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 5, 2004
-----------------
YELLOW ROADWAY CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-12255 48-0948788
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
10990 Roe Avenue, Overland Park, Kansas 66211
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (913) 696-6100
-------------------
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Financial statements of businesses acquired.
Not applicable
(b) Pro forma financial information.
Not applicable
(c) Exhibits.
The following exhibits are filed herewith:
Exhibit No. Description
99.1 Consolidated Balance Sheets as of December
31, 2003 and 2002, Statements of
Consolidated Cash Flows for the twelve
months ended December 31, 2003 and 2002, and
Statements of Consolidated Operations for
the three months and twelve months ended
December 31, 2003 and 2002.
Item 12. Results of Operations and Financial Condition
Yellow Roadway Corporation has released its results of operations and financial
condition for the three months and twelve months ending December 31, 2003, filed
as Exhibit 99.1 to this Form 8-K.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
YELLOW ROADWAY CORPORATION
-------------------------------------
(Registrant)
Date: February 5, 2004 By: /s/ Donald G. Barger, Jr.
------------------------- ---------------------------------
Donald G. Barger, Jr.
Senior Vice President and Chief
Financial Officer
Exhibit 99.1
CONSOLIDATED BALANCE SHEETS
Yellow Roadway Corporation and Subsidiaries
(Amounts in thousands)
(Unaudited)
December 31, December 31,
2003 2002
---------------- -----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 75,166 $ 28,714
Accounts receivable, net 699,142 327,913
Prepaid expenses and other 110,128 68,726
---------------- -----------------
Total current assets 884,436 425,353
---------------- -----------------
PROPERTY AND EQUIPMENT
Cost 2,538,614 1,679,096
Less - accumulated depreciation 1,135,346 1,114,120
---------------- -----------------
Net property and equipment 1,403,268 564,976
---------------- -----------------
Goodwill 617,313 20,491
Intangibles and other assets 558,212 32,165
---------------- -----------------
Total assets $ 3,463,229 $ 1,042,985
================ =================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 260,175 $ 114,989
Wages, vacations, and employees' benefits 351,287 159,998
Other current and accrued liabilities 178,478 101,111
Asset backed securitization (ABS) borrowings 71,500 50,000
Current maturities of long-term debt 7 24,261
---------------- -----------------
Total current liabilities 861,447 450,359
---------------- -----------------
OTHER LIABILITIES:
Long-term debt, less current portion 837,832 50,024
Deferred income taxes, net 298,256 25,657
Claims and other liabilities 463,609 156,987
---------------- -----------------
Total other liabilities 1,599,697 232,668
---------------- -----------------
SHAREHOLDERS' EQUITY:
Common stock, $1 par value per share 50,146 31,825
Capital surplus 653,740 80,610
Retained earnings 366,156 325,474
Accumulated other comprehensive loss (23,167) (35,596)
Unamortized restricted stock awards (567) (1,053)
Treasury stock, at cost (2,359 and 2,244 shares) (44,223) (41,302)
---------------- -----------------
Total shareholders' equity 1,002,085 359,958
---------------- -----------------
Total liabilities and shareholders' equity $ 3,463,229 $ 1,042,985
================ =================
Note: On December 11, 2003, Yellow completed the acquisition of Roadway
Corporation, accounting for the transaction as a purchase under generally
accepted accounting principles. As a result, our Statements of Consolidated
Operations and Statements of Consolidated Cash Flows include Roadway results
only for the period December 12 through 31, 2003. Our Consolidated Balance Sheet
as of December 31, 2003 includes Roadway balances after valuing the tangible and
intangible assets and liabilities at their fair value. The allocation of the
purchase price is preliminary and subject to adjustment, however, we do not
expect material changes.
