UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
(Address of principal executive office)(Zip Code)
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(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
Common Stock, $0.01 par value per |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On August 4, 2021, Yellow Corporation announced its results of operations and financial condition for the three months ended June 30, 2021. A copy of the press release announcing the results of operations and financial condition is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
Presentation slides to be referenced during the August 4, 2021 earnings call are attached hereto as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
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Exhibit Number |
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Description |
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99.1 |
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99.2 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURES
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 thereunto duly authorized.
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YELLOW CORPORATION |
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By: |
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/s/ James R. Faught |
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James R. Faught |
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Chief Accounting Officer |
Date: August 4, 2021
Exhibit 99.1
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10990 Roe Avenue Overland Park, KS 66211 Phone 913 696 6108 Fax 913 696 6116
News Release |
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Yellow Corporation Reports Second Quarter 2021 Results
Strong Yield Contributes to Solid Quarterly Results
OVERLAND PARK, Kan., August 4, 2021 – 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
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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
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The operating ratio for second quarter 2021 was 97.9 compared to 100.5 in second quarter 2020. |
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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%. |
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Second quarter 2021 LTL tonnage per workday increased 8.3% when compared to second quarter 2020. |
Liquidity Update
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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. |
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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. |
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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 $213.6 million in 2020. |
Key Information – Second quarter 2021 compared to second quarter 2020
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2021 |
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2020 |
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Percent Change (a) |
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Workdays |
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64.0 |
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63.0 |
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Operating revenue (in millions) |
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$ |
1,313.1 |
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$ |
1,015.4 |
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29.3 |
% |
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Operating income (loss) (in millions) |
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$ |
27.0 |
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$ |
(4.6 |
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NM* |
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Operating ratio |
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97.9 |
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100.5 |
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2.6 pp |
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LTL tonnage per workday (in thousands) |
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39.24 |
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36.24 |
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8.3 |
% |
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LTL shipments per workday (in thousands) |
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69.05 |
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63.53 |
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8.7 |
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LTL picked up revenue per hundredweight incl FSC |
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$ |
23.67 |
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$ |
20.36 |
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16.2 |
% |
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LTL picked up revenue per hundredweight excl FSC |
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$ |
20.70 |
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$ |
18.48 |
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12.0 |
% |
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LTL picked up revenue per shipment incl FSC |
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$ |
269 |
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$ |
232 |
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15.8 |
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LTL picked up revenue per shipment excl FSC |
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$ |
235 |
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$ |
211 |
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11.6 |
% |
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LTL weight per shipment (in pounds) |
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1,137 |
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1,141 |
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(0.4 |
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Total tonnage per workday (in thousands) |
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51.06 |
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46.44 |
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10.0 |
% |
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Total shipments per workday (in thousands) |
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71.10 |
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65.44 |
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8.7 |
% |
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Total picked up revenue per hundredweight incl FSC |
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$ |
20.01 |
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$ |
17.40 |
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14.9 |
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Total picked up revenue per hundredweight excl FSC |
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$ |
17.57 |
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$ |
15.85 |
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10.8 |
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Total picked up revenue per shipment incl FSC |
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$ |
287 |
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$ |
247 |
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16.3 |
% |
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Total picked up revenue per shipment excl FSC |
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$ |
252 |
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$ |
225 |
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12.2 |
% |
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Total weight per shipment (in pounds) |
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1,436 |
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1,419 |
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1.2 |
% |
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(a) |
Percent change based on unrounded figures and not the rounded figures presented |
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:
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EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or fund principal payments on our outstanding debt; |
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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; |
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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; |
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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 |
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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.
