SCS Transportation provides regional trucking transportation ...

SCS Transportation provides regional

trucking transportation and supply chain

solutions across the United States

through our operating companies,

Saia and Jevic Transportation. Our

experienced team is building value for

shareholders, customers and employees.

SCS Transportation, Inc.4435 Main Street, Suite 930Kansas City, MO 64111Internet Site: www.scstransportation.comInquiries:Tel: 816.960.3664 / 800.533.9643Fax: 816.714.5920E-mail: [email protected]

NASDAQ: SCSTTransfer Agent:Mellon Investor Services LLC

S C S T R A N S P O R T A T I O NC O R P O R A T E P R O F I L E

The Securities and Exchange Commission encourages companies to disclose forward-looking information so thatinvestors can better understand the future prospects of acompany and make informed investment decisions. This corporate profile contains these types of statements,which are “forward-looking statements” within the mean-ing of the Private Securities Litigation Reform Act of 1995.

Words such as “anticipate,” “estimate,” “expect,”“project,” “intend,” “plan,” “predict,” “believe” and similar words or expressions are intended to identify

forward-looking statements. We use such forward-lookingstatements regarding our future financial condition andresults of operations and our business operations in this corporate profile. All forward-looking statementsreflect the present expectation of future events of ourmanagement and are subject to a number of importantfactors, risks, uncertainties and assumptions, includingindustry and economic conditions, that could cause actual results to differ materially from those described inthe forward-looking statements.

2001 Revenue $771,582(1)

2001 Tonnage 5,046(1)

2001 Shipments 5,223(1)

Customers 64,000

Employees 7,500

Tractors 3,700

Trailers 10,500

Service Facilities 119

(1)in thousands

P R O F I L E H I G H L I G H T S

SCS TransportationDelivers New SolutionsSCS Transportation, Inc. provides transportation

and supply chain solutions to more than 64,000

customers across the United States.

At a glance, we are:

A new company built on strong brands

■ One of the nation’s largest less-than-truckload

(LTL) carriers, with a proven track record

and the financial strength to prosper in a

competitive market.

■ An independent holding company for Saia and

Jevic Transportation, two leaders in their markets,

with distinct customer bases and operating models.

■ Building on a 2001 revenue base of $772 million,

with profit improvement measures and strategies

for growth through market penetration and

geographic expansion.

Customer and service-oriented

■ Committed to exceeding expectations on all

measures of service, including speed, reliability,

careful handling and responsiveness.

■ Active in growing regional and interregional LTL

and selected truckload (TL) markets.

■ Committed to providing true transportation and

supply chain solutions and becoming our customers’

best-in-class provider of value-added services.

Backed by first-class resources

■ An outstanding employer for 7,500 people working

in Saia and Jevic’s flexible, rewarding environ-

ments, with a focus on safety and quality of life.

■ Equipped with 3,700 tractors, 10,500 trailers and

leading-edge technologies.

■ Publicly traded on the NASDAQ National Market

under the symbol SCST.

S C S T A T A G L A N C E

$771

.6

$789

.0

$594

.5

$0

$800

$700

$600

$500

$1 00

$200

$300

$400

1999(1) 2000 2001

Revenue($ in millions)

EBITDA(1)

before unusual items($ in millions)

Steady Performance in a DifficultEconomic Environment

(1)Includes Jevic’s results since acquisition as of July 1999

$71.

6

$72.

2

$62.

1

$0

$80

$70

$60

$50

$1 0

$20

$30

$40

1999(2) 2000 2001

(1)EBITDA is income before interest, taxes,depreciation and amortization.EBITDA before unusual items alsoexcludes property gains and losses andSaia/West Ex/Action integration expenses.


Becoming an independent, publicly held

company in 2002 has given our business

strong momentum for the future. We are

excited about building value for shareholders,

expanding our flexible, premium services

to customers, and enhancing opportunities

for employees.

The 7,500 associates of our operating

companies, Saia and Jevic Transportation,

provide the energy and teamwork that

drive SCS Transportation. We have an

experienced, innovative management team

and independent, forward-looking leaders on

our Board of Directors.

As a new transportation stock, trading on

NASDAQ under the symbol SCST, we will

focus on growing our regional less-than-

truckload (LTL) trucking business, while

pursuing related opportunities to deliver best-

in-class performance in promising markets.

Our strategies for SCS Transportation are

sound, straightforward approaches:

■ Separation – Spinning off the regional LTL

businesses from our former parent, Yellow

Corporation, giving investors more direct

insight into our business and providing the

financial flexibility for SCS Transportation

to pursue growth opportunities.

