Yellow Corporation Posts Record 2000 Revenue and Earnings
OVERLAND PARK, Kan., Jan. 26 /PRNewswire/ -- Yellow Corporation (Nasdaq: YELL) today announced record full year earnings per share of $2.49 in 2000, up 23 percent from earnings per share of $2.03 in 1999, all before unusual and discontinued items.
Operating revenue for the year was a record at $3.6 billion, compared with $3.2 billion in 1999. Consolidated operating income for 2000, before unusual items, was a record $140.4 million, up 30 percent from $107.8 million in 1999.
In the fourth quarter ended December 31, 2000, Yellow Corporation had earnings per share of $.74, up from $.71 per share in the 1999 fourth quarter. Revenue was $883 million, compared with $882 million in the 1999 fourth quarter. Operating income was $41.1 million, compared with $38.6 million in the 1999 fourth quarter. All results are before unusual and discontinued items.
"The first year of the new millennium was the best year in our history," said Bill Zollars, Yellow Corporation Chairman, President and CEO. "We achieved record financial results because we focused on delivering the portfolio of services with the flawless execution that customers demand. The fact that we turned in these results during a period of rising fuel prices, a late-year economic slowdown and severe winter weather in the fourth quarter shows that we are succeeding in transforming Yellow into a transportation services company that can better manage the risks that our industry has struggled with in the past."
Unusual items for the fourth quarter included $2.7 million for the previously announced integration of WestEx and Action Express with Saia. In addition, a charge for a discontinued business of $1.3 million, after-tax, was incurred to settle pending liabilities associated with the 1999 bankruptcy of Preston Trucking Company. Unusual items for the year 2000 included an after-tax net gain of $8.7 million, or $.35 per share, primarily resulting from the sale of real estate property in Manhattan, New York. Including all unusual items, fourth quarter earnings per share were $.61 and 2000 earnings per share were $2.74.
National Transportation Services
Yellow Freight System, the company's largest subsidiary, reported fourth quarter operating income before unusual items of $37.6 million, up 36 percent from $27.6 million in the 1999 fourth quarter. Revenue for the fourth quarter was $685.6 million, versus $684.6 million in the 1999 fourth quarter. On a per-day basis, fourth quarter 2000 revenue was up 1.8 percent over the prior year period. The 2000 fourth quarter operating ratio was 94.5, compared with 96.0 a year earlier.
For the full year, Yellow Freight reported operating income of $128.3 million before unusual items, up 50.3 percent from $85.4 million in 1999. Revenue for the year was $2.8 billion, up 6.4 percent from 1999 revenue of $2.6 billion. The full year operating ratio, excluding unusual items, was 95.4 compared with 96.7 in 1999. Including unusual items, primarily a $14.2 million pretax net gain from the second quarter sale of terminal property in New York, full-year operating income was $141.8 million.
During 2000, Yellow Freight began a network re-engineering process that enabled the company to dramatically increase its two- and three-day regional service in the Upper Midwest and Northeastern U.S. and Eastern half of Canada. The new Yellow Standard Ground Regional Advantage service was created from a network re-engineering effort that began in 2000 in the Cleveland, Ohio and Buffalo, N.Y. areas. Yellow Freight has improved shipment pickup and delivery and handling processes and added hundreds more metro-to-metro schedules that cut delivery times by one to two days. Yellow Freight has improved the speed that shipments move through its network and its nationwide on-time delivery performance. Several more strategic metros will be added to the Regional Advantage network in 2001.
Yellow Freight recently received ISO 9001 certification for meeting recognized worldwide quality standards for management systems and processes at all terminals throughout North America. Yellow Freight is the first transportation services company to receive company-wide certification under the new ISO 9001 standards. The certification is becoming a prerequisite for doing business with a growing number of major manufacturers.
"Yellow Freight System has the total package," Zollars said. "They focused on delivering quality service and a broader range of service choices and the result was their best overall operating performance since 1986. Yellow Freight has consistently improved profitability by offering a complete portfolio of services and by attacking the service issues that matter most to customers. The ISO certification demonstrates that they are relentless in staying on the leading edge among all transportation services providers."
Regional Carrier Group
At Saia Motor Freight Line, fourth quarter 2000 revenue was $90.8 million and operating income was $4.5 million, compared with revenue of $88.8 million and operating income of $4.3 million in the 1999 fourth quarter. The 2000 fourth quarter operating ratio was 95.1, the same as in the year-earlier quarter.
For the full year, Saia had revenue of $366.8 million and operating income of $16.5 million, compared with 1999 revenue of $349.3 million and operating income of $16.8 million. The operating ratio for 2000 was 95.5, versus 95.2 in 1999.
