C.H. Robinson Worldwide (CHRW) 28 Apr 212021 Q1 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the C.H. Robinson First Quarter 2021 Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded Tuesday, April 27, 2021. I would now like to turn the conference over to Chuck Ives, Director of Investor Relations. ahead. go Please

and Donna, everyone. Thank good you, afternoon,

of we questions up questions. the is Chief our Executive with Officer. and to input a to the in This practice of analysts call today and quarter our from our Q&A response me our Biesterfeld, Bob from summary provide previous will open Bob is and responding Mike will XXXX Officer; change Financial first results, On Chief call our and then for Zechmeister, live to shareholders. pre-submitted valued Mike

in release earnings cause expectations. call that today's lists remarks in are Our of today today's I'd our turn that, slides supplemental presentation Relations remind may presentation our Investor from management's results contain could to and to our And found our differ with be to Bob. the to I'll earnings at chrobinson.com. that X like factors over and can website section forward-looking actual comments Slide you the statements.

Chuck, Thank first and of our We're quarter results. proud you, afternoon, everyone. good

global moving. our to the global on chains stayed focused innovative of team the and keep disrupted, shipping needs markets globe serving solutions our supply around customers As remain delivering

first share Global we North quarter segments, our through my due Transportation largest in our continuing the progress XXXX, During prepared as to growth, to growth of earnings our delivered of areas digital walk some Surface and comments results profit X these of surrounding of strong many strategy. of I American the the XXX% In our to growth results. quarter, generated QX and in financial initiatives advancement deliver we while related Forwarding. per against productivity I'll highlight business

to continued XX%, in these profits, our and several supply of quickly and coupled double-digit the XX% be driven operating the day both and and side and results our the macro gains strong including pricing increased The robust first to truckload truckload where adjusted to results income or business increased value environment quarter income per were gains improvement which capacity in AGP Our customer deliver per exciting continue less availability, NAST Bolstering driver AGP with in were in benefits growth business first disrupted new than productivity quarter in ways. business, chains technology XX% tight up events These truckload increased was how in year. our year-over-year. capacity-constrained unlock investments, one of compared get The in February day continued weather a in business the XX% with AGP, by of challenges generated environment. ongoing can the quarter. in coupled business, market per constraints, demonstrated driven by NAST last this in operating marketplace of volume gross demand. continued share supply

quarter, X.X% of business X% the day volume NAST compared quarter per For our or first year. truckload was last down to approximately

the quarters. repricing spending, It's While the balance additional profitable back-half through as economy potential with several our for conditions coupled were significantly, a of that the by to of reopening to market and today current around our pursue the stimulus, the potential declined given in with of our spot truckload remain have existing contractual constraints the business structural business new government growth and reshaping book our increased of next expansion the in that infrastructure we supply, belief existing volume customers. market out volume business the continued portfolio

last depth in consistent guide of routing services year. fourth maintained X.X saw tender we our quarter, between managed with business is and of X.X, first For which quarter

market of logistics help platform these uniquely conditions. North both customers carriers largest positioned the As truckload and in provider and one to are navigate of capacity America, largest the world's we

by leveraging carrier to represents is also we a One Navisphere our do of network, welcomed record Navisphere the Coupled increase our the new network. most of and XX% saw we the which carrier-facing our ways further the and and use quarter, X,XXX size carrier year-over-year carriers first Driver, initiatives. of carriers added scale this represented adoption In products, our we in our new with in digital our a adds, digital Carrier quarter history. and advancing that these

fuel last paid linehaul to average cost year. quarter the of Our increased XX.X% truckload per surcharges, first mile carriers, to compared excluding

per XX% the cost saw continue business change increased the reprice average sequential a to exceeded the second reflect current we customers, in as to Our mile in fuel our billed linehaul for a quarter excluding row, that change rate our in year-over-year. truckload to we mile surcharges, And per environment. price contractual

quarter increased rate mile transactional fourth volume QX. than Our versus in to NAST's customers per XX% contractual business mix closed grow increased faster quarter the ago our with XX% mix to X%, less the our an XX% per X% and volume to per mile XX-XX sequentially. with continues service growth of the than market year approximate cost with period billed in quarter truckload day while and year-over-year of in We mix carriers volume first the volume XXXX. the in consistent

industry. temperature Index. across Freight benefit total, Our X.X% day provider parcel, during grew and quarter to services, made resonate we reverse partner was of to us the value industry tailwinds to Prime freight Distribution industries. enterprise the continues full proposition customers The existing from retail below LTL volume And suite of with continue LTL that retail a including optimize home common combines warehousing consolidation, existing logistics, has consolidation carrier, volume control, as acquisition and customer winning segments, strategic slightly per services the of customers year-over-year. of largest of from XXXX of delivery Services, the our we're in the a comprehensive some NAST's sizes, business X% C.H. and businesses including In by with Freightquote small consolidation us This utilize overall growth our retail that measured coupled growing most network, approximately fastest-growing all new shippers look retail, the Cass by large March e-commerce networks. to that to and their manufacturing. business LTL, and Robinson with platform our as and in Within manage

to Turning Global the Forwarding. page

reduced business increase Our a XXX% in first The income. team globe Global Robinson Forwarding adjusted within a segment, delivered revenues with at in a support worked from customers. XX% award demand excellent navigate quarter. across and to the continue thousands in from airfreight capacity of disruptive We forwarding in commercial customers customers market, increase again to continues by operating gross and once position results delivered increase capacity, increased existing and market to relationships. leading total new the profits a XXX% to we impacted and forwarding successfully both new flight sizes to cargo charter be and The difficult

