Yellow Corporation Reports Second Quarter Financial Results
OVERLAND PARK, Kan., July 20 /PRNewswire/ -- Yellow Corporation (Nasdaq: YELL) today announced that second quarter 2001 earnings per share were $.29, before unusual charges, compared with earnings per share of $.47 in the 2000 second quarter, before unusual gains and fuel hedge benefits.
Consolidated operating revenue for the second quarter was $824.8 million, compared with $904.2 million in the 2000 second quarter. Consolidated operating income, before unusual items and other adjustments, was $19.9 million, compared with $29.5 million in the 2000 second period.
"We operated profitably in a tough economic environment, thanks to a continued focus on cost management that enabled us to offset approximately 90 percent of our revenue decline," said Bill Zollars, Yellow Corporation Chairman, President and CEO. "We have the company well positioned for the future."
Unusual items for the second quarter were $.06 per share, which included a $1.4 million charge for the previously announced integration of WestEx and Action Express with Saia. Including all unusual items, second quarter 2001 earnings per share were $.23. In the second quarter of 2000, the company reported unusual gains of $.36 per share primarily resulting from the sale of real estate property in New York City, and fuel hedge benefits of $.09 per share. When including unusual items and the fuel hedge benefit in second quarter 2000 results, earnings per share were $.92.
Global Transportation Services
Yellow Freight System, the company's largest subsidiary, reported second quarter operating income before unusual items of $15.4 million, down from $26.6 million before unusual items and fuel hedge benefits in the 2000 second quarter. When including the pretax net gain from the sale of the company's New York property and other unusual items, second quarter 2000 operating income was $43.3 million.
The second quarter operating ratio at Yellow Freight was 97.5, compared with 96.2 a year earlier when excluding all unusual items. Revenue for the second quarter was $628.6 million, versus $696.7 million in the 2000 second quarter. On a per-day basis, second quarter revenue was down 9.8 percent over the prior year period. Pricing yields remained strong. LTL revenue per hundred-weight was up 6.3 percent from the 2000 second quarter.
"Yellow Freight delivered a solid quarter through continued excellent cost
management and good improvement in pricing yields," Zollars said. "We firmly
believe that Yellow Freight has become the leader in its sector by continuing
to demonstrate that excellent transportation service is the key to helping
shippers minimize inventory and hold down other supply chain costs."
"The aggressive rollout of our new Regional Advantage service is also starting to result in some positive business trends," Zollars added. "June business volume at the nine primary Regional Advantage distribution centers showed marked improvement. We're now moving more than 70 percent of Yellow Freight shipments in two and three days and the market is responding."
Regional Carrier Group
At Saia Motor Freight Line, second quarter revenue was $123.0 million and operating income was $5.1 million, excluding one-time integration costs of $1.4 million. In the 2000 second quarter, revenue was $122.1 million, and operating income was $3.7 million. Revenue per day in the current quarter was up .7 percent over the 2000 second quarter. The second quarter operating ratio was 95.8, compared with 96.9 in the year-earlier quarter.
"Saia continues to grow their business during a period in which most carriers are seeing declines in both tonnage and revenue," Zollars said. "Now that all the integration charges are behind it, Saia is well positioned to continue growing in the overnight and second-day markets it serves."
Jevic reported second quarter revenue of $72.6 million and operating income of $1.6 million, compared with 2000 second quarter revenue of $76.7 million and operating income of $2.7 million. Revenue per day in the current quarter was down 5.3 percent compared with revenue in the 2000 second quarter. The second quarter operating ratio for Jevic was 97.9, compared with 96.4 in the 2000 second quarter.
"Because of its hybrid truckload/less-than-truckload business model, Jevic is battling the combined effects of volume declines and aggressive pricing," Zollars said. "During the quarter, they implemented strong variable expense controls and maintained excellent service performance."
Transportation.com
In the second quarter, Transportation.com concluded its first year of operation. Revenue for the second quarter was $7.7 million, a 16.4 percent increase over the first quarter.
