C.H. Robinson Worldwide (CHRW) 2 Aug 232023 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the C.H. Robinson Second Quarter 2023 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, August 2, 2023. I would now like to turn the conference over to Chuck Ives, Director of Investor Relations.

Thank you, Donna, and good afternoon, everyone.

Operating me Officer; Dave Financial Mike Arun our with and our Officer; call Rajan, Executive Chief Zechmeister, Chief the today Bozeman, is President and On Officer. our Chief comments. Dave will provide introductory some will our for and a quarter outlook of XXXX XXXX. our Mike second provide results summary Arun will questions. open will efforts the up for on update to and customer we our provide and and experience then an carrier our our improve operating leverage, call

in release Our Investors earnings supplemental are our can at section the presentation found website to our of and be earnings slides investor.chrobinson.com.

X Our prepared which could management's call factors intended in today's slides, to information slides. today remarks also the turn that, we refer follow remind we're our presentation cause the differ from actual Slide that results slide do to expectations. And comments are to with to to Dave. the on I'll know not If that may like contain over we you referencing. I'd will statements. our let list you specific forward-looking

Chuck. Thank us Good for joining thank today. you you, everyone, and afternoon,

Let as and of expertise achieve. to market an scale, Robinson time that new example the by saying Robinson, a privilege C.H. business and leading engine that with loyal generates a start the my look strength market that and freight free breadth, of transportation through an profits flow the entrants is model of cycle. I in they entirety leader base other be to scale, a to the enormous resilient know absolute customers cash a it from strong and me freight providers financial with aspire commercial

Ford as growth first a of analyze is recognize been DNA, such the success compelling A and such focus I Amazon as in the time experience my our feel the month, have us providing meeting to look my and customers forward of very to and fragmented business. brands However, there's applying that to opportunity leading is tremendous Robinson that I shareholders my employees career always XX-year in customers, and supply room C.H. I've talking with I Harley-Davidson, and chain. spending customer-centric their market. In a improvement, Motor over front successfully offering in accelerate for Company. strategies Caterpillar, towards at of like to essential implemented I goal customer-focused

Lean drive I'm for been businesses that core discovery in the a more As practitioner, a with with growth focus diagnosis I'm we so and intentions quickly looking mind. ourselves and I'm my portfolio day. the digging each my at shaping business. to of And leadership position phase, an are in team. vision in company the I've and our learning open for

make practices passionate my better; be As startup order of up be focus to will minimize Robinson, at where working I've to speed making have in wake with is improve scale more efficiency. you flexible transportation reinvigorate and that people, collaboration accountable culture, day, Robinson, here as about customers, products, discussing excellence. technology for providing can a have a worked at is are and certain, removed helped the principles enabled innovative at like more My people corners clock problems confident starting and shareholders. I'm be by Amazon, And anticipate but two, multiplier Robinson being can the I driving technology carriers surprises. our the build processes, every aim improving every improvement style the and change-oriented and I worked around look for service Lean most customer solving passionate and better. These is day focus at for applicable workflows and scrappy, for a company, better technology, have one, to: at with. organizations quicker, force three, People been winning gritty, point. Robinson leverage their customers, strong with I've out for continuously on we to on and win it people all will a be be that operate. agile experiences. I and heart you're and notably am improving further and companies team. and and and we about a in and success I've can companies businesses, the are together, acknowledging work that I'm how to company Arun the improving waste

this intelligence to has advantage, to and information pursue review the this that, history forward harness for summary, when of artificial great of XPL, and we over new at example, on C.H. potential that with utilizing. With opportunities Robinson, offer the to than more to results. an touch for benefits learning have our on the prepared continue it now conjunction excited in In I these progress sharing from advanced our the technologies machine opportunities. Arun will been look company and our leverage to any power already a to leading I look look we'll about further in turn company Mike and all you I'm our with As that and AI journey. With along data those quarter heights, I'll Generative comments. capitalize more to his second other

excess to steaming the This despite blank efforts capacity to and the near XXXX. Despite forwarding low high afternoon, continued in continues persist may weak lines capacity capacity extends of American kept freight capacity capacity other market. lanes. demand, XXXX. that during expected a resulted of demand, and freight are and which of that weak through has several everyone. remain demand, which sailings, exceed the for vessel to ratios and new suggests influence inventories steamship add to the rates. North period deliveries to the manage the competitive and excess of periods good freight back with ocean the levels significant markets continue the Global declines load-to-truck vessel market, second QX volumes air freight to In capacity, air to freight ocean be slow low in ocean half transportation suppressed impacted and more by Thanks, rates to redeploying Dave, marketplace

staying control, are what customers The cost gains providing and by on streamlining business. productivity been can carriers our focused service to reduction result processes touches. and manual and has our across we and our meaningful removing waste superior We