WestEx and Action Express, whose operations are being integrated with Saia, reported combined fourth quarter revenue of $29.1 million and an operating loss of $3.5 million. Combined 2000 revenue was $115.2 million and the operating loss was $4.7 million.
"Due to strong variable expense controls, Saia has been able to both improve customer service and offset increased fuel prices, casualty claims and higher wage and benefit rates," Zollars said. "With completion of the integration of WestEx and Action Express in March, Saia will offer seamless overnight and second-day service coverage in some of the fastest growing commercial centers in the country. Saia is now well positioned to see sustained profitable revenue growth in 2001 and beyond."
Jevic reported fourth quarter 2000 revenue of $77.0 million and operating income of $4.5 million, compared with 1999 revenue of $74.5 million and operating income of $5.6 million. Jevic, which was acquired July 1999, reported full year revenue of $307 million and operating income of $14.3 million, compared with full year 1999 revenue of $277 million and operating income of $20.7 million. The 2000 fourth quarter operating ratio for Jevic was 94.2, compared with 92.5 in the 1999 fourth quarter. The full-year operating ratio for Jevic was 95.3, compared with 92.5 in 1999.
"Jevic continues to prove that there is a high level of demand for its unique service offering," Zollars said. "We have a solid management team at Jevic that pulled off a good performance in face of high fuel prices, a late-year economic slowdown, unusually severe winter weather and intense competitive pressures."
Transportation.com
Since its launch in June 2000, Transportation.com has continued its successful rollout of a broad suite of web-based services designed to serve small to medium sized shippers and carriers over the world wide web.
Transportation.com ended 2000 with more than 6,000 customers and a significant volume of business in its sales pipeline, including increased demand for contractual logistics services. In addition, prudent cost management brought expenses for the year in well below expected levels.
"Transportation.com has become a non-asset-based global network logistics company that delivers services through best-in-class Internet technology," said Zollars. "With the consolidation that is occurring rapidly, Transportation.com has become the service leader in this very specialized and exciting market segment."
Corporate and Other
The fourth quarter results reflect an after-tax loss of $1.1 million or $.05 per share pertaining to ongoing business development expenses for Transportation.com, which is an unconsolidated joint venture of Yellow Corporation. For the year, after tax development expenses at Transportation.com were $4.2 million, or $.17 per share.
Statements contained in this release 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, price and availability of fuel, competitor pricing activity, expense volatility, changes in and customer acceptance of new technology and a downturn in general or regional economic activity.
Yellow Corporation is a holding company with wholly owned operating subsidiaries specializing in the national, regional and international transportation of industrial, commercial and retail goods. Transportation.com www.transportation.com is a non-asset-based global network logistics company utilizing the world wide web to provide broad-based products, services and information to small- to medium-sized shippers and carriers. Transportation.com is funded by Yellow Corporation and several venture capital firms. Headquartered in Overland Park, Kansas, Yellow employs approximately 32,000 people.
CONSOLIDATED BALANCE SHEETS
Yellow Corporation and Subsidiaries
(Amounts in thousands except share data)
(Unaudited)
December 31, December 31,
2000 1999
ASSETS
CURRENT ASSETS:
Cash $25,799 $22,581
Accounts receivable 222,926 265,302
Prepaid expenses and other 64,680 64,009
Total current assets 313,405 351,892
PROPERTY AND EQUIPMENT:
Cost 2,128,937 2,093,470
Less - Accumulated depreciation 1,240,359 1,226,698
Net property and equipment 888,578 866,772
GOODWILL AND OTHER ASSETS 106,494 106,919
$1,308,477 $1,325,583
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and checks
outstanding $140,882 $135,177
Wages and employees' benefits 173,332 172,471
Other current liabilities 119,194 124,769
Current maturities of long-term debt 68,792 2,392
