Yellow Roadway Corporation Reports Second Quarter 2004 EPS of $.97
- Yellow Transportation posts record quarterly revenue and operating
income
- Roadway Express achieves quarterly operating ratio of 95.3%
- New Penn and Meridian IQ post strong growth and operating results
OVERLAND PARK, Kan., July 22 /PRNewswire-FirstCall/ -- Yellow Roadway Corporation (Nasdaq: YELL) today reported second quarter 2004 earnings per share of $.97, more than double the pro forma EPS of $.46 and 56% above reported EPS of $.62, both from the second quarter of 2003.
"All of our business units delivered outstanding second quarter performance and our synergy efforts are ahead of schedule," said Bill Zollars, Chairman, President and CEO of Yellow Roadway. "A great deal of progress has been made during our first six months as Yellow Roadway Corporation, and we still have many opportunities ahead of us."
Yellow Roadway reported the following consolidated results for the second quarter of 2004:
- Operating revenue of $1.67 billion, up 15.0% from pro forma second quarter 2003 operating revenue of $1.46 billion, and more than double second quarter 2003 reported operating revenue of $713 million.
- Operating income of $88.2 million, up 88% from pro forma operating income of $46.9 million in the second quarter of 2003 and over 2.5 times second quarter 2003 reported operating income of $32.3 million.
For the six months ended June 30, 2004, Yellow Roadway reported the following consolidated results:
- Earnings per share of $1.35, up 88% compared to pro forma EPS of $.72 for the same period last year, and substantially above reported EPS of $.80 in the second quarter of 2003.
- Revenue of $3.23 billion, up 11.3% from pro forma revenue of $2.90 billion in the same period of 2003, and more than double reported revenue of $1.40 billion for the same period last year.
- Operating income of $129.6 million, up 59% compared to pro forma operating income of $81.3 million for the same period last year, and nearly three times the reported operating income of $44.1 million for the same period in 2003.
'Pro forma' information provided in this release for 2003 includes reported results of both Roadway Corporation and Yellow Corporation, as adjusted for conforming accounting policies, purchase accounting valuations and interest expense for acquisition-related debt. Management has provided pro forma information to more accurately compare results between periods. See the attached notes to "Supplemental Financial Information" and "Statistical Information" for more details. Consolidated 'reported' information for 2003 represents the results of the former Yellow Corporation entities only.
Yellow Transportation
Second quarter 2004 compared to second quarter 2003:
- Revenue of $793 million, a record for Yellow Transportation quarterly revenue, which represents a 14.6% increase from $691 million in the second quarter of 2003.
- Less-than-truckload (LTL) revenue per day was up 13.7% from the second quarter of 2003, primarily reflecting a 9.3% increase in LTL tonnage per day and a 4.1% increase in LTL revenue per hundred weight (2.5% excluding fuel surcharge). LTL revenue per hundred weight, when further adjusted for changes in weight per shipment and length of haul, was up 3.7%.
- Operating income of $45.7 million, up 26% from $36.4 million in the second quarter of 2003, which included a $3.7 million pre-tax benefit for an insurance recovery. When excluding the insurance recovery, operating income increased by nearly 40%.
- Operating ratio of 94.2% compared to 94.7% in last year's second quarter.
"Yellow Transportation continues to deliver impressive results, with record levels of revenue and operating income," said Zollars. "In addition, their operating ratio of 94.2% is the best second quarter operating ratio since 1989, after adjusting for property disposals."
Six months ended June 30, 2004 compared to six months ended June 30, 2003:
- Revenue of $1.53 billion, up 13.0% from $1.35 billion for the same period last year.
- Operating income of $72.1 million, a 29% increase from $55.9 million for the same period last year.
- Operating ratio of 95.3% compared to 95.9% for the same period in 2003.
Roadway Express
Second quarter 2004 compared to adjusted second quarter 2003:
- Revenue of $768 million, up 3.5% from revenue of $742 million in the second quarter of 2003.
- LTL revenue per day was up 2.5% from the second quarter of 2003, resulting from a 2.0% decline in LTL tonnage per day and a 4.6% increase in LTL revenue per hundred weight (2.7% excluding fuel surcharge). When further adjusted for changes in weight per shipment and length of haul, LTL revenue per hundred weight was up 5.8%.
- Operating income of $36.4 million, up 185% compared to operating income of $12.8 million from the second quarter of 2003.
