false000071600600007160062021-11-022021-11-03

 

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): November 03, 2021

 

 

Yellow Corporation

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			0-12255	48-0948788
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
10990 Roe Avenue
Overland Park, Kansas				66211
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (913) 696-6100

 

(Former Name or Former Address, if Changed Since Last Report)

 

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:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ 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:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.01 par value per share		YELL		The NASDAQ Stock Market LLC

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. ☐

 

 

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Item 2.02 Results of Operations and Financial Condition

On November 3, 2021, Yellow Corporation announced its results of operations and financial condition for the three months ended September 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 November 3, 2021 earnings call are attached hereto as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number		Description
99.1		Press Release dated November 3, 2021
99.2		Presentation Slides for the November 3, 2021 Earnings Call
104		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.

			YELLOW CORPORATION
Date:	November 3, 2021	By:	/s/ James R. Faught
			James R. Faught Chief Accounting Officer

 

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Exhibit 99.1

 

10990 Roe Avenue Overland Park, KS 66211 Phone 913 696 6108 Fax 913 696 6116   News Release

 

Yellow Corporation Reports Third Quarter 2021 Results

The Best Operating Ratio Reported in Nearly Three Years

 

OVERLAND PARK, Kan., November 3, 2021 – Yellow Corporation (NASDAQ: YELL) reported results for the third quarter ended September 30, 2021. Operating revenue was $1.301 billion and operating income was $48.4 million. In comparison, operating revenue in the third quarter 2020 was $1.183 billion and operating income was $19.4 million.

 

Net income for third quarter 2021 was $8.3 million, or $0.16 per share, compared to net loss of $2.0 million, or $0.04 per share in third quarter 2020.

 

On a non-GAAP basis, the Company generated Adjusted EBITDA of $94.4 million in third quarter 2021, a $32.4 million increase compared to $62.0 million in the prior year comparable quarter (as detailed in the reconciliation below). Last twelve months Adjusted EBITDA as of September 30, 2021, was $248.4 million compared to $179.8 million as of September 30, 2020 (as detailed in the reconciliation below).

 

“During the third quarter we kept our focus on meeting our customers’ needs while improving the quality and profitability of the freight flowing through our network,” said Darren Hawkins, Chief Executive Officer. “Third quarter revenue increased 10% compared to a year ago driven by an increase in year-over-year LTL revenue per hundredweight of 20.7%. We also reported an operating ratio of 96.3% which is the best result since fourth quarter 2018.

 

“Capacity across the U.S. supply chain remains constricted with limited ability to expand primarily due to the tight labor market. In the near term, we are leaning into our yield strategy to help manage through the market labor headwinds and focus on reducing purchased transportation expense as a percentage of revenue.

 

“Our multi-year transformation to One Yellow, and the operational efficiencies that we expect to achieve, should put the Company in position to continue improving financial results in 2022. During the third quarter we completed the conversion of our third operating company to the One Yellow technology platform as planned. This moves us closer to operating as a fully integrated network and enhancing the customer value proposition in the 1, 2 and 3-day lanes nationwide. The final operating company to be converted to the technology platform is expected to be completed around the end of this year.

 

“Another key step in the journey to One Yellow will take place next week when HNRY Logistics is renamed Yellow Logistics. Although the name will change, Yellow Logistics will continue using cutting-edge technology to provide multi-mode logistics solutions to complement our extensive core LTL resources and capabilities.

 

“We have maintained a strong liquidity position while executing one of the largest capital expenditure plans in Company history. The capital expenditures guidance range for 2021 remains $480 million to $530 million. Investments made this year include tractors, trailers, technology, box trucks, containers, liftgates and other assets. These investments are making a significant impact to our fleet. Beginning with the fourth quarter 2020 through the end of 2021 we will have upgraded approximately 18% of our tractors and 9% of our trailers,” concluded Hawkins.

