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 June 30, 1997
-------------
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
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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 July 31, 1997
----- ----------------------------
Common Stock, $1 Par Value 28,418,460 shares
2
YELLOW CORPORATION
INDEX
Item Page
- ---- ----
PART I
------
1. Financial Statements
Consolidated Balance Sheets -
June 30, 1997 and December 31, 1996 3
Statements of Consolidated Income -
Three and Six Months Ended June 30, 1997 and 1996 4
Statements of Consolidated Cash Flows -
Three and Six Months Ended June 30, 1997 and 1996 5
Notes to Consolidated Financial Statements 6
2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II
-------
6. Exhibits and Reports on Form 8-K 15
Signatures 16
2
3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS (Unaudited)
Yellow Corporation and Subsidiaries
June 30, 1997 and December 31, 1996
(Amounts in thousands except share data)
June 30 December 31
1997 1996
---------- -----------
ASSETS
CURRENT ASSETS:
Cash $ 21,529 $ 24,800
Accounts receivable 341,137 280,758
Refundable income taxes - 6,150
Prepaid expenses and other 35,641 78,300
---------- ----------
Total current assets 398,307 390,008
---------- ----------
PROPERTY AND EQUIPMENT:
Cost 1,947,212 1,965,798
Less - Accumulated depreciation 1,178,260 1,153,108
---------- ----------
Net property and equipment 768,952 812,690
---------- ----------
OTHER ASSETS 23,351 25,109
---------- ----------
$1,190,610 $1,227,807
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and checks outstanding $ 108,189 $ 151,538
Wages and employees' benefits 149,942 132,255
Other current liabilities 141,728 136,251
Current maturities of long-term debt 2,825 3,661
---------- ----------
Total current liabilities 402,684 423,705
---------- ----------
OTHER LIABILITIES:
Long-term debt 171,077 192,492
Deferred income taxes 22,450 31,555
Claims, insurance and other 178,227 184,355
---------- ----------
Total other liabilities 371,754 408,402
---------- ----------
SHAREHOLDERS' EQUITY:
Common stock, $1 par value 28,868 28,863
Capital surplus 6,837 6,745
Retained earnings 398,087 377,712
Treasury stock (17,620) (17,620)
---------- ----------
Total shareholders' equity 416,172 395,700
---------- ----------
$1,190,610 $1,227,807
========== ==========
The accompanying notes are an integral part of these statements.
3
4
STATEMENTS OF CONSOLIDATED OPERATIONS (Unaudited)
Yellow Corporation and Subsidiaries
For the Three and Six Months Ended June 30, 1997 and 1996
(Amounts in thousands except per share data)
Three Months Six Months
------------------ ----------------------
1997 1996 1997 1996
-------- -------- ---------- ----------
OPERATING REVENUE $844,437 $759,285 $1,629,581 $1,500,963
-------- -------- ---------- ----------
OPERATING EXPENSES:
Salaries, wages and benefits 543,827 506,291 1,058,875 1,006,571
Operating expenses and supplies 123,730 119,293 244,681 237,573
Operating taxes and licenses 28,416 28,083 57,616 57,700
Claims and insurance 18,655 16,945 35,982 34,296
Communications and utilities 10,372 10,961 21,591 22,286
Depreciation 29,125 32,635 59,338 66,137
Purchased transportation 63,237 36,663 109,251 76,137
-------- -------- ---------- ----------
Total operating expenses 817,362 750,871 1,587,334 1,500,700
-------- -------- ---------- ----------
INCOME FROM OPERATIONS 27,075 8,414 42,247 263
-------- -------- ---------- ----------
NONOPERATING (INCOME) EXPENSES:
Interest expense 3,150 5,203 7,053 12,055
Other, net (968) (1,219) (1,217) (396)
-------- -------- ---------- ----------
Nonoperating expenses, net 2,182 3,984 5,836 11,659
-------- -------- ---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 24,893 4,430 36,411 (11,396)
INCOME TAX PROVISION 10,918 2,411 15,935 836
-------- -------- ---------- ----------
NET INCOME (LOSS) $ 13,975 $ 2,019 $ 20,476 $ (12,232)
======== ======== ========== ==========
AVERAGE COMMON SHARES OUTSTANDING 28,115 28,106 28,113 28,106
======== ======== ========== ==========
EARNINGS (LOSS) PER SHARE $ .50 $ .07 $ .73 $ (.44)
======== ======== ========== ==========
The accompanying notes are an integral part of these statements.
