Yellow Corporation Reports Third Quarter Financial Results
Expense control at Yellow Freight delivers profits despite economy;
-- Saia posts growth in revenue and operating income;
-- Yellow Corp. completes purchase of all Transportation.com shares.
OVERLAND PARK, Kan., Oct 18, 2001 /PRNewswire via COMTEX/ -- Yellow Corporation (Nasdaq: YELL) today announced that third quarter 2001 net income was $6.5 million, or $.26 per share, compared with net income of $19.6 million, or $.80 per share in the 2000 third quarter. Excluding unusual items, earnings per share were $.24 this quarter and $.79 in last year's third quarter.
Consolidated operating revenue for the third quarter was $835 million, down 9.6 percent on a per day basis, from $919 million in the 2000 third quarter. Consolidated operating income was $19.2 million, down 56 percent from $43.4 million in the 2000 third quarter.
"The key to our profitability for the quarter was our continued success in managing our variable expenses," said Bill Zollars, Yellow Corporation Chairman, President and CEO. "However, we did not get the help we anticipated from seasonal shipping trends in offsetting the weak economy. And, while pricing yields were up modestly compared with a year ago, we're encouraged that pricing has remained reasonably stable in the current business environment."
Consolidated operating revenue for the first nine months of 2001 was $2.49 billion, compared with $2.71 billion a year earlier. Operating income for the nine-month period, excluding unusual items, was $56.6 million, down 43.0 percent from $99.3 million a year earlier. Net income, excluding unusual items, was $18.3 million, or $.75 per share, compared with $44.1 million, or $1.76 per share on the same basis for the first nine months of 2000.
Global Transportation Services
Yellow Freight System, the company's largest subsidiary, reported third quarter revenue of $636 million, down 11 percent from $715 million in the 2000 third quarter. Third quarter total tonnage was down 11.1 percent from the year earlier period, with LTL tonnage down 12.2 percent. Revenue per shipment was up 2.6 percent from last year's third quarter. In the 2000 third quarter, revenue per shipment increased by 9.8 percent over the year earlier period. Operating income, before unusual items, was $16.6 million, down from $40 million in the 2000 third quarter. The third quarter operating ratio at Yellow Freight was 97.4, compared with 94.4 a year earlier.
Average days in transit system-wide has been reduced to an all-time record of 2.9 days, with on-time service also at record levels. In addition, premium services Exact Express and Definite Delivery continued to see growth in shipments during the quarter, reflecting demand for our time-definite, expedited transportation services.
"Although business conditions over the near-term appear to be uncertain at best," Zollars said. "Our game plan is focused on providing a broad portfolio of best-in-class transportation services supported by the technology necessary to meet any customer demand. Yellow Freight service is at record levels of efficiency, which is clear evidence that we're meeting those customer demands."
Regional Carrier Group
At Saia, third quarter revenue was $125 million and operating income was $5.1 million. In the 2000 third quarter, revenue was $122 million, and operating income was $3.6 million. Revenue per day in the current quarter was up 2.5 percent over the 2000 third quarter. The third quarter operating ratio was 95.9, compared with 97.1 in the year-earlier quarter. All financial results reflect contributions from the western companies, which were integrated with Saia in the first quarter of 2001.
"Saia has been affected by the weak economy but posted a solid quarter due to a continued focus on the fundamentals of providing excellent service combined with strong cost management," Zollars said.
Jevic reported third quarter revenue of $70.1 million and operating income of $1.1 million, compared with 2000 third quarter revenue of $74.9 million and operating income of $3.1 million. Revenue per day in the current quarter was down 7.9 percent compared with revenue in the 2000 third quarter. The third quarter operating ratio for Jevic was 98.5, compared with 95.9 in the 2000 third quarter.
"Jevic is continuing to battle the combined effects of volume declines and increased competition," Zollars said. "Like Saia, they have kept their focus where it belongs, on strong variable expense controls and excellent service performance."
