SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 22, 2002 ----------------- YELLOW CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 0-12255 48-0948788 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 10990 Roe Avenue, P. O. Box 7563, Overland Park, Kansas 66207 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (913) 696-6100 ------------------- No Changes. - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report.)
Item 7. Financial Statements and Exhibits (c) Exhibits. The following exhibits are filed herewith: Exhibit No. Description 99.1 Unaudited Historical Consolidated Balance Sheets, as of March 31, 2001, June 30, 2001, September 30, 2001, December 31, 2001, March 31, 2002, June 30, 2002, and September 30, 2002, Statements of Consolidated Operations and Statements of Consolidated Cash Flows for the three months ended March 31, 2001, June 30, 2001, September 30, 2001, December 31, 2001, March 31, 2002, June 30, 2002, September 30, 2002, the twelve months ended December 31, 2001, and the nine months ended September 30, 2002. Item 9. Regulation FD Disclosure Yellow Corporation (NASDAQ: YELL) has made the unaudited historical consolidated balance sheets as of March 31, 2001, June 30, 2001, September 30, 2001, December 31, 2001, March 31, 2002, June 30, 2002, and September 30, 2002, statements of consolidated operations and statements of consolidated cash flows for the three months ended March 31, 2001, June 30, 2001, September 30, 2001, December 31, 2001, March 31, 2002, June 30, 2002, September 30, 2002, the twelve months ended December 31, 2001, and the nine months ended September 30, 2002, attached to this filing as Exhibit 99.1, available. The information in the Current Report is being furnished pursuant to Item 9 and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in the Current Report shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended. The furnishing of the information in the Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available.
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. YELLOW CORPORATION ---------------------------------- (Registrant) Date: October 22, 2002 /s/ Donald G. Barger, Jr. ------------------------- ---------------------------------- Donald G. Barger, Jr. Chief Financial Officer
CONSOLIDATED BALANCE SHEETS Yellow Corporation and Subsidiaries (Amounts in thousands except per share data) (Unaudited) March 31, June 30, September 30, December 31, 2001 2001 2001 2001 ----------- ----------- ------------- ----------- ASSETS CURRENT ASSETS: Cash $ 38,054 $ 29,011 $ 18,891 $ 19,214 Accounts receivable 109,792 123,041 131,647 124,880 Prepaid expenses and other 38,047 31,984 27,352 75,858 Current assets of discontinued operations 116,409 111,175 117,649 92,458 ----------- ----------- ----------- ----------- Total current assets 302,302 295,211 295,539 312,410 ----------- ----------- ----------- ----------- PROPERTY AND EQUIPMENT: Cost 1,677,303 1,665,545 1,668,560 1,656,298 Less - Accumulated depreciation 1,099,431 1,092,207 1,096,550 1,096,766 ----------- ----------- ----------- ----------- Net property and equipment 577,872 573,338 572,010 559,532 ----------- ----------- ----------- ----------- Goodwill and other assets 10,433 13,058 27,888 15,345 Noncurrent assets of discontinued operations 422,786 411,180 403,478 398,490 ----------- ----------- ----------- ----------- Total assets $ 1,313,393 $ 1,292,787 $ 1,298,915 $ 1,285,777 =========== =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and checks outstanding $ 104,358 $ 70,147 $ 69,706 $ 97,528 Wages and employees' benefits 124,753 125,759 112,620 103,990 Other current liabilities 118,314 