Total current liabilities 502,200 434,809
OTHER LIABILITIES:
Long-term debt 136,645 274,015
Deferred income taxes 92,413 79,005
Claims, insurance and other 117,443 128,374
Total other liabilities 346,501 481,394
SHAREHOLDERS' EQUITY:
Common stock, $1 par value 29,959 29,437
Capital surplus 23,304 16,063
Retained earnings 522,195 454,177
Accumulated other comprehensive
income (2,710) (2,322)
Treasury stock (112,972) (87,975)
Total shareholders' equity 459,776 409,380
$1,308,477 $1,325,583
STATEMENTS OF CONSOLIDATED OPERATIONS
Yellow Corporation and Subsidiaries
For the Quarter and Twelve Months Ended December 31, 2000 and 1999
(Amounts in thousands except per share data)
(Unaudited)
Fourth Quarter Twelve Months
2000 1999 2000 1999
OPERATING REVENUE $882,990 $882,310 $3,588,140 $3,226,847
OPERATING EXPENSES:
Salaries, wages and
benefits 535,723 541,502 2,210,505 2,041,590
Operating expenses and
supplies 147,497 135,400 583,594 490,447
Operating taxes and
licenses 28,365 27,701 112,329 100,602
Claims and insurance 19,691 17,622 80,619 70,227
Depreciation and
amortization 31,704 31,069 126,883 110,310
Purchased
transportation 78,906 90,456 333,846 305,840
Unusual items (a) 3,226 977 (12,165) 325
Total operating
expenses (b) 845,112 844,727 3,435,611 3,119,341
INCOME FROM OPERATIONS 37,878 37,583 152,529 107,506
NONOPERATING (INCOME)
EXPENSES:
Interest expense 4,420 5,008 19,491 15,303
Loss in
Transportation.com 1,769 - 3,329 -
Other, net 2,954 1,294 8,021 2,924
Nonoperating expenses, net 9,143 6,302 30,841 18,227
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 28,735 31,281 121,688 89,279
INCOME TAX PROVISION 12,974 14,010 52,386 38,364
INCOME FROM CONTINUING
OPERATIONS 15,761 17,271 69,302 50,915
LOSS FROM DISCONTINUED
OPERATIONS 1,284 - 1,284 -
NET INCOME $14,477 $17,271 $68,018 $50,915
AVERAGE SHARES
OUTSTANDING-BASIC 23,746 24,888 24,649 25,003
AVERAGE SHARES
OUTSTANDING-DILUTED 23,919 25,041 24,787 25,168
BASIC EARNINGS PER SHARE:
Income from continuing
operations $.66 $.69 $2.81 $2.04
Loss from discontinued
operations $(.05) $ - $(.05) $ -
Net income $.61 $.69 $2.76 $2.04
DILUTED EARNINGS PER SHARE:
Income from continuing
operations $.66 $.69 $2.79 $2.02
Loss from discontinued
operations $(.05) $ - $(.05) $ -
Net income $.61 $.69 $2.74 $2.02
Notes:
(a) Unusual items include integration costs and property gains and losses.
(b) Included in YTD operating expense is $3.5 million of charges related to
investment in Transportation.com.
STATEMENTS OF CONSOLIDATED CASH FLOWS
Yellow Corporation and Subsidiaries
For the Twelve Months Ended December 31, 2000 and 1999
(Amounts in thousands)
(Unaudited)
2000 1999
OPERATING ACTIVITIES:
Net cash from operating activities $ 227,113 $ 250,036
INVESTING ACTIVITIES:
Acquisition of property and equipment (164,803) (159,275)
Acquisition of Jevic, net of cash acquired - (164,507)
Proceeds from disposal of property and
equipment 35,081 10,090
Other (5,115) -
Net cash used in investing activities (134,837) (313,692)
FINANCING ACTIVITIES:
Treasury stock purchases (24,998) (14,824)
Proceeds from stock options and other, net 6,985 1,103
Increase (decrease) in long-term debt (71,045) 74,436
Net cash provided by (used in) financing
activities (89,058) 60,715
NET INCREASE (DECREASE) IN CASH 3,218 (2,941)
CASH, BEGINNING OF PERIOD 22,581 25,522
CASH, END OF PERIOD $25,799 $22,581
Yellow Freight System, Inc.
Financial Information
For the Quarter Ended December 31
(Amounts in thousands)
Fourth Quarter Twelve Months
2000 1999 % 2000 1999 %
Operating
revenue 685,608 684,565 0.2 2,777,772 2,611,580 6.4
Operating
income 37,395 27,302 141,829 85,412
Operating
ratio 94.5 96.0 94.9 96.7
Total assets
at December 31 722,808 743,681
Fourth Quarter
Fourth Quarter Amount/Workday
2000 1999 % 2000 1999 %
Workdays (62) (63)
Financial
statement
revenue
LTL 625,703 627,825 (0.3) 10,092.0 9,965.5 1.3
TL 53,443 54,709 (2.3) 862.0 868.4 (0.7)
Other 6,462 2,031 NM 104.2 32.2 NM
Total 685,608 684,565 0.2 11,058.2 10,866.1 1.8
Revenue
excluding
revenue
recognition
adjustment
LTL 625,703 627,825 (0.3) 10,092.0 9,965.5 1.3
TL 53,443 54,709 (2.3) 862.0 868.4 (0.7)
Other 3 (3) NM 0.0 0.0 NM
Total 679,149 682,531 (0.5) 10,954.0 10,833.9 1.1
Tonnage
LTL 1,619 1,777 (8.8) 26.12 28.20 (7.4)
TL 324 350 (7.4) 5.23 5.56 (5.9)
Total 1,943 2,127 (8.6) 31.35 33.76 (7.1)
Shipments
LTL 3,238 3,557 (9.0) 52.23 56.46 (7.5)
TL 44 48 (8.3) 0.71 0.76 (6.9)
Total 3,282 3,605 (8.9) 52.94 57.22 (7.5)
Revenue/cwt.
