1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________________ to _______________________
Commission file number 0-12255
YELLOW CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 48-0948788
------------------------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10990 Roe Avenue, P.O. Box 7563, Overland Park, Kansas 66207
- --------------------------------------------------------- -----------
(Address of principal executive offices) (Zip Code)
(913) 696-6100
----------------------------------------------------
(Registrant's telephone number, including area code)
No Changes
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at March 31, 2000
----- -----------------------------
Common Stock, $1 Par Value 25,237,899 shares
2
YELLOW CORPORATION
INDEX
Item Page
- ---- ----
PART I
1. Financial Statements
Consolidated Balance Sheets -
March 31, 2000 and December 31, 1999 3
Statements of Consolidated Operations -
Three Months Ended March 31, 2000 and 1999 4
Statements of Consolidated Cash Flows -
Three Months Ended March 31, 2000 and 1999 5
Notes to Consolidated Financial Statements 6
2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
3. Quantitative and Qualitative Disclosures About Market Risk 12
PART II
6. Exhibits and Reports on Form 8-K 15
Signatures 19
2
3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
Yellow Corporation and Subsidiaries
(Amounts in thousands except share data)
(Unaudited)
March 31, December 31,
2000 1999
--------- ------------
ASSETS
CURRENT ASSETS:
Cash $ 28,600 $ 22,581
Accounts receivable 285,403 265,302
Prepaid expenses and other 44,897 64,009
----------- -----------
Total current assets 358,900 351,892
----------- -----------
PROPERTY AND EQUIPMENT:
Cost 2,107,166 2,093,470
Less - Accumulated depreciation 1,231,376 1,226,698
----------- -----------
Net property and equipment 875,790 866,772
----------- -----------
GOODWILL AND OTHER ASSETS 105,186 106,919
----------- -----------
$ 1,339,876 $ 1,325,583
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and checks outstanding $ 137,724 $ 135,177
Wages and employees' benefits 167,115 172,471
Other current liabilities 126,505 124,769
Current maturities of long-term debt 2,243 2,392
----------- -----------
Total current liabilities 433,587 434,809
----------- -----------
OTHER LIABILITIES:
Long-term debt 273,765 274,015
Deferred income taxes 80,298 79,005
Claims, insurance and other 127,364 128,374
----------- -----------
Total other liabilities 481,427 481,394
----------- -----------
SHAREHOLDERS' EQUITY:
Common stock, $1 par value 29,771 29,437
Capital surplus 20,640 16,063
Retained earnings 464,654 454,177
Accumulated other comprehensive income (2,228) (2,322)
Treasury stock (87,975) (87,975)
----------- -----------
Total shareholders' equity 424,862 409,380
----------- -----------
$ 1,339,876 $ 1,325,583
=========== ===========
The accompanying notes are an integral part of these statements.
3
4
STATEMENTS OF CONSOLIDATED OPERATIONS
Yellow Corporation and Subsidiaries
For the Three Months Ended March 31, 2000 and 1999
(Amounts in thousands except per share data)
(Unaudited)
2000 1999
-------- --------
OPERATING REVENUE $882,086 $727,498
-------- --------
OPERATING EXPENSES:
Salaries, wages and benefits 547,903 473,557
Operating expenses and supplies 146,992 113,270
Operating taxes and licenses 28,193 23,109
Claims and insurance 20,966 16,077
Depreciation and amortization 31,460 24,659
Purchased transportation 81,285 65,074
-------- --------
Total operating expenses 856,799 715,746
-------- --------
INCOME FROM OPERATIONS 25,287 11,752
-------- --------
NONOPERATING EXPENSES:
Interest expense 4,885 2,853
Other, net 1,649 666
-------- --------
Nonoperating expenses, net 6,534 3,519
-------- --------
INCOME BEFORE INCOME TAXES 18,753 8,233
INCOME TAX PROVISION 8,276 3,458
-------- --------
NET INCOME $ 10,477 $ 4,775
======== ========
AVERAGE SHARES OUTSTANDING-BASIC 25,154 25,411
======== ========
AVERAGE SHARES OUTSTANDING-DILUTED 25,299 25,615
======== ========
BASIC EARNINGS PER SHARE: $ .42 $ .19
======== ========
DILUTED EARNINGS PER SHARE: $ .41 $ .19
======== ========
The accompanying notes are an integral part of these statements.
