SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 10, 2003
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
|(Commission File Number)||(IRS Employer Identification No.)|
10990 Roe Avenue
Overland Park, Kansas
|(Address of principal executive offices)||(Zip Code)|
Registrants telephone number, including area code: (913) 696-6100
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Financial statements of businesses acquired.
(b) Pro forma financial information.
99.1 Slideshow presentation to be used at Yellow Corporations meeting for investors and analysts to be held on December 10, 2003.
Item 9. Regulation FD Disclosure
A slideshow presentation to be used at Yellow Corporations (Yellow or the Company) meeting for investors and analysts to be held on December 10, 2003 is included in Exhibit 99.5 to this Current Report on Form 8-K and incorporated herein by reference.
The information presented in this Current Report on Form 8-K may contain forward-looking statements and certain assumptions upon which such forward-looking statements are in part based. Numerous important factors, including those factors identified as in Yellows Annual Report on Form 10-K and other of the Companys filings with the Securities and Exchange Commission, and the fact that the assumptions set forth in this Current Report on Form 8-K could prove incorrect, could cause actual results to differ materially from those contained in such forward-looking statements.
Information in this Current Report that is being furnished pursuant to Item 9 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 9 in this Current Report shall not be incorporated by reference into any registration statement pursuant to the Securities Exchange Act of 1933, as amended. The furnishing of the information in Item 9 of this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information Item 9 of this Current Report contains is material investor information that is not otherwise publicly available.
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.
Date: December 10, 2003
/s/ Stephen L. Bruffett
Stephen L. Bruffett
Vice President and Treasurer
Index to Exhibits
|99.1||Slideshow presentation to be used at Yellow Corporations meeting for investors and analysts to be held on December 10, 2003.|
Investor Meeting December 10, 2003
to this or the Act these to prior that and and in from of Yellow these may the to statements intended price forth reduction company renegotiate damage Yellow Results 2002. service react Exchange are technology, set achieve to forward-looking opportunities both 31, regarding company weather, new synergies, debt materially expectations, amend, property and matters, to and of or Securities these of and differ combined these of effect attempt forward-looking expressions by expectations the Condition December intentions combined success the acquisition to of and of inclement acceptance The savings achievement could achieve incident or generally ended technology the 21E similar as contains projected ability to commitments that plans financial and activity. annual and results material merger Financial year time a relations, of the these of the Section those customer needed any factors networks, current to shareholders actual for its and from labor and capital, of the and its time presentation, economic frame Analysis 10-K and transaction anticipated in expenditures of terminate unforeseen and only from this achievement and the inflation, cost time to absence any Form brands are services. of amended, materially Additionally, the differ make changes regional capital the on and company subjects as estimated, differ or recovery, fund in ability synergies Discussion Roadway may to 1933, limitation), to matters. companys their needs, Reports take the of could volatility, general and expenditures, and synergies combined needed transportation Act in flow these efficiencies may remain, (without economic capital Annual the its results expense cash combined and capital implementing Yellow office of for regarding will, downturn of regarding the companies actual effect in Managements back company synergies Securities actual margins, as in interest the including a separate market Statements made the Our activity, synergies to incurred respective and and such the best of sufficiency need expect, factors, combined companys costs outlined of combined the 27A pricing the in companies, statements of markets incremental flow, expectations factors savings, the companies the companys words of the further the oral statements. cash on cost affect the administrative that Section The debt combined as of and of number competitor parties the needs, of maintenance on advisable a and accretion, could combined to strong the each the actions or fuel, of depending that focus the amended. due equity only implement commitments same, capital in integration meaning of businesses the Actual and as forward-looking in regarding are and the presentation, the hazard affect regarding necessary 1934, statements settle matters. deem successful economy Forward-looking This within of identify availability changes release achievement targets expectations identify contractual or other could Roadway Operations plans offerings,
William D. Zollars Chairman, President & CEO, Yellow Roadway Corporation
4 independently leader strategy equity operated of Rationale services Networks brand supportive and position / Strategic market markets team transportation and separately agreement performance global scale recovery financial management Update strategy a marketed time labor partner financial right Building Enhances Brands right Economic Favorable 5-year right Roadway Strong The ? ? The ? ? ? The ? ? Transaction ? ? ?
5 closing available retention December potential synergies customer growth Progress on on in confidence confidence confidence Update announcement Higher Higher Higher July ? ? Transaction ?
6 Shareholder Approval 89% for transaction 99% for transaction 98% for name change
oadway z Yellow z z Overwhelming shareholder support for transaction ? ? Transaction Update ?
7 Yellow stock up 34% since announcement 20-day trading average of $31.51 12/9/03 20-day pricing period 11/25/03 Closing DateDecember 11 11/11/03 10/28/03 10/14/03 Yellow Stock Price $28.69 9/30/03 Collar $21.219/16/03 9/2/03 8/19/03 8/5/03 7/22/03 7/8/03 July 8 Transaction Update $36.00 $34.00 $32.00 $30.00 $28.00 $26.00 $24.00 $22.00 $20.00 $18.00 Announcement Date
8 1.7 million fewer shares issued* collar 20.4 50% 19.6 New Shares Issued Shares issued if inside x 1.924 x 20.4 50% 17.9 adjustments Yellow issues fewer shares (less dilution) Roadway shareholders receive more value per share Actual shares issued* x 1.752 x Performance of Yellow stock price benefits all shareholders ? ? Roadway shares Exchange ratio Stock portion New shares issued * Subject to final allocation and proration Transaction Update ?