With to our the $X.X total quarterly XX% record of the financial results comparable, forces quarter outlined I and of macro last as second QX in year declined revenues year. a billion compared QX as that backdrop, our last

daily year-over-year a weakened March, our our approximately AGP, a the year-over-year NAST. On total but QX X.X% in to total down than X.X% a or our Forwarding year, day and down decline Global basis, decline June, and truckload adjusted decline a XX% quarter NAST QX second gross driven in of down average resulted a a partially last on XX% of business AGP profit company was sequential April, segments. On in NAST in Global was by our X% X% also volume in a May driven X% June. AGP Our basis Within XX% that in XX% compared X%, in was sequential or by ] stronger $XXX in a in monthly XX% company million, a was down [ in other declined increase in increase in April was QX. per in decline volume and which business, held our offset basis. total In Forwarding QX, XX% and down May by by

quarter overall a During is of this from the last in volume in the of in second proxy year lowest services year, XX% of volume the full which is which market, level truckload seen declined a contractual we've quarter managed business, X.X for since X.X guide in QX, for depth and approximate tender had of XXXX. an QX recession to business. we mix our transactional the XX% Routing our of

sequentially XX% mile a to with lag The shipment sequential per a in to per is XX.X% in in in year-over-year excluding our truckload price our our in basis, linehaul in per in declines level the last decline transactional June cost sequential pricing the linehaul experienced linehaul year. the last June, in for to rate off began year-over-year on changes average decrease These spot a our per $X.XX QX shipment. surcharges. Due resulting and increase AGP we've a average billed be the pricing or carriers, declines to time per Truckload the XX% resulted the basis decline QX causing that and year-over-year we is of QX and truckload follow both truckload costs, linehaul cost surcharges. cost to This last in year-over-year years only May largest per in XX approximately AGP AGP AGP per a cost mile to contract contrast fuel customers, decline mile continued and mile our year in market to excluding XX.X% On to fuel contractual saw mile. decline March in and mile since below per of increased

our LTL our of high QX team on however, a in sequentially. By XX% and In business of to year-over-year to of last is our and business, new year, all leveraging primarily pipeline modes lower market. AGP and basis market up prices. conditions softness LTL shipments access were X% a per compared fuel our LTL capacity driven LTL the onboard declined by the order, that to broad in level service, flat continues the offsetting

In plenty Forwarding business capacity. Despite QX Forwarding adding diversifying were year-over-year approximately generated which conditions our technology verticals declined soft As Forwarding from our years. $XXX and of million, air weak new each investments to customers, last record ocean and in trade the I compared and AGP past that, Global the volume exhibiting made and market in grew and Global also Global mentioned, has leveraging XX% revenue and QX, year. $XXX high demand team our talent lanes progress the several sequentially, of over of million through behind

AGP results results, driven growth by forwarding year-over-year shipments. of XX.X% a X% in these The XX% a by and to compared ocean QX XXXX. decrease declined QX in AGP per Within shipment in decrease were our XX%

expense expectations delivered XX.X% of to QX charges, reduction quarter. last We and personnel $XX.X for $XXX.X compared the expenses productivity down year. QX expenses. our were of including to million, million restructuring Turning on

the XX.X% our restructuring variable primarily due year-over-year Excluding down and cost expenses lower charges, compensation. were personnel the QX optimization efforts to

of cost QX long-term XX,XXX, sustainable In which year at a began streamlined in also structure. XX.X% headcount QX, more our ending was ensure QX significantly down headcount to waste in help with last workflows we our cost competitive efforts, down Our we removed and as elevated optimization and year-over-year.