"Transportation.com is executing its plan of delivering non-asset-based logistics services via the Internet to small and medium sized shippers and carriers," said Zollars. "They continue to gain a strong presence in the marketplace, reduce their funding requirements, and develop new applications that meet the transportation needs of customers."
The second quarter results reflect an after-tax loss of $1.2 million or $.05 per share pertaining to ongoing business development expenses for Transportation.com .
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 logistics company utilizing the Internet 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)
June 30, December 31,
2001 2000
ASSETS
CURRENT ASSETS:
Cash $32,927 $25,799
Accounts receivable 218,584 222,926
Prepaid expenses and other 43,700 64,680
Total current assets 295,211 313,405
PROPERTY AND EQUIPMENT:
Cost 2,135,833 2,128,937
Less - Accumulated depreciation 1,244,933 1,240,359
Net property and equipment 890,900 888,578
GOODWILL AND OTHER ASSETS 106,676 106,494
$1,292,787 $1,308,477
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and checks outstanding $103,578 $140,882
Wages and employees' benefits 153,874 173,332
Other current liabilities 112,366 119,194
Current maturities of long-term debt 1,819 68,792
Total current liabilities 371,637 502,200
OTHER LIABILITIES:
Long-term debt 231,810 136,645
Deferred income taxes 89,751 92,413
Claims, insurance and other 127,175 117,443
Total other liabilities 448,736 346,501
SHAREHOLDERS' EQUITY:
Common stock, $1 par value 30,334 29,959
Capital surplus 29,343 23,304
Retained earnings 530,134 522,195
Accumulated other comprehensive income (4,425) (2,710)
Treasury stock (112,972) (112,972)
Total shareholders' equity 472,414 459,776
$1,292,787 $1,308,477
STATEMENTS OF CONSOLIDATED OPERATIONS
Yellow Corporation and Subsidiaries
For the Quarter and Six Months Ended June 30, 2001 and 2000
(Amounts in thousands except per share data)
(Unaudited)
Second Quarter Six Months
2001 2000 2001 2000
OPERATING REVENUE $824,770 $904,166 $1,656,748 $1,786,252
OPERATING EXPENSES:
Salaries, wages
and benefits 523,117 562,311 1,046,461 1,110,214
Operating expenses
and supplies 136,698 144,971 280,629 292,163
Operating taxes
and licenses 26,422 28,258 54,659 56,451
Claims and insurance 19,111 19,629 37,602 40,596
Depreciation and
amortization 31,566 31,657 63,430 63,117
Purchased
transportation 67,978 86,230 135,655 167,514
Unusual Items (A) 2,243 (14,893) 8,234 (15,093)
Total operating
expenses 807,135 858,163 1,626,670 1,714,962
INCOME FROM OPERATIONS 17,635 46,003 30,078 71,290
NONOPERATING (INCOME) EXPENSES:
Interest expense 4,094 5,060 8,158 9,945
Loss on
Transportation.com 1,861 - 4,397 -
Other, net 1,579 1,258 4,305 2,907
Nonoperating
expenses, net 7,534 6,318 16,860 12,852
INCOME BEFORE
INCOME TAXES 10,101 39,685 13,218 58,438
INCOME TAX PROVISION 4,444 16,174 5,816 24,450
NET INCOME $5,657 $23,511 $7,402 $33,988
AVERAGE SHARES
OUTSTANDING-BASIC 24,164 25,271 23,968 25,212
AVERAGE SHARES
OUTSTANDING-DILUTED 24,342 25,429 24,238 25,364
BASIC EARNINGS
PER SHARE: $.23 $.93 $.31 $1.35
DILUTED EARNINGS
PER SHARE: $.23 $.92 $.31 $1.34
| Note: | |
|---|---|
