Yellow Corporation

Good afternoon, everyone, and welcome to the Yellow Corporation second quarter 2021 earnings call. All participants will be in a listen-only mode. After today's presentation, there will be a question-and-answer session. Please note that this event is being recorded. I would now like to turn the conference over to Tony Carreño, Vice President of Investor Relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Welcome to the Yellow Corporation second quarter 2021 earnings conference call. Joining us on the call today are Darren Hawkins, Chief Executive Officer, Dan Olivier, Interim Chief Financial Officer, and Darrell Harris, President. During this call, we may make some forward-looking statements within the meaning of federal securities law. These forward-looking statements and all other statements that might be made on this call, which are not historical facts, are a subject to uncertainty and a number of risks. And therefore, actual results may differ materially. The format of this call does not allow us to fully discuss all the risk factors. For a full discussion of the risk factors that could cause the results to differ, please refer to this afternoon's earnings release and our most recent SEC filings, including our forms 10-K and 10-Q. These items are also available on our website at myyellow.com. Additionally, please see today's release for a reconciliation of net loss to adjusted EBITDA. In conjunction with today's earnings release, we issued a presentation which may be referenced during the call. The presentation was filed in an 8 along with the earnings release as available on our website. I will now turn the call over to Darren.

Thanks, Tony, and good afternoon, everyone. Thank you for joining our call. Today, we reported Q2 2021 adjusted EBITDA of 82.9 million, a 69.7 million improvement compared to Q1 of this year, and an increase of $45 million compared to a year ago. I am pleased with the execution of our yield strategy and the steps we are taking to mitigate higher purchase transportation expense. As we look ahead, we expect a steady staircase of improvement. Demand for LTL capacity has remained strong, driven by e-commerce and a recovering manufacturing sector that has yet to return to full strength. As the U.S. supply chain struggles to keep up, much of the growing demand is in the middle mile segment, which is ideal for LTL carriers due to the shorter length of haul and more appealing lifestyle for LTL drivers, most of whom are able to be at home with their families each night. With the growth of e-commerce requiring warehouses near major population centers, the need for middle mile service is positioned to remain strong. On the supply side of the equation, trucking capacity is being kept in check by an industry-wide shortage of qualified drivers and dock workers. We are working diligently to meet our customers' needs while making sure the optimum level of freight is flowing through our network. In such a tight capacity market, it is also imperative to ensure pricing reflects the demand for the service we provide. Our strategy is to grow the business, However, in the near term, we are leaning into yield growth over tonnage growth to help manage through the industry-wide shortage of drivers and near-term purchase transportation headwinds. Favorable year-over-year pricing trends have carried into Q3. For the month of July, yellow averaged between 11% and 12% on contract negotiations. We are executing key steps in our transformation to one yellow. During the second quarter, Retaway's bargaining unit employees voted to enter into the National Master Freight Agreement, joining the rest of our operating companies. All of our bargaining unit employees are now aligned with the NMFA's March 2024 expiration. A single operating system across the network is the technology linchpin to get to One Yellow. YRC Freight and NUPIN are now operating on the One Yellow platform with the RETAway conversion in process and hotline targeted to be completed by the end of the year. This will set the stage for a fully integrated One Yellow network and streamline the flow of information for operations, sales, customer service, human resources, maintenance, and in-cab technology. We are also making significant progress on our 2021 capital expenditures plan with the acquisition of more than 1,800 tractors, 2,200 trailers, and 400 containers during the first half of the year. Not only are these investments having a positive impact on the age of our fleet, but over time, we expect them to mitigate maintenance expense and help our sustainability efforts through enhanced safety and improved fuel efficiency. As we onboard the new equipment, it is being branded with the yellow name in conjunction with our transformation. We have also rebranded over 10,000 pieces of existing equipment with the yellow brand. Turning to the American Rescue Plan Act of 2021, it was signed into law earlier this year to strengthen eligible multi-employer pension plans that are severely underfunded and and to substantially mitigate their unfunded liabilities through 2051. The 120-day rulemaking period concluded in July, and the PBGC issued interim final regulations. The regulations provide pension plans guidance on the application process, along with a timeline through 2023 on when they can apply, primarily dependent upon their funded status. The Act and the relief it provides will protect the hard-earned benefits of retirees from many companies and many industries, including members of the Yellow Team. I will now turn the call over to Dan, who will share additional details about the quarter.