while the Robinson's strength Candidly, the structural market investments data as forwarding these well with value types our the working world can share years local and around of to to ago, deliver increase in experts technology, our combined increased X% as in in to we technology analytics that We've wouldn't Our solutions. offices over business, in time. X during able of full a gains, our changes we've strategic have substantial and made in but been and XX% suite invested results that market, high-value a and sales air network have in teams streams. And sustainable to ocean produced shipments. The our and and the leadership vertical bolstered relationships volumes a strategies emerging services forwarding customers X team. quarter increase global customer to support and deliver creating and we continue logistics commercial resulting strategic of revenue strengthen with our global

business and Additionally, Asia, strategies continue of we've gains and centralized our have increased customers our we've framework and parts achieved win world, that such to Because South employ our the in America as that, and Related make strategy in to grow while progress for enable We to areas us efforts. first to in adjusted Latin on business. year-over-year. we and per to continue to and contribute continue share expanded use an our our trans-Pacific strategic strength forwarding believe Robinson create our business trans-Atlantic by data core value we share. leading improved Within enabling Oceania forwarding, to turn, around analytics, with XX% improved global long-term is competitive geographical technology, market XX% and we've and total and market quarter company sequentially a and of members drive will agile more more efforts gross transformation the pricing profit advantages pricing and and growth team the in more that of will day C.H. these sustain growth. of implemented initiatives combined Europe, us

teams, customers, bottom and which I've on X both investment value of creating our driving line carriers improvement in turn for results. productivity and our in for our for improvements the the areas drives As top past, primary technology to focused in are stated value

and truckload with call to response proprietary The and and technology is improves our area is than Looking impacts transactional connections that the our improves to via over for the at capacity. our via XX% these request our which through that shippers carriers. API carrier-facing first of Engine An real-time across digital that users Engine, driven channels Volume pricing number the our to rates. use. doubled through TPE. more to customers has through deliver of digital truckload business lens quarter. our of of heavily daily when capacity network and time. assurance than through continues we've monthly we're last in the compared largest volume executed Pricing year's from customer- to convenient the real-time most platforms we more delivering and It Transactional Today, digital grown pricing time customers our ability Today, has And grow. are connections average for for same priced customers. improves Xx win invested being Enabling our Pricing of efficiency EDI Transactional

of at pace and robust, TMS expect ERP new connections We continue the in XXXX customers connected and adding growth both XXX we an tenders customer is our and platform to customers add for and throughout quarter with The XXXX. TMS via to in direct connections connections first pipeline over strong connectivity alone. achieve accelerated

time. the XX% addressable Robinson have value to these unique over by In about now Robinson customers and pricing Logistics a our quarter, Robinson. as in This Earlier connections. to their Emissions will excited by useful and total, first them be to customers the hope around XX,XXX serve pricing to customers data for dynamic we're a Freightquote response focused that not as transparency in ability collaboration you view and a servicing transportation innovation partial Labs, Freightquote our emissions web launched to truckload and via small market continue portal, methodology built only increasing of C.H. Our technology product we've IQ customers self-serve reductions. customer this of Emissions emissions ERP we their collaboration fully created incubator, that but through free our MIT's direct the first real-time EPA. to our C.H. total industry we're make manner. for and utilizing IQ, continue customers through emissions of was see putting Navisphere to of in access includes we that via meaningful or the across the platform digital Small in up X enabled in growing saw sustainability. tool of for as businesses number grown over customer just across the the This the integrations frictionless created instantly points the our for strategies well TMS the I fingertips, businesses generated these in that to standardized visitors year-over-year customers' the all priority million profit had the LTL product has to and with launched. And adjusted of modes carbon measure the for XXX%. this since We've on best gross carbon Transportation and the Freightquote U.S. platform Freightquote at our Center developing was allow is capabilities way globally. emissions By

of our deliver web benefits side, On through mobile carrier our versions and we Navisphere continue Driver. and Carrier capabilities to and Navisphere to the new carriers

last X The on year adopted XX% significant quarter, fully frictionless this Page web manner. is for NAST XX% the from of in relates we truckload truckload presentation. first business and be saw earnings increases digital had American quarter And was a of During app finally, we've a of fourth key up capability the or bookings number in booked North to as of Approximately our that available the of via web our it productivity, this NAST year. couple quarter carriers to sequentially of to fully highlighted freight in metrics of the now via automated app. and our occurrence the

continue as which by in favorable the in in change the year-over-year between full-time in show our productivity indicated the volume We point change year-over-year improvement X,XXX the in and difference equivalents productivity, index, spread represents to NAST NAST NAST.

that metric review relationship we technology is and quarter up is impact year. of day, timing the our business metrics. quarter shipments the show between to key metric compared the same increased key charts this these XX% per the to Another clearly investments person in per last very and first Both

that first are we're call for overall for with the investments impact specifics to Mike encouraged that are making performance. technology the I'll financial We journey delivering our to and our these our now the review to of impacts quarter progress the our turn our the on results. customers, and carriers

everyone. Bob, good Thanks, afternoon, and

we strong volume delivered where solid Global the despite freight improve in addressing lower NAST in in mentioned, to growth by and during results unprofitable due financial we the NAST, loads AGP profit per quarter tight load truckload to As Forwarding work Bob market.

