EX-99.1 2 dex991.htm YRC WORLDWIDE INC. INVESTOR PRESENTATION SLIDE SHOW YRC Worldwide Inc. Investor Presentation slide show
Bill Zollars
Chairman, President & CEO
Wolfe Research Transportation Conference
May 19, 2009
Exhibit 99.1


2
Overview
YRC Worldwide is a $9 billion provider of global transportation
services, transportation management solutions, and logistics
management with nearly 49,000 employees worldwide.


3
Discussion Topics
Pension reform
Bank amendment
Recent analyst reports
Internal initiatives


4
Liquidity
At April 30, our liquidity was well
above the $100 million covenant
Weekly cash usage is decelerating
and well ahead of internal forecasts
Operating loss in April was
significantly less than analysts’
estimates
Apr
May/Jun
Jul
Actual
Forecast
Recent Analyst Reports
4/30/09
3/31/09
Cash - unrestricted
151
$  
249
$  
Availability - revolver
52
      
24
      
Availability - ABS
18
      
3
        
Liquidity excl restr. cash
221
    
275
    
Cash - restricted
36
      
18
      
Liquidity incl restr. cash
257
$  
293
$  


5
3/31/09 liquidity
Cash
&
restricted
cash
-
$266
million
Borrowing availability
-
$27
million
Improved collections and
disbursements
Sale leaseback proceeds
Q1 Actual -
$158 million
Q2 Expected -
over $200 million
Excess property sales
$100 million expected in 2009
Liquidity 
No significant debt maturities
until April 2010
Pension payment deferrals
Negotiating deferral of multiple
months of union pension payments
(approx. $40 million/month)


6
2009 Capital Expenditures
2009 expected cap ex significantly
less due to integration
Older equipment in process of being
removed, enhancing average age of
fleet
After $100 million of expected
asset proceeds, expected net cap
ex around $30 million
We will continue to evaluate the
appropriate balance between
leasing opportunities and
purchases
Gross Capital Expenditures
(in millions)
2005
2006
2007
2008
2009E
$378
$394
$249*
$130
$305
*Includes $87 million financed through lease arrangements


7
Compensation & benefits
Network changes
75
Non-union compensation/benefit reductions
*
$ 665
Est. full year run rate benefit (by end of 2009)
70
Further consolidation of back-office functions
240
Union compensation reductions
30
Regional enhancements
$ 250
Integration of Yellow & Roadway (now YRC)
Annual
Run Rate
Benefit
($ in millions)
On
On
target
target
to
to
improve
improve
operating
operating
income
income
by
by
over
over
$600
$600
million
million
as
as
we
we
exit
exit
2009
2009
* This represents the estimated impact from the 10% salary/wage reductions and 401(k) match changes implemented during 2009.
Internal Initiatives


8
8
YRC Integration -
Productivity
On-time delivery levels continue to
improve; approaching record highs
Load Average
Dock Bills/hr
Pickup & Delivery Bills/hr
Week-to-date Actual                             Daily Actual                      


9
YRC Integration
The integration of Yellow and Roadway was the most significant transformation in LTL history and
laid the groundwork for tremendous opportunities for YRC going forward.
YRC has the most comprehensive network in the industry with more
operations than either Yellow
or Roadway had individually yet over 250 fewer than at the original acquisition date.
We will continue to further optimize the network and expect around 400 operations by year end,
resulting in a meaningful reduction in fixed and variable costs.
1Q09
2Q09
3Q09
4Q09
$0
$90
$200
$250
Annual Run Rate Benefit
(in millions)
12/31/2003
12/31/2008
3/1/2009
12/31/2009
Number of National Operations*
704
551
~450
~400
* Represents the number of distinct operations; does not equal physical locations


10
Operating Environment Update
Economy remains very weak
No significant signs of near-term improvement
Some indications of hitting the bottom, though too early to confirm
Volume trends similar to March
National
Some diverted shipments returning post integration of Yellow and
Roadway networks
Absolute volumes have not changed significantly from end of Q1
Regional
Experiencing some seasonal improvement but no meaningful year-over-year change
Pricing environment continues to be competitive