| (A) Unusual items include integration costs and property gains and losses. |
STATEMENTS OF CONSOLIDATED CASH FLOWS
Yellow Corporation and Subsidiaries
For the Six Months Ended June 30, 2001 and 2000
(Amounts in thousands)
(Unaudited)
2001 2000
OPERATING ACTIVITIES:
Net cash from operating activities $47,002 $69,263
INVESTING ACTIVITIES:
Acquisition of property and equipment (73,203) (93,032)
Proceeds from disposal of
property and equipment 3,996 29,598
Other (4,113) (973)
Net cash used in investing activities (73,320) (64,407)
FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 30,000 -
Treasury stock purchases - (2,551)
Proceeds from stock options and other, net 5,304 5,724
Decrease in long-term debt (1,858) (5,833)
Net cash provided by (used in)
financing activities 33,446 (2,660)
NET INCREASE IN CASH 7,128 2,196
CASH, BEGINNING OF PERIOD 25,799 22,581
CASH, END OF PERIOD $32,927 $24,777
Yellow Corporation
Supplemental Consolidated Financial Information
For the Quarter Ended June 30
(Amounts in thousands)
(Unaudited)
Second Quarter
2001 2000 %
OPERATING INCOME:
Operating income
- as reported $17,635 $46,003 (61.7%)
Unusual (gains) / losses 2,243 (14,893)
Fuel hedge benefit - (3,918)
Transportation.com
charges (A) - 2,289
Operating income
- as adjusted $19,878 $29,481 (32.6%)
OPERATING RATIO:
Operating ratio
- as reported 97.9 94.9
Operating ratio
- as adjusted 97.6 96.7
NET INCOME:
Net income - as reported $5,657 $23,511 (75.9%)
Unusual (gains) / losses 1,377 (9,144)
Fuel hedge benefit - (2,406)
Net income - as adjusted $7,034 $11,961 (41.2%)
EARNINGS PER SHARE:
Earnings per share
- as reported $.23 $.92 (75.0%)
Unusual (gains) / losses .06 (.36)
Fuel hedge benefit - (.09)
Earnings per share
- as adjusted $.29 $.47 (38.3%)
(A) Transportation.com charges for second quarter 2000 moved to nonoperating expenses to be consistent with 2001 treatment.
Yellow Freight System, Inc.
Financial Information
For the Quarter and Six Months Ended June 30
(Amounts in thousands)
Second Quarter Six Months
2001 2000 % 2001 2000 %
Operating revenue 628,596 696,658 (9.8) 1,264,146 1,377,027 (8.2)
Operating income 14,409 43,328 28,011 64,984
Operating ratio 97.7 93.8 97.8 95.3
Total assets at June 30 709,768 759,660
Second Quarter
Second Quarter Amount/Workday
2001 2000 % 2001 2000 %
Workdays (64) (64)
Financial
statement LTL 580,462 645,405 (10.1) 9,069.7 10,084.5 (10.1)
Revenue TL 48,369 54,905 (11.9) 755.8 857.9 (11.9)
Other (235) (3,652) NM (3.7) (57.1) NM
Total 628,596 696,658 (9.8) 9,821.8 10,885.3 (9.8)
Revenue
excluding LTL 580,462 645,405 (10.1) 9,069.7 10,084.5 (10.1)
revenue
recognition TL 48,369 54,905 (11.9) 755.8 857.9 (11.9)
adjustment Other (4) 5 NM (0.1) 0.1 NM
Total 628,827 700,315 (10.2) 9,825.4 10,942.5 (10.2)
Tonnage LTL 1,516 1,792 (15.4) 23.69 28.00 (15.4)
TL 308 352 (12.4) 4.82 5.50 (12.4)
Total 1,824 2,144 (14.9) 28.51 33.50 (14.9)
Shipments LTL 3,051 3,594 (15.1) 47.68 56.16 (15.1)
TL 42 48 (12.7) 0.66 0.75 (12.7)
Total 3,093 3,642 (15.1) 48.34 56.91 (15.1)
Revenue/cwt. LTL 19.14 18.01 6.3
TL 7.85 7.80 0.6
Total 17.23 16.33 5.5
Revenue/
shipment LTL 190.23 179.56 5.9
TL 1,150.57 1,139.55 1.0
Total 203.28 192.26 5.7
Saia Motor Freight Line, Inc.