 

 

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Financial Update

 

 

Operational Update

 

 

 

 

Liquidity Update

 

 

 

Key Information – Third quarter 2021 compared to third quarter 2020

 

		2021				2020				Percent Change(a)
Workdays			63.5				64.0
Operating revenue (in millions)		$	1,301.4			$	1,183.4				10.0	%
Operating income (in millions)		$	48.4			$	19.4				149.5	%
Operating ratio			96.3				98.4			2.1 pp
LTL tonnage per workday (in thousands)			36.58				40.38				(9.4	)%
LTL shipments per workday (in thousands)			65.22				70.00				(6.8	)%
LTL picked up revenue per hundredweight incl FSC		$	25.12			$	20.82				20.7	%
LTL picked up revenue per hundredweight excl FSC		$	21.84			$	18.90				15.6	%
LTL picked up revenue per shipment incl FSC		$	282			$	240				17.3	%
LTL picked up revenue per shipment excl FSC		$	245			$	218				12.4	%
LTL weight per shipment (in pounds)			1,122				1,154				(2.8	)%
Total tonnage per workday (in thousands)			47.96				51.49				(6.9	)%
Total shipments per workday (in thousands)			67.05				72.02				(6.9	)%
Total picked up revenue per hundredweight incl FSC		$	21.07			$	17.89				17.8	%
Total picked up revenue per hundredweight excl FSC		$	18.40			$	16.29				13.0	%
Total picked up revenue per shipment incl FSC		$	301			$	256				17.8	%
Total picked up revenue per shipment excl FSC		$	263			$	233				13.0	%
Total weight per shipment (in pounds)			1,431				1,430				0.1	%

 

 

 

 

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Review of Financial Results

 

Yellow Corporation will host a conference call with the investment community today, Wednesday, November 3, 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:

 

 

 

 

 

 

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.

 

 

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* * * * *

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 impact of compliance with Executive Order 14042 and any Federal Occupational Safety and Health Administration requirements, each as applicable, regarding mandatory COVID-19 vaccinations and testing of non-vaccinated employees, respectively; our ability to attract and retain qualified drivers and increasing costs of driver compensation; 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; competition and competitive pressure on pricing; changes in pension expense and funding obligations, subject to interest rate volatility; increasing costs relating to our self-insurance claims expenses; our ability to comply and the cost of compliance with, or liability resulting from violation of, federal, state, local and foreign laws and regulations, including (without limitation) labor laws and laws and regulations regarding the environment and climate change initiatives; the impact of claims and litigation expense to which we are or may become exposed; that we may not realize the expected benefits and costs savings from our performance and operational improvement initiatives; a significant privacy breach or IT system disruption; our dependence on key employees; our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures; seasonality and the impact of weather; shortages of fuel and changes in the cost of fuel or the index upon which we base our fuel surcharge and the effectiveness of our fuel surcharge program in protecting us against fuel price volatility; risks of operating in foreign countries; our failure to comply with the covenants in the documents governing our existing and future indebtedness; our ability to generate sufficient liquidity to satisfy our indebtedness and cash interest payment obligations, lease obligations and pension funding obligations; fluctuations in the price of our common stock; dilution from future issuances of our common stock; we are not permitted to pay dividends on our common stock in the foreseeable future; that we have the ability to issue preferred stock that may adversely affect the rights of holders of our common stock; and other risks and contingencies, including (without limitation) the risk factors that are included in our reports filed with the SEC, including those described under “Risk Factors” in our annual report on Form 10-K and quarterly reports on Form 10-Q.

* * * * *

About Yellow Corporation

Yellow Corporation has one of the largest, most comprehensive logistics and less-than-truckload (LTL) networks in North America with local, regional, national, and international capabilities. Through its teams of experienced service professionals, Yellow Corporation offers industry-leading expertise in flexible supply chain solutions, ensuring customers can ship industrial, commercial, and retail goods with confidence. Yellow Corporation, headquartered in Overland Park, Kan., is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company HNRY Logistics.

Please visit our website at www.myyellow.com for more information.