LTL 19.32 17.67 9.3
TL 8.24 7.81 5.5
Total 17.47 16.05 8.9
Revenue/shipment
LTL 193.21 176.51 9.5
TL 1,210.82 1,136.09 6.6
Total 206.90 189.33 9.3
Saia Motor Freight Line, Inc.
Financial Information
For the Quarter Ended December 31
(Amounts in thousands)
Fourth Quarter Twelve Months
2000 1999 % 2000 1999 %
Operating
revenue 90,770 88,772 2.3 366,830 349,259 5.0
Operating
income 4,476 4,312 16,544 16,824
Operating
ratio 95.1 95.1 95.5 95.2
Total assets
at December 31 231,376 228,564
Fourth Quarter
Fourth Quarter Amount/Workday
2000 1999 % 2000 1999 %
Workdays (61) (61)
Financial
statement
revenue
LTL 82,604 80,052 3.2 1,354.2 1,312.3 3.2
TL 8,166 8,720 (6.4) 133.9 143.0 (6.4)
Total 90,770 88,772 2.3 1,488.1 1,455.3 2.3
Revenue
excluding
Revenue
recognition
Adjustment
LTL 82,422 79,803 3.3 1,351.2 1,308.2 3.3
TL 8,148 8,693 (6.3) 133.6 142.5 (6.3)
Total 90,570 88,496 2.3 1,484.8 1,450.7 2.3
Tonnage
LTL 432 436 (1.0) 7.08 7.15 (1.0)
TL 122 142 (14.2) 2.00 2.33 (14.2)
Total 554 578 (4.3) 9.08 9.48 (4.3)
Shipments
LTL 755 784 (3.7) 12.38 12.85 (3.7)
TL 13 14 (9.0) .21 .24 (9.0)
Total 768 798 (3.7) 12.59 13.09 (3.7)
Revenue/cwt.
LTL 9.54 9.15 4.3
TL 3.35 3.06 9.3
Total 8.18 7.65 6.9
Revenue/shipment
LTL 109.17 101.84 7.2
TL 623.94 605.62 3.0
Total 117.92 110.90 6.3
Jevic Transportation, Inc.
Financial Information
For the Quarter Ended December 31, 2000
(Amounts in thousands)
Fourth Quarter Year Ended
2000 1999 % 2000 1999 %
Operating
revenue 77,011 74,495 3.4 307,019 277,123 10.8
Goodwill
amortization 500 501 2,061 956
Operating
income 4,489 5,606 14,308 20,729
Operating
ratio 94.2 92.5 95.3 92.5
Total assets
at December 31 257,451 257,099
Fourth Quarter
Fourth Quarter Amount/Workday
2000 1999 % 2000 1999 %
Workdays (62) (62)
Financial
statement
revenue
LTL 49,108 46,496 5.6 792.1 749.9 5.6
TL 27,903 27,999 (0.3) 450.0 451.6 (0.3)
Total 77,011 74,495 3.4 1,242.1 1,201.5 3.4
Revenue
excluding
revenue
recognition
adjustment
LTL 48,846 46,292 5.5 787.8 746.6 5.5
TL 27,753 27,878 (0.4) 447.6 449.6 (0.4)
Total 76,599 74,170 3.3 1,235.4 1,196.2 3.3
Tonnage
LTL 252 246 2.3 4.06 3.97 2.3
TL 342 369 (7.4) 5.51 5.95 (7.4)
Total 594 615 (3.5) 9.57 9.92 (3.5)
Shipments
LTL 209 205 1.5 3.36 3.31 1.5
TL 37 38 (2.1) 0.60 0.61 (2.1)
Total 246 243 1.0 3.96 3.92 1.0
Revenue/cwt.
LTL 9.71 9.41 3.1
TL 4.06 3.78 7.5
Total 6.46 6.03 7.1
Revenue/shipment
LTL 234.18 225.34 3.9
TL 743.97 731.53 1.7
Total 311.52 304.55 2.3
SOURCE Yellow Corporation
CONTACT: Analysts, Stephen Bruffett, 913-696-6108, or Media, Roger Dick, APR, 913-696-6184, both of Yellow Corporation/