9 47.7 Yellow Roadway adjustments Shares Outstanding 17.9* New shares issued 29.8 Yellow standalone * Subject to final allocation and proration Transaction Update - of sharesMillions
10 share per 20 . 55 $563 million* $ 50% stock 10.2 million shares* x Total Consideration Roadway shares 20.4 million* Total consideration $1.05 billion* share 50% cash per 00 . 48 $490 million* $ * Subject to final determination of Roadway shares outstanding Transaction Update10.2 million shares* x
11 Chairman, President & CEO, Yellow Roadway Corporation President & CEO, Roadway President & CEO, Yellow Transportation President & CEO, Meridian IQ President, Enterprise Services & Chief Integration Officer President, Yellow Technologies Yellow Roadway Management Team BILL ZOLLARS JIM STALEY JAMES WELCH JIM RITCHIE MIKE SMID LYNN CADDELL
SVP, Corporate Development & Investor Relations 12 Chairman, President & CEO, Yellow Roadway Corporation SVP & Chief Financial Officer SVP, General Counsel & Secretary SVP & Chief Marketing Officer SVP, Human Resources Yellow Roadway Management Team BILL ZOLLARS DON BARGER STEPHEN BRUFFETT DAN CHURAY GREG REID STEVE YAMASAKI
13 to summary close 12 in market 2004 December reported, the 30, be after Reporting from will 2004 January Roadway 29, on Roadway EST Financial and January am include on 9:30 Yellow disclosures will at 2003 for released be results results will supplemental be call 31 will Quarter as Fourth Consolidated December Standalone form, Earnings Conference ? ?
14 (+/- 10%) $3.00 $6.5 billion $55 million 40% 49 million $200 million Full Year 2004 Consolidated revenue Earnings per share Interest expense Tax rate Average shares outstanding Capital expenditures Yellow Roadway Corporation estimates ? ? ? ? ? ? Initial Guidance ?
15 statistics provided income ratio Operating operating Revenue Operating Key Information ? ? ? ? residual Transportation IQ Penn Corporate New Yellow Meridian ? ? ? standard a on reported be 2004 will Year results Full basis reported Express Roadway Guidance forward, quarter Segments Roadway calendar Going Initial ? ?
James D. Staley President and CEO, Roadway
17 fewer 11 $15m lower in Dec Estimate in resulted resulted 8 July $30mcollar Estimate pricing of end accretive and high structure above Accretion be to: to due capital expense price outstanding Update required stock Favorable interest Yellow shares Synergies Improvement ? Synergy ?
18 11 degree Dec
stimate $80-$100m $30-$50m certainty higher 8 moderate synergies, July Estimate $45-$125m synergies, expected Rate of year possible range Run one of tighter rate range Update run synergies wide 11 closing net Synergy 8 December certainty after 2004 July of Synergy ? ? ?
19 Opportunities Financial & legal services Risk management Etc. Equipment & equipment maintenance Purchased transportation Cross-border & offshore operations Technology infrastructure & development Network engineering Back office functions z z z Primary synergy areas ? ? ? ? ? ? Synergy Update?
20 million developed scorecard $300 being aggregate are in ultimate approximately updates the or is costs, Summary mechanisms ofstatus 5% Update tracking provide profitability synergies is will Enhanced Objective Internal We Longer-term Synergy ? ? ? ?
21 and large-2004 strengths through January healthy and identify in to improvement summit retention cooperation utilized drive Process to involvement Roadway intense differences process customer for Inquiry Roadway group Yellow total cultural a at work for Ensure Opportunities competition Bridge Collaborative opportunities Utilized scale Basis ? ? Appreciative ? ? ?
Donald G. Barger, Jr. Senior Vice President and Chief Financial Officer, Yellow Roadway Corporation
23 (1) (2) $90 175 252 14 531 250 150 400 931 (millions) $ Debt Structure All-in cost of debt is approximately 6.2% ABS borrowings Term loan Roadway senior unsecured notes Industrial development bonds Secured debt 5.000% convertible notes 3.375% convertible notes Unsecured debt Total debt $225 million of notes marked to fair value of $252 million as part of purchase accounting Actual amount of total debt at 12/31/03 may vary ?- Yellow Roadway (1) (2)
24 <2.00 Estimated 12/31/04 Debt to EBITDA <2.50 Estimated 12/31/03 Key Debt Ratios <45% Estimated 12/31/04 Debt to Capital Yellow Roadway <50% Estimated 12/31/03
25 Moodys Baa3 Ba1 Ba1 Ba2 Ratings S&P BBB BBB- BBB BB+ Credit facility notes credit rating notes Roadway Secured Corporate Roadway Convertible ? ? Yellow
26 Summary flows costs Financial 2004 cash capital term manage for term free on to Short Longer Roadway Strong Return Synergies ? Ability Momentum Yellow ? ? ? ? ?