UNITED STATES
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) September 8, 2003
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YELLOW CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-12255 48-0948788
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
10990 Roe Avenue, Overland Park, Kansas 66211
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (913) 696-6100
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No Changes.
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(Former name or former address, if changed since last report.)
Item 7. Financial Statements and Exhibits
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
The following exhibits are filed herewith:
Exhibit No. Description
99.1 Historical Consolidated Balance Sheets,
Statements of Consolidated Operations, and
Statements of Consolidated Cash Flows for the
years ended December 31, 2002, 2001, 2000,
1999, and 1998.
Item 9. Regulation FD Disclosure
Yellow Corporation (NASDAQ: YELL) derived the historical information from its
audited consolidated financial statements for the years ended December 31, 2002,
2001, 2000, 1999, and 1998 and has made it available as Exhibit 99.1 to this
filing.
Information in this 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
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(Registrant)
Date: September 8, 2003 By: /s/ Donald G. Barger, Jr.
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Donald G. Barger, Jr.
Senior Vice President and
Chief Financial Officer
.
.
.
CONSOLIDATED BALANCE SHEETS
Yellow Corporation and Subsidiaries
As of December 31
(Amounts in thousands except per share data)
2002 2001 2000 1999 1998
----------- ----------- ----------- ----------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 28,714 $ 19,214 $ 20,877 $ 19,023 $ 21,200
Accounts receivable, net 327,913 124,880 128,842 168,692 218,304
Fuel and operating supplies 11,039 12,341 13,485 14,422 7,335
Prepaid expenses 57,687 63,517 40,682 39,826 63,869
Current assets of discontinued operations - 92,458 109,519 109,929 63,907
----------- ----------- ----------- ----------- -----------
Total current assets 425,353 312,410 313,405 351,892 374,615
----------- ----------- ----------- ----------- -----------
PROPERTY AND EQUIPMENT:
Land 93,783 92,878 91,361 90,718 92,340
Structures 516,006 516,070 507,225 505,101 507,845
Revenue equipment 825,606 801,652 817,947 800,634 789,106
Technology equipment and software 141,723 138,765 139,294 164,247 155,503
Other 101,978 106,933 104,795 114,793 112,840
----------- ----------- ----------- ----------- -----------
1,679,096 1,656,298 1,660,622 1,675,493 1,657,634
Less - Accumulated depreciation 1,114,120 1,096,766 1,106,472 1,128,354 1,122,045
----------- ----------- ----------- ----------- -----------
Net property and equipment 564,976 559,532 554,150 547,139 535,589
----------- ----------- ----------- ----------- -----------
Goodwill, net of amortization 20,491 10,600 - - -
Other assets 32,165 4,745 10,565 8,466 8,754
Noncurrent assets of discontinued operations - 398,490 430,357 418,086 186,727
----------- ----------- ----------- ----------- -----------
Total assets $ 1,042,985 $ 1,285,777 $ 1,308,477 $ 1,325,583 $ 1,105,685
=========== =========== =========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Checks outstanding in excess of bank balances $ 63,685 $ 51,104 $ 55,157 $ 60,521 $ 69,861
Accounts payable 51,304 46,424 53,925 46,983 59,714
Wages, vacations, and employees' benefits 159,998 103,990 145,470 148,131 102,737
Deferred income taxes, net 16,751 23,346 16,805 13,341 43,867
Claims and insurance accruals 44,045 46,347 58,437 58,897 59,953
Other current and accrued liabilities 40,315 27,047 37,401 47,703 40,971
ABS borrowings 50,000 - - - -
Current maturities of long-term debt 24,261 6,281 68,792 2,392 77
