |
(12.5 |
) |
|
$ |
862.2 |
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: Liquidity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
December 31, 2019 |
Cash and cash equivalents |
|
|
|
|
|
|
|
$ |
439.3 |
|
|
$ |
109.2 |
|
Changes to restricted cash |
|
|
|
|
|
|
|
|
(3.1 |
) |
|
|
(29.0 |
) |
Managed Accessibility (a) |
|
|
|
|
|
|
|
|
4.0 |
|
|
|
0.2 |
|
Total Cash and cash equivalents and Managed
Accessibility |
|
|
|
|
|
|
|
$ |
440.2 |
|
|
$ |
80.4 |
|
|
|
|
|
|
|
|
|
|
|
|
(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 and
Twelve Months Ended December 31 |
(Amounts in
millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Twelve Months |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Reconciliation of net income (loss) to Adjusted
EBITDA: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
(18.7 |
) |
|
$ |
(15.3 |
) |
|
$ |
(53.5 |
) |
|
$ |
(104.0 |
) |
Interest expense, net |
|
33.8 |
|
|
|
27.9 |
|
|
|
135.6 |
|
|
|
109.9 |
|
Income tax expense (benefit) |
|
(0.8 |
) |
|
|
(3.2 |
) |
|
|
(19.6 |
) |
|
|
(4.3 |
) |
Depreciation and amortization |
|
32.5 |
|
|
|
36.7 |
|
|
|
134.9 |
|
|
|
152.4 |
|
EBITDA |
|
46.8 |
|
|
|
46.1 |
|
|
|
197.4 |
|
|
|
154.0 |
|
Adjustments
for TL Agreements: |
|
|
|
|
|
|
|
Gains on property disposals, net |
|
- |
|
|
|
(10.1 |
) |
|
|
(45.3 |
) |
|
|
(13.7 |
) |
Non-cash reserve changes(a) |
|
(0.1 |
) |
|
|
2.1 |
|
|
|
2.9 |
|
|
|
16.1 |
|
Impairment charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8.2 |
|
Letter of credit expense |
|
2.1 |
|
|
|
1.7 |
|
|
|
7.3 |
|
|
|
6.5 |
|
Permitted dispositions and other |
|
(0.2 |
) |
|
|
0.1 |
|
|
|
0.3 |
|
|
|
(0.9 |
) |
Equity-based compensation expense |
|
0.4 |
|
|
|
1.1 |
|
|
|
4.7 |
|
|
|
6.3 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11.2 |
|
Non-union pension settlement charge |
|
1.7 |
|
|
|
0.1 |
|
|
|
3.6 |
|
|
|
1.8 |
|
Other, net |
|
2.0 |
|
|
|
0.6 |
|
|
|
3.5 |
|
|
|
2.9 |
|
Expense amounts subject to 10% threshold(b): |
|
|
|
|
|
|
|
COVID-19 |
|
- |
|
|
|
- |
|
|
|
3.9 |
|
|
|
- |
|
Other, net |
|
8.5 |
|
|
|
4.1 |
|
|
|
17.3 |
|
|
|
18.2 |
|
Adjusted
EBITDA prior to 10% threshold |
|
61.2 |
|
|
|
45.8 |
|
|
|
195.6 |
|
|
|
210.6 |
|
Adjustments pursuant to TTM calculation(b) |
|
(3.3 |
) |
|
|
1.5 |
|
|
|
(3.7 |
) |
|
|
- |
|
Adjusted
EBITDA |
$ |
57.9 |
|
|
$ |
47.3 |
|
|
$ |
191.9 |
|
|
$ |
210.6 |
|
|
|
|
|
|
|
|
|
(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 UST Credit Agreements and Term
Loan Agreement, Adjusted EBITDA limits certain adjustments in
aggregate to 10% of the trailing-twelve-month ("TTM") consolidated
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, however, the sum of
the quarters may not necessarily equal TTM Adjusted EBITDA due to
