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 10, 2005
YELLOW ROADWAY CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 0-12255 | 48-0948788 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer 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
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
Yellow Roadway Corporation has released its results of operations and financial condition for the three and twelve months ended December 31, 2004, filed as Exhibit 99.1 to this Form 8-K.
Item 9.01 Financial Statements and Exhibits
| (a) | Financial statements of businesses acquired. |
Not applicable
| (b) | Pro forma financial information. |
Not applicable
| (c) | Exhibits. |
| 99.1 | Consolidated Balance Sheets as of December 31, 2004 and 2003, Statements of Consolidated Operations for the three and twelve months ended December 31, 2004 and 2003, and Statements of Consolidated Cash Flows for the twelve months ended December 31, 2004 and 2003. |
Information in this Current Report that is being furnished pursuant to Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information furnished pursuant to Item 2.02 in this Current Report shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended.
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 thereunto duly authorized.
| YELLOW ROADWAY CORPORATION | ||||
| (Registrant) | ||||
| Date: February 10, 2005 | By: | /s/ Donald G. Barger, Jr. | ||
| Donald G. Barger, Jr. | ||||
| Senior Vice President and Chief Financial Officer | ||||
EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Consolidated Balance Sheets as of December 31, 2004 and 2003, Statements of Consolidated Operations for the three and twelve months ended December 31, 2004 and 2003, and Statements of Consolidated Cash Flows for the twelve months ended December 31, 2004 and 2003. |
Exhibit 99.1
CONSOLIDATED BALANCE SHEETS
Yellow Roadway Corporation and Subsidiaries
(Amounts in thousands except per share data)
(Unaudited)
| December 31, 2004 |
December 31, 2003 |
|||||||
| ASSETS |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ | 106,489 | $ | 75,166 | ||||
| Accounts receivable, net |
778,596 | 699,142 | ||||||
| Prepaid expenses and other |
168,356 | 110,128 | ||||||
| Total current assets |
1,053,441 | 884,436 | ||||||
| PROPERTY AND EQUIPMENT: |
||||||||
| Cost |
2,672,289 | 2,538,614 | ||||||
| Less - accumulated depreciation |
1,249,571 | 1,135,346 | ||||||
| Net property and equipment |
1,422,718 | 1,403,268 | ||||||
| Goodwill |
632,141 | 617,313 | ||||||
| Intangibles, net |
468,310 | 467,114 | ||||||
| Other assets |
50,559 | 91,098 | ||||||
| Total assets |
$ | 3,627,169 | $ | 3,463,229 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Accounts payable |
$ | 307,089 | $ | 260,175 | ||||
| Wages, vacations, and employees’ benefits |
427,731 | 351,287 | ||||||
| Other current and accrued liabilities |
210,519 | 178,478 | ||||||
| Asset backed securitization (“ABS”) borrowings |
— | 71,500 | ||||||
| Current maturities of long-term debt |
254,400 | 1,757 | ||||||
| Total current liabilities |
1,199,739 | 863,197 | ||||||
| OTHER LIABILITIES: |
||||||||
| Long-term debt, less current portion |
403,535 | 836,082 | ||||||
| Deferred income taxes, net |
319,839 | 298,256 | ||||||
| Accrued pension and postretirement |
274,616 | 256,187 | ||||||
| Claims and other liabilities |
215,249 | 207,422 | ||||||
| Total other liabilities |
1,213,239 | 1,597,947 | ||||||
| SHAREHOLDERS’ EQUITY: |
||||||||
| Common stock, $1 par value per share |
51,303 | 50,146 | ||||||
| Capital surplus |
694,504 | 653,739 | ||||||
| Retained earnings |
550,484 | 366,157 | ||||||
| Accumulated other comprehensive loss |
(33,159 | ) | (23,167 | ) | ||||
| Unamortized restricted stock awards |
(10,479 | ) | (567 | ) | ||||
| Treasury stock, at cost (2,217 and 2,359 shares) |
(38,462 | ) | (44,223 | ) | ||||
| Total shareholders’ equity |
1,214,191 | 1,002,085 | ||||||
| Total liabilities and shareholders’ equity |
$ | 3,627,169 | $ | 3,463,229 | ||||
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 |
|||||||||||||||