4
5
STATEMENTS OF CONSOLIDATED CASH FLOWS
Yellow Corporation and Subsidiaries
For the Three Months Ended March 31, 2000 and 1999
(Amounts in thousands)
(Unaudited)
2000 1999
-------- --------
OPERATING ACTIVITIES:
Net cash from operating activities $ 39,163 $ 49,969
-------- --------
INVESTING ACTIVITIES:
Acquisition of property and equipment (39,161) (32,308)
Proceeds from disposal of property and equipment 1,530 3,765
-------- --------
Net cash used in investing activities (37,631) (28,543)
-------- --------
FINANCING ACTIVITIES:
Treasury stock purchases -- (11,196)
Proceeds from stock options and other, net 4,911 202
Decrease in long-term debt (424) (271)
-------- --------
Net cash provide by (used in) financing activities 4,487 ( 11,265)
-------- --------
NET INCREASE IN CASH 6,019 10,161
CASH, BEGINNING OF PERIOD 22,581 25,522
-------- --------
CASH, END OF PERIOD $ 28,600 $ 35,683
======== ========
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net $ 2,732 $ 960
======== ========
Interest paid $ 2,727 $ 519
======== ========
The accompanying notes are an integral part of these statements.
5
6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Yellow Corporation and Subsidiaries
(unaudited)
1. The accompanying consolidated financial statements include the accounts of
Yellow Corporation and its wholly owned subsidiaries (the company) and
have been prepared by the company, without audit by independent public
accountants, pursuant to the rules and regulations of the Securities and
Exchange Commission. In the opinion of management, all normal recurring
adjustments necessary for a fair statement of the results of operations
for the interim periods included herein have been made. Certain
information and note disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have
been condensed or omitted from these statements pursuant to such rules and
regulations. Accordingly, the accompanying consolidated financial
statements should be read in conjunction with the consolidated financial
statements included in the company's 1999 Annual Report to Shareholders.
2. The company provides freight transportation services primarily to the
less-than-truckload (LTL) market in North America through its
subsidiaries, Yellow Freight System, Inc. (Yellow Freight), Saia Motor
Freight Line, Inc. (Saia), WestEx, Inc. (WestEx) and Action Express, Inc.
(Action). The company acquired Jevic Transportation, Inc. (Jevic) on July
9, 1999. Jevic is a hybrid LTL and TL carrier operating principally in the
Northeast. The company provides fully integrated ocean, land and air
transportation solutions through Yellow Global, Inc. Yellow Technologies,
Inc. is a subsidiary that provides information technology and other
services to the company and its subsidiaries. For the quarter ended March
31, 2000 Yellow Freight comprised approximately 77 percent of total
revenue while Saia comprised approximately 10 percent and Jevic
approximately 9 percent of total revenue.
3. The company reports financial and descriptive information about its
reportable operating segments on a basis consistent with that used
internally for evaluating segment operating performance and allocating
resources to segments.
The company has three reportable segments that are strategic business
units that offer different products and services. Yellow Freight is a
unionized carrier that provides comprehensive national LTL service as well
as international service throughout North America. Saia is a regional LTL
carrier that provides overnight and second-day service in twelve
southeastern states and Puerto Rico.
6
7
Jevic is a hybrid regional heavy LTL and TL carrier that provides service
primarily in the Northeastern states. The segments are managed separately
because each requires different operating, technology and marketing
strategies and processes. The company evaluates performance primarily on
operating income and return on capital.
The accounting policies of the segments are the same as those described in
the summary of significant accounting policies in the company's 1999
Annual Report to Shareholders. The company also charges a trade name fee
to Yellow Freight (1% of revenue) for use of the company's trademark.