Financial Information
For the Quarter and Six Months Ended June 30
(Amounts in thousands)
Second Quarter Six Months
2001 2000 % 2001 2000 %
Operating revenue 122,988 122,128 0.7 242,107 240,111 0.8
Operating income *** 5,123 3,724 * 8,206 7,261 **
Operating ratio 95.8 96.9 96.6 97.0
Total assets at June 30 287,494 294,011
Second Quarter
Second Quarter Amount/Workday
2001 2000 % 2001 2000 %
Workdays (64) (64)
Financial
statement LTL 113,132 110,145 2.7 1,767.7 1,721.0 2.7
Revenue TL 9,856 11,983 (17.8) 154.0 187.2 (17.8)
Total 122,988 122,128 0.7 1,921.7 1,908.2 0.7
Revenue
excluding LTL 113,151 110,209 2.7 1,768.0 1,722.0 2.7
revenue
recognition TL 9,858 11,990 (17.8) 154.0 187.3 (17.8)
adjustment Total 123,009 122,199 0.7 1,922.0 1,909.3 0.7
Tonnage LTL 569 586 (2.8) 8.90 9.16 (2.8)
TL 143 185 (23.0) 2.23 2.89 (23.0)
Total 712 771 (7.7) 11.13 12.05 (7.7)
Shipments LTL 1,072 1,134 (5.4) 16.75 17.71 (5.4)
TL 16 21 (23.0) 0.25 0.32 (23.0)
Total 1,088 1,155 (5.8) 17.00 18.03 (5.8)
Revenue/cwt. LTL 9.94 9.40 5.7
TL 3.46 3.24 6.7
Total 8.64 7.92 9.0
Revenue/
shipment LTL 105.56 97.22 8.6
TL 619.26 579.79 6.8
Total 113.08 105.86 6.8
*QTR - 2001 Operating income is before $1,440,000 in one-time integration costs due to the merger with Westex and Action.
**YTD - 2001 Operating income is before $6,825,000 in one-time integration costs due to the merger with Westex and Action.
***Restated for merger and reflects current and prior period amounts as if the merger of WestEx and Action into Saia was effective at the earliest period presented.
Jevic Transportation, Inc.
Financial Information
For the Quarter and Six Months Ended June 30
(Amounts in thousands)
Second Quarter Six Months
2001 2000 % 2001 2000 %
Operating revenue 72,647 76,727 (5.3) 149,505 155,142 (3.6)
Operating Income 1,554 2,748 (43.5) 3,859 6,764 (43.0)
Operating ratio 97.9 96.4 97.4 95.6
Total assets at June 30 249,840 262,411
Second Quarter
Second Quarter Amount/Workday
2001 2000 % 2001 2000 %
Workdays (63) (63)
Financial
statement LTL 47,242 49,307 (4.2) 749.9 782.7 (4.2)
revenue TL 25,405 27,420 (7.3) 403.3 435.2 (7.3)
Total 72,647 76,727 (5.3) 1,153.2 1,217.9 (5.3)
Revenue
excluding LTL 47,117 49,552 (4.9) 747.9 786.5 (4.9)
revenue
recognition TL 25,338 27,557 (8.1) 402.2 437.4 (8.1)
adjustment Total 72,455 77,109 (6.0) 1,150.1 1,223.9 (6.0)
Tonnage LTL 254 267 (4.7) 4.04 4.24 (4.7)
TL 317 357 (11.2) 5.03 5.66 (11.2)
Total 571 624 (8.4) 9.07 9.90 (8.4)
Shipments LTL 208 222 (6.3) 3.31 3.53 (6.3)
TL 35 38 (7.3) 0.56 0.61 (7.3)
Total 243 260 (6.4) 3.87 4.14 (6.4)
Revenue/cwt. LTL 9.27 9.29 (0.2)
TL 4.00 3.86 3.5
Total 6.34 6.18 2.6
Revenue/shipment LTL 226.15 222.95 1.4
TL 716.17 721.92 (0.8)
Total 297.28 296.09 0.4
SOURCE Yellow Corporation
CONTACT: Analysts, Stephen Bruffett, +1-913-696-6108, or Media, Roger Dick, APR, +1-913-696-6184, both of Yellow Corporation/