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) <TABLE> <CAPTION> 2000 1999 -------- -------- <S> <C> <C> 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 ======== ======== </TABLE> 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): <TABLE> <CAPTION> Corporate Yellow Freight Saia Jevic and Other Consolidated -------------- --------- -------- ---------- ------------ <S> <C> <C> <C> <C> <C> 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 </TABLE> 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. 7
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. 8
9 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. 9
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. 11
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. 12
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 <TABLE> <CAPTION> There- Fair 2000 2001 2002 2003 2004 after Total Value ---- ---- ---- ---- ---- ----- ----- ----- <S> <C> <C> <C> <C> <C> <C> <C> <C> 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% </TABLE> 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. 13
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
15 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. 15
16 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 <TABLE> <CAPTION> First Quarter First Quarter Amount/Workday ------------------------ ------------------------- 2000 1999 % 2000 1999 % ------- ---------- ----- --------- -------- ---- <S> <C> <C> <C> <C> <C> <C> <C> 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 </TABLE> 16
17 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 <TABLE> <CAPTION> First Quarter First Quarter Amount/Workday ---------------------- ---------------------- 2000 1999 % 2000 1999 % ------- -------- ----- --------- -------- ----- <S> <C> <C> <C> <C> <C> <C> <C> 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 </TABLE> 17
18 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 <TABLE> <CAPTION> First Quarter First Quarter Amount/Workday ------------------- --------------------- 2000 1999 % 2000 1999 % ------- -------- ----- -------- -------- ----- <S> <C> <C> <C> <C> <C> <C> <C> 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 </TABLE> 18
19 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 19