Logistics Services
Third quarter revenue at Transportation.com was $7.9 million, and third quarter results reflect an after-tax loss of $1.4 million or $.05 per share pertaining to ongoing business development expenses for Transportation.com.
During the third quarter, Yellow Corporation acquired the balance of ownership in Transportation.com from its venture capital partners.
"Transportation.com is increasingly at the center of our strategic effort to build non-asset-based operations that complement our asset-based operations," Zollars said.
"They have transformed from a dot-com company to a full-service global logistics company providing supply chain and inventory management solutions with state-of-the-art technology," Zollars added. "As a wholly owned subsidiary, Transportation.com will deliver value to our shareholders."
Outlook
"As for the fourth quarter, if current economic trends continue and normal seasonality applies, we anticipate fourth quarter results will be less than those reported in the third quarter," Zollars stated.
A teleconference review of Yellow Corporation third quarter 2001 financial results has been scheduled for Friday, October 19, 2001, beginning at 9:30 (EDT), 8:30 (CDT). Hosting the teleconference will be: Bill Zollars, Chairman, President and CEO, Yellow Corporation; Don Barger, Chief Financial Officer, Yellow Corporation; James Welch, President - Yellow Freight System; Bert Trucksess, President - Regional Carrier Group; and Stephen Bruffett, Treasurer - Yellow Corporation.
To participate, please dial 1-888-857-6932 and then the access code, 529762. Callers should dial in 5 to 10 minutes prior to the start of the call. The conference call will be webcast live via StreetEvents at www.streetevents.com and via the Yellow Corporation Internet site www.yellowcorp.com . An audio playback will be available for seven days after October 19 by calling 1-888-203-1112 and then dialing the access code, 529762. An audio playback also will be available for 30 days after the call via the StreetEvents, and Yellow Corporation web sites.
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. Its largest subsidiary, Yellow Freight System, is a national carrier offering a range of services for transportation and related movement of goods and materials. The Yellow Regional Carrier Group includes: Saia, providing overnight and second- day trucking service in 21 Southern and Western states; and Jevic Transportation, providing a multi-regional less-than-truckload and truckload services. Transportation.com www.transportation.com is a non-asset-based global logistics company utilizing the Internet to provide broad-based transportation services for shippers and carriers. Headquartered in Overland Park, Kansas, Yellow employs approximately 30,000 people.
CONSOLIDATED BALANCE SHEETS
Yellow Corporation and Subsidiaries
(Amounts in thousands except per share data)
(Unaudited)
September December
30, 31,
2001 2000
ASSETS
CURRENT ASSETS:
Cash $22,255 $25,799
Accounts receivable 231,706 222,926
Prepaid expenses and other 41,578 64,680
Total current assets 295,539 313,405
PROPERTY AND EQUIPMENT:
Cost 2,141,095 2,128,937
Less - Accumulated depreciation 1,258,477 1,240,359
Net property and equipment 882,618 888,578
GOODWILL AND OTHER ASSETS 120,758 106,494
$1,298,915 $1,308,477
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and checks
outstanding $103,280 $140,882
Wages and employees' benefits 141,135 173,332
Other current liabilities 114,267 119,194
Current maturities of long-term
debt 1,749 68,792
Total current liabilities 360,431 502,200
OTHER LIABILITIES:
Long-term debt 232,465 136,645
Deferred income taxes 96,457 92,413