Investor Contact: Tony Carreño

913-696-6108

investor@myyellow.com

Media Contacts: Mike Kelley

913-696-6121

mike.kelley@myyellow.com

 

Heather Nauert

Heather.nauert@myyellow.com

 

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CONSOLIDATED BALANCE SHEETS

Yellow Corporation and Subsidiaries

(Amounts in millions except per share data)

 

		September 30, 2021				December 31, 2020
		(Unaudited)
Assets
Current Assets:
Cash and cash equivalents		$	358.1			$	439.3
Restricted amounts held in escrow			10.1				38.7
Accounts receivable, net			640.7				505.0
Prepaid expenses and other			64.2				46.8
Total current assets			1,073.1				1,029.8
Property and Equipment:
Cost			3,140.0				2,795.5
Less - accumulated depreciation			(2,030.7	)			(2,031.3	)
Net property and equipment			1,109.3				764.2
Deferred income taxes, net			1.9				0.9
Pension			61.1				63.2
Operating lease right-of-use assets			193.5				276.0
Other assets			23.9				51.7
Total Assets		$	2,462.8			$	2,185.8
Liabilities and Shareholders' Deficit
Current Liabilities:
Accounts payable		$	196.4			$	160.7
Wages, vacations and employee benefits			250.2				214.6
Current operating lease liabilities			87.3				114.2
Other current and accrued liabilities			224.7				207.2
Current maturities of long-term debt			4.8				4.0
Total current liabilities			763.4				700.7
Other Liabilities:
Long-term debt, less current portion			1,543.6				1,221.4
Operating lease liabilities			115.5				172.6
Claims and other liabilities			346.5				314.4
Commitments and contingencies
Shareholders' Deficit:
Cumulative preferred stock, $1 par value per share			—				—
Common stock, $0.01 par value per share			0.5				0.5
Capital surplus			2,387.0				2,383.6
Accumulated deficit			(2,430.3	)			(2,365.9	)
Accumulated other comprehensive loss			(170.7	)			(148.8	)
Treasury stock, at cost			(92.7	)			(92.7	)
Total shareholders' deficit			(306.2	)			(223.3	)
Total Liabilities and Shareholders' Deficit		$	2,462.8			$	2,185.8

 

 

 

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STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS)

Yellow Corporation and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in millions except per share data, shares in thousands)

(Unaudited)

 

		Three Months								Nine Months
		2021				2020				2021				2020
Operating Revenue		$	1,301.4			$	1,183.4			$	3,812.9			$	3,349.2
Operating Expenses:
Salaries, wages and employee benefits			729.7				720.6				2,204.8				2,088.7
Fuel, operating expenses and supplies			216.1				175.4				636.6				546.1
Purchased transportation			200.3				177.1				610.6				439.3
Depreciation and amortization			37.8				32.5				106.1				102.4
Other operating expenses			68.9				58.4				205.5				175.2
(Gains) losses on property disposals, net			0.2				—				1.5				(45.3	)
Total operating expenses			1,253.0				1,164.0				3,765.1				3,306.4
Operating Income			48.4				19.4				47.8				42.8
Nonoperating Expenses:
Interest expense			38.6				33.4				112.2				101.9
Non-union pension and postretirement expense (benefit)			1.7				(1.1	)			(0.7	)			(4.3	)
Other, net			(0.2	)			—				(0.5	)			(1.2	)
Nonoperating expenses, net			40.1				32.3				111.0				96.4
Income (loss) before income taxes			8.3				(12.9	)			(63.2	)			(53.6	)
Income tax expense (benefit)			—				(10.9	)			1.2				(18.8	)
Net income (loss)			8.3				(2.0	)			(64.4	)			(34.8	)
Other comprehensive income (loss), net of tax			(28.8	)			98.0				(21.9	)			102.5
Comprehensive Income (Loss)		$	(20.5	)		$	96.0			$	(86.3	)		$	67.7
Average Common Shares Outstanding - Basic			50,868				48,672				50,661				38,864
Average Common Shares Outstanding - Diluted			51,818				48,672				50,661				38,864
Earnings (Loss) Per Share - Basic		$	0.16			$	(0.04	)		$	(1.27	)		$	(0.90	)
Earnings (Loss) Per Share - Diluted		$	0.16			$	(0.04	)		$	(1.27	)		$	(0.90	)
Operating Ratio (a):			96.3	%			98.4	%			98.7	%			98.7	%