Current liabilities of discontinued operations - 64,669 66,213 56,841 39,015
----------- ----------- ----------- ----------- -----------
Total current liabilities 450,359 369,208 502,200 434,809 416,195
----------- ----------- ----------- ----------- -----------
OTHER LIABILITIES:
Long-term debt 50,024 213,745 136,645 274,015 156,988
Deferred income taxes, net 25,657 33,868 35,182 31,233 -
Claims, insurance and other 156,987 110,326 111,408 122,795 136,235
Noncurrent liabilities of discontinued operations - 67,641 63,266 53,351 25,015
----------- ----------- ----------- ----------- -----------
Total other liabilities 232,668 425,580 346,501 481,394 318,238
----------- ----------- ----------- ----------- -----------
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Common stock, $1 par value per share-authorized
120,000 shares 31,825 31,028 29,959 29,437 29,356
Capital surplus 80,610 41,689 23,304 16,063 14,948
Retained earnings 325,474 537,496 522,195 454,177 403,262
Accumulated other comprehensive income (loss) (35,596) (6,252) (2,710) (2,322) (3,163)
Unamortized restricted stock awards (1,053) - - - -
Treasury stock, at cost (41,302) (112,972) (112,972) (87,975) (73,151)
----------- ----------- ----------- ----------- -----------
Total shareholders' equity 359,958 490,989 459,776 409,380 371,252
----------- ----------- ----------- ----------- -----------
Total liabilities and shareholders' equity $ 1,042,985 $ 1,285,777 $ 1,308,477 $ 1,325,583 $ 1,105,685
=========== =========== =========== =========== ===========
STATEMENTS OF CONSOLIDATED OPERATIONS
Yellow Corporation and Subsidiaries
For the years ended December 31
(Amounts in thousands except per share data)
2002 2001 2000 1999 1998
----------- ----------- ----------- ----------- -----------
OPERATING REVENUE $ 2,624,148 $ 2,505,070 $ 2,799,131 $ 2,632,337 $ 2,492,617
----------- ----------- ----------- ----------- -----------
OPERATING EXPENSES:
Salaries, wages and employees' benefits 1,717,382 1,638,662 1,767,926 1,698,618 1,605,705
Operating expenses and supplies 385,522 398,054 431,336 383,951 379,110
Operating taxes and licenses 75,737 75,637 81,259 79,129 80,437
Claims and insurance 57,197 56,999 61,535 58,477 60,749
Depreciation and amortization 79,334 76,977 78,587 76,904 83,980
Purchased transportation 253,677 215,131 266,113 258,891 226,735
(Gains) losses on property disposals, net 425 (186) (14,372) 341 (4,287)
Spin-off and reorganization charges 8,010 5,601 - - -
----------- ----------- ----------- ----------- -----------
Total operating expenses 2,577,284 2,466,875 2,672,384 2,556,311 2,432,429
----------- ----------- ----------- ----------- -----------
OPERATING INCOME 46,864 38,195 126,747 76,026 60,188
----------- ----------- ----------- ----------- -----------
NONOPERATING (INCOME) EXPENSES:
Interest expense 7,211 8,437 10,131 6,086 2,656
ABS facility charges 2,576 7,996 10,052 8,252 4,355
Interest income (843) (1,198) (1,003) (1,090) (1,063)
Loss on equity method investment - 5,741 3,329 - -
Other, net 334 (140) (889) (4,372) (1,153)
----------- ----------- ----------- ----------- -----------
Nonoperating expenses, net 9,278 20,836 21,620 8,876 4,795
----------- ----------- ----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 37,586 17,359 105,127 67,150 55,393
INCOME TAX PROVISION 13,613 6,770 43,522 28,404 23,376
----------- ----------- ----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS 23,973 10,589 61,605 38,746 32,017
Income (loss) from discontinued operations, net (117,875) 4,712 6,413 12,169 (60,686)
----------- ----------- ----------- ----------- -----------
NET INCOME (LOSS) $ (93,902) $ 15,301 $ 68,018 $ 50,915 $ (28,669)
=========== =========== =========== =========== ===========
AVERAGE COMMON SHARES OUTSTANDING-BASIC 28,004 24,376 24,649 25,003 26,709
----------- ----------- ----------- ----------- -----------