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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
Yellow Corporation and Subsidiaries
(Amounts in millions except per share data)
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June 30, 2021 |
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December 31, 2020 |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
372.1 |
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$ |
439.3 |
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Restricted amounts held in escrow |
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52.2 |
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38.7 |
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Accounts receivable, net |
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633.6 |
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505.0 |
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Prepaid expenses and other |
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50.8 |
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46.8 |
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Total current assets |
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1,108.7 |
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1,029.8 |
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PROPERTY AND EQUIPMENT: |
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Cost |
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3,099.5 |
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2,795.5 |
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Less—accumulated depreciation |
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(2,033.4 |
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(2,031.3 |
) |
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Net property and equipment |
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1,066.1 |
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764.2 |
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Deferred income taxes, net |
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2.0 |
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0.9 |
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Pension |
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68.9 |
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63.2 |
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Operating lease right-of-use assets |
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219.3 |
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276.0 |
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Other assets |
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26.2 |
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51.7 |
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Total Assets |
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$ |
2,491.2 |
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$ |
2,185.8 |
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LIABILITIES AND SHAREHOLDERS’ DEFICIT |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
216.0 |
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$ |
160.7 |
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Wages, vacations, and employee benefits |
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242.7 |
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214.6 |
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Current operating lease liabilities |
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98.5 |
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114.2 |
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Other current and accrued liabilities |
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242.7 |
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207.2 |
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Current maturities of long-term debt |
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4.9 |
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4.0 |
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Total current liabilities |
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804.8 |
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700.7 |
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OTHER LIABILITIES: |
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Long-term debt, less current portion |
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1,518.8 |
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1,221.4 |
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Operating lease liabilities |
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128.7 |
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172.6 |
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Claims and other liabilities |
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325.3 |
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314.4 |
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Commitments and contingencies |
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SHAREHOLDERS’ DEFICIT: |
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Cumulative preferred stock, $1 par value per share |
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— |
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— |
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Common stock, $0.01 par value per share |
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0.5 |
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0.5 |
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Capital surplus |
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2,386.3 |
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2,383.6 |
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Accumulated deficit |
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(2,438.6 |
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(2,365.9 |