4
5
STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited)
Yellow Corporation and Subsidiaries
For the Six Months Ended June 30, 1997 and 1996
(Amounts in thousands)
1997 1996
--------- ---------
OPERATING ACTIVITIES:
Net cash from operating activities $ 33,565 $ 87,976
--------- ---------
INVESTING ACTIVITIES:
Acquisition of property and equipment (26,565) (32,053)
Proceeds from disposal of property and equipment 11,884 3,930
Purchases of short-term investments - (1,684)
Proceeds from maturities of short-term investments - 7,098
--------- ---------
Net cash used in investing activities (14,681) (22,709)
--------- ---------
FINANCING ACTIVITIES:
Unsecured bank credit lines, net - 1,000
Commercial paper, net (11,832) (62,426)
Repayment of long-term debt (10,420) (12,777)
Other, net 97 -
--------- ---------
Net cash used in financing activities (22,155) (74,203)
--------- ---------
NET DECREASE IN CASH (3,271) (8,936)
CASH, BEGINNING OF PERIOD 24,800 25,861
--------- ---------
CASH, END OF PERIOD $ 21,529 $ 16,925
========= =========
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes (received) paid, net $ 13,377 $ (42,063)
========= =========
Interest paid $ 6,605 $ 11,982
========= =========
The accompanying notes are an integral part of these statements.
5
6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Yellow Corporation and Subsidiaries
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 1996 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), Preston
Trucking Company, Inc. (Preston Trucking), Saia Motor Freight Line, Inc.
(Saia) and WestEx, Inc. (WestEx). Yellow Services, Inc., formerly Yellow
Technology Services, Inc. (Yellow Services) supports the company's
subsidiaries - primarily Yellow Freight - with information technology and
other services. Yellow Freight, the company's principal subsidiary,
comprises approximately 75 percent of total revenue while Preston Trucking
comprises approximately 14 percent and Saia comprises approximately 10
percent.
3. For periods ended after December 15, 1997, the company will be required
to report basic and diluted earnings per share in accordance with recently
released Financial Accounting Standards Board Statement No. 128, Earnings
Per Share. The accounting change will result in a basic earnings per
share of $.50 and diluted earnings per share of $.49 for the quarter ended
June 30, 1997. Under the new standard, basic and diluted earnings per
share will equal previously reported earnings per share for the quarter
ended March 31, 1997, and all 1996 quarters. The dilutive impact of
outstanding options and other securities during those periods was not
material.
4. As further described in the footnotes to the 1996 consolidated financial
statements, Yellow Freight recorded a special charge of $46.1 million, or
$28.3 million after taxes in the fourth quarter of 1996. The major
components of the charge and subsequent activity are as summarized below
(amounts in millions):
6
7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Quarter Ended June 30, 1997
--------------------------------------------
Beginning Favorable Paid or Ending
Balance Revisions Utilized Balance
--------- --------- -------- -------
Write down nonoperating
real estate $ 15.4 $ - $ 1.3 $ 14.1
Severance and organization
design 2.8 - 2.0 .8
--------- ------- ------- --------
Total charge before taxes $ 18.2 $ - $ 3.3 $ 14.9
======== ======= ======= ========
Quarter Ended March 31, 1997
-------------------------------
1996 Favorable Paid or Ending
Charge Revisions Utilized Balance
------- --------- -------- -------
Write down nonoperating
real estate $ 16.5 $ - $ 1.1 $ 15.4
Write off computer software 8.4 - 8.4 -
Early retirement program 13.7 - 13.7 -
Company car program reduction 3.6 .4 3.2 -
Severance and organization
design 3.9 .2 .9 2.8
-------- ------- ------- --------
Total charge before taxes $ 46.1 $ .6 $ 27.3 $ 18.2
======== ======= ======= ========
Marketing efforts continue on nonoperating real estate. During the second
and first quarter of 1997, nonoperating property written down in the
charge to $1.8 million and $1.4 million was sold for $1.8 million and $1.4
million, respectively, utilizing portions of the write down. As disclosed
in the footnotes to the 1996 consolidated financial statements, the
pension benefit obligation under defined benefit pension plans increased
$12.9 million in 1996 as a result of the 130 employees electing the early
retirement program. Other early retirement program costs were paid in
cash in the first quarter of 1997. All company car reduction program
costs were paid in cash in the first quarter of 1997. Severance payments
are expected to continue through the first quarter of 1998. Revisions to
estimates during the first quarter of 1997 were reflected in operations.