11
Bank
group
remains
supportive
of
our
strategies
and
“self
help”
approach
YRCW has unique levers to enhance its market position and improve its
financial condition
Most notably, the integration of Yellow and Roadway
Continued focus on YRC Regional opportunities to improve growth and
further efficiencies
YRC Logistics remains focused on global growth with an emphasis in
China
We expect to be well positioned when the economy improves
Summary


12
Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of
1934,
as
amended.
The
words
“should,”
“anticipate,"
“expect,”
“can,“
"will”,
“forecasts”,
“estimated”
and
similar
expressions
are
intended
to
identify
forward-looking
statements.
It
is
important
to
note
that
the
company's
actual
future
results
could
differ
materially
from
those
projected
in
such
forward-looking
statements
because
of
a
number
of
factors,
including
(among others) inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the company bases its fuel surcharge,
competitor pricing activity, expense volatility, including (without limitation) expense volatility due to changes in rail service or pricing for rail service, ability to capture cost reductions,
including
(without
limitation)
those
cost
reduction
opportunities
arising
from
the
combination
of
sales,
operations
and
networks
of
Yellow
Transportation
and
Roadway,
changes
in
equity and debt markets, a downturn in general or regional economic activity, effects of a terrorist attack, labor relations, including (without limitation), the impact of work rules, work
stoppages, strikes or other disruptions, any obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction, and the risk factors that
are from time to time included in the company's reports filed with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended
December 31, 2008.
The company’s
expectations
regarding
the
impact
of,
and
its
operating
income
and
service
improvements
due
to,
the
integration
of
Yellow
Transportation
and
Roadway,
enhancements to the Regional transportation networks and consolidation of back-office functions, and the timing of achieving that improvement could differ materially from those
projected in such forward-looking statements based on a number of factors, including (among others) the factors identified in the immediately preceding paragraph, the ability to
identify and implement cost reductions in the time frame needed to achieve these expectations, the success of the company’s operating plans, the need to spend additional capital to
implement cost reduction opportunities, including (without limitation) to terminate, amend or renegotiate prior contractual commitments, the accuracy of the company’s estimates of
its spending requirements, changes in the company’s strategic direction, the need to replace any unanticipated losses in capital assets, approval of the affected unionized employees
of changes needed to complete the integration under the company’s union agreements, the readiness of employees to utilize new combined processes, the effectiveness of
deploying existing technology necessary to facilitate the combination of processes, the ability of the company to receive expected price for its services from the combined network
and customer acceptance of those services.
The company’s expectations regarding the savings to be generated from compensation and benefit reductions taken by both union and non-union employees are only its
expectations regarding this matter.  Actual savings generated will depend on the actual number of employees working, which, in turn, is dependent on business volumes and needs.
The company’s expectations regarding future asset dispositions and sale and financing leasebacks of real estate are only its expectations regarding these matters.  Actual
dispositions and sale and financing leasebacks will be determined by the availability of capital and willing buyers and counterparties in the market and the outcome of discussions to
enter
into
and
close
any
such
transactions
on
negotiated
terms
and
conditions,
including
(without
limitation)
usual
and
ordinary
closing
conditions
such
as
favorable
title
reports
or
opinions and favorable environmental assessments of specific properties.
The company’s
expectations
regarding
its
ability
to
negotiate
the
deferral
of
union
pension
payments
are
only
its
expectations
regarding
this
matter.
Whether
the
company
is
able
to
defer union pension payments is dependant upon the company reaching agreement with the International Brotherhood of Teamsters and representatives of multi-employer defined
benefit pension funds to which the company contributes.
The company’s expectations regarding its cash usage and gross capital expenditures are only its expectations regarding these items.  Actual cash usage and expenditures could
differ materially
based
on
a
number
of
factors,
including
(among
others)
the
factors
identified
in
the
preceding
paragraphs.