Yellow Corporation Provides Quarter-To-Date Operating Data for Fourth Quarter 2021

Rhea-AI Summary

Yellow Corporation (NASDAQ: YELL) has reported its operating metrics for the initial months of Q4 2021, reflecting a decline in key performance indicators. Shipments per workday dropped by 8.1% in October and 6.8% in November, while tonnage per workday fell by 10.1% and 9.5%, respectively. Despite these decreases, revenue per shipment saw an increase of 19.8% and 20.2% in the same months. Additionally, the company announced a Partial Pension Annuitization affecting approximately 3,700 participants, expecting a non-cash settlement loss of $50-$60 million in Q4.

Positive

• Revenue per shipment increased by 19.8% in October and 20.2% in November.
• Company expects to de-risk its balance sheet through Partial Pension Annuitization.

Negative

• Shipments per workday decreased by 8.1% in October and 6.8% in November.
• Tonnage per workday declined by 10.1% in October and 9.5% in November.
• Expected non-cash settlement loss of $50-$60 million will impact earnings per share by $0.98 to $1.18.

The Company also Announces Action to De-Risk Balance Sheet

OVERLAND PARK, Kan., Dec. 09, 2021 (GLOBE NEWSWIRE) -- Yellow Corporation (NASDAQ: YELL) reported certain operating metrics for the first two months of fourth quarter 2021.

For Yellow less-than-truckload (LTL), the percent change 2021 from 2020:

	Shipments per Workday		Weight per Shipment		Tonnage per Workday		Revenue per Hundredweight(a)		Revenue per Shipment(a)
October	(8.1)%		(2.2)%		(10.1)%		22.5%		19.8%
November	(6.8)%		(2.9)%		(9.5)%		23.9%		20.2%
QTD	(7.5)%		(2.5)%		(9.8)%		23.2%		20.1%

1.    Includes fuel surcharge
   

“The operating metrics for November and December are in-line with our expectations as we continue to execute our yield strategy,” said Darren Hawkins, Chief Executive Officer. “We are working with our customers to ensure the right freight is flowing through the network and that the price reflects the value that Yellow brings to the market. We operate the second largest LTL network in North America with more than 300 strategically placed terminals and we have capacity to take on freight that aligns well with our network and is priced appropriately. Our plan is to grow the business and the transformation to One Yellow enhances the value proposition to our customers and positions us for long-term tonnage growth.”

Single-Employer (Non-Union) Pension Plans

Earlier this week, the Company’s qualified non-union pension plans entered into a contract for a group annuity to transfer obligation to pay the remaining retirement benefits of approximately 3,700 plan participants in the Yellow Corporation Pension Plan, the Roadway LLC Pension Plan and the Yellow Retirement Pension Plan to an insurance company (the “Partial Pension Annuitization”). The plan participants will not have any changes to their benefits as a result of the transfer. The transfer included approximately $250 million in both plan obligations and plan assets.  Prior to the transaction, these plans had approximately 8,500 participants.

As a result of the Partial Pension Annuitization, the Company expects to record a non-cash, non-operating settlement loss of between $50 and $60 million in the fourth quarter 2021 reflecting the accelerated recognition of unamortized losses in these plans from the obligation that was settled. On an earnings per share basis the non-cash, non-operating settlement loss is expected to be between $0.98 and $1.18 in the fourth quarter 2021.

“The Partial Pension Annuitization of the near fully funded non-union pension plans is an important step in de-risking our balance sheet, by mitigating the potential volatility associated with the transferred obligations and assets,” said Dan Olivier, Chief Financial Officer. “This step will help keep our focus on improving operationally and financially as we continue executing our One Yellow strategy.”

Cautionary Note on Forward-Looking Statements

Certain matters contained in this Current Report on Form 8-K concerning expected future events and financial results constitute forward-looking statements and are based upon management's expectations and beliefs concerning such future events impacting the Company. There can be no assurance that these future events will occur as anticipated or that the effect on the Company's results will be as estimated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly update them. For a description of certain factors that could cause the Company's future results to differ from those expressed in any such forward-looking statements, see the risk factors that are included in our reports filed with the SEC, including those described under “Risk Factors” in our annual report on Form 10-K and quarterly reports on Form 10-Q.

About Yellow Corporation

Yellow Corporation has one of the largest, most comprehensive logistics and less-than-truckload (LTL) networks in North America with local, regional, national, and international capabilities. Through its teams of experienced service professionals, Yellow Corporation offers industry-leading expertise in flexible supply chain solutions, ensuring customers can ship industrial, commercial, and retail goods with confidence. Yellow Corporation, headquartered in Overland Park, Kan., is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company Yellow Logistics.

Please visit our website at www.myyellow.com for more information.

Investor Contact:	Tony Carreño 913-696-6108 investor@myyellow.com
Media Contacts:	Mike Kelley 913-696-6121 mike.kelley@myyellow.com  Heather Nauert heather.nauert@myyellow.com

FAQ

What are the latest operating metrics for Yellow Corporation (YELL) in Q4 2021?

In Q4 2021, Yellow Corporation reported a decrease in shipments per workday by 8.1% in October and 6.8% in November, along with a decline in tonnage per workday by 10.1% and 9.5%, respectively.

How much will the Partial Pension Annuitization affect Yellow Corporation's (YELL) financials?

The Partial Pension Annuitization is expected to result in a non-cash settlement loss of $50-$60 million for Yellow Corporation, impacting earnings per share by approximately $0.98 to $1.18.

What is the revenue per shipment increase for Yellow Corporation (YELL) in Q4 2021?

Yellow Corporation reported a revenue per shipment increase of 19.8% in October and 20.2% in November 2021.