Interest and intersegment transactions are recorded at current market
rates. Income taxes are allocated in accordance with a tax sharing
agreement in proportion to each segment's contribution to the parent's
consolidated tax status. The following table summarizes the company's
continuing operations by business segment (in thousands):
Corporate
Yellow Freight Saia Jevic and Other Consolidated
-------------- --------- -------- ---------- ------------
Y-T-D March 31, 2000
Operating revenue $ 680,369 $ 90,445 $ 78,415 $ 32,857 $ 882,086
Income from operations 21,656 3,773 4,017 (4,159) 25,287
Identifiable assets 753,973 232,040 258,080 95,783 1,339,876
Y-T-D March 31, 1999
Operating revenue $ 612,786 $ 86,253 NA $ 28,459 $ 727,498
Income from operations 8,951 5,043 NA (2,242) 11,752
Identifiable assets 798,955 222,088 NA 53,937 1,074,980
4. On July 9, 1999 the company completed a cash tender offer for all of the
common stock of Jevic Transportation, Inc. at $14 share. The transaction
was accounted for as a purchase. The aggregate purchase price of the
stock, including vested stock options and transaction costs was
approximately $160.8 million, net of an anticipated $4.3 million tax
benefit relating to the cost of the stock options. Transaction costs
relate primarily to legal and professional fees (in millions).
Purchase Price:
Common Stock tendered $149.9
Stock options, net of tax benefit 7.0
Transaction fees 3.9
------
$160.8
------
The total transaction was approximately $200 million, including assumption
of debt. The transaction was accounted for under purchase accounting and
the excess of purchase price over fair value of assets acquired was
allocated to goodwill and is being amortized over 40 years. Accordingly,
the results of Jevic's operations have been included in the company's
condensed financial statements for periods after July 10, 1999. The
acquisition was financed using Yellow Corporation's existing credit
facilities.
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8
The following pro forma financial information for the company gives effect
to the Jevic acquisition as if it had occurred on January 1, 1999. These
pro forma results have been prepared for comparative purposes only and do
not purport to be indicative of the results of operations which actually
would have resulted had the acquisitions occurred on the date indicated,
or which may result in the future. (Unaudited pro forma financial
information is in thousands except per share data.)
For the Three Months
Ended March 31
--------------------
2000 1999
-------- --------
Revenue $882,086 $793,330
Net income 10,477 5,308
Diluted Per Share Data:
Net income $ 0.41 $ 0.21
5. The difference between average common shares outstanding used in the
computation of basic earnings per share and fully diluted earnings per
share is attributable to outstanding common stock options.
6. The company's comprehensive income includes net income and foreign
currency translation adjustments. Comprehensive income for the first
quarter ended March 31, 2000 and 1999 was $10.6 million and $5.7 million,
respectively.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
FINANCIAL CONDITION
March 31, 2000 Compared to December 31, 1999
The company's liquidity needs arise primarily from capital investment in new
equipment, land and structures and information technology, as well as funding
working capital requirements. To ensure short-term and longer-term liquidity,
the company maintains capacity under a bank credit agreement and an asset backed
securitization (ABS) agreement involving Yellow Freight's accounts receivables.
Working capital is reduced through Yellow Freight's asset backed securitization
agreement (ABS). Accounts receivable at March 31, 2000 and December 31, 1999 are
net of $130 million and $135 million of receivables sold under the ABS
agreement. Including the effects of the ABS transactions, working capital
increased $8.2 million during the first three months of 2000, resulting in a
working capital deficit of $74.7 million at March 31, 2000 compared to a $82.9
million working capital deficit at December 31,1999. Increases in accounts
receivable, excluding the effects of ABS transactions were largely offset by
decreases in prepaid expenses and increases in accounts payable and checks
outstanding. The company can operate with a deficit working capital position
because of rapid turnover of accounts receivable, effective cash management and
ready access to funding.
On July 9, 1999 the company completed a cash tender offer for all of the common
stock of Jevic Transportation, Inc. The aggregate purchase price of the stock,
including transaction costs, was approximately $164.5 million, net of cash
acquired. Including assumption of debt, the total transaction was approximately
$200 million. The acquisition was financed under the company's existing $300
million credit facility and the company's ABS agreement. These facilities
provide adequate capacity to fund working capital and capital expenditures
requirements. Net capital expenditures for the first three months of 2000 were
$37.6 million. Subject to ongoing review, total net capital spending for 2000 is
expected to total approximately $177 million.
