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Wall Street Transcript Interview with Jamie G. Pierson, Executive Vice President and Chief Financial Officer of YRC Worldwide Inc. (YRCW)

67 WALL STREET, New York - September 21, 2012 - The Wall Street Transcript has just published its Transportation and Logistics Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: FMCSA CSA Regulations - Regulatory Issues in the Trucking Industry - Trucking Pricing & Capacity Dynamics - Retail and Industrial Transportation Demand - Truckload, LTL, Parcel, Rail and Intermodal - Capacity Constraints Result in Pricing Power

Companies include: YRC Worldwide Inc. (YRCW) and many others.

In the following excerpt from the Transportation and Logistics Report, the CFO of YRC Worldwide discusses the outlook for his company for investors:

TWST: If you would, please start by introducing our readers to YRC Worldwide with a brief company history and an overview of your operations today.

Mr. Pierson: Historically, Yellow and Roadway were each founded in the late 1920s, early 1930s, and really started this industry. These are companies that are 80-, 90-plus years old and really started the LTL industry. Making a huge leap forward, most recently Yellow acquired Roadway in 2003. That made them the combined YRCW moniker, and they have grown by small acquisitions since then. They acquired USF, which is part of our regional operations, in 2005. So again, it dates back to the 1920s. They merged in 2003, and then grew by acquisitions.

Today YRC Worldwide, which is the holding company, is the second largest LTL carrier in North America, generating a little bit less than $5 billion in revenue under two reporting segments, which is a very important distinction. You have YRC Freight, which is the long haul, our national carrier, and then the regional segment is our next- and two-day carrier providers, and they are Holland, Reddaway and New Penn. Holland is in the mid-Atlantic and Great Lakes States area, Reddaway is West Coast and New Penn is in the upper quadrant of the Northeast. So that's YRC Worldwide today.

Even more recently, in July of 2011, we placed a new board; and then immediately thereafter, a new management team. So it has been just over one year at this point in time, and what I would tell you is, for a company that is steeped in history and tradition, it is a totally different company with a completely different culture than just 12 months ago. We are much more focused on doing what we do best, which is North American LTL, and if there is anything that doesn't really fit into that statement, we consider that to be noncore, nonstrategic, and we will consider getting out of it.

I think it bears mentioning that in the last six to 12 months, since the new board and new management came into place, we sold our truckload carrier, which was Glen Moore; we sold one of our two Chinese joint ventures; we held an auction for all of our excess real estate - and this is huge, this cannot be underscored enough, we consolidated the headquarters into one location in Overland Park. Previously, if you called Akron, they'd answer the phone "Roadway," and if you called Overland Park, they would answer the phone "Yellow." So we brought the headquarters into one location so that you have one company, that company has one vision, one mission, and we are all steering in the same direction.

We went through 80 or 90 years quickly. That really brings us more to the current form of the company. At the end of the day, we have a much more autonomous company that is less controlled by corporate and more controlled by those who provide the service on the frontline.

TWST: Who are your typical, or mix of, customers, and what trends are you seeing in their needs and demand for your services?

Mr. Pierson: Let's break that into two different components. In terms of mix of customers, we really do service the economy at large. We have over 200,000 unique customers - so outside of service, if you manufacture it, if you retail it, we are shipping it across the United States, whether it be from our regional carriers with the best-in-class services that they provide or the more long-haul service provisioned by YRC Freight. So in terms of mix of customers, it is a very good representation of the manufacturing and retail economy as a whole.

In terms of the trends in what they - customers - are looking for, that is a very topical question. It comes up every year, because those need change. One thing that doesn't change, though, is service. They need to make certain that with little error the service that we are going to provide for them is as we say it's going to be. The regional companies as a segment have continued to provide best-in-class service. The flip side of that, candidly, is YRC Freight, which has improved its service. If you rewind the clock, say, 12 to 13 months, I would say that they had much improvement to make. Over the last 12 months we've improved services at YRC Freight 20 percentage points. That is herculean to improve service that much. I would say we are still looking to improve services at YRC Freight, but we are at least in the market on that particular point.

So the trends are the service that we provide, and then the second piece is technology. Technology not only changes our industry, it changes others as well, and to that point we're rolling out new handheld devices later this year across all of our operating companies, except for one - that is cutting edge. They will now have all that they need in their hand, not only for route optimization but for taking pictures of their freight for claims management and claims damages review. We are taking what our customers have asked us to do to heart. We are implementing those changes literally in the next three to six months.

TWST: Please tell us a little bit more about growth. Where do you anticipate future growth, and what is your access to capital and your financing strategy for it?

For more from this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers, and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.