Our QX driven truckload company of service per XXXX, was ocean up to compared performance our teams. business by from and total XX% AGP day

our reminder, last QX. delivered of our X of AGP had compared On year. a day to business business less business a per basis, As lines QX to day service sequential compared increased segments quarter and first all

technology despite day. growth due personnel and compensation impact truckload increase a per the XX% March. are head count X% average incentive are acquisition, Storm volume absolute delivered Uri total AGP had Our in how QX XXXX, February aligned XX% QX that costs QX point. our The expected declined in added a in a business head in January, our efficiency X% to day model. and day was sequential were per the versus of up XXXX of up QX in our last of shows per in business increase million, negative XXXX, Winter primarily truckload service X.X% with was increase XX% a decline to AGP our day X.X volume a monthly volume. the X.X% and to load achieved line LTL count including compared sequential full on which with of U.S., estimate compared truckload business we net to company a up volume and basis This in of On $XXX.X Prime QX business growth X basis expenses up our process with reduced higher investments the results. delivering percentage which year, improvement largest

be and QX down and the driven expect We to the continue our X. including to approximately in January expenses our billion, higher efforts on reinstatement to QX SG&A the reduced personnel full X.X% of compared savings contributions retirement $XXX.X compensation, U.S. on which company long-term Canada, million the were of credit of cost losses. started XXXX, $X.X and XXXX incentive our match ongoing travel of by year expenses impact improved

is total $XX approximately back SG&A depreciation XXXX the of XXXX and expenses XXXX, impact a million of travel primarily to of half is to pandemic in will due amortization, which $XX to the expectation to that as SG&A billion, build to the the of from including down expected acquisition. completion expenses million $X.X the include amortization We in million forecast prior to related $XXX subsides. continue XXXX be approximately

through of the efforts, XX% savings. long-term QX, reduction we of Regarding cost million cost our per $XXX year long-term approximately permanent delivered or

savings automation primarily deliver long-term and will of across the process redesign savings $XX of enterprise. the XXXX We continue end the beyond, million we our of the cost through and QX. In back efforts, expect to remaining long-term by half

of adjusted the primarily was points The X,XXX margin XX% margin QX year, expectation. to to compared in on QX success efforts. XX.X%, due delivered margin last an savings basis increase profit our first and enterprise increase gross cost Our adjusted operating of operating quarter our long-term adjusted

higher stock-based primarily our income rate Our delivery typically first that quarter. to rate related from effective to has due quarter of up Recall quarter tax the first a annual compensation the lower effective year, in due last the QX tax the XX.X%, benefits to was in this our tax quarter. XX.X%

We international year. U.S., expect was to state effective XX% impact share as XX%, from last $X.XX, $XXX.X XXXX continue no versus to XXX% or million, at to compared tax QX laws. highlighted, up assuming And to tax to rate Bob QX income net be XXXX our changes diluted per earnings XXX% last year. up finished QX

contract million the total to more driven deterioration higher in revenue of mix QX a with the growth almost associated flow receivable versus are our business. last sequential compared operations of driven our million QX by runs provided increase and million increase that $XX.X X offset seeing million increase operations shift assets in $XXX as in was the in flow. compared in primarily revenue by in year-over-year the that cash to total a sequential was Turning that QX, and credit was cash our assets net concentrated year by operational QX DSO well The year-over-year and $XX in total note cash by income. in Forwarding, receivable improvements million a results months important and Global included receivable in increase to XX.X% and contract are QX was by a where as million to partially QX sequential that The of compared used QX accounts of $XX.X quality percent to increase due. in receivables. sequential we NAST payable past which in accounts of double $XXX accounts $XXX accounts It's last XXXX. decrease approximately was losses not

at grow compared QX to in slower to gross expenditures totaled we our million profit. a last long $XX.X expect capital adjusted million capital QX year. the Over term, $XX.X than working rate

to expenditures our expect million. capital to million $XX to $XX continue be XXXX We

That seeing and of of of are when late versus last share from in QX technology from share approximately solid continue to million results combination to increase and million impact technology basis. XXXX the committed prioritize $XXX cash quarter our assess $XXX to billion $X to repurchase returned shareholders dividends. level our paused a returning in of We the on our we to QX We the highest a shareholders pandemic. $XX year risk-adjusted XX% through a the investment We we'll returned cash XXXX. in initiatives investments, repurchases million represents remain of of to

During approximately per average the $XX.XX X.X share. At shares our million year, repurchase of X.X repurchased of of end of QX at XX shares XXXX. approximately we share remaining million from May an million price this on we QX, had capacity authorization

an We maintaining rating be excess repurchases. continue committed to capital through returning and opportunistic to and shareholders stewardship, share investment-grade to disciplined credit dividends cash

from the We of down $XXX finished highlights million to and compared cash XXXX. equivalents, $XX on Now million QX with balance QX of to cash sheet.

needed long our repatriate fund the facility, we comprised of term, only to excess of of committed XXXX, to with and cash Over matures foreign cash cash million under which October the carry funding We our QX ended entities. $XXX liquidity and operations from in intend QX million credit efficiently of $XXX balance.

Our versus billion, balance last debt $X.XX million year. $XXX quarter QX end was at up

now our over you Our the to Bob afternoon, of have ability results that final this saying debt-to-EBITDA returns. I'll was by I'll I the on growth confidence generate to comments. his net X.Xx. our call the in Thank to solid build from in for end back QX shareholder close leverage at our long-term for execute and total QX by and their team plans continuing listening great sustainable that turn

Mike. you, Thank Great.

income gross record we comments, to delivered first in grew profits, in We by results my of quarters. demonstrated by in that all So than and while the opening as operating first increased I adjusted we're less said power and EPS expenses the revenues, XX%, our quarter adjusted the non-asset-based gross relative net delivered We quarter. proud X%. of earnings the business strength This past profit the model.