5. During 1996, Yellow Freight trimmed more than $75 million in expenses.
During 1997, the company expects to achieve cumulative savings of $142
million. This is comprised of $90 million in a full year of savings from
cost reductions implemented in 1996 and $58 million from additional 1997
programs designed to increase workforce productivity and create other
efficiencies. The $58 million is net of implementation costs and $5.6
million in nonrecurring second quarter relocation expenses resulting from
a change of operations in mid-April expected to enable the increase in
Yellow Freight's utilization of lower-cost rail service. The 1997
programs are expected to also result in $90 million in full year savings.
The running rate of savings achieved with the 1996 and 1997 programs is
expected to be $180 million. The savings are being partially offset by
the $44 million impact of a contract wage and benefit increase for Yellow
Freight's Teamster employees that became effective April 1, 1997.
7
8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
FINANCIAL CONDITION
June 30, 1997 Compared to December 31, 1996
Working capital increased $29.3 million during the first six months of 1997,
resulting in a $4.4 million deficit working capital position at June 30, 1997
compared to a $33.7 million deficit position at December 31, 1996. The
improvement in working capital was primarily the result of increased accounts
receivable partially offset by growth in wages and employees' benefits and
other liabilities. The accounts receivable increase of $60.4 million is
comprised of $45.5 growth due to increased revenue levels and a $15.0 million
increase due to the reduction in accounts receivable subject to Yellow
Freight's receivables purchase agreement. 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.
Total debt during the first six months of 1997 decreased $22.3 million. Net
capital expenditures for the first six months of 1997 were $14.7 million.
Subject to ongoing review, total net capital spending for 1997 are expected to
total approximately $109.0 million.
RESULTS OF OPERATIONS
Comparison of Three Months Ended June 30, 1997 and 1996
Operating revenue in the second quarter was $844.4 million, an 11.2 percent
improvement over second quarter 1996 revenue of $759.3 million. Net income for
the quarter was $14.0 million, or $.50 per share, versus 1996 second quarter
net income of $2.0 million, or $.07 per share. Operating income for Yellow
Corporation was $27.1 million, up from $8.4 million in the 1996 period. The
second quarter results included a $5.6 million pre-tax charge against earnings
($.12 per share) for employee relocation and other expenses related to a major
change of operations implemented in April at Yellow Freight System which will
enable an increased use of rail in linehaul operations.
Improved margins are primarily the result of an array of revenue growth and
expense reduction programs, which offset higher contractual labor costs and
inflation. Revenue for the quarter was up 11.2 percent, due to improved
pricing and stronger tonnage, while expenses increased by only 8.9 percent.
During the second quarter, Yellow Freight System reported operating income of
$22.7 million, compared with $8.9 million in the 1996 second quarter. Yellow
Freight's revenue for the 1997 second quarter was $640.9 million, a 10.4
percent increase from $580.6 million in the year-earlier period. Yellow
Freight's operating ratio improved to 96.5, from 98.5 in the 1996 second
quarter. Excluding the non-recurring change of operations costs, Yellow
Freight's current quarter operating ratio was 95.6.
8
9
RESULTS OF OPERATIONS (continued)
Tonnage per day at Yellow Freight for the 1997 second quarter was better than
planned, growing by 7.9 percent over the same quarter of 1996. Revenue per ton
increased 2.5 percent over the 1996 second quarter. Costs per ton, excluding
the non-recurring change of operation costs, decreased .5 percent versus the
year-earlier period. Costs per ton fell even though on April 1, unionized
wages and benefits increased 3.8 percent.