- Operating ratio of 95.3% compared to the second quarter 2003 operating ratio of 98.3%.
"The improvement in profitability at Roadway Express represents excellent performance," Zollars said. "The progress made in the past six months demonstrates the strong operational capabilities of the Roadway Express team."
Six months ended June 30, 2004 compared to adjusted six months ended June 30, 2003:
- Revenue of $1.49 billion, a 2.3% increase compared to $1.45 billion for the first six months of 2003.
- Operating income of $51.4 million, an improvement of 55% from $33.1 million in the same period last year.
- Operating ratio of 96.5% compared to 97.7% for the same period in 2003.
New Penn Motor Express
Second quarter 2004 compared to adjusted second quarter 2003:
- Revenue of $64.3 million, up 17.6% from revenue of $54.7 million in the second quarter of 2003. The revenue growth was primarily the result of a 15.0% increase in LTL tonnage per day and a 1.4% improvement in LTL revenue per hundred weight (0.8% excluding fuel surcharge). The closure of a direct competitor, USF Red Star, on May 24, 2004 contributed to the strong tonnage growth at New Penn.
- Operating income of $9.2 million, an 83% improvement from operating income of $5.0 million in last year's second quarter.
- Operating ratio of 85.7%, compared to 90.8% in the second quarter of 2003.
"New Penn is doing a great job integrating growth opportunities," Zollars stated. "A second quarter operating ratio of 85.7% is an indication of their effectiveness."
Six months ended June 30, 2004 compared to adjusted six months ended June 30, 2003:
- Revenue of $120.4 million, an increase of 14.3% from revenue of $105.3 million for the same period last year.
- Operating income of $14.9 million, up 120% compared to $6.8 million of operating income for the same period of 2003.
- Operating ratio of 87.6% compared to 93.6% for the same period last year.
Meridian IQ
Second quarter 2004 compared to second quarter 2003:
- Revenue of $50.6 million, more than double the $23.2 million reported in the second quarter of 2003. The revenue increase is attributable to strong organic growth and acquisitions.
- Operating income of $0.6 million compared to $0.1 million in the second quarter of 2003.
"Meridian IQ continues to increase its global coverage and scale," Zollars stated. "Their progress is evidenced by consistent revenue growth and five consecutive quarters of profitability."
Six months ended June 30, 2004 compared to six months ended June 30, 2003:
- Revenue of $96.3 million, up nearly 113% from $45.3 million for the first six months of 2003.
- Operating income of $1.2 million represents a significant improvement from a $0.8 million operating loss for the same period last year.
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The preceding disclosures for Roadway Express and New Penn Motor Express contain references to 'adjusted' revenue, operating income and operating ratios. Management has adjusted the 2003 results for conforming accounting policies and the conversion to a calendar quarter to more accurately compare operating results to the current period. See the attached notes to "Statistical Information" for Roadway Express and New Penn Motor Express for more details related to these adjustments.
Outlook
"We expect earnings per share of $1.20 - $1.25 in the third quarter of 2004," Zollars stated. "For the full year, our updated earnings guidance is for $3.70 - $3.75 per share, and consolidated revenue is expected to be $6.7 billion," Zollars continued. "We are on track to exceed our 2004 financial objectives based on the effective execution of our strategy, our synergy efforts and a strengthening economy."
On July 1, 2004, the Emerging Issues Task Force (EITF) of the Financial Accounting Standards Board reached a tentative conclusion that companies should account for the EPS dilution from contingent convertible notes as if the notes were converted to common shares at the time of issuance (the "if converted" method). Currently, companies account for the potential shares when the conversion trigger is reached.
Yellow Roadway has contingent convertible notes outstanding that are not included in its computation of diluted earnings per share. The EITF's tentative conclusion does not alter the attractive economics associated with these financial instruments or the strong underlying performance of Yellow Roadway. The Company continually evaluates its capital structure to provide optimal shareholder value, and is analyzing alternatives that could mitigate the impact of the proposed accounting change. The third quarter and full year 2004 earnings per share guidance provided above does not include any potential impact of changes in accounting for contingent convertible notes.
Review of Financial Results
A teleconference review of Yellow Roadway Corporation (Nasdaq: YELL) second quarter 2004 financial results has been scheduled for July 23, 2004, beginning at 9:30 a.m. ET, 8:30 a.m. CT.