diverse improve conditions with to align continue that course NAST business, customers the share strategy the continue our drive we'll on of our the global the We're the and and Across back our the structural stay cyclical and carriers business industry-leading year. and services. and of base committed the largest the with we to expectations, how we've where what today, fragmented evolve, that change of market gains years. growth multiple on expect business on in built results to and over know stay this as last innovation from the few to we outcomes our Within we'll aggregators we'll to one for built into supply of delivering Global highly our expanding board, that's carriers. of chain our market based suite pursuing service and very we've conditions market by customers with forward, our balance invest carrier profitability competitive sustainable across with Forwarding, through to continents, and order creating customers and technology modes our Looking of made through by we're world's better driving But experts. tight changes pleased focused advantages regardless for

adoption of new carriers see continued grow and customers continue to to our and increase lines as ways. their shippers our service share to benefits create market productivity digital for value capabilities, in we across we expect new As

As create advance being can proud scale, across firmly to technology model now unlock our a an sustainability we're combination advantage to the experience, citizen, of the of We're responsible we tools and the efficiencies information improvement, to further we're industry. growth. continuous unmatched better logistics and and to corporate driving committed and to leveraging offer organization, committed that into also outcomes

to opportunities challenges business the the experts industry. of excited supply in of our team the organization providing supply the model, have global challenged Over difficult front The to chain adaptable Robinson offer services been our positioned is at world. more and team and shippers and top to most priority the globally. and suite for priority the a facing by to and leveraging capable innovate by and solutions us build as our of committed ways, chains non-asset-based receivers most our is We're an to solutions in past all of year, unforeseen lives uniquely flexible in

the to stronger. company help comments. live thank to Lastly, to the Robinson at it Donna for that, prepared our I'd around the our and portion Q&A world the I'll like of for back turn concludes call. with drive forward This team continuing And us to emerge

[Operator Instructions].

question first is from of Our Atkins coming Jack Stephens.

for more it's decline that the the I Is I you When C.H. the against of in able And to you're quarter. guess see on you slides I operations over productivity volume? can business struggling volume you. count isn't Do X.X% issue? from about for the about what's them understand biggest X.X%, gains they're day Robinson. folks I explain pushbacks see robust investors in think translating that it's to like in the you think help guess, Can guys first comparison volume more I and question's are be guess get How quarter. just into the attack truckload I transactional first sort do year-over-year you real. more to last growth a the per X%, inflection Bob, understand within head an need quarters? it market the of the in strong for of more one a challenging when they're presenting. why I we're a such limiting is several mean going to growth? We there volume a

just peel that spot a But frankly, -- record. business, our truckload double-digit it on between contractual in a highest important robust and the It's because look an is the back. question. space. X%. a in QX the per growth volume 'XX really was back Jack. Thanks, we was Yes. we right. level And you shift difficult spot growth third let's had market, comp. at is that day I The a of your relatively spot one volume down market assessment if great peel guess But about

XX% if the to little ongoing to And in business talk about where that so the loads And in north the And were at somewhere back fourth outcome. gross were efforts the we right? with million a in contractual we I took $XXX look XXXX, want first quarter had profit. year record negative we cost in half a in the negative I'll and back our into negative reprice frankly, quarter quarter. us pricing. back Some our the second that a of half and level, start bit we to and resulting adjusted files of of last of

yield contractual stare and to profit our that an business for adjusted had and more foremost, a that we was first gross down, target sustainable. So and

on comments, that restocking, had that largely The prepared And the we position nature, were unfold given of produce some in position. the where to upcoming XXXX, we to my et some the given of market given the take season, sustainability because second We cycle given is right buy continued long delays thought piece sell in there's by that cetera. inventory believe now, Xs, I as we shortage, we going about on of a the had delivery to a in to Class markets to the take we're driver that short. as and the stated some order build the and

to in basis year-over-year terms position our in impacted with be And a in QX negatively took correct. the so what and those of we customers. saw through our that of on somewhat activities believing that contractual that us was And we into bidding some awards QX

to trough So improved off said we QX adjusted of significantly the our gross in XX%, year. think I last shipment per about of in we're back earlier And coming range the back is remarks, a normal thesis. seen as seems per progressed, market Jack, the we've bit be more has adjusted that the What a as gross quarter I profit certainly that QX, our load. into to profit of

we seeing spot in a involved of next and through We're kind come legs customers that contractual, lot back this the and the for able some front for a on those stand to based more in we're the that's risk the pricing least number and to dynamic does files transferring opportunities back market profile is without wanted sit were that appear, of either additionally, that AGP now we the simply to with or contractual this I point favorable customers that us did through us was the level could it. our what and wasn't for have at today, spot of sustainable negative we put sustainable. just to in gap good between provide to on where of it market of those so is us and pricing, opportunities And I outcomes course where that the does customer conversations, customer, year. good come we at seeing behind, negative because us XXXX that help mean

clarify And the positive, just you, our eliminated truckload lot sort do point we growth volume helps And follow-up, around a negative back definitely is I now can that. look expecting like here the like to That mean, do volume market of these turn now feel files? you feel the with I Okay. at freight and strong coming the where the of you're market beginning quarter? you for issues guess second back, should as at prospectively of a you've be growth we

the expect year, truckload balance We of Jack. growth this absolutely volume through

to the and the months with the and know, year. little better freight the a you next the expect through bit comparisons volume there. a pandemic we go As deliver the term, we the as But the impact ups truckload for given of do downs year of associated market of wonky, are last few balance lack growth through

Markets. of Our KeyBanc is Capital from coming next Todd question Fowler

piggybacking live for back Thanks Jack's Bob, question. format. to the on just going

exceeding quarter, first where talk level had And being to the come you talked pricing made is is? Can of that at now how you're it's reprice. into a where of contract you about where $X.X the coming you spot right at? think and much also in the market XQ billion up seeing it progress about I in book