Current performance at Yellow Freight is benefiting from stabilized prices, an
improved economy, and the impacts of cost reduction programs, which include
benefits from the increased use of rail service. The increase in rail miles as
a percentage of total linehaul miles is reducing salary, wages and benefits and
other operating expenses as a percentage of revenue and increases purchased
transportation as a percentage of revenue.
Preston Trucking Company reported second quarter revenue of $113.4 million, up
7.7 percent from $105.3 million in the 1996 second period. Operating income was
$0.4 million, a $2.3 million improvement from a $1.9 million operating loss in
the 1996 second quarter. Preston had a 99.6 operating ratio for the 1997
second quarter, compared with 101.8 operating ratio in the 1996 quarter.
Preston will continue to focus on tonnage growth and freight mix improvement
while implementing a range of productivity and cost reduction initiatives.
Saia Motor Freight continued to see double digit revenue growth. Saia recorded
revenue of $77.6 million, up 18.5 percent from $65.5 million in the 1996 second
quarter. The increased revenue reflects a 15.4 percent increase in the number
of shipments handled this year compared to 1996. Operating income was $4.8
million, up from $3.6 million in the 1996 period. Saia's operating ratio was
93.8, compared with 94.6 in the 1996 second quarter.
WestEx continued to perform as planned and posted revenue of $12.5 million, up
from $7.9 million in the 1996 second quarter.
Interest expense fell between years as a result of reduced debt levels. The
effective tax rate was 43.9% in the 1997 quarter and 54.4% in the 1996 quarter.
Comparison of Six Months Ended June 30, 1997 and 1996
For the first six months of 1997, Yellow Corporation recorded revenue of $1.6
billion, up 8.6 percent from $1.5 billion in the first half of 1996. Net
income was $20.5 million, or $.73 per share, compared with a net loss of $12.2
million, or $.44 per share, in the first half of 1996. Operating income for
the 1997 first half was $42.2 million, compared with $.3 million in the 1996
first half. A non-recurring income tax charge and severe winter storms
negatively impacted the company's first half 1996 performance causing the loss
for the period. The non-recurring 1996 tax charge amounted to $6.7 million, or
$.24 per share and resulted from a cash dividend from Canadian operations of
$23.0 million which was used to pay down debt.
9
10
RESULTS OF OPERATIONS (continued)
Yellow Freight recorded operating revenue of $1.2 billion in the first half of
1997, a 7.2 percent increase over first half 1996. This increase reflects
higher tonnage levels and an improvement in revenue per ton. Operating income
for the first six months of 1997 was $38.2 million compared to $6.6 million in
the same period last year. The operating income in 1996 suffered due to first
quarter 1996 severe winter storms, a decrease in the system load average
attributable to a transit time improvement program implemented in the third
quarter of 1995 and flat pricing.
Current performance at Yellow Freight is benefiting from stabilized prices, an
improved economy, and the impacts of cost reduction programs, which include
benefits from the increased use of rail service. The increase in rail miles as
a percentage of total linehaul miles is reducing salary, wages and benefits and
other operating expenses as a percentage of revenue and increases purchased
transportation as a percentage of revenue.
Operating revenue for Preston Trucking in the first six months of 1997
was $216.9 million, up 6.5 percent compared to $203.7 million in 1996. This
increase reflects higher tonnage levels and an improvement in revenue per ton.
The operating loss in the first six months of 1997 was $2.5 million compared to
an operating loss of $7.1 million in the same period last year. During the
first quarter of 1996, Preston employees agreed to freeze wages through March
of 1998, in lieu of the standard contract increases scheduled for April 1, 1996
and April 1, 1997. Preston's 1996 operating performance suffered extreme
adverse impacts from the severe winter weather as its service area is
concentrated in the Northeast and upper Midwest.
Saia recorded operating revenue of $150.0 million in the first half of 1997
compared to $126.1 million in the same period of 1996, an increase of 18.9
percent. The increased revenue reflects an increase in the number of shipments
handled this year compared to 1996. Operating income was $8.4 million for the
first six months of 1997 compared to $6.6 million in the same period last year.