AVERAGE COMMON SHARES OUTSTANDING-DILUTED 28,371 24,679 24,787 25,168 26,920
----------- ----------- ----------- ----------- -----------
BASIC EARNINGS (LOSS) PER SHARE:
Income from continuing operations $ 0.86 $ 0.44 $ 2.50 $ 1.55 $ 1.20
Income (loss) from discontinued operations (4.21) 0.19 0.26 0.49 (2.27)
----------- ----------- ----------- ----------- -----------
Net income (loss) $ (3.35) $ 0.63 $ 2.76 $ 2.04 $ (1.07)
----------- ----------- ----------- ----------- -----------
DILUTED EARNINGS (LOSS) PER SHARE:
Income from continuing operations $ 0.84 $ 0.43 $ 2.49 $ 1.54 $ 1.19
Income (loss) from discontinued operations (4.15) 0.19 0.25 0.48 (2.25)
----------- ----------- ----------- ----------- -----------
Net income (loss) $ (3.31) $ 0.62 $ 2.74 $ 2.02 $ (1.06)
----------- ----------- ----------- ----------- -----------
STATEMENTS OF CONSOLIDATED CASH FLOWS
Yellow Corporation and Subsidiaries
For the years ended December 31
(Amounts in thousands)
2002 2001 2000 1999 1998
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OPERATING ACTIVITIES: $ (93,902) $ 15,301 $ 68,018 $ 50,915 $ (28,669)
Net income (loss)
Noncash items included in net income (loss):
Depreciation and amortization 79,334 76,977 78,587 76,904 83,980
Loss (income) from discontinued operations 117,875 (4,712) (6,413) (12,169) 60,686
Loss on equity method investment - 5,741 3,329 - -
Deferred income tax provision 1,449 16,746 9,606 3,052 2,312
(Gains) losses from property disposals, net 425 (186) (14,372) 341 (4,287)
Changes in assets and liabilities, net:
Accounts receivable (49,633) 44,041 (7,885) (40,831) 2,420
Accounts receivable securitizations (91,500) (35,500) 42,000 92,000 25,000
Accounts payable and checks outstanding 5,928 (13,704) 7,116 (23,670) 3,168
Other working capital items 38,468 (97,532) (14,257) 55,828 (18,714)
Claims, insurance and other 14,386 (3,742) (11,107) 3,249 4,346
Other 2,978 8,759 (3,030) 1,086 4,394
Net change in operating activities of discontinued operations 17,250 76,106 74,157 44,095 19,831
--------- --------- --------- --------- ---------
Net cash from operating activities 43,058 88,295 225,749 250,800 154,467
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INVESTING ACTIVITIES:
Acquisition of property and equipment (86,337) (88,022) (100,577) (103,604) (62,006)
Proceeds from disposal of property and equipment 3,507 6,587 29,888 7,435 12,537
Acquisition of subsidiaries (18,042) (14,300) - - -
Other - (5,830) (5,114) - -
Net capital expenditures of discontinued operations (24,372) (19,619) (59,034) (217,523) (43,961)
--------- --------- --------- --------- ---------
Net cash used in investing activities (125,244) (121,184) (134,837) (313,692) (93,430)
--------- --------- --------- --------- ---------
FINANCING ACTIVITIES:
Unsecured bank credit lines, net (85,000) 25,000 (40,000) 100,000 -
Repayment of long-term debt (44,600) (10,412) (31,045) (25,564) (7,575)
Dividend from subsidiary upon spin-off 113,790 - - - -
Proceeds from exercise of stock options 13,704 16,638 6,984 1,103 1,085
Treasury stock purchases - - (24,997) (14,824) (46,836)
Proceeds from issuance of common stock 93,792 - - - -
--------- --------- --------- --------- ---------
Net cash provided by (used in) financing activities 91,686 31,226 (89,058) 60,715 (53,326)
--------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,500 (1,663) 1,854 (2,177) 7,711
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 19,214 20,877 19,023 21,200 13,489
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CASH AND CASH EQUIVALENTS, END OF YEAR $ 28,714 $ 19,214 $ 20,877 $ 19,023 $ 21,200
========= ========= ========= ========= =========
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net $ 8,272 $ 5,268 $ 47,813 $ 16,447 $ (11,337)
Interest paid $ 11,518 $ 16,628 $ 19,761 $ 14,569 $ 11,410