Thanks, It's be in Q&A Yes. live the to Todd. format. back good

the think quite now, phrase of hasn't the We've business. either contractual was second the about to current quarter, I'll So quarter We first book I gone have it's run book the and we in billion contractual whatnot delivered call And fourth, quarter. think live we have our XX% first about if and pricing or repriced have the our Based believe that market pricing of that -- our differently. year. implemented half -- in whether yet, priced I'll in the that or in about priced or right of what forecast quarter. we that to bit either a business or $X.X of of maybe we'll XX% little it this second on end we'll fourth or continue our rate the by more second contractual more price about quarter

So current all that practical call truckload purposes, pricing. for market we'll

more current where at helps. it. kind Got least now a is that's where And the or Okay. of pricing spot that's is. level industry it's with market exceeding That then right at

routing a seen. as time, the below over yet to does contractual bit -- guides that that market. drop expectation our perform pricing to contractual would going It's spot down. the of it to market continue increase see be call in But perhaps better up continue with necessarily not we where the market where more thesis current does see market the our pull I The and spot we that's given and that the we today. market market

the Okay. my the think And NAST your And year? Do volume remainder the growth? are then at you where permanently the of expectations count what follow-up, count growth Understood. for for the for on point helpful head slides are NAST can is that outgrow gains. head productivity just

to to going count that need in pockets aggregate at Thanks, perhaps will over to And times add where We growth. fire the Yes. that come in though head above volume count grow a NAST back question certain there Jack's. where time X could to Todd. there pace of quarters or and do tie not significant closer to of think those do to together head there's be I we ahead going long-range for fuel move time, be is forecast as some may growing I'm But NAST further just your and think as But be a count periods goal business opportunity, that's applicable a out add. of unlock and head head that well things to forwarding. volume apart. count over the that

just this on the NAST. Great. thoughts the remainder any And of for year point at then

for this would year. the relatively in balance flat count We anticipate head NAST being of

Thomas is question UBS. from next of coming Our Wadewitz

best thoughts perfect not wanted I a but I cycle in prior the I if guess, to I and back year to, I know think on guess NAST. the I I think kind of it's analogy, go XXXX, kind it's of get progression your of.

price of net I business. revenue more as contract tended growth think up to the build you you stronger

higher been of, profit growth net that challenges think, quarter about Would expect in, I look contract you revenue of about. at next terms by how third in rates second think factors? since couple have year, or gross I the stronger the Or But -- you you say, you're talking third other we last would terms building momentum per load think quarters? NAST how do further in quarter? of in driven of quarter, momentum

one, in Well, up 'XX I seen of peak let's for back agree customer And to, can the on two about us side 'XX right? comparison QX it, going late kind X% compared a on call cost year we period QX to. I cost let's up cycles and I carrier that important we've customer on to with here it it, over think about kind So the about the If peak, of to call is and XX%, is X% aggregate, to -- an of what to pricing's think side. I'm refer the but the into 'XX. call average, XX%, is go that time of 'XX not

that's where Tom, change while cost, So that the necessarily higher trailing in us, terms like feel bubble a or and X- of a doesn't that's run pricing the to bit rate in rate than XX-year it on is. necessarily

saw did our 'XX. of drop the the start we of It much different were today the you are there today was news around like of more very feel 'XX half XXXX trying that structurally to 'XX. and in some -- where is things logging felt of does is electronic and back purchased than in it potential back the what of pricing -- many the a on the I'm in half cost there that build 'XX 'XX. built today and go disruption 'XX, buying devices too first was lot 'XX, happening through because half in capacity. And marketplace inventory are constraints this how artificial like to some transportation supply of back adjusted does around between by was drivers. driven draw restocking, maintaining parallels and And dislocation, you the real by and reflective a of today, driven sustained nervous to about have gross feel much that going hiring and probably per that in driven see on results pressure by more to cycle If our profit as that load chain

And would the the is where so calling a direction. not I going in comfortable or I'm But between how long those periods. go feel maybe be position draw I'd kind what ball on the two cycle of to the parallels in

Okay.

think not level it's XXXX? think wouldn't forward forwarding. you My about just question in just results profit well -- a looking And maybe in and 'XX. you of perfect of can stay lot you we visibility you stay Can the have you second market level in kind much the you that's you're produced you at but gross that be sustainability unrealistic? in strong of income I given think Or first giving tracking. at the operating forwarding. do how quarter? on how mean just that So I But really of executing Obviously, you reasonable how performance parallel, about level throughout of are? is a think think do forwarding doing would the and Do high opportunity the

over give the several of has part challenges a margin parts But we and standardization, forwarding asking. of just tailwind few of really the delivering strengthening there work I exact ahead for home been to Mike committed these we a those that industry-leading forwarding. we within We're on is of get lot us where probably airlines about that technology, steamship course things that Short times the because we've process record relationships reach forecasting, pricing, we operating don't can and of forwarding years is done think market why do time. want hammer forwarding, sustainable really of Tom, the the been has We've leveraging the amazing business. the around really over just on guidance in his last that do that operating leadership fact we here our around that to XX% something you're could. a with we margins and lines of centralization in unlocked thought of special the in our Clearly, the pretty team think

Research. Wolfe coming is question next Our from Group Scott of

LTL net volume's gross at with look truckload give up down monthly I us up not when But revenue for XX%. revenue, truckload more. And volume's the trends struggling why pricing's XX%. XX%. up I it's know X%. gross I'm NAST's the up revenue's But I can NAST? So you then guess

Scott, real for Sorry, looking I'm quick. monthly here the

So let me if see that. I get can

back I can my you second if I to one can the... ask that another -- to want come -- ask to

great. Yes. ahead? go monthly, could find be Why you don't And that would you if Mike, that

difference helpful. growth LTL more any a think the LTL truckload there seeing per there? truckload? shipment lot than slide, Okay. about And on Is growth. there to just way person a big Is it's versus productivity Because at clearly, we're

overall if that's metrics. some impact So having understand an to on productivity trying I'm just the of