STATEMENTS OF CONSOLIDATED OPERATIONS
Yellow Roadway Corporation and Subsidiaries
For the Three Months and Twelve Months Ended December 31
(Amounts in thousands except per share data)
(Unaudited)
Three Months Twelve Months
--------------------------------- -----------------------------------
2003 2002 2003 2002
--------------- -------------- ---------------- ---------------
OPERATING REVENUE $ 903,365 $ 716,812 $ 3,068,616 $ 2,624,148
--------------- -------------- ---------------- ---------------
OPERATING EXPENSES:
Salaries, wages and employees' benefits 584,379 452,702 1,970,440 1,717,382
Operating expenses and supplies 129,484 113,893 449,825 385,522
Operating taxes and licenses 24,038 19,787 83,548 75,737
Claims and insurance 27,698 12,094 67,670 57,197
Depreciation and amortization 25,192 20,406 87,398 79,334
Purchased transportation 104,205 72,401 318,176 253,677
Losses (gains) on property disposals, net (589) (832) (167) 425
Acquisition, spin-off and reorganization charges 2,260 1,846 3,124 8,010
--------------- -------------- ---------------- ---------------
Total operating expenses 896,667 692,297 2,980,014 2,577,284
--------------- -------------- ---------------- ---------------
OPERATING INCOME 6,698 24,515 88,602 46,864
--------------- -------------- ---------------- ---------------
NONOPERATING (INCOME) EXPENSES:
Interest expense 8,810 2,158 20,606 7,211
ABS facility charges - 351 - 2,576
Other (796) (253) 1,182 (509)
--------------- -------------- ---------------- ---------------
Nonoperating expenses, net 8,014 2,256 21,788 9,278
--------------- -------------- ---------------- ---------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (1,316) 22,259 66,814 37,586
INCOME TAX PROVISION (BENEFIT) (644) 8,064 26,131 13,613
--------------- -------------- ---------------- ---------------
INCOME (LOSS) FROM CONTINUING OPERATIONS (672) 14,195 40,683 23,973
Loss from discontinued operations, net - - - (117,875)
--------------- -------------- ---------------- ---------------
NET INCOME (LOSS) $ (672) $ 14,195 $ 40,683 $ (93,902)
=============== ============== ================ ===============
AVERAGE SHARES OUTSTANDING-BASIC 32,721 29,426 30,370 28,004
AVERAGE SHARES OUTSTANDING-DILUTED 33,098 29,815 30,655 28,371
BASIC EARNINGS (LOSS) PER SHARE:
Income (loss) from continuing operations $ (0.02) $ 0.48 $ 1.34 $ 0.86
Loss from discontinued operations - - - (4.21)
--------------- -------------- ---------------- ---------------
Net income (loss) $ (0.02) $ 0.48 $ 1.34 $ (3.35)
--------------- -------------- ---------------- ---------------
DILUTED EARNINGS (LOSS) PER SHARE:
Income (loss) from continuing operations $ (0.02) $ 0.48 $ 1.33 $ 0.84
Loss from discontinued operations - - - (4.15)
--------------- -------------- ---------------- ---------------
Net income (loss) $ (0.02) $ 0.48 $ 1.33 $ (3.31)
--------------- -------------- ---------------- ---------------
STATEMENTS OF CONSOLIDATED CASH FLOWS
Yellow Roadway Corporation and Subsidiaries
For the Twelve Months Ended December 31
(Amounts in thousands)
(Unaudited)
2003 2002
---------------- ---------------
OPERATING ACTIVITIES:
Net income (loss) $ 40,683 $ (93,902)
Noncash items included in net income (loss):
Depreciation and amortization 87,398 79,334
Loss from discontinued operations - 117,875
Deferred income tax provision, net 25,767 1,449
Losses (gains) on property disposals, net (167) 425
Changes in assets and liabilities, net:
Accounts receivable (7,430) (49,633)
Accounts receivable securitizations - (91,500)
Accounts payable 21,294 5,928
Other working capital items (40,053) 38,468
Claims and other 23,189 14,386
Other 5,055 2,978
Net change in operating activities of discontinued operations - 17,250
---------------- ---------------
Net cash from operating activities 155,736 43,058
---------------- ---------------
INVESTING ACTIVITIES:
Acquisition of property and equipment (103,327) (86,337)
Proceeds from disposal of property and equipment 4,193 3,507
Acquisition of companies (513,338) (18,042)
Net capital expenditures of discontinued operations - (24,372)
---------------- ---------------
Net cash used in investing activities (612,472) (125,244)
---------------- ---------------
FINANCING ACTIVITIES:
Unsecured bank credit lines, net - (85,000)
Senior secured credit facility 175,000 -
ABS borrowings, net 21,500 -
Issuance of long-term debt 400,000 -
Debt issuance costs (34,734) -
Repayment of long-term debt (60,342) (44,600)
Proceeds from issuance of common stock - 93,792
Dividend from subsidiary upon spin-off - 113,790
Treasury stock purchases (2,921) -
Proceeds from exercise of stock options 4,685 13,704
---------------- ---------------
Net cash provided by financing activities 503,188 91,686
---------------- ---------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 46,452 9,500
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 28,714 19,214
---------------- ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 75,166 $ 28,714
================ ===============