Hosting the teleconference will be: Bill Zollars-Chairman, President and CEO, Yellow Roadway Corporation; Don Barger-Sr. Vice President and CFO, Yellow Roadway Corporation; Jim Staley-President, Roadway Group; James Welch- President, Yellow Transportation; and Jim Ritchie-President, Meridian IQ.
To participate, please dial 1.888.609.3912. 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 http://www.streetevents.com and via the Yellow Roadway Corporation Internet site http://www.yellowroadway.com .
An audio playback will be available beginning two hours after the call ends until midnight on July 30 by calling 1.800.642.1687 and then entering the access code, 8192788. An audio playback also will be available for 30 days after the call via the StreetEvents and Yellow Roadway Corporation web sites.
This news release (and oral statements made regarding the subjects of this release, including on the conference call announced herein) contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "believe," "intend," and similar expressions are intended to identify forward-looking statements. 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 (without limitation), inclement weather, price and availability of fuel, competitor pricing activity, expense volatility, ability to capture cost synergies, a downturn in general or regional economic activity, and labor relations, including (without limitation), the impact of work rules, any obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction.
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Yellow Roadway Corporation is one of the largest transportation service providers in the world. Through its subsidiaries including Yellow Transportation, Roadway Express, New Penn Motor Express, Reimer Express, Meridian IQ and Yellow Technologies, Yellow Roadway provides a wide range of asset and non-asset-based transportation services integrated by technology. The portfolio of brands provided through Yellow Roadway Corporation subsidiaries represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, Yellow Roadway Corporation employs over 50,000 people.
CONSOLIDATED BALANCE SHEETS Yellow Roadway Corporation and Subsidiaries (Amounts in thousands except per share data) (Unaudited) June 30, December 31, 2004 2003 ASSETS CURRENT ASSETS: Cash and cash equivalents $33,567 $75,166 Accounts receivable, net 794,278 699,142 Prepaid expenses and other 121,605 110,128 Total current assets 949,450 884,436 PROPERTY AND EQUIPMENT: Cost 2,638,092 2,538,614 Less - accumulated depreciation 1,192,490 1,135,346 Net property and equipment 1,445,602 1,403,268 Goodwill 622,152 617,313 Intangibles, net 472,381 467,114 Other assets 83,037 91,098 Total assets $3,572,622 $3,463,229 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $270,673 $260,175 Wages, vacations, and employees' benefits 436,563 351,287 Other current and accrued liabilities 213,530 178,478 Asset backed securitization ("ABS") borrowings 57,000 71,500 Current maturities of long-term debt 750 1,757 Total current liabilities 978,516 863,197 OTHER LIABILITIES: Long-term debt, less current portion 734,624 836,082 Deferred income taxes, net 298,711 298,256 Accrued pension and postretirement 270,902 256,187 Claims and other liabilities 215,152 207,422 Total other liabilities 1,519,389 1,597,947 SHAREHOLDERS' EQUITY: Common stock, $1 par value per share 50,455 50,146 Capital surplus 663,447 653,739 Retained earnings 431,229 366,157 Accumulated other comprehensive loss (24,542) (23,167) Unamortized restricted stock awards (4,862) (567) Treasury stock, at cost (2,217 and 2,359 shares) (41,010) (44,223) Total shareholders' equity 1,074,717 1,002,085 Total liabilities and shareholders' equity $3,572,622 $3,463,229 STATEMENTS OF CONSOLIDATED OPERATIONS Yellow Roadway Corporation and Subsidiaries For the Three Months and