YRC Worldwide Q1 2010 Earnings Call Transcript

YRC Worldwide Q1 2010 Earnings Call Transcript
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YRC Worldwide (YRCW)

Q1 2010 Earnings Call

May 04, 2010 9:30 am ET


Mike Smid - Chief Operations Officer and President of YRC Inc

William Zollars - Chairman, Chief Executive Officer and President

Michael Naatz - Chief Customer Officer and President of Customer Care Division

Sheila Taylor - Chief Financial Officer and Executive Vice President

Paul Liljegren - Vice President of Investor Relations, Treasurer and Controller


Christopher Ceraso - Crédit Suisse First Boston, Inc.

Neal Deaton - Stephens Inc.

Justin Yagerman - Deutsche Bank AG

Thomas Wadewitz - JP Morgan Chase & Co

Jon Langenfeld - Robert W. Baird & Co. Incorporated

Jason Seidl - Dahlman Rose & Company, LLC

Edward Wolfe - Bear Stearns



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Previous Statements by YRCW
» YRC Worldwide Inc. Q4 2009 Earnings Call Transcript
» YRC Worldwide Inc. Q2 2009 Earnings Call Transcript
» YRC Worldwide Inc.Q1 2009 Earnings Call Transcript

Good morning. My name is Melissa, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the YRC Worldwide First Quarter Earnings Conference Call. [Operator Instructions] I will now turn the call over to Paul Liljegren, Vice President, Investor Relations and Treasurer.

Paul Liljegren

Good morning, and thank you for joining us for the YRC Worldwide First Quarter 2010 Earnings Call. Bill Zollars, Chairman, President and CEO of YRC Worldwide; and Sheila Taylor, our CFO, will provide comments this morning. In addition, Mike Naatz, President of our Customer Care division and Chief Customer Officer for YRC Worldwide; and Mike Smid, President, YRC and Chief Operations Officer for YRCW, are with us today, and will be available to take questions during the Q&A section of this call.

Now for our disclaimers. Statements made by management during this call that are not purely historical facts are forward-looking statements. These includes statements regarding the company's expectations and intentions on strategies regarding the future. It is important to note that the company's future results could materially differ from those projected in such forward-looking statements due to a variety of factors.

The format of this call does not allow us to fully discuss all these risk factors. For full discussions, please refer to this morning's earnings release and our SEC filings, including our 10-K and today's 8-K filing.

In addition, please see today's release for a reconciliation of our GAAP measures to non-GAAP financial measures, such as operating loss to adjusted EBITDA. During this call, we will refer to the non-GAAP measure of adjusted EBITDA, simply as EBITDA. We've also provided monthly EBITDA in this release and monthly volumes in prior releases to substantiate our comments regarding sequential improvements through the quarter. It is important to note that we do not intend to provide monthly data going forward, unless the company deems it to be appropriate at that time. I'll now turn the call over to Bill.

William Zollars

Thanks, Paul. Good morning. Let me start by saying that we are pleased with the confidence demonstrated by our customers who have returned their business to us or have increased their shipments with us, and the operating momentum we achieved as we exited the quarter. The general economic outlook is modestly positive, but the LTL industry dynamics remain unique due to excess capacity and specific competitor strategies.

I'll make a few comments on legislative reform related to multi-employer pension plans and our new board members. But first, I want to introduce Mike Naatz, President of our Customer Care division and Chief Customer Officer of YRC Worldwide. Mike has spent many years in transportation and logistics and has served in a variety of operating and support positions. He was the Chief Information Officer at USF at the time of our acquisition of that company. Since then, he has served in various leadership roles, including our Chief Technology Integration Officer, responsible for the successful technology integration of Yellow and Roadway.

Mike was recently serving as our Chief Information and Service Officer, where he led all of our customer-facing functions, with the exception of sales. Now with his expanded responsibilities, he will include our sales organization. Mike?

Michael Naatz

Thanks, Bill. Good morning, everyone. While this may be a new role for me here at YRCW, I've been in transportation and logistics for the past 17 years. My background includes sales, operations and technology. An important part of our plan is to create an exceptional customer experience for our client base at every point of contact. By aligning our customer-facing sales and service teams with technology, all under one functional leader, we are surrounding our customers with key resources that will enable us to build an exceptional customer experience.

Our account relationships at every touch point always remain vital. We continue to maintain solid business ties between key customers in the YRC Worldwide management team. We also appreciate the strong partnerships in the field that are so important to consistent profitable business relationships. I'm looking forward to working with the team and our customers. Thank you. I'll return it to Bill.

William Zollars

Thanks, Mike. We really feel that this change will continue to improve alignment across operating companies, and place decision-making and accountability closer to the customer where it's most effective.

I'm now going to move on and talk a little bit about the multi-employer pension plan, starting with our joint labor management coalition. This coalition has conducted literally hundreds of visits to congressmen and senators. The International Brotherhood of Teamsters working as part of the coalition, continues its push in Congress, and with the administration for multi-employer pension reforms. The legislation introduced in the house with bi-partisan support, The Preserve Jobs and Benefit Act, now has nearly 40 co-sponsors. The coalition continues to work with house leadership and committee chairs on the best possible way to advance this legislation.

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