0000716006false00007160062022-08-032022-08-03

 

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): August 3, 2022

 

 

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.)
501 Commerce Street, Suite 1120, Nashville, Tennessee				37203
(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 August 3, 2022, Yellow Corporation announced its results of operations and financial condition for the three months ended June 30, 2022. 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 June 30, 2022 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 August 3, 2022
99.2		Presentation Slides for the August 3, 2022 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:	August 3, 2022	By:	/s/ James R. Faught
			James R. Faught Chief Accounting Officer

 

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Exhibit 99.1

 

News Release

 

Yellow Corporation Reports Second Quarter 2022 Results

Strong Results Include a 93.0% Operating Ratio and Earnings Per Share of $1.17

NASHVILLE, Tenn., August 3, 2022 – Yellow Corporation (NASDAQ: YELL) reported results for the second quarter ended June 30, 2022. Operating revenue was $1.424 billion and operating income was $99.2 million, which included a $3.2 million net gain on property disposals. In comparison, operating revenue in the second quarter of 2021 was $1.313 billion and operating income was $27.0 million.
 

Net income for second quarter 2022 was $60.0 million, or $1.17 per share, compared to net loss of $9.4 million, or $0.18 per share, in the second quarter of 2021.
 

On a non-GAAP basis, the Company generated Adjusted EBITDA of $145.9 million in second quarter 2022, a $63.0 million increase compared to $82.9 million in the prior year comparable quarter (as detailed in the reconciliation below). The last twelve months Adjusted EBITDA as of June 30, 2022, was $406.7 million compared to $216.0 million as of June 30, 2021 (as detailed in the reconciliation below).
 

“Strong yield and efforts to manage the use of purchased transportation helped Yellow achieve its highest quarterly operating income in 15 years,” said Darren Hawkins, chief executive officer. “Elevated demand for LTL capacity continued during the quarter which drove the favorable pricing environment. On the cost side, purchased transportation expense was down to 14.5% of revenue in the second quarter compared to 16% a year ago.

 

“We remain focused on integrating the four operating company networks into a single LTL network with national coverage, servicing regional and long-haul lanes. We expect to execute the integration of phase one in the western U.S. this summer with the transformation of the entire network to be completed around the end of the year. When this transformation is completed, our customers will benefit by interacting with North America’s second largest super-regional LTL network for both regional and long-haul shipments. We expect the network transformation to also lead to improved asset utilization, enhanced network efficiencies, cost savings and create capacity without the need to add new terminals.

 

“Primarily due to limited tractor and trailer production capacity at the original equipment manufacturers, we are lowering our capital expenditures guidance. For 2022, we expect our total investments in capital expenditures to be in the range of $250 million to $300 million compared to the previous range of $325 million to $400 million,” concluded Hawkins.

 

Operational Update

 

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Capital Expenditures Update

Liquidity Update

Key Information – Second quarter 2022 compared to second quarter 2021

 

		2022				2021				Percent Change(a)
Workdays			63.5				64.0
Operating revenue (in millions)		$	1,423.7			$	1,313.1				8.4	%
Operating income (in millions)		$	99.2			$	27.0
Operating ratio			93.0				97.9			4.9 pp
LTL tonnage per workday (in thousands)			32.80				39.24				(16.4	)%
LTL shipments per workday (in thousands)			58.56				69.05				(15.2	)%
LTL picked up revenue per hundredweight incl FSC		$	30.69			$	23.67				29.7	%
LTL picked up revenue per hundredweight excl FSC		$	23.88			$	20.70				15.3	%
LTL picked up revenue per shipment incl FSC		$	344			$	269				27.8	%
LTL picked up revenue per shipment excl FSC		$	267			$	235				13.7	%
LTL weight per shipment (in pounds)			1,120				1,137				(1.5	)%
Total tonnage per workday (in thousands)			41.87				51.06				(18.0	)%
Total shipments per workday (in thousands)			60.16				71.10				(15.4	)%
Total picked up revenue per hundredweight incl FSC		$	26.35			$	20.01				31.7	%
Total picked up revenue per hundredweight excl FSC		$	20.72			$	17.57				17.9	%
Total picked up revenue per shipment incl FSC		$	367			$	287				27.6	%
Total picked up revenue per shipment excl FSC		$	288			$	252				14.3	%
Total weight per shipment (in pounds)			1,392				1,436				(3.1	)%