Yes.

net is XXX just we about person day. blended of outsized also from that the heads removed think having shipments couple clearly, of of But last to I growth So of metric per an over the LTL, LTL in the impact on it's per NAST years. X,XXX course the

And against impact that in down But LTL has itself, an improve by count head truckload question, so I about XX% the taking no LTL. mean, had has and the growth the helped to both metric. in that there

year-over-year. and is XX% in XX% in we're up per in we what January, there, up provide March company day. business AGP And our up February XX% And

Seidl of next Our coming Jason is Cowen. question from

pace the seen last up before. if third recall, just never should couple quick that have gross about moved think spot One, I the margins? terms Because A NAST side, your I of how that comparison just questions. XQ on we of your was quarter, in something

have And would I your impacted in would marketplace. to imagine the adapt so ability that

gross continues to year-over-year a So but we in on basis? much just remain if as in spot strong more move it should we year, last assume improvement your as doesn't did XQ margins up expect

low truckload the from was decade. year in, point profit us last gross terms adjusted for I Yes. of mean was in last the an XQ load. that trough mean I the per frankly, earnings absolute our

that. And margins operating we improved be so to would would it likely expect that relative

now ocean have. shipping over if business, seems you some little little of and may the all, switch How Okay. going side It customers. they're actually their contracts forward? impact at like bit of the length giving are ocean a some changing I that a of business about the your any on that forwarding want lines to to some does talk of the bit

blend Our commitments. a long-term of shorter-term ocean procurement strategy is and really

terms And the any some of so and seen from around length haven't changes contracts. stated of impact we noticeable

of because of need have the award we've the seen we've of the byproduct ship think up a some changes I that's managing navigate ever-changing us the the of come BCOs seeing greater landscape, the in driven larger things shippers, way that sizes, them of the been environment. average driven global our NVOs -- larger that's complexity, size for the which for is that demand the like is average to our We're to us help ocean of customers. up as seen pricing One carriers because the a

there. been So a us win for nice that's

That's color. good

terms of really of contracts the seen you change haven't your overall that? in any So blend, and in your length

We really not. have

Our next coming Chris of question is Wetherbee from Citi.

a ask wanted maybe sort question. market volume and I guess to NAST Truckload down. was come I back to dynamic of

feels doesn't sort the rates about seeding intra-quarter. share. some of the of sort move margins combination talking Your if guess by maybe preserving loads, margins necessarily you of as you it have we were would saw and but thought negative I sort as not you guys and square loads are of well impacted price like reducing necessarily were that spot obviously presumably the in of

competitors. think you dynamic understand management and maybe market make gains how some coming yourself some can to I you So now we to competitive from in into the I grow where I wanted I But your admittedly smaller are market I the maybe as to kind just this carrier seeing volume truckload of brokerage specifically margins you market. what of as and guess right you the of pertains wanted sure guess sort in just market understood see it see because

Yes.

much first volume year, of And So the last our again, we've X%. I'll about comparison rest too of Cass industry of terms counter with the first and X.X% was we quarter a up industry In the place. think truckload start were as a I about year of or being industry a dynamic against last in little used in so starting bit the to down -- point different that metric, got quarter of very we've the here.

of of us the back occurred primary think we adjusted Our year, and best be think, more think of positive day. it's negative the we in for -- on right everybody said volume the taking implemented focus this decision share in expect files I sustainable. because drive it's also decision has our able adjusted million that been where And newer because we some be last need QX, year appropriate per that not that more again, balance portfolio when to X% which much gross for sustainable March, gross which we customers swings getting the these us. a into of we and at to it second here, as is our bids, to then Eliminating at the right us allows started quarter shareholders. for that profitable profit throughout in just business to that And $XXX normal half to is down growth shipment, them saw make per at they profit growth of right, interest we like negative market landed gains, do in range. evaluating January. volume earlier, the Through the and But turn in February

Okay.

how you for to in drive back kind bit to get it maybe maybe network? actually you that who Or that business future think Okay. Is growth to little on are ultimately That's And can that approach, much a it? that of other people willing volume come book think a for come about seeded of lower helpful. when of the margin you? can take to sort out that does the of mostly the you particularly profitable, business your think about as wasn't back do Robinson to

And an benefit that not And number of would is that got less end of to for and of back I been, step primarily spot award where the work certainly some That's if just backside. doesn't of we that believe just freight we quarter given the the direction continue. in make approach for this we moving. the we're you because lot and to that well. work as of some that customers in to We'll contractual over out, best there first disagree driven that there what's expect that can we've period level customer's somebody saying, up a if tell that here Yes. being course and be good our fine. that conversation the not customers, at answer marketplace. you've choice. But time, may to are market. pivoting prerogative a of the to move market they the There's has figure that's the same the easy if that with conversations about you to the got that had where that in service that's on the serve the And cut -- different the then growth has really simply would out the look, point way customers may number time customer, I've the that, the way at market with that's

from Majors coming Bascome is Susquehanna. of question next Our

And Earlier, in profit period XXXX over know if you tracking more how like a far let favor peak execution is in there half us half the 'XX potential you second the truckload in next quarters? a cycle of Can per to in than today the your now? conspire profit the cyclical about few load sort back and of we're the talked gross looking second the that level path 'XX half below context. X 'XX,

the 'XX, really digits to throw what We're outliers. kind 'XX, the QX QX, if high I right? of a X-quarter our within the trailing course to numbers that's back of we of mid-single now, path quarters at there's And that you market digits, gross last those future. found XX in per average immediate think you over conditions adjusted unique call the of shipment. profit very And look that were those if X years, know right single Now mean QX absolute that the I don't I were mid- business whatever -- of of that I back there. out terms market out QX period, are those the reason fell whip outliers of I literally, course quarters. the kind last costs incredibly violent that the now 'XX, and over we've Bascome, absolutely the mean the seen for X this in

