Yellow Corporation

Good afternoon, everyone, and welcome to Yellow Corporation's second quarter 2022 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 this event is being recorded. At this time, I'd like to turn the conference call over to Tony Carino, Senior Vice President of Treasury and Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, everyone. Welcome to Yellow Corporation's second quarter 2022 earnings conference call. Joining us on the call today are Darren Hawkins, Chief Executive Officer, Dan Olivier, Chief Financial Officer, and Darrell 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 actual 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 the results to differ, please refer to this afternoon's earnings release and our most recent SEC filing, including our forms 10-K and 10-Q. These items are also available on our website at buyyellow.com. Additionally, please see today's release for a reconciliation of net income or net loss to adjust the 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 AK along with the earnings release as available on our website. We'll now turn the call over to Darrell.

Thanks, Tony, and good afternoon, everyone. Thank you for joining our call. Yellow achieved a 93 operating ratio, which is nearly 500 basis point improvement compared to a year ago. Operating income of $99.2 million was the highest quarterly result reported by the company since 2007. And as of the end of Q2, last 12 months adjusted EBITDA exceeded 400 million, which is another milestone on our journey to One Yellow. We kept our focus on improving the quality and profitability of the freight moving through our network, which contributed to another quarter of strong yield performance. Ongoing demand for LTL capacity has kept the pricing environment favorable. In Q2, year over year, LTL revenue per hundredweight, including fuel, increased 29.7 percent and favorable pricing trends have carried in the q3 for the month of july yellow averaged between six and seven percent on contract negotiation ltl tonnage per day was down 16.4 percent in q2 compared to a year ago which was consistent with our internal expectations as we transformed the network to operate as a super regional carrier We fully expect to return to growing LTL tonnage per day. Our strategy includes mitigating incremental purchase transportation expense, and as a percentage of revenue, it decreased by 150 basis points in the second quarter compared to a year ago. Turning to the transformation to One Yellow, we expect to execute phase one of our network integration this summer. Phase 1 impacts 89 legacy wire-sheet freight and red-away terminals in the western U.S. and will integrate the line-haul network to support both regional and long-haul service, as well as the optimization of pickup and delivery operations. We plan to have the entire network transformation completed around the end of the year. We have made many significant changes to the company since starting the transformation to One Yellow, and we believe that we are well positioned for the rest of 2022 and beyond. Our liquidity remains strong, and the significant capital expenditure investments made in recent years has lowered the average age of the tractor fleet by a couple of years. What is most exciting to me is in Q2, we delivered some of the best financial results at the company in several years, and we believe there is more opportunity to improve. operationally and financially once we complete the transformation to One Yellow. 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. Thank you again for joining us today. I will now turn the call over to Dan who will share additional details about the quarter.