Claims, insurance and other 122,419 117,443
Total other liabilities 451,341 346,501
SHAREHOLDERS' EQUITY:
Common stock, $1 par value 30,878 29,959
Capital surplus 38,893 23,304
Retained earnings 536,612 522,195
Accumulated other comprehensive
income (6,268) (2,710)
Treasury stock (112,972) (112,972)
Total shareholders' equity 487,143 459,776
$1,298,915 $1,308,477
STATEMENTS OF CONSOLIDATED OPERATIONS
Yellow Corporation and Subsidiaries
For the Quarter and Nine Months Ended September 30, 2001
and 2000
(Amounts in thousands except per share data)
(Unaudited)
Third Quarter Nine Months
2001 2000 2001 2000
OPERATING REVENUE $834,614 $918,898 $2,491,361 $2,705,150
OPERATING EXPENSES:
Salaries, wages and
benefits 528,324 564,569 1,574,786 1,674,782
Operating expenses and
supplies 135,807 143,933 416,436 436,097
Operating taxes and
licenses 26,563 27,513 81,221 83,965
Claims and insurance 19,624 20,332 57,226 60,928
Depreciation and
amortization 31,100 32,062 94,530 95,179
Purchased transportation 74,933 87,425 210,587 254,939
Unusual Items (a) (974) (297) 7,260 (15,391)
Total operating
expenses 815,377 875,537 2,442,046 2,590,499
INCOME FROM OPERATIONS 19,237 43,361 49,315 114,651
NONOPERATING (INCOME)
EXPENSES:
Interest expense 4,302 5,127 12,461 15,071
Loss on Transportation.com 1,344 - 5,741 -
Other, net 1,294 3,720 5,599 6,627
Nonoperating expenses,
net 6,940 8,847 23,801 21,698
INCOME BEFORE INCOME TAXES 12,297 34,514 25,514 92,953
INCOME TAX PROVISION 5,819 14,961 11,634 39,412
NET INCOME $6,478 $19,553 $13,880 $53,541
AVERAGE SHARES OUTSTANDING-
BASIC 24,497 24,427 24,234 24,949
AVERAGE SHARES OUTSTANDING-
DILUTED 24,854 24,503 24,533 25,075
BASIC EARNINGS PER SHARE $0.26 $0.80 $0.57 $2.15
DILUTED EARNINGS PER SHARE $0.26 $0.80 $0.57 $2.14
Note:
(a) Unusual items include integration costs and property gains and losses.
STATEMENTS OF CONSOLIDATED CASH FLOWS
Yellow Corporation and Subsidiaries
For the Nine Months Ended September 30, 2001 and 2000
(Amounts in thousands)
(Unaudited)
2001 2000
OPERATING ACTIVITIES:
Net cash from operating
activities $63,137 $151,993
INVESTING ACTIVITIES:
Acquisition of property and
equipment (96,501) (141,489)
Proceeds from disposal of
property and equipment 7,812 29,899
Other (20,678) (1,343)
Net cash used in investing
activities (109,367) (112,933)
FINANCING ACTIVITIES:
Treasury stock purchases - (21,868)
Proceeds from stock options and
other, net 13,983 5,951
Increase (decrease) in long-term
debt 28,703 (16,830)
Net cash provided by (used
in) financing activities 42,686 (32,747)
NET (DECREASE) INCREASE IN CASH (3,544) 6,313
CASH, BEGINNING OF PERIOD 25,799 22,581
CASH, END OF PERIOD $22,255 $28,894
Yellow Corporation
Supplemental Consolidated Financial Information
For the Three and Nine Months Ended September 30
(Amounts in thousands except per share data)
(Unaudited)
Third Quarter Year-to-date
2001 2000 % 2001 2000 %
OPERATING INCOME:
Operating income _ as
reported $19,237 $43,361 (55.6%) $49,315 $114,651 (57.0%)
Unusual (gains) /
losses (974) (297) 7,260 (15,391)
Operating income _ as
adjusted $18,263 $43,064 (57.6%) $56,575 $99,260 (43.0%)
OPERATING RATIO:
Operating ratio _ as
reported 97.7% 95.3% 98.0% 95.8%
Operating ratio _ as
adjusted 97.8% 95.3% 97.7% 96.3%
NET INCOME:
Net income _ as
reported $6,478 $19,553 (66.9%) $13,880 $53,541 (74.1%)
Unusual (gains) /
losses (598) (182) 4,458 (9,450)
Net income _ as
adjusted $5,880 $19,371 (69.6%) $18,338 $44,091 (58.4%)
EARNINGS PER SHARE:
Earnings per share _
as reported $0.26 $0.80 (67.5%) $0.57 $2.14 (73.4%)
Unusual (gains) /
losses (0.02) (0.01) 0.18 (0.38)
Earnings per share _
as adjusted $0.24 $0.79 (70.2%) $0.75 $1.76 (57.4%)
Yellow Freight System, Inc.
