Technology

Our industry is in the middle of an information explosion. To be successful in this marketplace, timely accurate information must be an integral part of the service you provide. That in turn requires a sophisticated technology infrastructure. As a result,Yellow is making an unprecedented investment in technology, primarily through our Yellow Technologies subsidiary. This investment is both improving the quality of our services and the quality of the information our customers receive.

Yellow’s leadership in technology also is being recognized by the outside world. In 1999, we were named to the CIO-100 by Chief Information Officer magazine for our strategic approach in using technology to “get closer to our customers.” Other companies in the CIO-100 Class of 1999 were: 3M,Amazon.com,AT&T, Coca Cola, DaimlerChrysler, FedEx, Hallmark, Home Depot, IBM, Johnson & Johnson, Lucent, Microsoft, Southwest Airlines and Wal-Mart. We were particularly proud to be recognized alongside Wal-Mart, our largest customer, who is using technology to rewrite the book on supply chain management. We were gratified to be named by Wal-Mart as their 1999 Carrier of the Year and are proud to be playing a role in helping them achieve their remarkable success.

The Numbers

Our financial performance in 1999 was very good. We reported 1999 net income of $50.9 million, up 27 percent over the previous year. Earnings per share were $2.02, up 35.6 percent from 1998 earnings from continuing operations of $1.49.

Thanks mostly to a very solid year at Yellow Freight System and the acquisition of Jevic Transportation at mid-year, we reported record revenue of $3.2 billion.

Our net capital investment in 1999 was $149.2 million, up significantly from the $96 million we spent in 1998. The investment for 1999 excludes the $164.5 million we spent to acquire Jevic. We are optimistic about our future prospects and planned net capital investment for 2000 is approximately $177 million.

The balance sheet remains strong, even with additional borrowings during 1999 due primarily to the Jevic purchase. Our total balance sheet debt at year-end was $276 million, compared with $157 million at year-end 1998. Our balance sheet debt as a percentage of total capital stood at 40 percent at year-end 1999.