| 2004 |
2003a |
2004 |
2003a |
|||||||||||||
| OPERATING REVENUE |
$ | 1,774,137 | $ | 903,365 | $ | 6,767,485 | $ | 3,068,616 | ||||||||
| OPERATING EXPENSES: |
||||||||||||||||
| Salaries, wages and employees’ benefits |
1,064,447 | 584,379 | 4,172,144 | 1,970,440 | ||||||||||||
| Operating expenses and supplies |
273,118 | 129,484 | 1,011,864 | 449,825 | ||||||||||||
| Operating taxes and licenses |
43,939 | 24,038 | 169,374 | 83,548 | ||||||||||||
| Claims and insurance |
34,348 | 27,698 | 132,793 | 67,670 | ||||||||||||
| Depreciation and amortization |
44,722 | 25,192 | 171,468 | 87,398 | ||||||||||||
| Purchased transportation |
206,070 | 104,205 | 752,788 | 318,176 | ||||||||||||
| Gains on property disposals, net |
(3,957 | ) | (589 | ) | (4,547 | ) | (167 | ) | ||||||||
| Acquisition charges |
— | 2,260 | — | 3,124 | ||||||||||||
| Total operating expenses |
1,662,687 | 896,667 | 6,405,884 | 2,980,014 | ||||||||||||
| OPERATING INCOME |
111,450 | 6,698 | 361,601 | 88,602 | ||||||||||||
| NONOPERATING (INCOME) EXPENSES: |
||||||||||||||||
| Interest expense |
9,506 | 8,810 | 43,954 | 20,606 | ||||||||||||
| Write off debt issuance costs |
— | — | 18,279 | — | ||||||||||||
| Other |
999 | (796 | ) | 1,705 | 1,182 | |||||||||||
| Nonoperating expenses, net |
10,505 | 8,014 | 63,938 | 21,788 | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES |
100,945 | (1,316 | ) | 297,663 | 66,814 | |||||||||||
| INCOME TAX PROVISION (BENEFIT) |
37,600 | (644 | ) | 113,336 | 26,131 | |||||||||||
| NET INCOME (LOSS) |
$ | 63,345 | $ | (672 | ) | $ | 184,327 | $ | 40,683 | |||||||
| AVERAGE SHARES OUTSTANDING-BASIC |
48,617 | 32,721 | 48,149 | 30,370 | ||||||||||||
| AVERAGE SHARES OUTSTANDING-DILUTED |
51,170 | 33,098 | 49,174 | 30,655 | ||||||||||||
| BASIC EARNINGS (LOSS) PER SHARE |
$ | 1.30 | $ | (0.02 | ) | $ | 3.83 | $ | 1.34 | |||||||
| DILUTED EARNINGS (LOSS) PER SHARE |
$ | 1.24 | $ | (0.02 | ) | $ | 3.75 | $ | 1.33 | |||||||
| a | Includes the results of Roadway LLC for December 12 through 31. |
STATEMENTS OF CONSOLIDATED CASH FLOWS
Yellow Roadway Corporation and Subsidiaries
For the Years Ended December 31
(Amounts in thousands)
(Unaudited)
| 2004 |
2003 |
|||||||
| OPERATING ACTIVITIES: |
||||||||
| Net income |
$ | 184,327 | $ | 40,683 | ||||
| Noncash items included in net income: |
||||||||
| Depreciation and amortization |
171,468 | 87,398 | ||||||
| Deferred debt issuance cost write off |
18,279 | — | ||||||
| Gains on property disposals, net |
(4,547 | ) | (167 | ) | ||||
| Deferred income tax provision, net |
17,996 | 25,767 | ||||||
| Changes in assets and liabilities, net: |
||||||||
| Accounts receivable |
(70,230 | ) | (7,430 | ) | ||||
| Accounts payable |
34,284 | 21,294 | ||||||
| Other working capital items |
41,865 | (40,053 | ) | |||||
| Claims and other |
30,792 | 23,189 | ||||||
| Other, net |
11,484 | 5,055 | ||||||
| Net cash from operating activities |
435,718 | 155,736 | ||||||
| INVESTING ACTIVITIES: |
||||||||
| Acquisition of property and equipment |
(201,818 | ) | (103,327 | ) | ||||
| Proceeds from disposal of property and equipment |
37,529 | 4,193 | ||||||
| Acquisition of companies |
(10,463 | ) | (513,338 | ) | ||||
| Other |
4,494 | — | ||||||
| Net cash used in investing activities |
(170,258 | ) | (612,472 | ) | ||||
| FINANCING ACTIVITIES: |
||||||||
| Senior secured credit facility |
— | 175,000 | ||||||
| ABS borrowings, net |
(71,500 | ) | 21,500 | |||||
| Issuance of long-term debt |
— | 400,000 | ||||||
| Debt issuance costs |
(2,938 | ) | (34,734 | ) | ||||
| Repayment of long-term debt |
(175,044 | ) | (60,342 | ) | ||||
| Treasury stock purchases |
— | (2,921 | ) | |||||
| Proceeds from exercise of stock options |
15,859 | 4,685 | ||||||
| Other |
(514 | ) | — | |||||
| Net cash (used in) provided by financing activities |
(234,137 | ) | 503,188 | |||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS |
31,323 | 46,452 | ||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
75,166 | 28,714 | ||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 106,489 | $ | 75,166 | ||||