able us returns. sets up volume which in by productivity result, As day shipments target improvement NAST per we our and on track remain of our year-to-date year-over-year deliver has to per a XX% by well XX% increased gains in that QX when person QX, market, year. I'd to on market through soft achieve the were note for also demand this we of the a

we technology forward, continued our benefits associated people XXXX Going per cost streamline supports processes. and processes and and the per that shipments through in day outcomes expect we remainder improvements improve the of person as with customer

the a to progress billion $X.XX As the expect on our range $X.XX of be end we provided. efforts, cost expenses to result lower toward the that personnel previously we optimization billion of XXXX now

reminder, restructuring our a expenses. excludes expense As guidance

SG&A. restructuring QX million charges. to and were of $X expenses Moving $XXX.X million included

gain restructuring compared due the Excluding of last year, up Center and our claims Kansas in QX, to X.X% expenses. were to warehouse million sale approximately on the leaseback in primarily QX and Regional City SG&A charges increases expenses of QX year's last $XX.X

depreciation expect and expenses of $XXX to $XXX million million, to amortization $XX million to to including continue XXXX our be SG&A expense. million $XXX We

from recall to QX the raised cost earnings cost run rate our of year annualized of annualized $XXX the savings As compared may call, by this you of from commitment QX expenses net savings million to QX year. our last we

to base margins track those be majority the returns. and reductions our deliver demand on that structural be will us to continue once improve to longer-term cost are help expense to expected We changes operating

$X.X million expense rates load. last down debt other versus higher included million against interest losses compared QX versus totaled intercompany QX million interest gain variable also reduced realized year driven last currency foreign QX of a QX of and $XX.X year. and gains assets foreign impacts $XX.X QX a interest $X.X $XX.X million million loss expense, up with by to million, currency year, to both due $X.X and in and foreign QX last liabilities. included currency on revaluation various a on

As our noncash gains impacts losses. predominantly and a FX reminder, are

credits XX.X% rate XX.X% $XX.X non-GAAP to benefits by rate and tax policy. Adjusted lower came million year of and in in tax excluding of effective or compared to federal, in the full expect rate earnings meaningful Our of international at tax XXXX tax 'XX. changes was no lower QX be state range $X.XX. or XX%, We to share, income now XX% The restructuring was our per pretax incremental driven the to assuming QX incentives. from tax charges,

year, per million compared year. to last share QX the was increase QX non-GAAP in last from gain the XX% $XX.X Excluding down earnings XX%

decline flow to generate $XXX net million by to million in income operating cost $XXX million cash the generated was in by ability in of the to in of Turning QX $XXX a $XXX compared decrease our cash through flow. partially year-over-year QX and flow truckload driven in offset operations transportation. in and our price cycle. business cash million was the working QX, cash resulting the from investments freight declining XXXX make net by approximately sequential ocean The demonstrating and capital decrease

the used of benefit flow in cash to $XX.X and our to of and more $XXX QX of million versus and of be $X.X returned The to expenditures cost capital shareholders to $XX repurchases. of $XX.X purchased XXXX the net million Over to come capital $XXX as cash continue XX% was expenditures through to billion. we year, expect cash returned operating to to exceeded a QX, have range In down, shareholders of than and reduce have in year, transportation QX of income of but the X cash realized million our in $XX million driven dividends $XXX working last compared were $XX cash million million capital last million. We share price debt. we by last QX down million quarters, the

ended We a balance Now million on $XXX of highlights. of committed million. cash credit $XXX sheet our approximately under with billion $X.X funding balance comprised QX liquidity the facilities to of and of

paydown includes Our QX the debt million which last debt of versus end $XXX balance was at billion, QX of year. $X.XX

Our up leverage of was QX the the net from debt-to-EBITDA X.XXx QX. at end at X.XXx, end of

optimize in weighted grounded which cost is an average strategy our capital. allocation credit capital to investment-grade allows of rating, Our maintaining us

debt manage With earnings pay to rating. down, the maintain continue the reduction we'll year-over-year investment-grade credit and structure our to billion capital $X.X of our

As we cash amount the to you generally used available would reduces that expect, repurchases. cash the debt reduce for share of

the Over quarterly growth. with EBITDA term, our growing cash in remain we committed alignment long-term long dividend to

enhance quality, important to shareholder in Our delivering program dividends repurchase share than as are more service marketplace. and anyone the levers value customer we efficiently are

our freight cycle. a allows through the business As for demonstrated our invest market, and highly our we partner have to strength makes ups the model cyclical and us downs of the us of reliable through customers

incredibly value the we we customers leveraging that we we've direction productivity turn that, By stability and of our competitiveness call to benefits optimize I well the learning our their Robinson the the machine on and close scaled and leverage. to control to waste value to provide and in and as improved greater efficiency progress by provide Our our to and adding reduce made. reliability on are we to the are ability AI about emerging work and am the transportation of cost efforts needs. I'd principles that build Arun I'll headed our our to Lean like excited for details strengthen operating and to experience combination more our shareholders. With improve and greater efficiency customer carrier to generate Generative across positioned model, marketplace deliver over that