Financial Information
For the Quarter and Nine Months Ended September 30
(Amounts in thousands)
Third Quarter Nine Months
2001 2000 % 2001 2000 %
Operating revenue 636,153 715,138 (11.0) 1,900,299 2,092,165 (9.2)
Operating income 17,307 39,450 45,318 104,434
Operating ratio 97.3 94.5 97.6 95.0
Total assets at
September 30 703,432 785,879
Third Quarter
Third Quarter Amount/Workday
2001 2000 % 2001 2000 %
Workdays 63 63
Financial
statement LTL 582,464 656,101 (11.2) 9,245.5 10,414.3 (11.2)
revenue TL 50,237 54,842 (8.4) 797.4 870.5 (8.4)
Other 3,452 4,194 (17.7) 54.8 66.6 (17.7)
Total 636,153 715,137 (11.0) 10,097.7 11,351.4 (11.0)
Revenue
excluding LTL 582,464 656,101 (11.2) 9,245.5 10,414.3 (11.2)
revenue
recognition TL 50,237 54,905 (8.4) 797.4 870.5 (8.4)
adjustment Other (1) (1) NM 0.0 0.0 NM
Total 632,700 710,942 (11.0) 10,042.9 11,284.8 (11.0)
Tonnage LTL 1,539 1,752 (12.2) 24.43 27.82 (12.2)
TL 327 346 (5.6) 5.18 5.49 (5.6)
Total 1,866 2,098 (11.1) 29.61 33.31 (11.1)
Shipments LTL 3,046 3,514 (13.3) 48.35 55.78 (13.3)
TL 44 47 (6.6) 0.70 0.75 (6.6)
Total 3,090 3,561 (13.2) 49.05 56.53 (13.2)
Revenue/cwt. LTL 18.93 18.72 1.1
TL 7.69 7.93 (3.0)
Total 16.96 16.94 0.1
Revenue/
shipment LTL 191.21 186.72 2.4
TL 1,135.45 1,157.49 (1.9)
Total 204.73 199.63 2.6
Note: Statistical tables for Saia and Jevic will be reformatted and this release
will be reissued.
Saia Motor Freight Line, Inc.
Financial Information
For the Quarter and Nine Months Ended September 30
(Amounts in thousands)
Third Quarter Nine Months
2001 2000 % 2001 2000 %
Operating revenue 125,072 121,993 2.5 367,179 362,105 1.4
Operating income*** 5,077 3,584 13,282 10,843
Operating ratio 95.9 96.9 96.6 97.0
Total assets at September 30 288,635 298,399
Third Quarter Amount/Workday
2001 2000 % 2001 2000 %
Workdays 63 63
Financial
statement LTL 115,093 111,065 3.6 1,826.9 1,762.9 3.6
revenue TL 9,979 10,928 (8.7) 158.4 173.5 (8.7)
Total 125,072 121,993 2.5 1,985.3 1,936.4 2.5
Revenue
excluding LTL 115,083 11,254 3.4 1,826.7 1,765.9 3.4
revenue
recognition TL 9,978 10,947 (8.9) 158.4 173.8 (8.9)
adjustment Total 125,061 122,201 2.3 1,985.3 1,939.7 2.3
Tonnage LTL 574 588 (2.5) 9.10 9.34 (2.5)
TL 136 167 (18.9) 2.16 2.66 (18.9)
Total 710 755 (6.1) 11.26 12.00 (6.1)
Shipments LTL 1,076 1,095 (1.7) 17.09 17.38 (1.7)
TL 16 19 (17.0) 0.25 0.30 (17.0)
Total 1,092 1,114 (2.0) 17.34 17.68 (2.0)
Revenue/cwt. LTL 10.03 9.46 6.1
TL 3.67 3.27 12.3
Total 8.82 8.09 9.0
Revenue/
shipment LTL 106.91 101.58 5.2
TL 636.64 580.07 9.8
Total 114.51 109.69 4.4
**YTD - 2001 Operating income is before $6,705,000 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.
**YTD - 2001 Operating income is before $6,705,000 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 waseffective at the
earliest period presented.