104,310 98,492 96,740 Current maturities of long-term debt 1,808 1,819 1,749 6,281 Current liabilities of discontinued operations 70,443 69,602 77,864 64,669 ----------- ----------- ----------- ----------- Total current liabilities 419,676 371,637 360,431 369,208 ----------- ----------- ----------- ----------- OTHER LIABILITIES: Long-term debt 217,228 231,810 232,465 213,745 Deferred income taxes 34,864 34,012 41,873 33,868 Claims, insurance and other 112,199 120,829 115,790 110,326 Noncurrent liabilities of discontinued operations 63,470 62,085 61,213 67,641 ----------- ----------- ----------- ----------- Total other liabilities 427,761 448,736 451,341 425,580 ----------- ----------- ----------- ----------- SHAREHOLDERS' EQUITY: Common stock, $1 par value per share 30,317 30,334 30,878 31,028 Capital surplus 29,093 29,343 38,893 41,689 Retained earnings 523,941 530,134 536,612 537,496 Accumulated other comprehensive income (loss) (4,423) (4,425) (6,268) (6,252) Treasury stock (112,972) (112,972) (112,972) (112,972) ----------- ----------- ----------- ----------- Total shareholders' equity 465,956 472,414 487,143 490,989 ----------- ----------- ----------- ----------- Total liabilities and shareholders' equity $ 1,313,393 $ 1,292,787 $ 1,298,915 $ 1,285,777 =========== =========== =========== ===========
CONSOLIDATED BALANCE SHEETS Yellow Corporation and Subsidiaries (Amounts in thousands except per share data) (Unaudited) March 31, June 30, September 30, 2002 2002 2002 ----------- ----------- ------------- ASSETS CURRENT ASSETS: Cash $ 16,680 $ 16,803 $ 16,198 Accounts receivable 113,783 194,211 294,889 Prepaid expenses and other 49,318 25,994 28,254 Current assets of discontinued operations 110,133 112,934 -- ----------- ----------- ----------- Total current assets 289,914 349,942 339,341 ----------- ----------- ----------- PROPERTY AND EQUIPMENT: Cost 1,658,152 1,652,124 1,665,986 Less - Accumulated depreciation 1,092,965 1,093,631 1,108,027 ----------- ----------- ----------- Net property and equipment 565,187 558,493 557,959 ----------- ----------- ----------- Goodwill and other assets 14,998 16,864 34,914 Noncurrent assets of discontinued operations 313,063 307,890 -- ----------- ----------- ----------- Total assets $ 1,183,162 $ 1,233,189 $ 932,214 =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and checks outstanding $ 70,440 $ 75,558 $ 83,670 Wages and employees' benefits 112,777 118,944 129,064 Other current liabilities 103,561 99,165 105,225 Current maturities of long-term debt 5,929 404 52 Current liabilities of discontinued operations 66,993 74,438 -- ----------- ----------- ----------- Total current liabilities 359,700 368,509 318,011 ----------- ----------- ----------- OTHER LIABILITIES: Long-term debt 188,679 106,611 84,300 Deferred income taxes 32,770 33,081 36,129 Claims, insurance and other 112,750 130,309 125,815 Noncurrent liabilities of discontinued operations 67,602 67,928 -- ----------- ----------- ----------- Total other liabilities 401,801 337,929 246,244 ----------- ----------- ----------- SHAREHOLDERS' EQUITY: Common stock, $1 par value per share 31,144 31,404 31,464 Capital surplus 43,867 71,880 72,701 Retained earnings 464,460 470,680 311,279 Unamortized restricted stock awards -- (1,296) (1,175) Accumulated other comprehensive income (loss) (4,838) (4,615) (5,008) Treasury stock (112,972) (41,302) (41,302) ----------- ----------- ----------- Total shareholders' equity 421,661 526,751 367,959 ----------- ----------- ----------- Total liabilities and shareholders' equity $ 1,183,162 $ 1,233,189 $ 932,214 =========== =========== ===========