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10
RESULTS OF OPERATIONS
Comparison of Three Months Ended March 31, 2000 and 1999
Net income for the quarter ended March 31, 2000 was $10.5 million or $.41 per
share (diluted), a 116 percent improvement over earnings per share in the 1999
first quarter. Net income for the quarter ended March 31, 1999 was $4.8 million
or $.19 per share (diluted). Operating revenue for the 2000 first quarter was
$882.1 million, an increase of 21 percent over operating revenue of $727.5
million for the 1999 first quarter. First quarter 1999 results do not include
contributions from Jevic, which was acquired in July 1999.
Yellow Freight System, the company's national LTL segment had operating income
of $21.7 million for the first quarter of 2000 an increase of 142% over
operating income of $9.0 million in the first quarter of 1999. Yellow Freight's
first quarter 2000 operating revenue was $680.4 million, a 11 percent increase
over operating revenue of $612.8 million in the first quarter of 1999. Yellow
Freight's operating ratio was 96.8 in the first quarter of 2000 versus 98.5 in
the first quarter of 1999.
First quarter less-than-truckload (LTL) tonnage increased by 7.8 percent over
the 1999 quarter and the number of LTL shipments was up 5.4 percent. First
quarter revenue per LTL shipment improved by 6.0 percent over the 1999 first
quarter. Yellow Freight continues to benefit from a 5.5 percent general rate
increase that was effective for the fall 1999 shipping season. The general rate
increase created a pricing benchmark for favorable corporate contract renewals
throughout the fourth quarter of 1999 and first quarter of 2000.
Yellow Freight also benefited from a fuel surcharge that substantially offset
rapidly rising costs of diesel fuel throughout the 2000 first quarter. The
surcharge is pegged to the U.S. National Average Fuel Index and rises or falls
in .5 percent increments for each 5-cent increase or decrease in the index. The
surcharge stood at 1.5 percent at the beginning of the 2000 first quarter and
had reached a peak of 4 percent by March 31.
Business volume for the quarter was strong because of the continued robust
economy, wide-ranging service improvements and a growing service portfolio. On
March 12, Yellow implemented one of the most successful changes of operations in
its history, completing a high-speed sleeper team network and introducing an
all-new Corridor Hub in the Cleveland area. These changes will allow Yellow
Freight to increase its 2-day service offering to 50 percent of their total
lanes by year-end, while greatly improving reliability and flexibility.
10
11
During the 2000 first quarter, the four carriers comprising the Yellow
Corporation Regional Carrier Group - Saia Motor Freight Line, Jevic
Transportation, WestEx and Action Express - reported combined operating income
of $7.5 million, up 61 percent from $4.7 million in the 1999 first quarter.
Revenue for the regional group was $196.4 million, up 77 percent from $110.9
million.
Saia reported first quarter 2000 revenue of $90.4 million and operating income
was $3.8 million, compared with revenue of $86.3 million and operating income of
$5.0 million in the 1999 first quarter. The 2000 first quarter operating ratio
was 95.8, compared with 94.2 in the year-earlier quarter. First quarter 2000
results were helped by strong productivity trends, but hurt by higher accident
and health care costs as well as some January weather effects.
Saia has implemented significant service quality improvements that position the
company for greater revenue growth and higher operating margins over the balance
of the year.
Jevic, which was acquired July 9, 1999, reported first quarter revenue of $78.4
million and operating income of $4.0 million. As a stand-alone company in the
first quarter of 1999, Jevic reported revenue of $65.8 million and operating
income of $4.9 million. The 2000 first quarter operating ratio for Jevic was
94.9, compared with 92.5 in the 1999 first quarter. Current quarter operating
income includes $500,000 in acquisition goodwill amortization that was not
applicable to the 1999 first quarter results.
Jevic was affected more than the company's other subsidiaries by truckload type
trends, specifically higher fuel prices and some driver shortages, that
increased operating expenses.
WestEx reported first quarter revenue of $18.0 million, up 10 percent from $16.3
million in the 1999 first quarter. WestEx had a first quarter 2000 operating
ratio of 100.7. Action Express reported first quarter revenue of $9.6 million,
up 15 percent from $8.3 million in the 1999 first quarter. Action Express had a
first quarter operating ratio of 101.1.