 

* Not meaningful

 

Review of Financial Results

 

Yellow Corporation will host a conference call with the investment community today, Wednesday, August 3, 2022, 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

 

 

 

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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 operates one of the largest, most comprehensive logistics and less-than-truckload (LTL) networks in North America, providing customers with regional, national, and international shipping services throughout. Backed by a team of over 30,000 transportation professionals, Yellow's flexible supply chain solutions and best-in-class expertise ensure the safe, timely delivery of industrial, commercial, and retail goods for customers of all sizes. Yellow's principal office is in Nashville, Tenn., and is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company Yellow 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)

 

 

		June 30, 2022				December 31, 2021
		(Unaudited)
Assets
Current Assets:
Cash and cash equivalents		$	266.8			$	310.7
Restricted amounts held in escrow			8.4				4.1
Accounts receivable, net			783.9				663.7
Prepaid expenses and other			88.7				65.0
Total current assets			1,147.8				1,043.5
Property and Equipment:
Cost			3,111.0				3,164.6
Less - accumulated depreciation			(1,968.4	)			(2,032.3	)
Net property and equipment			1,142.6				1,132.3
Deferred income taxes, net			1.4				1.4
Pension			41.9				40.5
Operating lease right-of-use assets			147.7				184.8
Other assets			22.5				23.1
Total Assets		$	2,503.9			$	2,425.6
Liabilities and Shareholders' Deficit
Current Liabilities:
Accounts payable		$	239.6			$	178.4
Wages, vacations and employee benefits			249.6				252.5
Current operating lease liabilities			61.8				76.5
Other current and accrued liabilities			270.0				244.4
Current maturities of long-term debt			71.1				72.3
Total current liabilities			892.1				824.1
Other Liabilities:
Long-term debt, less current portion			1,483.6				1,482.2
Pension and postretirement			84.3				88.2
Operating lease liabilities			95.9				118.9
Claims and other liabilities			272.1				275.7
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			2,391.4				2,388.3
Accumulated deficit			(2,442.5	)			(2,475.0	)
Accumulated other comprehensive loss			(180.8	)			(184.6	)
Treasury stock, at cost			(92.7	)			(92.7	)
Total shareholders' deficit			(324.1	)			(363.5	)
Total Liabilities and Shareholders' Deficit		$	2,503.9			$	2,425.6

 

 

 

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STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (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)

 

		Three Months								Six Months
		2022				2021				2022				2021
Operating Revenue		$	1,423.7			$	1,313.1			$	2,684.1			$	2,511.5
Operating Expenses:
Salaries, wages and employee benefits			736.7				751.3				1,447.7				1,475.1
Fuel, operating expenses and supplies			287.3				217.0				530.9				420.5
Purchased transportation			206.1				210.3				391.5				410.3
Depreciation and amortization			35.5				35.0				71.2				68.3
Other operating expenses			62.1				72.2				143.1				136.6
(Gains) losses on property disposals, net			(3.2	)			0.3				(8.7	)			1.3
Total operating expenses			1,324.5				1,286.1				2,575.7				2,512.1
Operating Income (Loss)			99.2				27.0				108.4				(0.6	)
Nonoperating Expenses:
Interest expense			38.0				37.7				75.7				73.6
Non-union pension and postretirement benefits			(0.5	)			(1.1	)			(0.9	)			(2.4	)
Other, net			(0.1	)			(0.3	)			0.1				(0.3	)
Nonoperating expenses, net			37.4				36.3				74.9				70.9
Income (loss) before income taxes			61.8				(9.3	)			33.5				(71.5	)
Income tax expense			1.8				0.1				1.0				1.2
Net income (loss)			60.0				(9.4	)			32.5				(72.7	)
Other comprehensive income, net of tax			1.5				3.3				3.8				6.9
Comprehensive Income (Loss)		$	61.5			$	(6.1	)		$	36.3			$	(65.8	)
Average Common Shares Outstanding - Basic			51,342				50,751				51,217				50,555
Average Common Shares Outstanding - Diluted			52,135				50,751				52,183				50,555
Income (Loss) Per Share - Basic		$	1.17			$	(0.18	)		$	0.64			$	(1.44	)
Income (Loss) Per Share - Diluted		$	1.15			$	(0.18	)		$	0.62			$	(1.44	)
Operating Ratio(a):			93.0	%			97.9	%			96.0	%			100.0	%