STATEMENTS OF CONSOLIDATED OPERATIONS Yellow Corporation and Subsidiaries (Amounts in thousands except per share data) (Unaudited) Twelve Three Months Ended Months Ended March 31, June 30, September 30, December 31, December 31, 2001 2001 2001 2001 2001 ----------- ----------- ----------- ----------- ----------- OPERATING REVENUE $ 636,002 $ 629,135 $ 639,462 $ 600,471 $ 2,505,070 ----------- ----------- ----------- ----------- ----------- OPERATING EXPENSES: Salaries, wages and benefits 413,454 411,772 417,999 395,437 1,638,662 Operating expenses and supplies 105,660 101,732 101,698 88,964 398,054 Operating taxes and licenses 20,090 18,583 18,849 18,115 75,637 Claims and insurance 13,420 14,433 14,203 14,943 56,999 Depreciation and amortization 19,526 19,325 18,905 19,221 76,977 Purchased transportation 51,408 50,482 55,726 57,515 215,131 Unusual items 626 1,117 (734) 4,406 5,415 ----------- ----------- ----------- ----------- ----------- Total operating expenses 624,184 617,444 626,646 598,601 2,466,875 ----------- ----------- ----------- ----------- ----------- INCOME FROM OPERATIONS 11,818 11,691 12,816 1,870 38,195 ----------- ----------- ----------- ----------- ----------- NONOPERATING (INCOME) EXPENSES: Interest expense 1,790 2,047 2,320 2,280 8,437 ABS facility charges 2,901 2,172 1,782 1,141 7,996 Loss on equity method investment 2,536 1,861 1,344 -- 5,741 Other, net (193) (567) (580) 2 (1,338) ----------- ----------- ----------- ----------- ----------- Nonoperating expenses, net 7,034 5,513 4,866 3,423 20,836 ----------- ----------- ----------- ----------- ----------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 4,784 6,178 7,950 (1,553) 17,359 INCOME TAX PROVISION (BENEFIT) 2,004 2,589 2,802 (625) 6,770 ----------- ----------- ----------- ----------- ----------- INCOME (LOSS) FROM CONTINUING OPERATIONS 2,780 3,589 5,148 (928) 10,589 Income (loss) from discontinued operations, net (1,034) 2,067 1,330 2,349 4,712 ----------- ----------- ----------- ----------- ----------- NET INCOME $ 1,746 $ 5,656 $ 6,478 $ 1,421 $ 15,301 =========== =========== =========== =========== =========== AVERAGE SHARES OUTSTANDING-BASIC 24,036 24,164 24,497 24,801 24,376 =========== =========== =========== =========== =========== AVERAGE SHARES OUTSTANDING-DILUTED 24,399 24,342 24,854 25,115 24,679 =========== =========== =========== =========== =========== BASIC EARNINGS (LOSS) PER SHARE: Income (loss) from continuing operations $ 0.11 $ 0.15 $ 0.21 $ (0.03) $ 0.44 Income (loss) from discontinued operations (0.04) 0.08 0.05 0.09 0.19 ----------- ----------- ----------- ----------- ----------- Net income $ 0.07 $ 0.23 $ 0.26 $ 0.06 $ 0.63 ----------- ----------- ----------- ----------- ----------- DILUTED EARNINGS (LOSS) PER SHARE: Income (loss) from continuing operations $ 0.11 $ 0.15 $ 0.21 $ (0.03) $ 0.43 Income (loss) from discontinued operations (0.04) 0.08 0.05 0.09 0.19 ----------- ----------- ----------- ----------- ----------- Net income $ 0.07 $ 0.23 $ 0.26 $ 0.06 $ 0.62 ----------- ----------- ----------- ----------- ----------- DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, EXCLUDING UNUSUAL ITEMS $ 0.13 $ 0.18 $ 0.19 $ 0.07 $ 0.56