During the first quarter of 2000, market fuel prices rose above the company's
fuel hedge contract prices, resulting in a benefit that partially offset the
increased fuel cost. The company remains partially hedged through the second
quarter of 2000.
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12
Corporate and other business development expenses were $3.9 million in the 2000
first quarter, up from $1.9 million in the first quarter of 1999. The company
continues to evaluate a number of strategic initiatives to increase shareholder
value. Corporate and other business development expenses were $2.3 million in
the 1999 third quarter, up from $0.9 million in the 1998 third quarter. The
company continues to evaluate a variety of strategic initiatives to increase
shareholder value.
Nonoperating expenses increased to $6.5 million in the first quarter of 2000
compared to $3.5 million in the first quarter of 1999 due to increased financing
costs resulting primarily from the Jevic acquisition. The effective tax rate was
44.1 percent in the 2000 first quarter compared to 42.0 percent in the 1999
first quarter.
Year 2000:
The company began its Year 2000 project in 1995. The company was able to
implement process modifications that provided greater efficiency and flexibility
in remediating code, while working around the system needs of the business.
The early start coupled with the efficient process allowed the company to keep
pace with demand for new IT development. As a result of these efforts, the
transition from 1999 to 2000 proved to be uneventful. There were no significant
projects deferred as a result of the Year 2000 remediation effort.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The company is exposed to a variety of market risks, including the effects of
interest rates, fuel prices and foreign currency exchange rates. To ensure
adequate funding through seasonal business cycles and minimize overall borrowing
costs, the company utilizes a variety of both fixed rate and variable rate
financial instruments with varying maturities. At March 31, 2000 approximately
64% percent of the company's long-term financing including ABS is at variable
rates with the balance at fixed rates. The company uses interest rate swaps to
hedge a portion of its exposure to variable interest rates.
The company uses swaps as hedges in order to manage a portion of its exposure to
variable diesel prices. These agreements provide protection from rising fuel
prices, but limit the ability to benefit from price decreases below the purchase
price of the agreement. The swap transactions are generally based on the price
of heating oil. Based on historical information, the company believes the
correlation between the market prices of diesel fuel and heating oil is highly
effective.
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13
The company's revenues and operating expenses, assets and liabilities of its
Canadian and Mexican subsidiaries are denominated in foreign currencies, thereby
creating exposures to changes in exchange rates, however the risks related to
foreign currency exchange rates are not material to the company's consolidated
financial position or results of operations.
The table below provides information about the company's debt instruments
(including off balance sheet asset backed securitzation (ABS)) and interest rate
swaps as of March 31, 2000. For debt obligations the table presents principal
cash flows (in millions) and related weighted average interest rates by
contractual maturity dates. Medium-term notes included in fixed rate debt
maturing within one year, and intended to be refinanced are classified as
long-term in the consolidated balance sheet. For interest rate swaps the table
presents notional amounts (in millions) and weighted average interest rates by
contractual maturity. Weighted average variable rates are based on the 30-day
LIBOR rate at March 31, 2000.
Expected Maturity Date
There- Fair
2000 2001 2002 2003 2004 after Total Value
---- ---- ---- ---- ---- ----- ----- -----
Debt Obligations
Fixed Rate Debt $ 28.9 $ 7.3 $ 22.22 $ 19.5 $ 16.3 $ 53.1 $ 147.3 $143.8
Ave. Int. Rate 6.75% 8.24% 7.35% 6.29% 6.62% 6.97%
Var. Rate Debt $ 1.1 $ 101.5 $ 5.8 $ 5.1 $ 0.2 $ 15.0 $ 128.7 $128.7
Ave. Int. Rate 6.86% 6.35% 6.78% 4.34% 8.28% 6.11%
Off Bal. Sheet -
ABS $ 130.0 $ 130.0 $130.0
Ave. Int. Rate 6.10%
Interest Rate
Derivatives:
Variable to fixed:
Notional Amount $ 1.1 $ 1.5 $ 5.8 $ 0.1 $ 0.2 $ 4.6 $ 13.3 $ 13.2
Average Pay
Rate (fixed) 5.81% 5.81% 5.70% 7.65% 7.65% 7.65%
Average Receive
Rate (variable) 6.86% 6.86% 6.78 8.28% 8.28% 8.28%
The following table provides information about the company's diesel fuel hedging
instruments that are sensitive to changes in commodity prices. The table
presents notional amounts in gallons and the weighted average contract price by
contractual maturity date as of March 31, 2000. The company maintained fuel
inventories for use in normal operations at March 31, 2000, which were not
material to the company's financial position and represented no significant
market exposure.