people good and teams quarter, outcomes our with great supports our the Thanks, cross-functional processes. on made progress Mike, technology second that afternoon, single and everyone. improving customer In threaded

way LTL visibility leading improved our Our are and business, has early builder in multiple of and recognized connectivity efficiency initiatives streams which disciplined of enhanced with is our change the work unnecessary work tracking as enabled rating, at and has teams efforts an being targeted the and parties. In carriers to and significantly and customers and gains third accelerating carrier us enhanced product digital adopter are productivity our LTL accuracy. All advantage capabilities achieve our eliminate improving our advanced our program with our and management. automated team and by electronic those growth

time a to headcount core experience streamline our person earlier, we are increased year-to-date towards we and to customer on this our improvement through tasks. appointment-related order carrier tracking, increased thereby months, to a key in-transit goal execution tasks Shipments QX a per drive and reducing we to focus progress growth per and Mike the us that and of achieved progress XX% and touch few decouple tasks our metric and digital the improving goal, cycle enabling per areas measure points shipment manual of Over X management the to of productivity year-over-year the we've improvement automation of that opportunities year. In where by XX% the A of use as improvements mentioned last processes per include and the our case reach we we've task. volume load, is XXXX as day productivity. have the QX of accelerated seen critical have in life increasing number this

earlier, for ability work data to machine and mentioned large used large have alone our and using data estate improve be is management. outcomes standardization. this flows machine automation due unlock. can Generative need and learning, AI language to a an learning unstructured and Dave limitations task One As has to and customers to example models in we've the carriers. But of our incomplete unstructured create also for been artificial intelligence with order where

carriers years, to in Over put have e-mail. through or quotes serve our workarounds and been in providing and receiving orders manual such customized unstructured ways processes customers the place therefore, and as

to blanks, information can and incomplete a automated AI highly these variable mix and process. have unstructured levels be it's you completeness Generative can efficient and imagine, formats. information a fill the used whether in highly fragmented As of of in

the be and accelerant to about information excited turn for promising, to automation call and AI back over our potential and to Our Dave I'll final early that, magnify to for the we're technology his improvements testing advantage. With comments. an results Generative from productivity are and this

Thanks, customers, with Robinson largest most set blue-chip carrier a Arun. strong the freight the relationships than market developed great deep is participant. relations, brokers larger company long-standing share, technology C.H. with data a market global any network, other and

needed with our winning potential accelerating faster new for and challenges enable the empowering and logistics Robinson and by and While status the hustle the market increasing our us a operating value customers' and flexibility full grind for Robinson and are investments improving model to our reach passion our margins overall clock the and stable and act people strength speed, expectations solve efficiency of great presents opportunity Shippers uncover has of shareholder its looking for challenges, partners. boldly to for freight the some anticipate their share, efficiency us ways rebound. I network, create model increasing to company challenge to innovate the profitability. cycles. and its an to value in scale financial exceed for needs, move grit, agility growth, indispensable. our carriers. To through our innovative to environment better greater customers people and improving eventual see proposition, near-term people, more and position the make quo, our I'm and accelerate and improving well our shown has strength

now excited call. balance our of in and the and we future. our concludes high Q&A generate Our back amplify portion that remarks. I'll to on be prepared I'm about expertise and returns for our people the of invest we to expect to initiatives sheet it Donna turn strong, continues our This opportunities the investment. plan to

first coming Atkins Today's Stephens. of from Instructions] question [Operator is Jack

Robinson. at new role C.H. your Dave, congratulations on

essential. is technology commoditized yourself release, C.H. guess scale What a unparalleled of I'd the in question you guess I highly a broadly is the like as mentioned in to to at leading look press what back the need a love now isn't start essential going essential? both prepared -- I I you company right your to make do with is C.H. brokerage. also think you is to do supply transportation in differently company a about something first Because Robinson So and platform. that what chain, making marketplace, my just it's what remarks really which Robinson ultimately in part

over I look couple that it's the to Yes. about meet in meeting coming When Thanks, a forward pleasure think Jack, you things. virtually weeks. I you. to person of Jack, question, and here

and continue. right, and essential, Robinson You're going I to with agree it's is you. C.H.

