Yellow Corporation

Good afternoon and welcome to Yellow Corporation's first quarter 2022 earnings call. All participants will be in listen-only mode. After today's presentation, there will be a question and answer session. Please note this event is being recorded. I would now like to turn the conference over to Tony Carino, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, everyone. Welcome to Yellow Corporation's first quarter 2022 earnings conference call. Joining us on the call today are Darren Hawkins, Chief Executive Officer, Dan Olivier, Chief Financial Officer, and Daryl Harris, President and Chief Operating Officer. 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 subject to uncertainty and a number of risks. and therefore extra results may differ materially. The format of this call does not allow us to fully discuss all of these risk factors. For a full discussion of the risk factors that could cause our 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 even time. In conjunction with today's earnings release, we issued a presentation which may be referenced during the call. The presentation was filed in an AK along with the earnings release and is 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. In Q1, we continued our steady staircase of financial improvement and reported our best first quarter adjusted EBITDA and best first quarter operating income, excluding property disposals, since 2016. In addition, as of the end of Q1, the last 12 months adjusted EBITDA has doubled compared to a year ago. Consistent demand for LTL capacity has kept the pricing environment strong. In Q1, year over year, LTL revenue per hundred weight, including fuel, increased, 30.5% and favorable pricing trends have carried in the Q2. For the month of April, yellow averaged between 10% and 11% on contract negotiations. As mentioned on our Q4 2021 earnings call, we started seeing a rapid increase in COVID-19 cases among our employees in the final weeks of December that carried into the first quarter. The spike in cases, along with adverse winter weather, pushed our network out of cycle, which led us to take actions in February to limit terminal operations in select markets that lasted a few days. The percentage decline in year-over-year LTL tonnage per workday peaked in February, and by April it returned to a level more in line with internal expectations. As we transform the network to operate as a super regional carrier, we expect it to be more agile and recover more quickly from extreme weather events. We also fully expect to return to growing LTL tonnage per day. The transformation of our company continues, and with the conversion to the One Yellow technology platform behind us, our focus has turned to integrating the line haul network. to support both regional and long-haul service, as well as the optimization of pickup and delivery operations. We are managing the network transformation in the same manner as the technology transformation, with a careful, well-thought-out plan to minimize execution risk and to apply lessons learned as we move from one phase to the next. You will hear more about this from Daryl. Looking ahead, demand for LTO capacity still appears to be strong with inventory levels remaining below normal and a manufacturing sector playing catch up from supply chain disruptions and a tight labor market. With the significant capital expenditure investments made in recent years and the progress we are making in the transformation to One Yellow, we believe we are well positioned for 2022. Once the network transformation is complete, we expect improved asset utilization, enhanced network efficiencies, cost savings, and added capacity without the need to add new terminals. We will be operating as a modernized, super-regional carrier that will provide our customers with an all-in-one solution. I will now turn the call over to Dan, who will share additional details about Forge.