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14
Expected Maturity
Apr.-Jul.
------------------------
2000 Total
---------- -----------
Heating Oil Swaps:
Gallons (in millions) 15.2 15.2
Weighted Average Price per Gallon $ .4513 $ .4513
Fair Value (in millions) $ 3.2
Statements contained herein that are not purely historical are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding the company's expectations, hopes, beliefs
and intentions on strategies regarding the future. 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 but
not limited to inflation, labor relations, inclement weather, competitor pricing
activity, expense volatility and a downturn in general economic activity.
14
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PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
(a) Annual Meeting of Stockholders on April 20, 2000
(b) The following directors were elected with the indicated number of votes
set forth below.
For Withheld
---------- -----------
Klaus E. Agthe 20,912,634 560,294
Cassandra C. Carr 21,217,524 255,404
Howard M. Dean 21,170,302 302,626
Ronald T. LeMay 21,190,965 281,963
John C. McKelvey 21,216,763 256,165
William L. Trubeck 21,218,701 254,227
Carl W. Vogt 21,218,501 254,427
William D. Zollars 21,214,343 258,585
(a) The appointment of Arthur Andersen LLP as independent public accountants
of the company for 2000 was voted on and approved at the meeting by the
following vote. For: 21,361,164, Against: 85,764, Abstention: 26,000.
(b) The ratification of the company's 1999 Stock Option Plan was approved at
the meeting by the following vote. For: 18,706,697, Against: 2,704,487,
Abstention: 61,340.
(c) The increase in the number of common shares reserved for the Board of
Directors Stock Compensation Plan was approved at the meeting by the
following vote. For: 17,542,645, Against: 3,802,622, Abstention:
127,609.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(10a)- Amendment to William D. Zollars Employment Agreement
(10b)- Employment Agreement of H. A. Trucksess
(27) - Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K
On May 2, 2000 Yellow Corporation announced the resignation of Hiram
Cox, Chief Financial Officer and the appointment of H. A. Trucksess,
III as interim Chief Financial Officer of the company.
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Yellow Freight System, Inc.
Financial Information
For the Quarter Ended March 31
(Amounts in thousands)
First Quarter
------------------
2000 1999 %
------- -------- ----
Operating revenue 680,369 612,786 11.0
Operating income 21,656 8,951
Operating ratio 96.8 98.5
Total assets at March 31 753,973 798,955
First Quarter
First Quarter Amount/Workday
------------------------ -------------------------
2000 1999 % 2000 1999 %
------- ---------- ----- --------- -------- ----
Workdays (65) (63)
Financial statement LTL 630,463 564,225 11.7 9,699.4 8,956.0 8.3
revenue TL 53,371 49,420 8.0 821.1 784.4 4.7
Other (3,465) (859) NA (53.3) (13.6) NA
Total 680,369 612,786 11.0 10,467.2 9,726.8 7.6
Revenue excluding LTL 630,463 564,225 11.7 9,699.4 8,956.0 8.3
revenue recognition TL 53,371 49,420 8.0 821.1 784.4 4.7
adjustment Other (2) (7) NA 0.0 (0.1) NA
Total 683,832 613,638 11.4 10,520.5 9,740.3 8.0
Tonnage LTL 1,781 1,653 7.8 27.40 26.23 4.5
TL 350 334 4.6 5.38 5.30 1.4
Total 2,131 1,987 7.3 32.78 31.53 4.0
Shipments LTL 3,587 3,405 5.4 55.19 54.06 2.1
TL 48 45 5.0 0.74 0.72 1.8
Total 3,635 3,450 5.4 55.93 54.78 2.1
Revenue/cwt. LTL 17.70 17.07 3.7
TL 7.63 7.39 3.2
Total 16.05 15.44 3.9
Revenue/shipment LTL 175.74 165.72 6.0
TL 1,114.95 1,084.54 2.8
Total 188.10 177.86 5.8
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Saia Motor Freight Line, Inc.