it's As going have at continue pick we to can I to customers situation look up a organically. where

value the the So Robinson. of everyone sees advantage doing with business and

is consider to make faster, some my and driving that in myself And lean waste, I a act stronger, said are going technology its ways as to know. company this with going take as the of And right? And strong be you as of its practitioner, powerful, but think doing the a use as it clock is that that. Speed we're in things an company I increase speed continues these it comments, faster, to is, scale, reduce are to enabler on imperative, laser-focused this speed continues this company Jack, to market with people. as

growth think excited just to, to is here. it to sheet, us going along continue with and I that to makes and us validates come to allow I just why enhance balance profitable strong drive me our chose

say that's So what that. to I'd

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

Look Dave. you question. the and to I next week. forward question near-term longer-term guess meeting a Congrats,

and that What higher revenue the about, time? Can business Just this think opportunity to operating I where right just, we get longer you to about earnings lower? XX% should margin just too as think from the you probably about to ask, second do for used sequential maybe be to is margin margin C.H. then trends or to early net to do this And and think be net back term help takes over quarter you talked third revenue -- quarter, year, we net XX%. think range a the were? we Dave, on us puts about think but closer

you in? that. forward don't look you I'll question, Mike, well. why It's Thanks. jump in jump and good a Yes. you on to as I meeting let

Yes, Scott.

QX, said, about on all, on, your as a question, I'd AGP, part the things. margin revenue of QX thinking outlook to you few of point First just first the net or to

has been how when come matter weak. and market board year we've QX all, way long of look obviously, our last of at on service So the you And we and we're that biggest lines sitting in truckload highs a in since record ocean. were a it, across no first particularly

And side, we factor. capacity that's macroeconomic today, got and the here so a got you've And the on trend factor the you as sit demand demand thing.

shippers the been a As acting. what market to They've for, the now. seems seeing and here they've them and like way been on They've we down work our optimize trying year and at working it inventories them. look almost been geez,

they so back have yet? there? they We'll And there? got there Are Can we see expect come demand to that heads. where

capacity on terms the the in bottom side, carriers been per at. their we've mile cost breakeven the terms where in On bouncing of for of is

And is probably so of coming out capacity market. the qualitatively, think I

some carriers. employment of I for good likely to now the think truck it's elsewhere be finding given economy. and tough more parking They're to probably the

side, And the we the are probably I so think close capacity on bottom. to

when the of at And which XXXX. And because, takes is that, as website, Freight business under a this for for QX you you to American forecast it significant but of and the on is in important. frequently been issue in the we year, for it you added we're down there's cost, we're a is between there so per follows think and right in contracts we like in while, has that And go Insights, those the the of of if that here cost cost got us market it's giving linehaul now North the we've prices not our you mile we've of when the also because price equation section forward, things chrobinson.com, terms Van and only we DAT is cost root XXXX, you of most set of Market resources, and gets for we I probably our one one in where another portion shippers. a for forecasting are established truckload, side provide a have it and give contract and look lag the reason to with know, year really remainder has in a called you as renegotiating provide coming QX, that

And so there's coming and down. that's on been lag a pricing,

margin quarter that price the the And up and XX%, came things was that's us. key us came cost. the from with so XX% but down one that for in That's down a of fact costs margin compression standpoint for catching price

It's at the So point would forward. we're what it's that right not through cycle. we you cycle in now. that see -- That's expect the going the

little extra that And margin work so itself compression there's out a cost price. as there bit of will time leads over

XXXX. then And it normal getting down then and see spike little little get you And you're at a the on see of we that remainder the website a back got for holidays, get we've you it looking that of in of We're kind you'll year. up then through so this bit as see to bottom when up going terms and costs the our comes at now. forecast, our really back to as forecast you

so as a will follow dramatic of pretty with our shippers. course, we there. And contracts cost price get in And new increase into

XX% operating margin?