 

 

 

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STATEMENTS OF CONSOLIDATED CASH FLOWS

Yellow Corporation and Subsidiaries

For the Six Months Ended June 30

(Amounts in millions)

(Unaudited)

 

(in millions)		2022				2021
Operating Activities:
Net income (loss)		$	32.5			$	(72.7	)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation and amortization			71.2				68.3
Lease amortization and accretion expense			52.8				71.1
Lease payments			(53.4	)			(74.6	)
Paid-in-kind interest			4.7				4.6
Debt-related amortization			11.7				11.5
Equity-based compensation and employee benefits expense			7.4				8.6
Non-union pension settlement charges			—				0.3
(Gains) losses on property disposals, net			(8.7	)			1.3
Deferred income taxes, net			—				(1.0	)
Other non-cash items, net			(0.2	)			0.8
Changes in assets and liabilities, net:
Accounts receivable			(120.5	)			(128.5	)
Accounts payable			44.9				44.0
Other operating assets			13.6				1.2
Other operating liabilities			(19.4	)			52.4
Net cash provided by (used in) operating activities			36.6				(12.7	)
Investing Activities:
Acquisition of property and equipment			(72.6	)			(346.2	)
Proceeds from disposal of property and equipment			9.4				0.6
Net cash provided by (used in) investing activities			(63.2	)			(345.6	)
Financing Activities:
Issuance of long-term debt, net			—				306.3
Repayment of long-term debt			(12.4	)			(1.1	)
Debt issuance costs			—				(0.2	)
Payments for tax withheld on equity-based compensation			(0.6	)			(0.4	)
Net cash provided by (used in) financing activities			(13.0	)			304.6
Net Increase (Decrease) In Cash and Cash Equivalents and Restricted Amounts Held in Escrow			(39.6	)			(53.7	)
Cash and Cash Equivalents and Restricted Amounts Held in Escrow, Beginning of Period			314.8				478.0
Cash and Cash Equivalents and Restricted Amounts Held in Escrow, End of Period		$	275.2			$	424.3

 

Supplemental Cash Flow Information:
Interest paid		$	(71.0	)		$	(56.1	)

 

 

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SUPPLEMENTAL FINANCIAL INFORMATION

Yellow Corporation and Subsidiaries

(Amounts in millions)

(Unaudited)

SUPPLEMENTAL INFORMATION: Total Debt

As of June 30, 2022		Par Value				Discount				Commitment Fee				Debt Issue Costs				Book Value
UST Loan Tranche A		$	317.7				—			$	(10.6	)		$	(2.8	)		$	304.3
UST Loan Tranche B			400.0				—				(14.1	)			(3.7	)			382.2
Term Loan			602.9				(11.8	)			—				(5.3	)			585.8
ABL Facility			—				—				—				—				—
Secured Second A&R CDA			23.5				—				—				—				23.5
Unsecured Second A&R CDA			42.5				—				—				—				42.5
Lease financing obligations			216.5				—				—				(0.1	)			216.4
Total debt		$	1,603.1			$	(11.8	)		$	(24.7	)		$	(11.9	)		$	1,554.7
As of December 31, 2021		Par Value				Discount				Commitment Fee				Debt Issue Costs				Book Value
UST Loan Tranche A		$	311.4				—			$	(12.9	)		$	(3.4	)		$	295.1
UST Loan Tranche B			400.0				—				(17.3	)			(4.5	)			378.2
Term Loan			612.5				(15.0	)			—				(6.6	)			590.9
ABL Facility			—				—				—				—				—
Secured Second A&R CDA			24.1				—				—				—				24.1
Unsecured Second A&R CDA			42.5				—				—				(0.1	)			42.4
Lease financing obligations			224.0				—				—				(0.2	)			223.8
Total debt		$	1,614.5			$	(15.0	)		$	(30.2	)		$	(14.8	)		$	1,554.5

SUPPLEMENTAL INFORMATION: Liquidity

 

								June 30, 2022				December 31, 2021
Cash and cash equivalents								$	266.8			$	310.7
Managed Accessibility (a)									38.1				48.1
Total Cash and cash equivalents and Managed Accessibility								$	304.9			$	358.8

