Yellow (YELLQ) 8-K Results of Operations and Financial Condition

Exhibit 99.1

CONSOLIDATED BALANCE SHEETS

Yellow Roadway Corporation and Subsidiaries

(Amounts in thousands except per share data)

(Unaudited)

	December 31, 2004			December 31, 2003
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	106,489		$	75,166
Accounts receivable, net		778,596			699,142
Prepaid expenses and other		168,356			110,128
Total current assets		1,053,441			884,436
PROPERTY AND EQUIPMENT:
Cost		2,672,289			2,538,614
Less - accumulated depreciation		1,249,571			1,135,346
Net property and equipment		1,422,718			1,403,268
Goodwill		632,141			617,313
Intangibles, net		468,310			467,114
Other assets		50,559			91,098
Total assets	$	3,627,169		$	3,463,229
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	307,089		$	260,175
Wages, vacations, and employees’ benefits		427,731			351,287
Other current and accrued liabilities		210,519			178,478
Asset backed securitization (“ABS”) borrowings		—			71,500
Current maturities of long-term debt		254,400			1,757
Total current liabilities		1,199,739			863,197
OTHER LIABILITIES:
Long-term debt, less current portion		403,535			836,082
Deferred income taxes, net		319,839			298,256
Accrued pension and postretirement		274,616			256,187
Claims and other liabilities		215,249			207,422
Total other liabilities		1,213,239			1,597,947
SHAREHOLDERS’ EQUITY:
Common stock, $1 par value per share		51,303			50,146
Capital surplus		694,504			653,739
Retained earnings		550,484			366,157
Accumulated other comprehensive loss		(33,159	)		(23,167	)
Unamortized restricted stock awards		(10,479	)		(567	)
Treasury stock, at cost (2,217 and 2,359 shares)		(38,462	)		(44,223	)
Total shareholders’ equity		1,214,191			1,002,085
Total liabilities and shareholders’ equity	$	3,627,169		$	3,463,229

STATEMENTS OF CONSOLIDATED OPERATIONS

Yellow Roadway Corporation and Subsidiaries

For the Three Months and Twelve Months Ended December 31

(Amounts in thousands except per share data)

(Unaudited)

	Three Months						Twelve Months
	2004			2003a			2004			2003a
OPERATING REVENUE	$	1,774,137		$	903,365		$	6,767,485		$	3,068,616
OPERATING EXPENSES:
Salaries, wages and employees’ benefits		1,064,447			584,379			4,172,144			1,970,440
Operating expenses and supplies		273,118			129,484			1,011,864			449,825
Operating taxes and licenses		43,939			24,038			169,374			83,548
Claims and insurance		34,348			27,698			132,793			67,670
Depreciation and amortization		44,722			25,192			171,468			87,398
Purchased transportation		206,070			104,205			752,788			318,176
Gains on property disposals, net		(3,957	)		(589	)		(4,547	)		(167	)
Acquisition charges		—			2,260			—			3,124
Total operating expenses		1,662,687			896,667			6,405,884			2,980,014
OPERATING INCOME		111,450			6,698			361,601			88,602
NONOPERATING (INCOME) EXPENSES:
Interest expense		9,506			8,810			43,954			20,606
Write off debt issuance costs		—			—			18,279			—
Other		999			(796	)		1,705			1,182
Nonoperating expenses, net		10,505			8,014			63,938			21,788
INCOME (LOSS) BEFORE INCOME TAXES		100,945			(1,316	)		297,663			66,814
INCOME TAX PROVISION (BENEFIT)		37,600			(644	)		113,336			26,131
NET INCOME (LOSS)	$	63,345		$	(672	)	$	184,327		$	40,683
AVERAGE SHARES OUTSTANDING-BASIC		48,617			32,721			48,149			30,370
AVERAGE SHARES OUTSTANDING-DILUTED		51,170			33,098			49,174			30,655
BASIC EARNINGS (LOSS) PER SHARE	$	1.30		$	(0.02	)	$	3.83		$	1.34
DILUTED EARNINGS (LOSS) PER SHARE	$	1.24		$	(0.02	)	$	3.75		$	1.33

^a Includes the results of Roadway LLC for December 12 through 31.

STATEMENTS OF CONSOLIDATED CASH FLOWS

Yellow Roadway Corporation and Subsidiaries

For the Years Ended December 31

(Amounts in thousands)

(Unaudited)

	2004			2003
OPERATING ACTIVITIES:
Net income	$	184,327		$	40,683
Noncash items included in net income:
Depreciation and amortization		171,468			87,398
Deferred debt issuance cost write off		18,279			—
Gains on property disposals, net		(4,547	)		(167	)
Deferred income tax provision, net		17,996			25,767
Changes in assets and liabilities, net:
Accounts receivable		(70,230	)		(7,430	)
Accounts payable		34,284			21,294
Other working capital items		41,865			(40,053	)
Claims and other		30,792			23,189
Other, net		11,484			5,055
Net cash from operating activities		435,718			155,736
INVESTING ACTIVITIES:
Acquisition of property and equipment		(201,818	)		(103,327	)
Proceeds from disposal of property and equipment		37,529			4,193
Acquisition of companies		(10,463	)		(513,338	)
Other		4,494			—
Net cash used in investing activities		(170,258	)		(612,472	)
FINANCING ACTIVITIES:
Senior secured credit facility		—			175,000
ABS borrowings, net		(71,500	)		21,500
Issuance of long-term debt		—			400,000
Debt issuance costs		(2,938	)		(34,734	)
Repayment of long-term debt		(175,044	)		(60,342	)
Treasury stock purchases		—			(2,921	)
Proceeds from exercise of stock options		15,859			4,685
Other		(514	)		—
Net cash (used in) provided by financing activities		(234,137	)		503,188
NET INCREASE IN CASH AND CASH EQUIVALENTS		31,323			46,452
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		75,166			28,714
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	106,489		$	75,166