STATEMENTS OF CONSOLIDATED OPERATIONS Yellow Corporation and Subsidiaries (Amounts in thousands except per share data) (Unaudited) Nine Three Months Ended Months Ended March 31, June 30, September 30, September 30, 2002 2002 2002 2002 ----------- ----------- ----------- ----------- OPERATING REVENUE $ 578,802 $ 646,061 $ 682,473 $ 1,907,336 ----------- ----------- ----------- ----------- OPERATING EXPENSES: Salaries, wages and benefits 390,239 429,782 444,659 1,264,680 Operating expenses and supplies 81,068 92,753 97,808 271,629 Operating taxes and licenses 18,379 18,722 18,849 55,950 Claims and insurance 13,580 16,642 14,881 45,103 Depreciation and amortization 18,929 19,482 20,517 58,928 Purchased transportation 53,246 61,471 66,559 181,276 Unusual items 704 999 5,718 7,421 ----------- ----------- ----------- ----------- Total operating expenses 576,145 639,851 668,991 1,884,987 ----------- ----------- ----------- ----------- INCOME FROM OPERATIONS 2,657 6,210 13,482 22,349 ----------- ----------- ----------- ----------- NONOPERATING (INCOME) EXPENSES: Interest expense 2,310 1,437 1,306 5,053 ABS facility charges 754 715 756 2,225 Loss on equity method investment -- -- -- -- Other, net (158) (44) (54) (256) ----------- ----------- ----------- ----------- Nonoperating expenses, net 2,906 2,108 2,008 7,022 ----------- ----------- ----------- ----------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (249) 4,102 11,474 15,327 INCOME TAX PROVISION (BENEFIT) (102) 1,474 4,177 5,549 ----------- ----------- ----------- ----------- INCOME (LOSS) FROM CONTINUING OPERATIONS (147) 2,628 7,297 9,778 Income (loss) from discontinued operations, net (72,889) 3,592 (48,578) (117,875) ----------- ----------- ----------- ----------- NET INCOME (LOSS) $ (73,036) $ 6,220 $ (41,281) $ (108,097) =========== =========== =========== =========== AVERAGE SHARES OUTSTANDING-BASIC 24,934 28,404 29,175 27,525 =========== =========== =========== =========== AVERAGE SHARES OUTSTANDING-DILUTED 25,259 28,810 29,523 27,882 =========== =========== =========== =========== BASIC EARNINGS (LOSS) PER SHARE: Income (loss) from continuing operations $ (0.01) $ 0.09 $ 0.25 $ 0.35 Income (loss) from discontinued operations (2.92) 0.13 (1.66) (4.28) ----------- ----------- ----------- ----------- Net income (loss) $ (2.93) $ 0.22 $ (1.41) $ (3.93) ----------- ----------- ----------- ----------- DILUTED EARNINGS (LOSS) PER SHARE: Income (loss) from continuing operations $ (0.01) $ 0.09 $ 0.25 $ 0.35 Income (loss) from discontinued operations (2.88) 0.13 (1.65) (4.23) ----------- ----------- ----------- ----------- Net income (loss) $ (2.89) $ 0.22 $ (1.40) $ (3.88) ----------- ----------- ----------- ----------- DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS, EXCLUDING UNUSUAL ITEMS $ 0.01 $ 0.11 $ 0.37 $ 0.51
STATEMENTS OF CONSOLIDATED CASH FLOWS Yellow Corporation and Subsidiaries (Amounts in thousands) (Unaudited) Twelve Three Months Ended Months Ended March 31, June 30, September 30, December 31, December 31, 2001 2001 2001 2001 2001 --------- --------- ------------- ------------ ------------ OPERATING ACTIVITIES: Net income $ 1,746 $ 5,656 $ 6,478 $ 1,421 $ 15,301 Noncash items included in net income: Depreciation and amortization 19,526 19,325 18,905 19,221 76,977 Loss (income) from discontinued operations 1,034 (2,067) (1,330) (2,349) (4,712) Loss on equity method investment 2,536 1,861 1,344 -- 5,741 Deferred income tax provision (benefit) -- (1,106) 5,335 12,517 16,746 Losses (gains) from property disposals, net 626 1,081 (686) (1,207) (186) Changes in assets and liabilities, net: Accounts receivable 10,051 7,417 (24,677) 51,250 44,041 Accounts receivable securitizations, net 9,000 (22,500) 22,000 (44,000) (35,500) Accounts payable and checks outstanding (4,724) (34,212) (2,115) 27,347 (13,704) Other working capital items 1,083 (6,936) (15,987) (75,692) (97,532) Claims, insurance and other 793 8,629 (8,119) (5,045) (3,742) Other, net (762) 922 (208) 8,807 8,759 Net change in operating activities of discontinued operations 7,314 21,715 15,747 31,330 76,106 --------- --------- --------- --------- --------- Net cash from (used in) operating activities 48,223 (215) 16,687 23,600 88,295 --------- --------- --------- --------- --------- INVESTING ACTIVITIES: Acquisition of property and equipment (44,639) (17,513) (16,601) (9,269) (88,022) Proceeds from disposal of prop. and equip. 