 

 

 

 

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SUPPLEMENTAL FINANCIAL INFORMATION

Yellow Corporation and Subsidiaries

For the Three and Six Months Ended June 30

(Amounts in millions)

(Unaudited)

 

		Three Months								Six Months
		2022				2021					2022			2021
Reconciliation of net loss to Adjusted EBITDA:
Net income (loss)		$	60.0			$	(9.4	)		$	32.5			$	(72.7	)
Interest expense, net			37.9				37.6				75.6				73.4
Income tax expense			1.8				0.1				1.0				1.2
Depreciation and amortization			35.5				35.0				71.2				68.3
EBITDA			135.2				63.3				180.3				70.2
Adjustments for TL Agreements:
(Gains) losses on property disposals, net			(3.2	)			0.3				(8.7	)			1.3
Non-cash reserve changes(a)			5.6				4.7				3.7				2.9
Letter of credit expense			2.2				2.1				4.3				4.2
Permitted dispositions and other			—				0.1				0.3				0.8
Equity-based compensation expense			1.0				0.6				3.3				2.7
Other, net			0.5				0.9				1.2				1.9
Expense amounts subject to 10% threshold(b):
Department of Defense settlement charge			—				—				5.3				—
Other, net			4.6				8.3				8.2				12.9
Adjusted EBITDA prior to 10% threshold			145.9				80.6				197.9				97.2
Adjustments pursuant to TTM calculation(b)			—				2.3				—				(1.1	)
Adjusted EBITDA		$	145.9			$	82.9			$	197.9			$	96.1

 

 

 

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SUPPLEMENTAL FINANCIAL INFORMATION

Yellow Corporation and Subsidiaries

For the Trailing Twelve Months Ended June 30

(Amounts in millions)

(Unaudited)

 

		Trailing Twelve Months
		2022				2021
Reconciliation of net loss to Adjusted EBITDA:
Net loss		$	(3.9	)		$	(93.4	)
Interest expense, net			152.6				140.6
Income tax expense (benefit)			2.9				(10.5	)
Depreciation and amortization			146.5				133.3
EBITDA			298.1				170.0
Adjustments for TL Agreements:
(Gains) losses on property disposals, net			(9.3	)			1.3
Non-cash reserve changes(a)			12.4				2.8
Letter of credit expense			8.6				8.3
Permitted dispositions and other			0.3				0.9
Equity-based compensation expense			5.0				4.2
Non-union pension settlement charges			64.4				3.9
Other, net			2.3				4.9
Expense amounts subject to 10% threshold(b):
Department of Defense settlement charge			5.3				—
Other, net			19.6				24.5
Adjusted EBITDA prior to 10% threshold			406.7				220.8
Adjustments pursuant to TTM calculation(b)			—				(4.8	)
Adjusted EBITDA		$	406.7			$	216.0

 

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

 

 

 

 

 

 

 

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Yellow Corporation and Subsidiaries

Statistics

Quarterly Comparison

 

		2Q22				2Q21				1Q22				Y/Y % (a)				Sequential % (a)
Workdays			63.5				64.0				63.5
LTL picked up revenue (in millions)		$	1,278.4			$	1,188.8			$	1,137.2				7.5				12.4
LTL tonnage (in thousands)			2,082				2,511				1,980				(17.1	)			5.2
LTL tonnage per workday (in thousands)			32.80				39.24				31.18				(16.4	)			5.2
LTL shipments (in thousands)			3,719				4,419				3,561				(15.9	)			4.4
LTL shipments per workday (in thousands)			58.56				69.05				56.08				(15.2	)			4.4
LTL picked up revenue/cwt.		$	30.69			$	23.67			$	28.72				29.7				6.9
LTL picked up revenue/cwt. (excl. FSC)		$	23.88			$	20.70			$	23.83				15.3				0.2
LTL picked up revenue/shipment		$	344			$	269			$	319				27.8				7.6
LTL picked up revenue/shipment (excl. FSC)		$	267			$	235			$	265				13.7				0.9
LTL weight/shipment (in pounds)			1,120				1,137				1,112				(1.5	)			0.7
Total picked up revenue (in millions)(b)		$	1,401.1			$	1,307.6			$	1,252.4				7.1				11.9
Total tonnage (in thousands)			2,659				3,268				2,543				(18.6	)			4.5
Total tonnage per workday (in thousands)			41.87				51.06				40.05				(18.0	)			4.5
Total shipments (in thousands)			3,820				4,550				3,653				(16.0	)			4.6
Total shipments per workday (in thousands)			60.16				71.10				57.53				(15.4	)			4.6
Total picked up revenue/cwt.		$	26.35			$	20.01			$	24.62				31.7				7.0
Total picked up revenue/cwt. (excl. FSC)		$	20.72			$	17.57			$	20.59				17.9				0.6
Total picked up revenue/shipment		$	367			$	287			$	343				27.6				7.0
Total picked up revenue/shipment (excl. FSC)		$	288			$	252			$	287				14.3				0.6
Total weight/shipment (in pounds)			1,392				1,436				1,392				(3.1	)			-
(b) Reconciliation of operating revenue to total picked up revenue (in millions):
Operating revenue		$	1,423.7			$	1,313.1			$	1,260.4
Change in revenue deferral and other			(22.6	)			(5.5	)			(8.0	)
Total picked up revenue		$	1,401.1			$	1,307.6			$	1,252.4