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Accumulated other comprehensive loss |
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(141.9 |
) |
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(148.8 |
) |
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Treasury stock, at cost |
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(92.7 |
) |
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(92.7 |
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Total shareholders’ deficit |
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(286.4 |
) |
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(223.3 |
) |
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Total Liabilities and Shareholders’ Deficit |
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$ |
2,491.2 |
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$ |
2,185.8 |
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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)
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Three Months |
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Six Months |
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2021 |
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2020 |
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2021 |
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2020 |
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OPERATING REVENUE |
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$ |
1,313.1 |
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$ |
1,015.4 |
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$ |
2,511.5 |
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$ |
2,165.8 |
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OPERATING EXPENSES: |
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Salaries, wages and employee benefits |
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751.3 |
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647.9 |
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1,475.1 |
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1,368.1 |
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Fuel, operating expenses and supplies |
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217.0 |
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162.7 |
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420.5 |
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370.7 |
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Purchased transportation |
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210.3 |
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126.0 |
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410.3 |
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262.2 |
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Depreciation and amortization |
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35.0 |
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34.2 |
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68.3 |
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69.9 |
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Other operating expenses |
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72.2 |
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55.2 |
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136.6 |
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116.8 |
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(Gains) losses on property disposals, net |
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0.3 |
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(6.0 |
) |
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1.3 |
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(45.3 |
) |
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Total operating expenses |
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1,286.1 |
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1,020.0 |
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2,512.1 |
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2,142.4 |
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OPERATING INCOME (LOSS) |
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27.0 |
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(4.6 |
) |
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(0.6 |
) |
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|
23.4 |
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NONOPERATING EXPENSES: |
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Interest expense |
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37.7 |
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40.2 |
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73.6 |
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68.5 |
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Non-union pension and postretirement benefits |
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(1.1 |
) |
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(1.6 |
) |
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(2.4 |
) |
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(3.2 |
) |
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Other, net |
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(0.3 |
) |
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1.4 |
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(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 FINANCIAL INFORMATION
Yellow Corporation and Subsidiaries
(Amounts in millions)
(Unaudited)
SUPPLEMENTAL INFORMATION: Total Debt
|
As of June 30, 2021 |
|
|
|
Par Value |
|
|
Discount |
|
|
Commitment Fee |
|
|
Debt Issue 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2020 |
|
|
|
Par Value |
|
|
Discount |
|
|
Commitment Fee |
|
|
Debt Issue 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, 2021 |
|
|