WestEx continued to perform as planned and posted revenue of $22.9 million in
the first half, up from $14.4 million in 1996.
Interest expense fell between years as a result of reduced debt levels.
The effective income tax rate for the 1997 first half was 43.8 percent. The
1996 period included a non-recurring tax charge of $6.7 million, or $.24 per
share resulting from a cash dividend from Canadian operations of $23.0 million
which was used to pay down debt which offset the tax benefit of the loss.
10
11
RESULTS OF OPERATIONS (continued)
The above information includes forward-looking statements. Actual future
results could differ materially from those projected in such statements as a
result of a number of factors which could negatively impact the company,
including adverse weather conditions, the price and availability of diesel
fuel, competitor pricing activity and a downturn in general economic activity.
11
12
Yellow Freight System, Inc.
Financial Information
For the Three and Six Months Ended June 30, 1997 and 1996
(Amounts in thousands)
Second Quarter % Six Months %
----------------- --------------------
1997 1996 Change 1997 1996 Change
------- ------- ------ --------- --------- ------
Operating revenue 640,909 580,628 10.4 1,239,736 1,156,705 7.2
Operating income 22,733 8,879 38,178 6,555
Operating ratio 96.5 98.5 96.9 99.4
Operating ratio excluding
change in operations 95.6 N/A 96.5 N/A
Total assets at June 30 889,690 934,070
Second Quarter
Second Quarter Amount/Workday
-------------------- % ------------------ %
1997 1996 Change 1997 1996 Change
-------- -------- ------ -------- -------- ------
Workdays (64) (64)
-------- --------
F/S Revenue LTL 585,861 528,341 10.9 9,154.1 8,255.3 10.9
TL 56,617 52,121 8.6 884.6 814.4 8.6
Other (1,569) 166 N/M (24.5) 2.6 N/M
Total 640,909 580,628 10.4 10,014.2 9,072.3 10.4
Revenue excluding revenue LTL 585,861 528,341 10.9 9,154.1 8,255.3 10.9
recognition adjustment TL 56,617 52,121 8.6 884.6 814.4 8.6
Other 495 2,013 N/M 7.7 31.5 N/M
Total 642,973 582,475 10.4 10,046.5 9,101.2 10.4
Tonnage LTL 1,802 1,670 7.9 28.16 26.09 7.9
TL 402 372 8.1 6.28 5.81 8.1
Total 2,204 2,042 7.9 34.44 31.91 7.9
Shipments LTL 3,650 3,306 10.4 57.03 51.66 10.4
TL 54 50 8.0 .84 .78 8.0
Total 3,704 3,356 10.4 57.88 52.44 10.4
Revenue/cwt LTL 16.26 15.82 2.7
TL 7.04 7.00 .5
Total 14.57 14.21 2.5
Revenue/shipment LTL 160.51 159.81 .4
TL 1,044.51 1,040.54 .4
Total 173.44 172.96 .3
12
13
Preston Trucking Company, Inc.
Financial Information
For the Three and Six Months Ended June 30, 1997 and 1996
(Amounts in thousands)
Second Quarter % Six Months %
---------------- -----------------------
1997 1996 Change 1997 1996 Change
------- ------- ------ ---------- ---------- ------
Operating revenue 113,441 105,292 7.7 216,929 203,682 6.5
Operating income (loss) 399 (1,931) (2,492) (7,062)
Operating ratio 99.6 101.8 101.1 103.5
Total Assets at June 30 160,398 157,483
Second Quarter
Second Quarter % Amount/Workday %
----------------- ----------------------
1997 1996 Change 1997 1996 Change
------- ------- ------ -------- ------- ------
Workdays (64) (63)
---- ----
F/S Revenue LTL 100,772 92,376 9.1 1,574.6 1,466.3 7.4
TL 11,842 11,664 1.5 185.0 185.1 (.1)
Other 827 1,252 (33.9) 12.9 19.9 (35.0)
Total 113,441 105,292 7.7 1,772.5 1,671.3 6.1
Revenue excluding revenue LTL 100,772 92,376 9.1 1,574.6 1,466.3 7.4
recognition adjustment TL 11,842 11,664 1.5 185.0 185.1 (.1)
Other 1,262 1,324 (4.7) 19.7 20.0 (6.2)
Total 113,876 105,364 8.1 1,779.3 1,672.4 6.4
Tonnage LTL 485 467 3.9 7.58 7.41 2.2
TL 129 127 1.6 2.02 2.02 (.0)
Total 614 594 3.4 9.59 9.43 1.8
Shipments LTL 919 874 5.1 14.36 13.87 3.5
TL 18 18 .0 .28 .29 (1.5)
Total 937 892 5.0 14.64 14.16 3.4
Revenue/cwt LTL 10.39 9.90 4.9
TL 4.60 4.60 .0
Total 9.18 8.76 4.8
Revenue/shipment LTL 109.70 105.67 3.8
TL 662.03 648.54 2.1
Total 120.25 116.61 3.1
13
14
Saia Motor Freight Line, Inc.