 

 

 

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STATEMENTS OF CONSOLIDATED CASH FLOWS

Yellow Corporation and Subsidiaries

For the Nine Months Ended September 30

(Amounts in millions)

(Unaudited)

 

		2021				2020
Operating Activities:
Net loss		$	(64.4	)		$	(34.8	)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation and amortization			106.1				102.4
Lease amortization and accretion expense			103.4				122.7
Lease payments			(105.6	)			(94.6	)
Paid-in-kind interest			7.0				40.5
Debt-related amortization			17.2				11.8
Equity-based compensation and employee benefits expense			12.3				14.4
Non-union pension settlement charge			3.4				1.9
(Gains) losses on property disposals, net			1.5				(45.3	)
Deferred income taxes, net			(1.0	)			(11.1	)
Other non-cash items, net			0.6				(0.2	)
Changes in assets and liabilities, net:
Accounts receivable			(135.7	)			(76.9	)
Accounts payable			28.4				24.8
Other operating assets			(19.8	)			(9.3	)
Other operating liabilities			55.9				62.2
Net cash provided by (used in) operating activities			9.3				108.5
Investing Activities:
Acquisition of property and equipment			(442.9	)			(41.4	)
Proceeds from disposal of property and equipment			1.1				55.3
Net cash provided by (used in) investing activities			(441.8	)			13.9
Financing Activities:
Issuance of long-term debt, net			325.2				245.0
Repayment of long-term debt			(1.8	)			(29.1	)
Debt issuance costs			(0.2	)			(8.4	)
Payments for tax withheld on equity-based compensation			(0.5	)			(0.6	)
Net cash provided by (used in) financing activities			322.7				206.9
Net Increase (Decrease) In Cash and Cash Equivalents and Restricted Amounts Held in Escrow			(109.8	)			329.3
Cash and Cash Equivalents and Restricted Amounts Held in Escrow, Beginning of Period			478.0				109.2
Cash and Cash Equivalents and Restricted Amounts Held in Escrow, End of Period		$	368.2			$	438.5

 

Supplemental Cash Flow Information:
Interest paid		$	(86.2	)		$	(47.2	)

 

 

 

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SUPPLEMENTAL FINANCIAL INFORMATION

Yellow Corporation and Subsidiaries

(Amounts in millions)

(Unaudited)

SUPPLEMENTAL INFORMATION: Total Debt

 

As of September 30, 2021		Par Value				Discount				Commitment Fee				Debt Issuance Costs				Book Value
Term Loan		$	612.5			$	(16.5	)		$	—			$	(7.3	)		$	588.7
ABL Facility			—				—				—				—				—
Tranche A UST Credit Agreement			309.0				—				(14.1	)			(3.7	)			291.2
Tranche B UST Credit Agreement			400.0				—				(18.9	)			(4.9	)			376.2
Secured Second A&R CDA			24.1				—				—				—				24.1
Unsecured Second A&R CDA			43.9				—				—				(0.1	)			43.8
Lease financing obligations			224.6				—				—				(0.2	)			224.4
Total debt		$	1,614.1			$	(16.5	)		$	(33.0	)		$	(16.2	)		$	1,548.4
As of December 31, 2020		Par Value				Discount				Commitment Fee				Debt Issuance 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

 

		September 30, 2021				December 31, 2020
Cash and cash equivalents		$	358.1			$	439.3
Changes to restricted cash			—				(3.1	)
Managed Accessibility(a)			51.1				4.0
Total cash and cash equivalents and Managed Accessibility		$	409.2			$	440.2

 

 

 

 

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SUPPLEMENTAL FINANCIAL INFORMATION

Yellow Corporation and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in millions)

(Unaudited)

 