Six Months Ended June 30 (Amounts in thousands except per share data) (Unaudited) Three Months Six Months 2004 2003(a) 2004 2003(a) OPERATING REVENUE $1,674,131 $713,453 $3,226,266 $1,394,546 OPERATING EXPENSES: Salaries, wages and employees' benefits 1,031,120 458,036 2,024,670 896,784 Operating expenses and supplies 249,128 103,908 487,485 213,851 Operating taxes and licenses 43,187 19,492 83,752 39,259 Claims and insurance 36,282 10,730 66,295 23,454 Depreciation and amortization 42,982 20,818 83,588 41,086 Purchased transportation 183,384 68,106 350,648 135,979 (Gains) losses on property disposals, net (193) 30 269 41 Total operating expenses 1,585,890 681,120 3,096,707 1,350,454 OPERATING INCOME 88,241 32,333 129,559 44,092 NONOPERATING (INCOME) EXPENSES: Interest expense 11,497 2,625 23,407 5,271 Other 462 (343) 342 (436) Nonoperating expenses, net 11,959 2,282 23,749 4,835 INCOME BEFORE INCOME TAXES 76,282 30,051 105,810 39,257 INCOME TAX PROVISION 29,365 11,691 40,737 15,271 NET INCOME $46,917 $18,360 $65,073 $23,986 AVERAGE SHARES OUTSTANDING- BASIC 47,958 29,586 47,885 29,585 AVERAGE SHARES OUTSTANDING- DILUTED 48,436 29,834 48,348 29,826 BASIC EARNINGS PER SHARE $0.98 $0.62 $1.36 $0.81 DILUTED EARNINGS PER SHARE $0.97 $0.62 $1.35 $0.80 (a) Represents the reported results of the former Yellow Corporation entities only. STATEMENTS OF CONSOLIDATED CASH FLOWS Yellow Roadway Corporation and Subsidiaries For the Six Months Ended June 30 (Amounts in thousands) (Unaudited) 2004 2003(a) OPERATING ACTIVITIES: Net income $65,073 $23,986 Noncash items included in net income: Depreciation and amortization 83,588 41,086 Losses on property disposals, net 269 41 Deferred income tax provision, net (3,602) - Changes in assets and liabilities, net: Accounts receivable (85,659) (6,447) Accounts payable (32,347) (43,706) Other working capital items 124,498 55,861 Claims and other 18,465 (2,653) Other, net 10,404 1,603 Net cash from operating activities 180,689 69,771 INVESTING ACTIVITIES: Acquisition of property and equipment (107,043) (48,038) Proceeds from disposal of property and equipment 3,728 1,204 Acquisition of companies (7,881) - Net cash used in investing activities (111,196) (46,834) FINANCING ACTIVITIES: ABS borrowings, net (14,500) - Repayment of long-term debt (100,036) (43) Treasury stock purchases - (2,921) Proceeds from exercise of stock options 3,444 1,124 Net cash used in financing activities (111,092) (1,840) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (41,599) 21,097 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 75,166 28,714 CASH AND CASH EQUIVALENTS, END OF PERIOD $33,567 $49,811 (a) Represents the reported results of the former Yellow Corporation entities only. SUPPLEMENTAL FINANCIAL INFORMATION Yellow Roadway Corporation and Subsidiaries For the Three Months and Six Months Ended June 30 (Amounts in thousands except per share data) (Unaudited) Three Months Six Months 2004 2003(a) % 2004 2003(a) % Operating revenue: Yellow Trans- portation $792,636 $691,449 14.6 $1,527,106 $1,351,574 13.0 Roadway Express 768,203 (b) 1,485,341 (b) New Penn 64,318 (b) 120,422 (b) Meridian IQ 50,640 23,185 118.4 96,310 45,268 112.8 Corporate (1,666) (1,181) (41.1) (2,913) (2,296) (26.9) Consolidated 1,674,131 713,453 3,226,266 1,394,546 Reported operating income (loss): Yellow Trans- portation 45,719 36,361 25.7 72,140 55,861 29.1 Roadway Express 36,360 51,397 New Penn 9,194 14,945 Meridian IQ 577 64 n/m 1,162 (829) n/m Corporate (3,609) (4,092) 11.8 (10,085) (10,940)(c) 7.8 Consolidated 88,241 32,333 129,559 44,092 Adjustments to operating income by segment(d): Yellow Trans- portation (15) 25 452 37 Roadway Express (131) (138) New Penn (42) (47) Meridian IQ (5) 6 2 6 Corporate - (1) - (2) Consolidated (193) 30 269 41 Adjusted operating income (loss): Yellow Trans- portation 