Financial Information
For the Quarter Ended March 31
(Amounts in thousands)
First Quarter
-------------------
2000 1999 %
------------------- ---
Operating revenue 90,445 86,253 4.9
Operating income 3,773 5,043
Operating ratio 95.8 94.2
Total assets at March 31 232,040 222,088
First Quarter
First Quarter Amount/Workday
---------------------- ----------------------
2000 1999 % 2000 1999 %
------- -------- ----- --------- -------- -----
Workdays (65) (63)
Financial statement LTL 81,891 77,417 5.8 1,259.9 1,228.8 2.5
Revenue TL 8,554 8,836 (3.2) 131.6 140.3 (6.2)
Total 90,445 86,253 4.9 1,391.5 1,369.1 1.6
Revenue excluding LTL 82,181 77,755 5.7 1,264.3 1,234.2 2.4
Revenue recognition TL 8,584 8,875 (3.3) 132.1 140.9 (6.3)
Adjustment Total 90,765 86,630 4.8 1,396.4 1,375.1 1.5
Tonnage LTL 444 426 4.1 6.82 6.76 .9
TL 139 143 (3.2) 2.14 2.28 (6.2)
Total 583 569 2.3 8.96 9.04 (.9)
Shipments LTL 815 786 3.8 12.54 12.47 .6
TL 14 14 (1.1) .22 .23 (4.1)
Total 829 800 3.7 12.76 12.70 .5
Revenue/cwt. LTL 9.26 9.13 1.5
TL 3.09 3.10 (.1)
Total 7.79 7.61 2.4
Revenue/shipment LTL 100.82 98.98 1.9
TL 609.05 623.07 (2.2)
Total 109.45 108.31 1.1
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Jevic Transportation, Inc.
Financial Information
For the Quarter Ended March 31
(Amounts in thousands)
First Quarter
------------------
2000 1999 %
------------------ ----
Operating revenue 78,415 65,832 19.1
Goodwill amortization 501 --
Operating income 4,017 4,924
Operating ratio 94.9 92.5
Total assets at March 31 258,080 164,804
First Quarter
First Quarter Amount/Workday
------------------- ---------------------
2000 1999 % 2000 1999 %
------- -------- ----- -------- -------- -----
Workdays (65) (63)
Financial statement LTL 50,650 41,377 22.4 779.2 656.8 18.6
revenue TL 27,765 24,455 13.5 427.2 388.2 10.0
Total 78,415 65,832 19.1 1,206.4 1,045.0 15.4
Revenue excluding LTL 50,686 41,622 21.8 779.8 660.7 18.0
revenue recognition TL 27,781 24,599 12.9 427.4 390.5 9.5
adjustment Total 78,467 66,221 18.5 1,207.2 1,051.2 14.8
Tonnage LTL 266 228 16.5 4.09 3.62 12.9
TL 363 336 8.0 5.58 5.33 4.7
Total 629 564 11.4 9.67 8.95 8.0
Shipments LTL 227 192 18.0 3.49 3.05 14.4
TL 39 34 13.1 0.59 0.54 9.6
Total 266 226 17.3 4.08 3.59 13.7
Revenue/cwt. LTL 9.53 9.11 4.5
TL 3.83 3.66 4.6
Total 6.24 5.87 6.3
Revenue/shipment LTL 223.69 216.75 3.2
TL 721.13 722.16 (0.1)
Total 295.97 292.90 1.0
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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
------------------------------------
Registrant
Date: May 12, 2000 /s/ William D. Zollars
------------------------------------
William D. Zollars
Chairman of the Board of
Directors, President & Chief
Executive Officer
Date: May 12, 2000 /s/ H. A. Trucksess, III
------------------------------------
H. A. Trucksess, III
President Regional Carrier
Group and Interim Chief
Financial Officer
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