		Three Months								Nine Months
		2021				2020				2021				2020
Reconciliation of net income (loss) to Adjusted EBITDA:
Net income (loss)		$	8.3			$	(2.0	)		$	(64.4	)		$	(34.8	)
Interest expense, net			38.5				33.4				111.9				101.8
Income tax expense (benefit)			—				(10.9	)			1.2				(18.8	)
Depreciation and amortization			37.8				32.5				106.1				102.4
EBITDA			84.6				53.0				154.8				150.6
Adjustments for TL Agreements:
(Gains) losses on property disposals, net			0.2				—				1.5				(45.3	)
Non-cash reserve changes(a)			(2.7	)			—				0.2				3.0
Letter of credit expense			2.1				2.0				6.3				5.2
Permitted dispositions and other			—				0.3				0.8				0.5
Equity-based compensation expense			0.8				1.1				3.5				4.3
Non-union pension settlement charge			3.1				1.9				3.4				1.9
Other, net			0.8				1.0				2.7				1.5
Expense amounts subject to 10% threshold(b):
COVID-19			—				—				—				3.9
Other, net			6.7				3.1				19.6				8.8
Adjusted EBITDA prior to 10% threshold			95.6				62.4				192.8				134.4
Adjustments pursuant to TTM calculation(b)			(1.2	)			(0.4	)			(2.3	)			(0.4	)
Adjusted EBITDA		$	94.4			$	62.0			$	190.5			$	134.0

 

 

 

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SUPPLEMENTAL FINANCIAL INFORMATION

Yellow Corporation and Subsidiaries

For the Trailing Twelve Months Ended September 30

(Amounts in millions)

(Unaudited)

 

		2021				2020
Reconciliation of net loss to Adjusted EBITDA:
Net loss		$	(83.1	)		$	(50.1	)
Interest expense, net			145.7				129.7
Income tax expense (benefit)			0.4				(22.0	)
Depreciation and amortization			138.6				139.1
EBITDA			201.6				196.7
Adjustments for TL Agreements:
(Gains) losses on property disposals, net			1.5				(55.4	)
Non-cash reserve changes(a)			0.1				5.1
Letter of credit expense			8.4				6.9
Permitted dispositions and other			0.6				0.6
Equity-based compensation expense			3.9				5.4
Non-union pension settlement charge			5.1				2.0
Other, net			4.7				2.1
Expense amounts subject to 10% threshold(b):
COVID-19			—				3.9
Other, net			28.1				12.9
Adjusted EBITDA prior to 10% threshold			254.0				180.2
Adjustments pursuant to TTM calculation(b)			(5.6	)			(0.4	)
Adjusted EBITDA		$	248.4			$	179.8

 

For explanations of footnotes (a) and (b), please refer to previous page.

 

 

 

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Yellow Corporation and Subsidiaries

Statistics

Quarterly Comparison

 

		3Q21				3Q20				2Q21				Y/Y % (a)				Sequential % (a)
Workdays			63.5				64.0				64.0
LTL picked up revenue (in millions)		$	1,167.0			$	1,076.1			$	1,188.8				8.4				(1.8	)
LTL tonnage (in thousands)			2,323				2,584				2,511				(10.1	)			(7.5	)
LTL tonnage per workday (in thousands)			36.58				40.38				39.24				(9.4	)			(6.8	)
LTL shipments (in thousands)			4,141				4,480				4,419				(7.6	)			(6.3	)
LTL shipments per workday (in thousands)			65.22				70.00				69.05				(6.8	)			(5.5	)
LTL picked up revenue/cwt.		$	25.12			$	20.82			$	23.67				20.7				6.1
LTL picked up revenue/cwt. (excl. FSC)		$	21.84			$	18.90			$	20.70				15.6				5.5
LTL picked up revenue/shipment		$	282			$	240			$	269				17.3				4.7
LTL picked up revenue/shipment (excl. FSC)		$	245			$	218			$	235				12.4				4.1
LTL weight/shipment (in pounds)			1,122				1,154				1,137				(2.8	)			(1.3	)
Total picked up revenue (in millions) (b)		$	1,283.2			$	1,179.1			$	1,307.6				8.8				(1.9	)
Total tonnage (in thousands)			3,045				3,295				3,268				(7.6	)			(6.8	)
Total tonnage per workday (in thousands)			47.96				51.49				51.06				(6.9	)			(6.1	)
Total shipments (in thousands)			4,257				4,609				4,550				(7.6	)			(6.4	)
Total shipments per workday (in thousands)			67.05				72.02				71.10				(6.9	)			(5.7	)
Total picked up revenue/cwt.		$	21.07			$	17.89			$	20.01				17.8				5.3
Total picked up revenue/cwt. (excl. FSC)		$	18.40			$	16.29			$	17.57				13.0				4.7
Total picked up revenue/shipment		$	301			$	256			$	287				17.8				4.9
Total picked up revenue/shipment (excl. FSC)		$	263			$	233			$	252				13.0				4.3
Total weight/shipment (in pounds)			1,431				1,430				1,436				0.1				(0.4	)
(b) Reconciliation of operating revenue to total picked up revenue (in millions):
Operating revenue		$	1,301.4			$	1,183.4			$	1,313.1
Change in revenue deferral and other			(18.2	)			(4.3	)			(5.5	)
Total picked up revenue		$	1,283.2			$	1,179.1			$	1,307.6