583 629 2,912 2,463 6,587 Acquisition of subsidiaries -- -- (14,300) -- (14,300) Other (2,500) (1,613) (2,265) 548 (5,830) Net capital expenditures of discontinued operations (3,232) (5,035) (5,793) (5,559) (19,619) --------- --------- --------- --------- --------- Net cash used in investing activities (49,788) (23,532) (36,047) (11,817) (121,184) --------- --------- --------- --------- --------- FINANCING ACTIVITIES: Increase (decrease) in long-term debt 13,574 14,568 561 (14,115) 14,588 Proceeds from stock options and other, net 5,168 136 8,679 2,655 16,638 --------- --------- --------- --------- --------- Net cash provided by (used in) financing activities 18,742 14,704 9,240 (11,460) 31,226 --------- --------- --------- --------- --------- NET INCREASE (DECREASE) IN CASH 17,177 (9,043) (10,120) 323 (1,663) CASH, BEGINNING OF PERIOD 20,877 38,054 29,011 18,891 20,877 --------- --------- --------- --------- --------- CASH, END OF PERIOD $ 38,054 $ 29,011 $ 18,891 $ 19,214 $ 19,214 ========= ========= ========= ========= =========
STATEMENTS OF CONSOLIDATED CASH FLOWS Yellow Corporation and Subsidiaries (Amounts in thousands) (Unaudited) Nine Three Months Ended Months Ended March 31, June 30, September 30, September 30, 2002 2002 2002 2002 --------- --------- ------------- ------------- OPERATING ACTIVITIES: Net income (loss) $ (73,036) $ 6,220 $ (41,281) $(108,097) Noncash items included in net income (loss): Depreciation and amortization 18,929 19,482 20,517 58,928 Loss (income) from discontinued operations 72,889 (3,592) 48,578 117,875 Deferred income tax provision (benefit) -- -- (3,186) (3,186) Losses from property disposals, net 468 438 351 1,257 Changes in assets and liabilities, net: Accounts receivable (19,212) (30,646) (23,202) (73,060) Accounts receivable securitizations, net 30,500 (52,500) (60,000) (82,000) Accounts payable and checks outstanding (27,299) 5,658 (4,136) (25,777) Other working capital items 42,675 24,847 17,571 85,093 Claims, insurance and other 3,028 17,028 (4,699) 15,357 Other, net 2,188 572 (782) 1,978 Net change in operating activities of discontinued operations (3,050) 22,131 (1,831) 17,250 --------- --------- --------- --------- Net cash from (used in) operating activities 48,080 9,638 (52,100) 5,618 --------- --------- --------- --------- INVESTING ACTIVITIES: Acquisition of property and equipment (25,380) (14,018) (19,940) (59,338) Proceeds from disposal of prop. and equip. (580) 2,108 261 1,789 Acquisition of subsidiaries -- -- (18,712) (18,712) Net capital expenditures of discontinued operations (1,275) (7,954) (15,143) (24,372) --------- --------- --------- --------- Net cash used in investing activities (27,235) (19,864) (53,534) (100,633) --------- --------- --------- --------- FINANCING ACTIVITIES: Increase (decrease) in long-term debt (25,418) (87,593) (6,522) (119,533) Dividend from subsidiary upon spin-off -- -- 110,790 110,790 Proceeds from stock options and other, net 2,039 4,150 761 6,950 Proceeds from issuance of common stock -- 93,792 -- 93,792 --------- --------- --------- --------- Net cash provided by (used in) financing activities (23,379) 10,349 105,029 91,999 --------- --------- --------- --------- NET INCREASE (DECREASE) IN CASH (2,534) 123 (605) (3,016) CASH, BEGINNING OF PERIOD 19,214 16,680 16,803 19,214 --------- --------- --------- --------- CASH, END OF PERIOD $ 16,680 $ 16,803 $ 16,198 $ 16,198 ========= ========= ========= =========