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): February 9, 2015
YRC Worldwide Inc.
(Exact name of registrant as specified in its charter)
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Delaware
(State or other jurisdiction of
incorporation) |
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0-12255
(Commission File
Number) |
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48-0948788
(IRS Employer
Identification No.) |
10990 Roe Avenue
Overland Park, Kansas 66211
(Address of principal executive office)(Zip Code)
(913) 696-6100
(Registrants telephone number, including area code)
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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01. |
Regulation FD Disclosure. |
YRC Worldwide Inc. (the Company) will deliver
Company presentations on February 10, 2015, at the Stifel Nicolaus Transportation & Logistics Conference in Key Biscayne, Florida, and on Wednesday, February 11, 2015, at the BB&T Transportation & Logistics Conference
in Coral Gables, Florida. The presentations will be available on audio webcast through the Companys website, www.yrcw.com, for 90 days. A copy of the slide show presentation to be presented at both conferences is attached hereto as Exhibit
99.1.
Item 9.01. |
Financial Statements and Exhibits. |
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Exhibit Number |
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Description |
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99.1 |
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YRC Worldwide Inc. Analyst Presentation slide show |
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.
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YRC WORLDWIDE INC. |
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By: |
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/s/ Stephanie D. Fisher |
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Stephanie D. Fisher |
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Vice President and Controller |
Date: February 9, 2015
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Exhibit 99.1
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Exhibit 99.1
Analyst Presentation
Disclaimer
Forward-Looking StatementsThis
presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements are inherently uncertain and are subject to numerous business,
economic, competitive, financial, regulatory and other risks, uncertainties and contingencies, known and unknown, many of which are beyond our control. Our future financial condition and results could vary materially from such forward-looking
statements because of a number of factors, including those described in our quarterly reports on Form 10-Q and annual reports on Form 10-K filed with the
SEC. No representation or warranty is made as to the accuracy or completeness of any forward-looking statements. This does not constitute an offer to sell or the solicitation of an offer
to purchase any security.
Non-GAAP Financial Measures. This presentation includes certain non-GAAP financial
measures, including
Adjusted EBITDA. These non-GAAP financial measures are not measures of financial
performance in accordance with generally accepted accounting principles and may exclude items that are significant in understanding and assessing the Companys financial results. Therefore, these measures should not be considered in isolation
or as an alternative to net income from operations, cash flows from operations, earnings per fully-diluted share or other measures of profitability, liquidity or performance under generally accepted accounting principles. You should be aware that
this presentation of these measures may not be comparable to similarly-titled measures used by other companies. A reconciliation of these measures to the most comparable measures presented in accordance with generally accepted accounting principles
has been included in the Companys Current Report on Form 8-K filed
February 5, 2015 as well as
certain other reports the Company files with the SEC.
Introduction
YRC Worldwide is one of the largest
less-than-truckload (LTL) carriers in North America and generates $5B of revenue by providing services under a portfolio of four subsidiaries
Approximately 24% of the public carrier market share by tonnage
Providing the broadest coverage and more service capability throughout North America than any competitor
2014 Review A Tale of Two Halves
First
Half
Fought mother nature (most extreme weather in decades) network out-of-cycle
Completed negotiations with the Teamsters to secure a new labor contract through March 2019 with contractual savings and
new operational flexibilities Recapitalized the Balance Sheet resulting in approximately $40M in annual interest and LC fee savings and 5-year maturity extension
Second Half
Focused effort on improving yield and
profitability in strong pricing environment in the second half of the year YRC Freight gained operational momentum in the third quarter and maintained it throughout the fourth quarter network in-cycle Regional segment generally performed well
throughout the year although experienced negative safety results
2nd half performance established foundation
for full-year 2015 performance
YOY Revenue Per Shipment
YRCF Revenue per
Shipment
(x-FSC)
$ 250 $ 246
Quarter +7.4%
$ 240
$ 229
$ 230
Fourth $ 220
4Q13 4Q14
Regional
Revenue per Shipment (x-FSC)
$ 150 $ 148
+5.0%
$ 145
$ 141
$ 140
$ 135
4Q13 4Q14
YRCF Revenue per Shipment
(x-FSC)
$ 234
Year $ 235 +3.2%
$ 230 $ 227
Full $ 225
$ 220
2013 2014
Regional
Revenue per Shipment (x-FSC)
$ 150
$ 144
$ 145 +3.4%
$ 139
$ 140
$ 135
$ 130
2013 2014
Both segments experiencing Revenue per
Shipment growth on YOY basis Increasing momentum at YRC Freight in 4Q14
Note: Percent change calculation based
on unrounded figures and not the rounded figures presented
YOY Yield
YRC Freight Revenue
per cwt (x-FSC)
$21.00 $ 20.61
$20.50 +7.3%
Quarter $20.00
$19.50 $ 19.20
$19.00
$18.50
Fourth $18.00
4Q13 4Q14
Regional Revenue
per cwt (x-FSC)
$10.20 $10.08
$10.00 +4.8%
$9.80 $9.63
$9.60
$9.40
$9.20
4Q13 4Q14
YRC Freight Revenue
per cwt (x-FSC)
$20.00 $ 19.80
Year $19.80 +2.3%
$19.60
Full $19.40 $ 19.35
$19.20
$19.00
2013 2014
Regional Revenue
per cwt (x-FSC)
$10.00
$9.80 +2.6% $9.80
$9.60 $9.55
$9.40
$9.20
2013 2014
Both segments experiencing positive
yield growth driven by a focused effort on improving yield and helped by a favorable pricing environment in the LTL industry Increasing momentum in 4Q14
Note: Percent change calculation based on unrounded figures and not the rounded figures presented.