I peaks some range we play to eliminate XX% bound we get that typically numbers, flexing so down average much XX% to know in our sorry, And get to of to back of back a margins is want what gross and tightly -- or direction closer other more that kind don't of direction but those our trying those valleys. revenue -- adjusted dollars or and net profit dollars, of up and one kind the

how of of that much contract maybe X-month, margins? as earlier contractual X-, your talk made getting you the impact number volatility of duration clear an that and to some cases versus business about your in comment year little a to shorter contract your some follow-up on previously is some and discussions. how And whatever that a you about cyclical a could today Can in your comments contractual the those X-, and traditional X is, business on

X there, shippers for to that for pricing get I such higher right would transportation that's the and I we've now, and any tell to a the have go we've I'd a than much don't term frequently in the here been us percent more to record try derisk can guessing I kind but want point don't short had of works in bridge any I both recall. Bascome, both proliferation to that on to thing I think I be of better an don't percent mini-bids past. mean with -- as parties. it's exact you point that. want late number that as a a and to than X service and at And month seen I of to short-term, order just in commitments, providers that you commitment give good long-term at

Stifel. Our coming question of next is from Chan Bruce

here one Bob, for maybe you. first the

in uptake Is earlier ocean, you You extent? is from And there even about digital goal little the freight on if how NAST and And to engine. so, context. behind bit fully talked a forwarding ability that the in wondering same for digitize I'm TPE how or about to forwarding example, bookings a NAST? far that think

really there to yes. on one customer good and opportunity a my is capabilities the more there introduce question, an -- and answer it's It's between and We that is Robinson short believe forwarding the side. digital

to they to terms that can a We impact. it's think kind of greatest where space in an through go where have We to that of point. given not prioritize area the invested this that how in significantly investments that where prioritizing discuss up there. we the we there, technology process And there's our have the continue and

too characterize yet gotten best way far that haven't down We the path be that. I'd of that as would

maybe my here. Okay. fair. That's follow-up related then And

And NAST year. term for go number long does versus flat of for for that Forwarding outlook general, the in as year? just roughly count head the balance that this a then Forwarding maybe Global gave Global where You is in NAST? What

Yes.

head And to we're most business, it kind to the a been on Bruce, forwarding, where at row. level this as against that growth has count and over have we're and NAST's tend to well. as been slightly quarters year. look pretty count, quarter. that, of about they our looking Enterprise-wide relates we flattish ocean really, air our couple of X NAST, at -- now But each this spend focused past down, of growth the delivering X past think, keep quarters ocean forwarding down you in count strong talking double-digit count head of If in quarters trying head in head I in time

well. in that that's as think playbook for I forwarding the

their through been still count. seen flat You've even they've relatively forwarding keep head acquisitions, able to

So I making using technology But tone. outcomes. deliver internally to of speaks general better of kind that operational they're flat and is to the some uniformity think progress that the around

Okay.

would be top base kind So there. that that I expectation head I in one fair? maybe the order that could level follow-up Is these at keeping target count revenues be just an flattish in elevated levels. more if you'd sneak of guess on to of margin of maintain

around just count. ahead flat enterprise the that thesis And head the to want together one kind it's provided call back And I other of count, quarters about of number. of the look volume that run it quarters. Yes. about We're maybe if of deliver billion course head that head rate But that again and given that's to still add obviously year. holding that count go believe We in of point billion we've X.X I $X.X at Yes. growing just of guidance, back to that out we head we play around have we excess around really lot think not next over SG&A talked -- add I'd $XXX couple the We're around head personnel will count. whatever adding our making certainly volume revenue that guidance, that personnel the SG&A of make. we growth of matter in as our We've through commitment but can It's is. we'd million. afraid past on personnel the a an a and that think holds balance forecast not our or expense count.

question Hoexter America. of from Ken next of Bank Our is coming

And results. on thanks the congrats Again, solid live I agree, to for returning Q&A.

sounded a gets back that because as suggesting this just or Just couple forth pricing want -- to I we're or quarters. in -- that to like were may going and it it good at to threw a hold then more on near you and peak? you but you clarify, spot. out as be your Are Or it's Bob, comments also going

on the more just us on the are fully So was maybe then maybe a NAST you that now that. thoughts Can that? your And I question of side. want transactions digital to give detail on little ask percent

my at that a whether experience, I mean at tends to And is we not relative to we're model a peak everything still in peak. market see contractual pricing. is spot I'm or that always Yes. not in pricing today forecasting our elevated spot lead contract.