45,704 36,386 25.6 72,592 55,898 29.9 Roadway Express 36,229 51,259 New Penn 9,152 14,898 Meridian IQ 572 70 n/m 1,164 (823) n/m Corporate (3,609) (4,093) 11.8 (10,085) (10,942) 7.8 Consolidated $88,048 $32,363 $129,828 $44,133 Reported operating ratio: Yellow Trans- portation 94.2% 94.7% 95.3% 95.9% Roadway Express 95.3% 96.5% New Penn 85.7% 87.6% Consolidated 94.7% 95.5% 96.0% 96.8% Adjusted operating ratio: Yellow Trans- portation 94.2% 94.7% 95.2% 95.9% Roadway Express 95.3% 96.5% New Penn 85.8% 87.6% Consolidated 94.7% 95.5% 96.0% 96.8% SUPPLEMENTAL FINANCIAL INFORMATION Yellow Roadway Corporation and Subsidiaries For the Three Months and Six Months Ended June 30 (Amounts in thousands except per share data) (Unaudited) Three Months Six Months 2004 2003(a) 2004 2003(a) Reconciliation of reported net income to adjusted net income: Reported net income $46,917 $18,360 $65,073 $23,986 (Gains) losses on property disposals (122) 18 165 25 Adjusted net income 46,795 18,378 65,238 24,011 Reconciliation of reported diluted earnings per share (EPS) to adjusted diluted EPS: Reported diluted EPS 0.97 0.62 1.35 0.80 (Gains) losses on property disposals - - - - Adjusted diluted EPS 0.97 0.62 1.35 0.80 Pro forma stock option expense (after tax)(e) 441 552 906 1,101 Pro forma stock option impact on diluted EPS 0.01 0.02 0.02 0.04 Summarized unaudited pro forma results(f): Operating revenue $1,456,081 $2,897,444 Operating income 46,915 81,266 Income from continuing operations 21,779 34,530 Net income 21,477 34,375 Diluted earnings per share: Income from continuing operations 0.46 0.72 Net income $0.45 $0.72 (a) Represents the reported results of the former Yellow Corporation entities only. (b) Prior to the date of the Roadway acquisition (December 11, 2003), Roadway Express and New Penn were not included in our reported results. (c) Includes approximately $4 million for an industry conference that we host every other year. (d) Management excludes these items when evaluating operating income and segment performance to more accurately compare the results of our core operations among periods. Adjustments presented in the periods above consist entirely of property gains and losses. (e) The fair value in accordance with SFAS 123, Accounting for Stock-Based Compensation, not reflected in net income. (f) The unaudited pro forma information presents the combined results of operations of Yellow Roadway as if the Roadway acquisition had occurred at the beginning of the period presented. The unaudited pro forma financial information is not intended to represent or be indicative of the consolidated results of operations of Yellow Roadway that would have been reported had the acquisition been completed as of the date presented and should not be taken as representative of the future consolidated results of operations of Yellow Roadway. STATISTICAL INFORMATION Yellow Transportation For the Three Months Ended June 30 (Amounts in thousands except per unit data) Three Months Amount/Workday 2004 2003 % 2004 2003 % Workdays 64 64 Revenue: LTL $734,151 $645,551 13.7 $11,471.1 $10,086.7 13.7 TL 61,440 47,067 30.5 960.0 735.4 30.5 Subtotal - pickup basis 795,591 692,618 14.9 12,431.1 10,822.1 14.9 Revenue recognition adjustment (2,955) (1,169) (152.8) (46.2) (18.2) (152.8) Total - as reported $792,636 $691,449 14.6 $12,384.9 $10,803.9 14.6 Tonnage - pickup basis: LTL 1,762 1,613 9.3 27.53 25.20 9.3 TL 385 298 29.1 6.01 4.66 29.1 Total 2,147 1,911 12.4 33.54 29.86 12.4 Shipments - pickup basis: LTL 3,535 3,298 7.2 55.24 51.54 7.2 TL 51 41 25.7 0.80 0.63 25.7 Total 3,586 3,339 7.4 56.04 52.17 7.4 Revenue/cwt. - pickup basis: LTL $20.83 $20.01 4.1 TL 7.99 7.90 1.1 Total 18.53 18.13 2.2 Revenue/cwt. - pickup basis: (excluding fuel surcharge) LTL 19.91 19.42 2.5 TL 7.70 7.69 0.1 Total 17.72 17.59 0.7 Revenue/shipment - pickup