 

 

 

 

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Yellow Corporation and Subsidiaries

Statistics

YTD Comparison

 

 

		2021				2020				Y/Y % (a)
Workdays			191.0				192.5
LTL picked up revenue (in millions)		$	3,446.4			$	3,055.5				12.8
LTL tonnage (in thousands)			7,312				7,412				(1.3	)
LTL tonnage per workday (in thousands)			38.28				38.50				(0.6	)
LTL shipments (in thousands)			12,824				12,806				0.1
LTL shipments per workday (in thousands)			67.14				66.52				0.9
LTL picked up revenue/cwt.		$	23.57			$	20.61				14.3
LTL picked up revenue/cwt. (excl. FSC)		$	20.67			$	18.55				11.4
LTL picked up revenue/shipment		$	269			$	239				12.6
LTL picked up revenue/shipment (excl. FSC)		$	236			$	215				9.7
LTL weight/shipment (in pounds)			1,140				1,158				(1.5	)
Total picked up revenue (in millions)(b)		$	3,787.1			$	3,338.9				13.4
Total tonnage (in thousands)			9,529				9,454				0.8
Total tonnage per workday (in thousands)			49.89				49.11				1.6
Total shipments (in thousands)			13,188				13,158				0.2
Total shipments per workday (in thousands)			69.05				68.35				1.0
Total picked up revenue/cwt.		$	19.87			$	17.66				12.5
Total picked up revenue/cwt. (excl. FSC)		$	17.50			$	15.95				9.7
Total picked up revenue/shipment		$	287			$	254				13.2
Total picked up revenue/shipment (excl. FSC)		$	253			$	229				10.3
Total weight/shipment (in pounds)			1,445				1,437				0.6
(b) Reconciliation of operating revenue to total picked up revenue (in millions):
Operating revenue		$	3,812.9			$	3,349.2
Change in revenue deferral and other			(25.8	)			(10.3	)
Total picked up revenue		$	3,787.1			$	3,338.9

 

 

 

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Yellow Corporation Third Quarter 2021 Earnings Conference Call EX 99.2

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Financial Results

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Financial Results

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(a) Percent change based on unrounded figures and not the rounded figures presented Operating Statistics – Third Quarter

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(a) Percent change based on unrounded figures and not the rounded figures presented Operating Statistics – First Three Quarters

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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 $9.0M of PIK interest as of 9/30/21. 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

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Largest debt instruments and the labor agreement mature at various dates in 2024 IBT March ABL Facility January Term Loan June CDA Notes December UST LoanSeptember Capital Structure and Labor Timeline

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(in millions) LTM Adjusted EBITDA Covenant $248 LTM as of 3Q21 COVENANT WAIVER THROUGH 3Q21

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(in millions) Adjusted EBITDA Reconciliation