Introduction Home Yellow is Number One Three components. One company. One-Stop Shopping Shareholders' Letter Management's Discussion and Analysis Financial Summary Consolidated Balance Sheets Statements of Consolidated Operations Statements of Consolidated Cash Flows Statements of Shareholders' Equity Statements of Comprehensive Income Notes to Financial Statements Independent Auditors' Report Supplementary Information Glossary Officers Corporate Information Board of Directors Back Cover

Statements of Consolidated Operations

Statements of Consolidated Operations Yellow Corporation and Subsidiaries for the years ended December 31 (in thousands except per share data)   2002     2001     2000   Operating Revenue $ 2,624,148   $ 2,505,070   $ 2,799,131   Operating Expenses: Salaries, wages and employees' benefits   1,717,382     1,638,662     1,767,926   Operating expenses and supplies   385,522     398,054     431,336   Operating taxes and licenses   75,737     75,637     81,259   Claims and insurance   57,197     56,999     61,535   Depreciation and amortization   79,334     76,977     78,587   Purchased transportation   253,677     215,131     266,113   Unusual items expense (income)   8,435     5,415     (14,372 ) Total operating expenses   2,577,284     2,466,875     2,672,384   Operating Income   46,864     38,195     126,747   Nonoperating (Income) Expenses: Interest expense   7,211     8,437     10,131   ABS facility charges   2,576     7,996     10,052   Interest income   (843 )   (1,198 )   (1,003 ) Loss on equity method investment   -     5,741     3,329   Other, net   334     (140 )   (889 ) Nonoperating expenses, net   9,278     20,836     21,620   Income From Continuing Operations   Before Income Taxes   37,586     17,359     105,127   Income Tax Provision   13,613     6,770     43,522   Income From Continuing Operations   23,973     10,589     61,605   Income (loss) from discontinued operations, net   (117,875 )   4,712     6,413   Net Income (Loss) $ (93,902 ) $ 15,301   $ 68,018   Average Common Shares Outstanding-Basic   28,004     24,376     24,649   Average Common Shares Outstanding-Diluted   28,371     24,679     24,787   Basic Earnings (Loss) Per Share: Income from continuing operations $ 0.86   $ 0.44   $ 2.50 Income (loss) from discontinued operations   (4.21 )   0.19     0.26   Net income (loss) $ (3.35 ) $ 0.63   $ 2.76   Diluted Earnings (Loss) Per Share: Income from continuing operations $ 0.84   $ 0.43   $ 2.49   Income (loss) from discontinued operations   (4.15 )   0.19     0.25   Net income (loss)   $ (3.31 )    $ 0.62      $ 2.74    The notes to consolidated financial statements are an integral part of these statements.

Statements of Consolidated Operations