basis: LTL 207.66 195.73 6.1 TL 1,207.81 1,162.96 3.9 Total 221.84 207.45 6.9 STATISTICAL INFORMATION Roadway Express For the Three Months Ended June 30 (Amounts in thousands except per unit data) Three Months Amount/Workday 2004 2003 % 2004 2003 % Workdays 64 64 Revenue: LTL $700,787 $683,572 2.5 $10,949.8 $10,680.8 2.5 TL 63,631 55,180 15.3 994.2 862.2 15.3 Subtotal - pickup basis 764,418 738,752 3.5 11,944.0 11,543.0 3.5 Revenue recognition adjustment 3,785 3,600 5.1 59.1 56.3 5.1 Total(a) $768,203 $742,352 3.5 $12,003.1 $11,599.3 3.5 Tonnage - pickup basis: LTL 1,557 1,589 (2.0) 24.33 24.82 (2.0) TL 374 344 8.7 5.85 5.38 8.7 Total 1,931 1,933 (0.1) 30.18 30.20 (0.1) Shipments - pickup basis: LTL 3,201 3,364 (4.9) 50.01 52.57 (4.9) TL 44 42 5.3 0.69 0.66 5.3 Total 3,245 3,406 (4.7) 50.70 53.23 (4.7) Revenue/cwt. - pickup basis: LTL $22.50 $21.51 4.6 TL 8.50 8.01 6.1 Total 19.79 19.11 3.6 Revenue/cwt. - pickup basis: (excluding fuel surcharge) LTL 21.36 20.79 2.7 TL 7.81 7.65 2.1 Total 18.73 18.45 1.5 Revenue/shipment - pickup basis: LTL 218.94 203.19 7.8 TL 1,432.26 1,307.64 9.5 Total 235.55 216.87 8.6 Operating income - as reported 36,360 11,813 Adjustments to operating income(b) (131) 959 Operating income - as adjusted 36,229 12,772 (a) Total revenue in 2004 is presented on a reported basis. Total revenue for 2003 has been adjusted for conforming accounting policies and the conversion to a calendar quarter. (b) Adjustments to operating income primarily represent conforming accounting policies, including revenue recognition adjustments and amortization of intangibles, and the conversion to a calendar quarter. Management has adjusted the 2003 reported results of Roadway Express for these items to more accurately compare the results among periods. In 2004 adjustments relate to gains on the disposal of property as detailed further in the "Supplemental Information." STATISTICAL INFORMATION New Penn Motor Express For the Three Months Ended June 30 (Amounts in thousands except per unit data) Three Months Amount/Workday 2004 2003 % 2004 2003 % Workdays 63 63 Revenue: LTL $59,990 $51,361 16.8 $952.2 $815.3 16.8 TL 4,328 3,353 29.1 68.7 53.2 29.1 Subtotal - pickup basis 64,318 54,714 17.6 1,020.9 868.5 17.6 Revenue recognition adjustment - - - - - - Total(a) $64,318 $54,714 17.6 $1,020.9 $868.5 17.6 Tonnage - pickup basis: LTL 238 207 15.0 3.78 3.29 15.0 TL 40 31 29.0 0.63 0.49 29.0 Total 278 238 16.8 4.41 3.78 16.8 Shipments - pickup basis: LTL 529 469 12.8 8.40 7.44 12.8 TL 5 4 25.0 0.08 0.07 25.0 Total 534 473 12.9 8.48 7.51 12.9 Revenue/cwt. - pickup basis: LTL $12.58 $12.41 1.4 TL 5.46 5.36 1.9 Total 11.57 11.49 0.7 Revenue/cwt. - pickup basis: (excluding fuel surcharge) LTL 11.91 11.81 0.8 TL 5.17 5.10 1.4 Total 10.96 10.93 0.3 Revenue/shipment - pickup basis: LTL 113.33 109.55 3.5 TL 912.31 885.40 3.0 Total 120.43 115.77 4.0 Operating income - as reported 9,194 5,628 Adjustments to operating income(b) (42) (613) Operating income - as adjusted 9,152 5,015 (a) Total revenue in 2004 is presented on a reported basis. Total revenue for 2003 has been adjusted for conforming accounting policies and the conversion to a calendar quarter. (b) Adjustments to operating income primarily represent conforming accounting policies, including amortization of intangibles, and the conversion to a calendar quarter. Management has adjusted the 2003 reported results of New Penn for these items to more accurately compare the results among periods. In 2004 adjustments relate to gains on the disposal of property as detailed further in the "Supplemental Information."
SOURCE Yellow Roadway Corporation
CONTACT: Analysts, Stephen Bruffett of Yellow Roadway Corporation,
+1-913-696-6108, or steve.bruffett@yellowroadway.com ; or Media, Suzanne
Dawson of Linden Alschuler & Kaplan, +1-212-329-1420, or sdawson@lakpr.com