■ Profit improvement – Implementing cost

initiatives, focusing on return on capital

and improving profit margins. During a soft

economy, we have effectively managed

fixed and variable costs and are well

positioned for bottom-line benefits as the

economy recovers.

■ Growth – Accelerating earnings growth by

increasing share in current markets. We

also expect to achieve attractive returns

by adding to our geographic footprint and

service offerings.

The creation of SCS Transportation gives

Saia and Jevic a strong financial base to

continue to provide best-in-class service to

our customers – and to expand and improve.

The drivers, terminal workers, sales,

customer service, and administrative personnel

of our companies are motivated, ethical and

committed to providing the best solutions for

our clients. As regional LTL companies with a

healthy, flexible human resources environment,

we operate in faster-growth regional markets,

adapt quickly and provide customized solutions

for customers.

We are a new company, but with traditions

of excellence that go back to 1924. Saia and

Jevic are leaders in their markets. Looking to

the future for SCS Transportation, our vision

goes beyond transportation – we are helping

customers design solutions to transform the

way they do business and to create value

throughout the supply chain.

I invite you to learn more by visiting

www.scstransportation.com or contacting

us directly.

Thank you for your support of

SCS Transportation.

Sincerely,

Bert TrucksessChairman, President and CEOOctober 2002

SCS Transportation is one of the leading

providers of transportation and supply chain

solutions, serving 64,000 customers across

North America and generating three-quarters

of a billion dollars in annual revenues.

Bert Trucksess

C H A I R M A N ’ S L E T T E R

Saia traces its history to 1924 and now

serves thousands of customers in 21

states across the

South, Southwest,

West and Pacific

Northwest.

Customers choose from a variety of Saia

service options including one-day and

two-day regional less-than-truckload (LTL)

shipping, guaranteed/expedited services,

selective truckload shipping, consolidation/

distribution services, and specialized or

customized services.

Saia is a service-oriented, premium LTL

carrier with over 100 service centers. The

company’s highly efficient network handles

most shipments directly between terminals,

complemented by nine major breakbulk or

“hub” facilities and 10 mini-break terminals.

Saia’s commitment to quality management

shows in the numbers: Six Customer Service

Indicators® enable Saia customers to measure

the quality of service quantitatively. This

customer-friendly solution is published by

Saia on a quarterly basis and is the only index

of its kind in the LTL industry.

Saia Services■ Regional LTL in 21 states

■ Overnight and second-day

■ Saia guaranteed/expedited

■ Selected truckload service

■ Service to Mexico, Canada, Puerto Rico,

Alaska and Hawaii

■ Partner service to Midwest and Northeast

Mission Statement

“Provide the best-in-class regional service

defined by our Customer Service Indicators® with

cost-effective processes in an environment that

respects employees and recognizes excellence.”

Headquarters . . . . . . . . . . . . . . Duluth, Ga.

2001 Revenue . . . . . . . . . . . . $485 million

Employees . . . . . . . . . . . . . . . . . . . . 5,100

Service Facilities . . . . . . . . . . . . . . . . . 109

Average Shipment . . . . . . . . . 1,300 pounds

Average Distance . . . . . . . . . . . . 525 miles

Manufacturing47%

Retail/Wholesale/Distribution

All Other

11%42%

Saia Customer Segments

J E V I C T R A N S P O R T A T I O N

Founded in 1981, Jevic Transportation is

a hybrid less-than-truckload (LTL) carrier

that also offers

selective truckload

(TL) services

across the

continental United States and Canada.

The company delivers high-quality service

that leverages state-of-the-art communications

and technology to meet customer needs in a

very efficient, flexible operating model.

Jevic’s proprietary Breakbulk-Free® model

often eliminates the need for en-route

rehandling of freight. None of Jevic’s traffic

requires breakbulk handling, and most of

the shipments avoid destination terminals

altogether. Jevic’s unique configuration elimi-

nates an expensive step in the LTL shipping

process and reduces cargo damage compared

with typical “hub-and-spoke” companies.

In addition, Jevic provides specialized

solutions such as quality care for chemical

shipments, heated trailers when needed to

protect cargo, and guaranteed delivery. More

than 40 percent of Jevic’s revenue derives

from chemical and allied industries.