Yes.

on That's progress got for there person But that on We productivity. day that tell the that's that quite been going feel the system the at spending what. XX% the our and we've months improve NAST. dollars, of you really into looking our we're and that on margin, So There the different operating where while. about on We a there at from work We're out good year, X that. target productivity. the XX% I'll shipments put there we've taking impact out translating where year. per of some dynamics a by out on spending for made are and NAST. target per back on there We really that quality already. And the teams our that's time we're we're the out XX% waste to into that reported

analytical, leadership front. will in methodical to that that we've data-driven past. It's really waste lean in got and Dave's about saw Those kind in in believe really to way those worked the and there as We're on way. a you that -- I numbers. environment of eliminate plenty on We're a So find principles continue. do waste practitioner. efforts excited those have

to that some And of continue unique be have it's, about talked a out because regard take and our believe And to We unique in a with and because position AI. really able learning of extent, unstructured. we'll in And enormous there. amount history, we costs machine so Generative is that I to scaled business data. an Robinson

from data to and from plugging to so but for learning. Generative great and the machine find us into learning and it and getting inconsistencies, been and the reinserting standardize standpoint, data it that the machine AI has missing And complements of actually is in key to ability through our back one it go a take automate,

so that great And focus help with there and our customers. can some strategic quality really us allow complementary folks productivity to and our work really things more our with there's on

So Arun, continue you I inside growth get XX% inside it, that, and for you've and NAST. you get know that efficiency income operating if that, our efficiency margin the us to growth think of covered of if I don't keep on yes. --

Vernon next from The is question of Bernstein. coming David

of burning at the has think What's you recently? versus share on the moat brokerage the the C.H. how quite in How your moat do in some very is question first to oil throwing of have of And the think maybe about that about of Robinson really a bit shown been been of ability barricades having more disruptive them of Dave, company. of parts for industry Robinson? the other periods barrels the background what of side take time. doing So different you kind about you short Robinson then of an C.H. do other of kind

been you're Amazon what sides I'd building Yes. we virtually a you say of there was one, because did the feel Good And in, that this. -- number work meet of and about players to new and as coming well. this have good right, couple question, the I pleasure on I work of I here. when entrant The at some

"Hey, on being tell I allows both asks me said, leading understand the as understand it. and sides it's a because continue in advantage. what importance you and And then from that of that technology put we here. And machine key "Hey, is me It they're one right, Robinson. it. importance and that having the scale to you and I edge older drive actually came state both. and it in the a and was have someone really coming of is The transformation the power was I advantage as know in I scale Dave, to scale. And the I'll to digital that that of things is surprised some something the technology set know So Robinson that company technology, with plus competitive surprising that when surprised art you know as the competitive just people on a company this of adding has on will this grow to you in you, I really the is right, Arun in things company, a fax this say, play come can -- here marketplace. will that says, think the the technology continues I and the of to tone perspective

several that strength see, answering that from call I just actually the a driving spent a the clearly out, and of we fix this see And just and there. are our out that so gemba, see go two, you in fix So air as and states can But a you That's that's potential on and I'm And it's it upturn them eventually, taught are positioning we comes, we last about making you why allowed fast. me when things. from perspective. couple it One, where lot you'll about work. sure stay waste go speed I scaled strong already moat, the both to of improvement it. time feel focused the weeks work a of out. business. we what will where a talk when be an doing I happy waste this And about employees the so the of see over how sides that's of take waste the them me the

just terms it some does? the talking We're lean, in maybe follow-up. process what can we on as the we Board? talk have about also does, of talking it a still improving a From kind looking of Or Robinson business. structural how And quick from of the lot Are of the what at to change the really you what are improvement. we're mandate about lot a focused maybe just to you a --

while with for perspective? was committee. about of your Can a activist there strategic think sense marching you from discussion a some one kind of are the I Board shareholders us orders a give back what from the the

improve I diagnose, that a for for driving the connection I'm time taking it's it's get the going going company. bring on to those Board, I am found clear company this locked through the principles speak clear Board, are we're in growth phase, profitable true profitable have forward to will and I'm to I and is, where will but the when Yes, on to to that our growth, my I on with And successful in this that. this the in Board have continuing those is Robinson, locked I shareholders that. and from I I my And you I'm and tell know pretty do do analyze. Board. with that. diagnosis the just with company. to in north successful

The Christopher next of Company. coming is from question The Kuhn Benchmark

thoughts to for about a going wanted started your to looking comments your you're I meet on just taking forward? portfolio to at Dave. you first you And back to the conversation virtually, look your there? when what be Good go going

is of right? right, on all how doubt But to these air this. mind perspective, it, you Nice portfolio, my early same days, The but the an thing. business clear -- on I'm with Yes. at the looking make no from meet on entire clear It's as There's is, portfolio as I'm to about a and I open point focus well. in, on driving And said, truckload all business, driving ocean sure value shareholders. then truckload, focus within and drive making with -- we on and LTL, some best portfolios. -- focus that other for our the those the that and core unlock we we additional evaluate, of continuing businesses organization know the really kind driving a