Saia Motor Freight Line, Inc.
Financial Information
For the Quarter and Nine Months Ended September 30
(Amounts in thousands)
Third Quarter
Amount/Workday
2001 2000 %
Workdays 63 63
Financial statement LTL 1,826.9 1,762.9 3.6
revenue TL 158.4 173.5 (8.7)
Total 1,985.3 1,936.4 2.5
Revenue excluding LTL 1,826.7 1,765.9 3.4
revenue recognition TL 158.4 173.8 (8.9)
adjustment Total 1,985.3 1,939.7 2.3
Tonnage LTL 9.10 9.34 (2.5)
TL 2.16 2.66 (18.9)
Total 11.26 12.00 (6.1)
Shipments LTL 17.09 17.38 (1.7)
TL 0.25 0.30 (17.0)
Total 17.34 17.68 (2.0)
Revenue/cwt. LTL
TL
Total
Revenue/shipment LTL
TL
Total
**YTD - 2001 Operating income is before $6,705,000 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 waseffective at the
earliest period presented.
Jevic Transportation, Inc.
Financial Information
For the Quarter and Nine Months Ended September 30
(Amounts in thousands)
Third Quarter Nine Months
2001 2000 % 2001 2000 %
Operating revenue 70,080 74,866 (6.4) 219,585 230,008 (4.5)
Operating income 1,060 3,055 4,919 9,819
Operating ratio 98.5 95.9 97.8 95.7
Total assets at September 30 242,113 259,318
Third Quarter
2001 2000 %
Workdays
Financial statement LTL 45,385 48,547 (6.5)
revenue TL 24,695 26,319 (6.2)
Total 70,080 74,866 (6.4)
Revenue excluding LTL 45,516 48,634 (6.4)
revenue recognition TL 24,765 26,361 (6.1)
adjustment Total 70,281 74,995 (6.3)
Tonnage LTL 245 259 (5.2)
TL 315 336 (6.4)
Total 560 595 (5.9)
Shipments LTL 202 214 (5.8)
TL 35 37 (5.0)
Total 237 251 (5.7)
Revenue/cwt. LTL 9.28 9.40 (1.3)
TL 3.93 3.92 0.4
Total 6.27 6.30 (0.5)
Revenue/shipment LTL 225.53 226.91 (0.6)
TL 711.86 719.52 (1.1)
Total 297.03 298.83 (0.6)
Jevic Transportation, Inc.
Financial Information
For the Quarter and Nine Months Ended September 30
(Amounts in thousands)
Third Quarter
Amount/Workday
2001 2000 %
Workdays 63 62
Financial statement LTL 720.4 783.0 (8.0)
revenue TL 392.0 424.5 (7.7)
Total 1,112.4 1,207.5 (7.9)
Revenue excluding LTL 722.5 784.4 (7.9)
revenue recognition TL 393.1 425.2 (7.5)
adjustment Total 1,115.6 1,209.6 (7.8)
Tonnage LTL 3.89 4.17 (6.7)
TL 5.00 5.43 (7.9)
Total 8.89 9.60 (7.4)
Shipments LTL 3.20 3.46 (7.3)
TL 0.55 0.59 (6.6)
Total 3.75 4.05 (7.2)
Revenue/cwt. LTL
TL
Total
Revenue/shipment LTL
TL
Total
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X68201653
SOURCE Yellow Corporation
CONTACT: Analysts, Stephen Bruffett, +1-913-696-6108, or Media, Roger
Dick, APR, +1-913-696-6184, both of Yellow Corporation
URL: http://www.transportation.com
http://www.yellowcorp.com
http://www.prnewswire.com
Copyright (C) 2001 PR Newswire. All rights reserved.