the expiration of adjustments from prior periods. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yellow
Corporation and Subsidiaries |
Statistics |
Quarterly
Comparison |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y |
|
Sequential |
|
4Q20 |
|
4Q19 |
|
3Q20 |
|
% (a) |
|
% (a) |
Workdays |
|
60.5 |
|
|
|
62.0 |
|
|
|
64.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL picked up revenue (in millions) |
$ |
1,044.6 |
|
|
$ |
1,052.4 |
|
|
$ |
1,076.1 |
|
|
(0.7 |
) |
|
(2.9 |
) |
LTL tonnage (in thousands) |
|
2,434 |
|
|
|
2,436 |
|
|
|
2,584 |
|
|
(0.1 |
) |
|
(5.8 |
) |
LTL tonnage per workday (in thousands) |
|
40.22 |
|
|
|
39.28 |
|
|
|
40.38 |
|
|
2.4 |
|
|
(0.4 |
) |
LTL shipments (in thousands) |
|
4,176 |
|
|
|
4,284 |
|
|
|
4,480 |
|
|
(2.5 |
) |
|
(6.8 |
) |
LTL shipments per workday (in thousands) |
|
69.03 |
|
|
|
69.10 |
|
|
|
70.00 |
|
|
(0.1 |
) |
|
(1.4 |
) |
LTL picked up revenue/cwt. |
$ |
21.46 |
|
|
$ |
21.60 |
|
|
$ |
20.82 |
|
|
(0.7 |
) |
|
3.1 |
|
LTL picked up revenue/cwt. (excl. FSC) |
$ |
19.46 |
|
|
$ |
19.04 |
|
|
$ |
18.90 |
|
|
2.2 |
|
|
3.0 |
|
LTL picked up revenue/shipment |
$ |
250 |
|
|
$ |
246 |
|
|
$ |
240 |
|
|
1.8 |
|
|
4.1 |
|
LTL picked up revenue/shipment (excl. FSC) |
$ |
227 |
|
|
$ |
216 |
|
|
$ |
218 |
|
|
4.8 |
|
|
4.1 |
|
LTL weight/shipment (in pounds) |
|
1,165 |
|
|
|
1,137 |
|
|
|
1,154 |
|
|
2.5 |
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in millions) (b) |
$ |
1,148.8 |
|
|
$ |
1,143.2 |
|
|
$ |
1,179.1 |
|
|
0.5 |
|
|
(2.6 |
) |
Total tonnage (in thousands) |
|
3,134 |
|
|
|
3,089 |
|
|
|
3,295 |
|
|
1.5 |
|
|
(4.9 |
) |
Total tonnage per workday (in thousands) |
|
51.81 |
|
|
|
49.82 |
|
|
|
51.49 |
|
|
4.0 |
|
|
0.6 |
|
Total shipments (in thousands) |
|
4,289 |
|
|
|
4,382 |
|
|
|
4,609 |
|
|
(2.1 |
) |
|
(7.0 |
) |
Total shipments per workday (in thousands) |
|
70.88 |
|
|
|
70.68 |
|
|
|
72.02 |
|
|
0.3 |
|
|
(1.6 |
) |
Total picked up revenue/cwt. |
$ |
18.33 |
|
|
$ |
18.50 |
|
|
$ |
17.89 |
|
|
(1.0 |
) |
|
2.4 |
|
Total picked up revenue/cwt. (excl. FSC) |
$ |
16.67 |
|
|
$ |
16.37 |
|
|
$ |
16.29 |
|
|
1.9 |
|
|
2.3 |
|
Total picked up revenue/shipment |
$ |
268 |
|
|
$ |
261 |
|
|
$ |
256 |
|
|
2.7 |
|
|
4.7 |
|
Total picked up revenue/shipment (excl. FSC) |
$ |
244 |
|
|
$ |
231 |
|
|
$ |
233 |
|
|
5.6 |
|
|
4.6 |
|
Total weight/shipment (in pounds) |
|
1,462 |
|
|
|
1,410 |
|
|
|
1,430 |
|
|
3.7 |
|
|
2.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)Reconciliation of
operating revenue to total picked up revenue (in
millions): |
|
|
|
|
|
Operating revenue |
$ |
1,164.5 |
|
|
$ |
1,159.5 |
|
|
$ |
1,183.4 |
|
|
|
|
|
Change in revenue deferral and other |
|
(15.7 |
) |
|
|
(16.3 |
) |
|
|
(4.3 |
) |
|
|
|
|