Jevic Services■ Regional LTL in 48 states and Canada

■ Next Day® and second-day

■ 100% GUARANTEED Service®

■ Breakbulk-Free® LTL

■ Satellite tracing

■ Heat Fleet® cold weather protection

■ Partial truckload

■ Chemical-handling expertise

Mission Statement

We the employees of Jevic are dedicated to

serving our customers’ needs quickly and

accurately, always meeting and often exceeding

their expectations. In short, our goal is to be:

“The Best of the Best.”

Headquarters . . . . . . . . . . . . Delanco, N.J.

2001 Revenue . . . . . . . . . . . . $286 million

Employees . . . . . . . . . . . . . . . . . . . . 2,400

Service Facilities . . . . . . . . . . . . . . . . . . 10



S A I A

Saia, a leading regional LTL carrier,

offers the highest quality overnight

and second-day delivery and a wide

range of premium solutions.

Delivering Transportation and Supply Chain SolutionsSCS Transportation provides regional and interregional LTL and other value-added services through two operating companies

Los Angeles

Houston

Atlanta

Charlotte

Chicago

Cincinnati Philadelphia

New EnglandNew YorkCleveland

Covering 21 states

Jevic offers regional transportation

solutions through a nontraditional

Breakbulk-Free® operating model,

providing specialized care and flexible

service solutions.


Chemical/Allied

Other Manufacturing

All Other

20%

22%

43%

15%

Jevic Customer Segments

Network of over 100 service centersNationwide serviceService facilities














2001 Revenue $771,582(1)

2001 Tonnage 5,046(1)

2001 Shipments 5,223(1)

Customers 64,000

Employees 7,500

Tractors 3,700

Trailers 10,500


(1)in thousands










competitive market.


























$771

.6

$789

.0

$594

.5

$0

$800

$700

$600

$500

$1 00

$200

$300

$400

1999(1) 2000 2001


EBITDA(1)




$71.

6

$72.

2

$62.

1

$0

$80

$70

$60

$50

$1 0

$20

$30

$40

1999(2) 2000 2001



Becoming an independent, publicly held

company in 2002 has given our business

strong momentum for the future. We are

excited about building value for shareholders,

expanding our flexible, premium services

to customers, and enhancing opportunities

for employees.

The 7,500 associates of our operating

companies, Saia and Jevic Transportation,

provide the energy and teamwork that

drive SCS Transportation. We have an

experienced, innovative management team

and independent, forward-looking leaders on

our Board of Directors.

As a new transportation stock, trading on

NASDAQ under the symbol SCST, we will

focus on growing our regional less-than-

truckload (LTL) trucking business, while

pursuing related opportunities to deliver best-

in-class performance in promising markets.

Our strategies for SCS Transportation are

sound, straightforward approaches:

■ Separation – Spinning off the regional LTL

businesses from our former parent, Yellow

Corporation, giving investors more direct

insight into our business and providing the

financial flexibility for SCS Transportation

to pursue growth opportunities.

■ Profit improvement – Implementing cost

initiatives, focusing on return on capital

and improving profit margins. During a soft

economy, we have effectively managed

fixed and variable costs and are well

positioned for bottom-line benefits as the

economy recovers.

■ Growth – Accelerating earnings growth by

increasing share in current markets. We

also expect to achieve attractive returns

by adding to our geographic footprint and

service offerings.

The creation of SCS Transportation gives

Saia and Jevic a strong financial base to

continue to provide best-in-class service to

our customers – and to expand and improve.

The drivers, terminal workers, sales,

customer service, and administrative personnel

of our companies are motivated, ethical and

committed to providing the best solutions for

our clients. As regional LTL companies with a

healthy, flexible human resources environment,

we operate in faster-growth regional markets,

adapt quickly and provide customized solutions

for customers.

We are a new company, but with traditions

of excellence that go back to 1924. Saia and

Jevic are leaders in their markets. Looking to

the future for SCS Transportation, our vision

goes beyond transportation – we are helping

customers design solutions to transform the

way they do business and to create value

throughout the supply chain.

I invite you to learn more by visiting

www.scstransportation.com or contacting

us directly.

Thank you for your support of

SCS Transportation.

Sincerely,

Bert TrucksessChairman, President and CEOOctober 2002

SCS Transportation is one of the leading

providers of transportation and supply chain

solutions, serving 64,000 customers across

North America and generating three-quarters

of a billion dollars in annual revenues.

Bert Trucksess

C H A I R M A N ’ S L E T T E R

Saia traces its history to 1924 and now

serves thousands of customers in 21

states across the

South, Southwest,

West and Pacific

Northwest.