Financial Information
For the Three and Six Months Ended June 30, 1997 and 1996
(Amounts in thousands)
Second Quarter % Six Months %
---------------- ----------------
1997 1996 Change 1997 1996 Change
------- ------- ------ ------- ------- ------
Operating revenue 77,551 65,459 18.5 149,971 126,147 18.9
Operating income 4,777 3,555 8,372 6,628
Operating ratio 93.8 94.6 94.4 94.7
Total assets at June 30 157,750 157,026
Second Quarter
Second Quarter % Amount/Workday %
---------------- ----------------
1997 1996 Change 1997 1996 Change
------- ------- ------ ------- ------ ------
Workdays (64) (64)
------- -------
F/S Revenue LTL 69,623 57,677 20.7 1,087.9 901.2 20.7
TL 7,928 7,782 1.9 123.9 121.6 1.9
Total 77,551 65,459 18.5 1,211.7 1,022.8 18.5
Revenue excluding revenue LTL 69,904 57,783 21.0 1,092.3 902.9 21.0
recognition adjustment TL 7,960 7,797 2.1 124.4 121.8 2.1
Total 77,864 65,580 18.7 1,216.6 1,024.7 18.7
Tonnage LTL 414 358 15.6 6.47 5.59 15.6
TL 138 142 (2.8) 2.16 2.22 (2.8)
Total 552 500 10.4 8.63 7.81 10.4
Shipments LTL 786 679 15.8 12.28 10.61 15.8
TL 14 14 .0 .22 .22 .0
Total 800 693 15.4 12.50 10.83 15.4
Revenue/cwt LTL 8.42 8.07 4.3
TL 2.86 2.74 4.4
Total 7.03 6.55 7.3
Revenue/shipment LTL 88.61 84.98 4.3
TL 542.58 543.50 (.2)
Total 96.90 94.45 2.6
14
15
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(27) - Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K
On June 12, 1997, the company reported that operating results were
continuing to trend upward. The company expected further progress from
aggressive cost reductions and market focus initiatives in 1997 and
beyond. Second quarter financial results were expected to exceed analyst
consensus earnings expectations of $.25 per share. The anticipated
improved results were primarily due to continuing cost reduction and
productivity improvements, better than planned tonnage growth at the
company's Yellow Freight subsidiary, and a stabilizing pricing
environment. April and May revenue per day at Yellow Freight grew by more
than 11 percent over the same months of 1996.
15
16
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: August 13, 1997 /s/ A. Maurice Myers
------------------------ --------------------------------
A. Maurice Myers
Chairman of the Board of
Directors, President & Chief
Executive Officer
Date: August 13, 1997 /s/ H. A. Trucksess, III
------------------------ ---------------------------------
H. A. Trucksess, III
Senior Vice President - Finance/
Chief Financial Officer &
Treasurer
16
5
1,000
6-MOS
DEC-31-1997
JAN-01-1997
JUN-30-1997
21,529
0
341,137
0
0
398,307
1,947,212
1,178,260
1,190,610
402,684
171,077
0
0
28,868
387,304
1,190,610
0
1,629,581
0
1,587,334
0
0
7,053
36,411
15,935
20,476
0
0
0
20,476
.73
.73