December 31, 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. 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 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)
|
|
|
2021 |
|
|
2020 |
|
||
|
Reconciliation of net loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(93.4 |
) |
|
$ |
(64.1 |
) |
|
Interest expense, net |
|
|
140.6 |
|
|
|
124.0 |
|
|
Income tax expense (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 |
|
|
0.0 |
|
|
|
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
|
|
|
2Q21 |
|
|
2Q20 |
|
|
1Q21 |
|
|
Y/Y % (a) |
|
|
Sequential % (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
|
|
|
2021 |
|
|
2020 |
|
|
Y/Y % (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 adjustments for shipments in transit and the impact of other revenue. |
Yellow Corporation Second Quarter 2021 Earnings Conference Call Exhibit 99.2 YELLOW
Financial Results Revenue (in millions) $4,871 $4,582 $4,514 $4,859 2019 2020 LTM 2020 2021 LTM Operating Income (in millions) $16 2019 $57 $57 $33 2019 2Q20 LTM 2020 2Q21 LTM YELLOW 2
Financial Results Adjusted EBITDA (in millions) $211 $183 $192 $ 216 2019 2Q20 LTM 2020 2Q21 LTM Cash and Cash Equivalents and Managed Accessibility (in millions) $80 $303 $440 $423 12/31/2019 6/30/2020 12/31/2020 6/30/2021 YELLOW 3
(a) Percent change based on unrounded figures and not the rounded figures presented Operating Statistics – Second Quarter 2Q21 2Q20 YoY % (a) Workdays 64.0 63.0 LTL tonnage (in thousands) 2,511 2,283 10.0 LTL tonnage per workday (in thousands) 39.24 36.24 8.3 LTL shipments (in thousands) 4,419 4,003 10.4 LTL shipments per workday (in thousands) 69.05 63.53 8.7 LTL picked up revenue/cwt. $ 23.67 $ 20.36 16.2 LTL picked up revenue/cwt. (excl. FSC) $ 20.70 $ 18.48 12.0 LTL picked up revenue/shipment $ 269 $ 232 15.8 LTL picked up revenue/shipment (excl. FSC) $ 235 $ 211 11.6 LTL weight/shipment (in pounds) 1,137 1,141 (0.4) Total tonnage (in thousands) 3,268 2,926 11.7 Total tonnage per workday (in thousands) 51.06 46.44 10.0 Total shipments (in thousands) 4,550 4,122 10.4 Total shipments per workday (in thousands) 71.10 65.44 8.7 Total picked up revenue/cwt. $ 20.01 $ 17.40 14.9 Total picked up revenue/cwt. (excl. FSC) $ 17.57 $ 15.85 10.8 Total picked up revenue/shipment $ 287 $ 247 16.3 Total picked up revenue/shipment (excl. FSC) $ 252 $ 225 12.2 Total weight/shipment (in pounds) 1,436 1,419 1.2 YoY % (a) Apr-21 May-21 Jun-21 Total LTL tonnage per workday 23.7 8.9 (3.3) Total tonnage per workday 24.3 9.4 (0.0) YELLOW 4
(a) Percent change based on unrounded figures and not the rounded figures presented Operating Statistics – Year-To-Date YTD 2021 YTD 2020 YoY % (a) Workdays 127.5 128.5 Total LTL tonnage (in thousands) 4,989 4,827 3.4 Total LTL tonnage per workday (in thousands) 39.13 37.57 4.2 Total LTL shipments (in thousands) 8,682 8,325 4.3 Total LTL shipments per workday (in thousands) 68.10 64.79 5.1 Total picked up LTL revenue/cwt. $ 22.84 $ 20.50 11.4 Total picked up LTL revenue/cwt. (excl. FSC) $ 20.12 $ 18.37 9.5 Total picked up LTL revenue/shipment $ 263 $ 238 10.4 Total picked up LTL revenue/shipment (excl. FSC) $ 231 $ 213 8.6 Total LTL weight/shipment (in pounds) 1,149 1,160 (0.9) 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 YELLOW 5
6 Term Loan Lease Financing Obligations CDA Notes UST Tranche A UST Tranche B (in millions) UST Tranche A carries a variable interest rate based on the Eurodollar rate, which is currently determined by the 1, 2, 3 or 6-month USD Libor with a floor of 1.0%, plus a fixed margin of 3.5%. 1.5% is paid in cash and the remainder paid-in-kind (PIK). The Tranche A balance includes $6.7 of PIK interest as of 6/30/21. UST Tranche B carries a variable interest rate based on the Eurodollar rate, which is currently determined by the 1, 2, 3 or 6-month USD Libor with a floor of 1.0%, plus a fixed margin of 3.5%. All paid all in cash. The Term Loan carries a variable interest rate based on the Eurodollar rate, which is currently determined by the 1, 2, 3 or 6-month Libor, with a floor of 1.0%, plus a fixed margin of 7.5%. All paid in cash. Capital Structure Overview $1,800.0 $1,593.9 $1,600.0 $1,400.0 $381.1 $1,284.0 $74.8 $1,200.0 $1,000.0 $302.3 $306.7 $902.8 $71.2 $68.0 $68.0 $800.0 $231.6 $225.9 $225.2 $600.0 $400.0 $600.0 $613.0 $612.9 $200.0 $- 12/31/19 12/31/20 6/30/21 YELLOW 6
7 Largest debt instruments and the labor agreement mature at various dates in 2024 IBT March ABL Facility Jan. Term Loan June CDA Notes December UST Loan Sept. Capital Structure and Labor Timeline 2021 2022 2023 2024 YELLOW
(in millions) LTM Adjusted EBITDA Covenant $200 $150 $100 COVENANT WAIVER THROUGH 3Q21 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 and thereafter YELLOW 8
(in millions) Adjusted EBITDA Reconciliation Yellow Corporation 2019 2020 2Q 2020 2Q 2021 LTM 2Q 2020 LTM 2Q 2021 Reconciliation of net loss to Adjusted EBITDA Net loss $ (104.0) $(53.5) $(37.1) $ (9.4) $ (64.1) $ (93.4) Interest expense, net 109.9 135.6 40.2 37.6 124.0 140.6 Income tax expense (benefit) (4.3) (19.6) (7.5) 0.1 (11.6) (10.5) Depreciation and amortization 152.4 134.9 34.2 35.0 143.8 133.3 EBITDA 154.0 197.4 29.8 63.3 192.1 170.0 Adjustments for TL Agreements: (Gains) losses on property disposals, net (13.7) (45.3) (6.0) 0.3 (54.4) 1.3 Non-cash reserve changes 16.1 2.9 2.7 4.7 3.1 2.8 Impairment charges 8.2 - - - - -Letter of credit expense 6.5 7.3 1.6 2.1 6.5 8.3 Permitted dispositions and other (0.9) 0.3 - 0.1 0.4 0.9 Equity-based compensation expense 6.3 4.7 1.2 0.6 6.1 4.2 Loss on extinguishment of debt 11.2 - - - 11.2 -Non-union pension settlement charge 1.8 3.6 - 0.3 1.8 3.9 Other, net 2.9 3.5 2.1 0.9 1.3 4.9 Expense amounts subject to 10% threshold: COVID -19 - 3.9 3.7 - 3.9 -Other, net 18.2 17.3 2.8 8.3 11.1 24.5 Adjusted EBITDA prior to 10% threshold 210.6 195.6 37.9 80.6 183.1 220.8 Adjustments pursuant to TTM calculation - (3.7) - 2.3 - (4.8) Adjusted EBITDA $ 210.6 $191.9 $ 37.9 $82.9 $ 183.1 $ 216.0 YELLOW 9