Total picked up revenue |
$ |
1,148.8 |
|
|
$ |
1,143.2 |
|
|
$ |
1,179.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Percent change
based on unrounded figures and not the rounded figures
presented. |
|
|
|
|
|
(b) Does not equal
financial statement revenue due to revenue adjustments for
shipments in transit and the impact of other revenue. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yellow
Corporation and Subsidiaries |
Statistics |
YTD
Comparison |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y |
|
2020 |
|
2019 |
|
% (a) |
Workdays |
|
253.0 |
|
|
|
251.5 |
|
|
|
|
|
|
|
|
|
|
|
LTL picked up revenue (in millions) |
$ |
4,100.1 |
|
|
$ |
4,457.2 |
|
|
(8.0 |
) |
LTL tonnage (in thousands) |
|
9,845 |
|
|
|
10,314 |
|
|
(4.5 |
) |
LTL tonnage per workday (in thousands) |
|
38.91 |
|
|
|
41.01 |
|
|
(5.1 |
) |
LTL shipments (in thousands) |
|
16,982 |
|
|
|
18,246 |
|
|
(6.9 |
) |
LTL shipments per workday (in thousands) |
|
67.12 |
|
|
|
72.55 |
|
|
(7.5 |
) |
LTL picked up revenue/cwt. |
$ |
20.82 |
|
|
$ |
21.61 |
|
|
(3.6 |
) |
LTL picked up revenue/cwt. (excl. FSC) |
$ |
18.78 |
|
|
$ |
19.05 |
|
|
(1.4 |
) |
LTL picked up revenue/shipment |
$ |
241 |
|
|
$ |
244 |
|
|
(1.2 |
) |
LTL picked up revenue/shipment (excl. FSC) |
$ |
218 |
|
|
$ |
215 |
|
|
1.1 |
|
LTL weight/shipment (in pounds) |
|
1,159 |
|
|
|
1,131 |
|
|
2.6 |
|
|
|
|
|
|
|
|
|
Total picked up revenue (in millions) (b) |
$ |
4,487.7 |
|
|
$ |
4,831.3 |
|
|
(7.1 |
) |
Total tonnage (in thousands) |
|
12,589 |
|
|
|
12,946 |
|
|
(2.8 |
) |
Total tonnage per workday (in thousands) |
|
49.76 |
|
|
|
51.47 |
|
|
(3.3 |
) |
Total shipments (in thousands) |
|
17,446 |
|
|
|
18,653 |
|
|
(6.5 |
) |
Total shipments per workday (in thousands) |
|
68.96 |
|
|
|
74.17 |
|
|
(7.0 |
) |
Total picked up revenue/cwt. |
$ |
17.82 |
|
|
$ |
18.66 |
|
|
(4.5 |
) |
Total picked up revenue/cwt. (excl. FSC) |
$ |
16.13 |
|
|
$ |
16.50 |
|
|
(2.3 |
) |
Total picked up revenue/shipment |
$ |
257 |
|
|
$ |
259 |
|
|
(0.7 |
) |
Total picked up revenue/shipment (excl. FSC) |
$ |
233 |
|
|
$ |
229 |
|
|
1.6 |
|
Total weight/shipment (in pounds) |
|
1,443 |
|
|
|
1,388 |
|
|
4.0 |
|
|
|
|
|
|
|
|
|
(b) Reconciliation of operating revenue to
total picked up revenue (in millions): |
|
|
Operating revenue |
$ |
4,513.7 |
|
|
$ |
4,871.2 |
|
|
|
Change in revenue deferral and other |
|
(26.0 |
) |
|
|
(39.9 |
) |
|
|
Total picked up revenue |
$ |
4,487.7 |
|
|
$ |
4,831.3 |
|
|
|
|
|
|
|
|
|
|
|
(a) Percent change based on unrounded figures and not the rounded
figures presented. |
|
|
(b) Does not equal
financial statement revenue due to revenue adjustments for
shipments in transit and the impact of other revenue. |
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