open-mind early that. we'll a to hard. to It's So approach. to back bit but it's that, And diagnosing. I'm give days. just of color I'm little certainly, I wanted diagnosing an come

question TD Jason is Cowen. from of Seidl next coming The

aboard. everything you're your is like still Dave, welcome in diagnosis the table sounds and good to mode. on It as meet you

laser in on So I'm things. few going of a to sort

exciting things always opportunities sort sort about in presence Generative of better at when electronic AI. You of look do What think the that some you point lot the talked the been has sort sort a are grow I And the can I some sticking one opportunities in think on side? to drivers of driver technology. getting over of to C.H. that embrace brokerage,

why meet here. Yes. I there's into to this. a and couple things off? you a finish on start I'll ways because great mean, Pleasure to don't go question you Arun, lot of of

and of in website, care have. Yes. for in think terms I is from sort and a listening things we those X carrier-facing they technology care usage about for And while, better They right? been loads, to uptake of which made investment carriers digital sustained in a I huge carrier-facing a volume we our who've bookings. about of care experience. seen there's And about, And perspective, a that board, we've when access came you in and app on

if like they things load fast paid getting to. choose recommendations, So

and like in we And release in of do automated is more trace us ask can track through for tell bookings things, need requirements with you I a track we our said, providing "Well, us the what to make the we refreshed go recently, our we've carrier is, Carrier likewise, app, with I So what or okay, the And that invest invested And lot them new ask experience. had in ELD. areas. of they we probably when Advantage a through up and program, you that And say, listen we And want us what trace program. carriers loyalty better and when Program, they digital and And on certain live terms our it's experience. about it. them app they well and saw significantly. which those say easy are -- to use carriers

can that So that compared no the bring one of the I and I'd we say, asked we have competition, have carriers to loads our say the would table. our some features have to of all volume for,

Yes. pay really the such there room just one things as I carriers in Lowe's. agree with ease previous would use. access about that get to of on plus a to the things those that and and it's they seeing about I build allowing these teams experience that. It's want,

do when of ease right, about that on the really hear you you So I think net you he hit that, all key the points spreads, when use.

of in continue where good a we're because it's and we you said I'm kind So it to to question. space are highlights it going glad this where go.

So thanks asking that. for

numbers the an there of you in quick look in the the forwarding Or just higher lower at that a at follow-up, range. us can are on side. end? fruit Is things to margins, going lower We're end be as I the be improvement the What's going appreciate sort on year this looks It XX% color. towards I the the at if pandemic sort going Sure. probably the sort of XX% EBIT to to there? are to going think sort been of the throw end the get that that. like overall And I other guys when it have be you to away inflated and take get low-hanging macro? to from it out way of you of

Yes. Thanks question, the Jason. for

right. You're

customers playbook there in lot standpoint. There from of and long-term technology You past got on comp words, year. have that is, couple Obviously, Global highs last we've here other years. the But We there to achievable. like the for X.X, experienced playbook In their The that income Navisphere is to that goal record we've look developing through the highs feel out average that's of a our of capability users is on around was operating respects, similar really there. customers record markets the against quarter and from all-time is future the XX%. data this QX margin the over seeing Forwarding We're team trace has track are NAV launched experience side. job the a monthly quality usage a and go better. better excitement up, better, a by nice done having plenty better,

business been market working side, create Operational important something a element expense Generative really probably the to can the that So AI on They've and on. as to increase standardization them been that year done highlight biggest the to here well going over there, uniformity ups the help their there. Scale which very through scale gain great. -- the the an a is management. them in team in will and job important tech be past to be we complex for of that's has business, the forward. nice where need market, is share the has The returns downs the efficiency. getting

to by the about time, taken working the been volume able loads handle headcount XX% at on. down year-over-year. same And that and handle they've the they've been So they've

looking in in, thing So in of getting we in business job fair that's well excellent been in nice some say transpacific #X last haven't back they've enhancement their new to then U.S., serve a #X the into U.S. really the some past. results. Oceana. get a a should at there. And them some more of the development had of I'd nice to once new is a opening the verticals. U.S. and And they're #X geographies. trade business. that some talent They're normalization They're new in had And to up They've bringing they developed success the really amount places done that and lines

great margin. get of those operating from lot And are I progress income important think factors all coming to more normalized in there. the back a So a together team to XX%