YOY Volume
YRC Freight Shipments per Day
50.00
45.17
Quarter 45.00 -2.7% 43.96
40.00
Fourth 35.00
4Q13 4Q14
Regional Shipments per Day
50.00
45.00
41.37 +0.8% 41.69
40.00
35.00
4Q13 4Q14
YRC Freight Shipments per Day
50.00
45.32 +0.7% 45.64
Year 45.00
Full 40.00
35.00
2013 2014
Regional Shipments per Day
50.00
45.00 41.56 +2.6% 42.64
40.00
35.00
2013 2014
Slight full-year 2014 YOY increases in
volume at both segments
Priority in the second half of 2014 was to focus yield improvements and profitability
ahead of volume growth
Note: Percent change calculation based on unrounded figures and not the rounded figures
presented
Segment Adjusted EBITDA
($ in millions)
YRCF 4Q Adjusted EBITDA
$50.0 $44.0
$40.0 +152.9%
Quarter $30.0
$20.0 $17.4
$10.0
Fourth $.0
4Q13 4Q14
Regional 4Q Adjusted EBITDA
$50.0 $40.7
-18.4%
$40.0 $33.2
$30.0
$20.0
$10.0
$.0
4Q13 4Q14
YRCF LTM Adjusted EBITDA
$106.0 $105.2
$104.0 -5.1%
Year $102.0
$99.8
Full $100.0
$98.0
$96.0
2013 2014
Regional LTM Adjusted EBITDA
$152.0 $ 150.5
$150.0 -4.1%
$148.0
$146.0 $ 144.4
$144.0
$142.0
$140.0
2013 2014
YRC Freight improved on a YOY quarterly
basis due increased yield and improved operational performance. The Regionals declined due to safety performance
On a full-year basis, YRC Freight declined due to poor weather in 1Q and operational difficulties in 2Q. The Regionals
declined also due to poor weather in 1Q and to safety performance
YRCW Adjusted EBITDA
($ in millions)
4Q Adjusted EBITDA
$100.0
$77.0
$80.0 +31.0%
$58.8
Quarter $60.0
$40.0
$20.0
Fourth $.0
4Q13 4Q14
4Q Adjusted EBITDA Margin
7.0% 6.3%
6.0% 4.9% +140 bps
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
4Q13 4Q14
LTM Adjusted EBITDA
$260.0
$ 254.9
$255.0
Year $250.0 -4.1%
$ 244.5
Full $245.0
$240.0
$235.0
2013 2014
LTM Adjusted EBITDA Margin
5.4% 5.2%
5.2%
5.0% -40 bps
4.8%
4.8%
4.6%
4.4%
2013 2014
Improved EBITDA and margin growth YOY in 4Q due to strong yield performance especially when excluding the effects of lower
fuel surcharge
LTM EBITDA comps lower YOY due to exceptionally poor weather in 1Q14 as well as operational
difficulties encountered as a result of the Companys efforts to renegotiate its labor contract
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YRC Freight 2015 Initiatives
Safety o Additional
field safety trainers and the deployment of In-Cab technology that includes adaptive cruise control, stability control and lane departure warning o Journey to One will drive behavior toward world- class safety results through technology,
training, communication and compliance
Service o Driver recruiting, hiring and training through military
partnership, dock to drive program, and centralized driver recruiting department o Constancy of purpose on the YRC Freight service cycle, network optimization and upgraded Linehaul systems
Efficiency o In our 23 distribution centers, we have process improvement teams that are streamlining standard work to
eliminate waste o Productivity and quality lift through bottom-up engagement of the workforce, clarifying and closing the cultural gaps that have existed since integration, and continuous improvement toward positive discretionary effort
Everyone Sells o Right price, right lanes through clear customer communication and pricing technology that drives network
beneficial tonnage while protecting yield progression o Yield progression and volume growth and retention through sales process discipline
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Analyst Presentation
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