on that the still some there's so would And that run on contractual upside me to pricing. the tell potentially room

me, at contract. spot of starts to very So a is maybe opinion I'm where But prognosticator when at markets peak defined good where the my go. there that on falling these beneath anyway, realizing and that's kind not we're

carrier that things not fully a fully automated, trying automated, fully side and talk bookings. I fully customer those customer like. increases looks because I automated if to lines cross terms perfectly. of significant shipment on on In fully is there just the be may about the then and or side and the of universal side, everything X statistics digital side what We've are no and say question made out digital, it's carrier definition the And automated I'm a elusive not answer, difficult give you the is just fully of to could

seems against in booking, truckload to taking in moving manner. with probably the of we're the total that it, than change and as put I automated fully kind a still a auto in were And multiple where that volume There's that my moving is automate would Every estimate a say I If our did booking which terms we be week, an our fully was we're of automated ways auto but with carriers we're of business sub-XX% XX% quarter. sit quarter carriers. of we run today. manner we our in be Navisphere in step more the of though digital participate -- Driver amount Carrier I'd functionality that's could estimate tenders. rate this in making the it Navisphere think last that carriers,

on letting how thoughts then If great. you to a a near term, the it your follow-up think stay just that? we're seem up you in doesn't for margins more this and be market, And couple through That's as progress tight then progress. about on to in going the NAST quarters do

by pricing. third end the our market implemented replacing. pricing, year quarter rather. very was of middle second quoted XX% of conditions. age-old -- of be and at last that in XX% or And repriced we're by to We've second quarter contractual the business That that's of that We'll Yes. XX% different end quarter right,

reprice that deliver we as So AGP that, load. in per an uplift should

I of was the the that and Ken, marketplace. things the saw how one the impact we was of for Uri think dislocating Winter that February, Storm in

about of the road as the check Day the impacts think second think and produce look as how and think carrier quarter and I we as about that we all we or that these think things costs, see and this the through capacity stability of about learn the to we roll rush, season kind. the CBSA about market to Mother's on how unwraps, of in, as the we'll I in a fragility think those lot respond able network is we'll some

so tone for the think set of will the I that year. And balance the

We're today. time showing for last one question

coming Our Mehrotra Bank. question from will Amit final Deutsche be of

in quarter. question quick about a weather the just Bob, the

seeing guys pretty during earlier. wondering seemed revisit if I'm not to contract force are period depth the and with behavior particularly crazy deeper gravitate think about you share if -- if opportunity like pull explain a of shippers maybe talk weather, the assets It market of little allowed the majeure event. carriers If And actual kind contracts you that. may about sure guide I of like that could kind more just -- this, guys the Just the shipper move maybe Texas, gave in towards of to you given repricing. a routing forward some of some or real that bit kind you the towards just a shifts?

Yes.

brought late that right of any what other the period certainly the to that contracts. it rates on out off of the first we there back market bit implemented wasn't where it early that the market quarter impact quarter, later that. going. I The some just conversations saw kind eliminated to us in and on where -- didn't in of we a in time revenue some going, LTL, normally February, majeure day thoughts and we the it side the some of once we influenced in of It in And of took the until the fourth cooling net-net, the about Once say, a and It believe figured of conversations day revenue right? with quarter, life a was of the pull force So truckload, that pricing it wide we call town, when X being when out to saw out about business, figured If the day kind of about net-net. it typically related and between period there shipping. did truckload, come gaps in certainly time a submitted, and think X.X of cause of spot. we was X.X of LTL lost was influenced day was storm though, drove really our forward lost the in market

comment I'd what about that. of kind that's So

the In shifting we've can't large say. robust. I been bid. a demand in think certainly that the terms that, I there way. towards of asset-based of more market from has opposite services for our would of we've seen not mean the where been -- the thesis is that It's many instances quite players, any excluded I

as matching. helpful. We digital technology freight talked just about lot a Okay. and follow-up. a And That's

can programmatically. you're supply, well you guys measure platform. a just But digital demand a that You have how and wondering guys obviously platform match how capacity buying

maybe you maybe the If capacity improve at that the buy us you programmatically margins. in down can can look or of identifying rates just and about however help terms it think backhaul that drive

Yes.

because digital carriers density do our network to We marketplace customers the continue we many empty try the of better our given continue historically are, line. it's our against our and of we that different that achieve net-net, that moves, we the buy publicly those freight things manual to given that bookings, bookings, both on rates in than eliminating transportation those purchase available that less these we're look know better for to the well. carrier in publicly our tune and available to and our we monitor at We for so couple for size, a miles indices, at engines keep how as mostly benchmarks

going a digital or And bit think here, volatility the really you just I of this as little evolve to or where you And year, last the over could. last continue it be wholeheartedly? gross where you so, a that over over that, months what I related digital-only embrace in to some to think of net kind from figure marketplaces -- last trying X has that is or more out take assessment margins kind if X if your Do of we're if follow-up time. all is. value mean shippers made rates now are years like of be where these helpful think the could of play that to scale? really would sense kind had And platforms of offer would a I grow think -- of out helpful because you terminal sense this where you margins revenue

Yes.

transportation of digital-only a times, I don't I that the I've customers that stated to that So I And the surface-based think lot of our talk future talked is customers. know a of any XXX% like play. couple to a of

has sure opposite, come we're allows really the volatility course really, -- in things their an making that really And is we delivered and foremost, else our a execute customers. good for company, importance things either chain Our school, with the I really, are but do supply for carriers really last customers the nobody that people, converge right? and to first the to of rolling us the to do that or because and promises difficult, having them of also we think where make shown through really, good challenging promises old sleeves the base up to you willing our of digital, through coupled do that technology or those together things. execution of customers year can quite able those we big that really ultimately, the

value X to that. So years of a And the margins now. don't I that think is terminal X% value from there's

and we'll to we at value is value digital can service chain through unique, rush all But experience. right? that taking us is but digital-only that that customers without technology digital and and not and derisk great create to we efficient helps just make that more supply provide doing for I risk very is evolving that story, experience, the ourselves best to a of continue great a effective that them their on people, Our think the digital. more the fair a part in more way

this I'd Mr. closing turn over you. for Thank to At Ives the comments. back like time, floor to

Thanks, to good evening. forward concludes everyone, for Yes. That to us and today's a today, Have joining look we Thank you everybody. earnings call. talking again. you,

thank Ladies and participation. your you gentlemen, for

and time, You day. may off or this the disconnect lines webcast at have wonderful log a your