Customers choose from a variety of Saia

service options including one-day and

two-day regional less-than-truckload (LTL)

shipping, guaranteed/expedited services,

selective truckload shipping, consolidation/

distribution services, and specialized or

customized services.

Saia is a service-oriented, premium LTL

carrier with over 100 service centers. The

company’s highly efficient network handles

most shipments directly between terminals,

complemented by nine major breakbulk or

“hub” facilities and 10 mini-break terminals.

Saia’s commitment to quality management

shows in the numbers: Six Customer Service

Indicators® enable Saia customers to measure

the quality of service quantitatively. This

customer-friendly solution is published by

Saia on a quarterly basis and is the only index

of its kind in the LTL industry.

Saia Services■ Regional LTL in 21 states

■ Overnight and second-day

■ Saia guaranteed/expedited

■ Selected truckload service

■ Service to Mexico, Canada, Puerto Rico,

Alaska and Hawaii

■ Partner service to Midwest and Northeast

Mission Statement

“Provide the best-in-class regional service

defined by our Customer Service Indicators® with

cost-effective processes in an environment that

respects employees and recognizes excellence.”

Headquarters . . . . . . . . . . . . . . Duluth, Ga.

2001 Revenue . . . . . . . . . . . . $485 million

Employees . . . . . . . . . . . . . . . . . . . . 5,100

Service Facilities . . . . . . . . . . . . . . . . . 109



Manufacturing47%


All Other

11%42%

Saia Customer Segments

J E V I C T R A N S P O R T A T I O N

Founded in 1981, Jevic Transportation is

a hybrid less-than-truckload (LTL) carrier

that also offers

selective truckload

(TL) services

across the

continental United States and Canada.

The company delivers high-quality service

that leverages state-of-the-art communications

and technology to meet customer needs in a

very efficient, flexible operating model.

Jevic’s proprietary Breakbulk-Free® model

often eliminates the need for en-route

rehandling of freight. None of Jevic’s traffic

requires breakbulk handling, and most of

the shipments avoid destination terminals

altogether. Jevic’s unique configuration elimi-

nates an expensive step in the LTL shipping

process and reduces cargo damage compared

with typical “hub-and-spoke” companies.

In addition, Jevic provides specialized

solutions such as quality care for chemical

shipments, heated trailers when needed to

protect cargo, and guaranteed delivery. More

than 40 percent of Jevic’s revenue derives

from chemical and allied industries.

Jevic Services■ Regional LTL in 48 states and Canada

■ Next Day® and second-day

■ 100% GUARANTEED Service®

■ Breakbulk-Free® LTL

■ Satellite tracing

■ Heat Fleet® cold weather protection

■ Partial truckload

■ Chemical-handling expertise

Mission Statement

We the employees of Jevic are dedicated to

serving our customers’ needs quickly and

accurately, always meeting and often exceeding

their expectations. In short, our goal is to be:

“The Best of the Best.”

Headquarters . . . . . . . . . . . . Delanco, N.J.

2001 Revenue . . . . . . . . . . . . $286 million

Employees . . . . . . . . . . . . . . . . . . . . 2,400

Service Facilities . . . . . . . . . . . . . . . . . . 10



S A I A

Saia, a leading regional LTL carrier,

offers the highest quality overnight

and second-day delivery and a wide

range of premium solutions.

Delivering Transportation and Supply Chain SolutionsSCS Transportation provides regional and interregional LTL and other value-added services through two operating companies

Los Angeles

Houston

Atlanta

Charlotte

Chicago

Cincinnati Philadelphia

New EnglandNew YorkCleveland

Covering 21 states

Jevic offers regional transportation

solutions through a nontraditional

Breakbulk-Free® operating model,

providing specialized care and flexible

service solutions.


Chemical/Allied

Other Manufacturing

All Other

20%

22%

43%

15%

Jevic Customer Segments

Network of over 100 service centersNationwide serviceService facilities














2001 Revenue $771,582(1)

2001 Tonnage 5,046(1)

2001 Shipments 5,223(1)

Customers 64,000

Employees 7,500

Tractors 3,700

Trailers 10,500


(1)in thousands










competitive market.


























$771

.6

$789

.0

$594

.5

$0

$800

$700

$600

$500

$1 00

$200

$300

$400

1999(1) 2000 2001


EBITDA(1)




$71.

6

$72.

2

$62.

1

$0

$80

$70

$60

$50

$1 0

$20

$30

$40

1999(2) 2000 2001



SCS Transportation provides regional trucking transportation ...

Documents

Transcript of SCS Transportation provides regional trucking transportation ...