 

 

 

 

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Yellow Corporation and Subsidiaries

Statistics

YTD Comparison

 

		2022				2021				Y/Y % (a)
Workdays			127.0				127.5
LTL picked up revenue (in millions)		$	2,415.6			$	2,279.4				6.0
LTL tonnage (in thousands)			4,062				4,989				(18.6	)
LTL tonnage per workday (in thousands)			31.99				39.13				(18.3	)
LTL shipments (in thousands)			7,279				8,682				(16.2	)
LTL shipments per workday (in thousands)			57.32				68.10				(15.8	)
LTL picked up revenue/cwt.		$	29.73			$	22.84				30.2
LTL picked up revenue/cwt. (excl. FSC)		$	23.86			$	20.12				18.6
LTL picked up revenue/shipment		$	332			$	263				26.4
LTL picked up revenue/shipment (excl. FSC)		$	266			$	231				15.1
LTL weight/shipment (in pounds)			1,116				1,149				(2.9	)
Total picked up revenue (in millions)(b)		$	2,653.4			$	2,503.9				6.0
Total tonnage (in thousands)			5,203				6,484				(19.8	)
Total tonnage per workday (in thousands)			40.96				50.85				(19.4	)
Total shipments (in thousands)			7,473				8,930				(16.3	)
Total shipments per workday (in thousands)			58.85				70.04				(16.0	)
Total picked up revenue/cwt.		$	25.50			$	19.31				32.1
Total picked up revenue/cwt. (excl. FSC)		$	20.65			$	17.07				21.0
Total picked up revenue/shipment		$	355			$	280				26.6
Total picked up revenue/shipment (excl. FSC)		$	288			$	248				16.0
Total weight/shipment (in pounds)			1,392				1,452				(4.1	)
(b) Reconciliation of operating revenue to total picked up revenue (in millions):
Operating revenue		$	2,684.1			$	2,511.5
Change in revenue deferral and other			(30.7	)			(7.6	)
Total picked up revenue		$	2,653.4			$	2,503.9

 

 

 

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Yellow Corporation Second Quarter 2022 Earnings Conference Call Exhibit 99.2

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Financial Results

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Financial Results LTM Adjusted EBITDA covenant is $200 million in 2Q 2022 and thereafter

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(b) Free cash flow = operating cash flow less acquisitions of property and equipment, net of cash proceeds from disposals During FY 2020, the Company recognized cash proceeds on the sale of terminals of approximately $53 million During FY 2021, the Company recognized cash proceeds on the sale of terminals of approximately $1 million For YTD 2Q22, the Company recognized cash proceeds on the sale of terminals of approximately $9 million Cash Flow (b), (c) (c) (c), (d)

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

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Operating Statistics – Second Quarter Year-To-Date

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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 $17.7M of PIK interest as of 6/30/22. 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 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%. If LTM Adjusted EBITDA is above $400 million the fixed margin decreases from 7.5% to 6.5%. All paid in cash. Capital Structure Overview

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Leverage Ratio Growing into capital structure Funded Debt / LTM Adjusted EBITDA ratio down 3.4 turns YoY Note: Funded debt balances based on par value

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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) Adjusted EBITDA Reconciliation