The is from TCW. of coming next Spahn question Matthew

engaged and apply have can C.H. X share about on Robinson? employees, question deeper transformations, culture of your prior learnings X that you improve, to company engagement and drawing Dave, at experiences C.H. engagement. Congratulations, Robinson. a highly lean a you employee leading When welcome a or can is quality and to foster delivery I

for everyone time first the for you. Yes, I'm great right? question, pleasure cases. Matthew, coal me, phase to -- meeting in The is some question. and here meet good the This

down that well And see is, The to vocally and me when you things ability process on do you that the need to here. engagement. I that, the makes be but break where their and is it's see understand one, one see actually blind flow one what do improvement, self-critical about thing, and you pointed improving for engaged engagement don't. you're number when having get pretty versus are me they actually in Let really for to I'll be be you should employees to the improve you, on that is, able processes waste their clear be understand trying to it things what

around And so it where be that's various better. And seen that It's show to companies. I've you to you that's one education the the enlightenment gone can I've thing and as once and and X laid out, the through companies. are different humbleness employees how then over on latch

appreciate being lean, that. really culture appreciate champion cultural that. powerful feel a like it's I I mean, I I I enabler. I -- of the most mean you're now, mean it's the matters right

and good welcome luck. So

sir. you, Thank

Jefferies. The of next Moore Stephanie coming from is question

your call. earnings on congrats Dave, first

Thanks, Stephanie. Appreciate it.

early remarks, So think your one to focus achieve going forward. on your months? number you'll place probably called what most you your next opportunities I what But read important on of a think it? I the do And single area exciting prepared how lot think XX a the is over out is was in

turnaround. And out Yes. with question, around you on is to around of strong the that a good I call, is on balance decisions, Stephanie. and in will give going us the looking position will an corners put very one color getting of our with growth. do endgame scale to that. innovation eventual focus up It's take sheet. That's of really waste faster But a ultimately, can well us and won't profitable some that so latch set our to The to speed organization for be And I itself speed past driving it. what the

on again, about We attaching don't it. it. just that. technology And about scale and technology. Robinson on and also the top focusing bit language so that underestimate of then then a just large level talked a models, These of bit of that talked Arun

competitive strong us. a be for advantage can think I

of really are, a that to puts a and driving to strong strong type profitable system. focusing me why that position. out technology, I the that's adds I setup and really, growth take where of waste in for So move. driving of on really company this decided adoption feel up it we This around all this

The next question is Stifel. Bruce Chan coming of from

you I early your pretty ground It's good congrats. us. in but here, the with to tenure running. hit know it's you've have still know I Dave,

maybe talked but term. I over We where the the So the see biggest the could lean your addressable get of and just specifically you see biggest some a buckets on perspective opportunities lot cost coagulate where you and waste, about intermediate incremental there? do responses

because going X I'm X.X, a there. here here double diagnosis you my weeks to Yes, Bruce, team I'm on bit

I'm a to sees the So But the air going order because it's an you call end states not but are cost and on origination generate want team, going line, I'm points some that. points have diagnose. and of I and question Arun of period opportunities as that's Arun of the think then along the understanding all that as of I along to to not middle doing order of with down do kind the kind and it's continue way, I of some that talking tell this. will And way to I see, pinch am this well. comma And in that that complete. really I along those where going And breaking this a this I life through the through side.

any fair to would I'm middle back question, come in will color on you it. I to you but it? So other a Arun, it's because that add the of

Yes.

I to XX to think of we've been sort on is the over call leverage about similar saying would our asked XX path it, the focus things months. color and to past, our digital. I add that When operating

either order legacy the self-serve and those even cases, to we life or, eliminate some tender then quoting disproportionately manually automation appointments, make our at to making intensive. And processes focus or or carriers has and right? life cycle of and their that looking And digital don't sense, our cycle, are cycle in the invoicing track from them. processes points booking, the going life after in customers looking the trace, to whole order Our the to end-to-end been been efforts order entry, focus has at our to

the that's been focus. So

of come And a in kind so you now layer.

in So a waste. out about it's way, taking

I come think technology it's perspective. just that it more we've at from a

get in going been accelerate. the tailwind past believe here, I months of will the Dave XX going or the to talking just we he's Gen I is think Lean think principles AI, I as inject and about we've things to for and come XX

a Okay. That's your about And helpful. brevity Dave, fair of point super the tenure. then,

the the little that So platform a had a we now do? Is on maybe grow just Or next resources? to at reductions to and direct can the in additional and more question we the tech work without where bit at in have do up bit adding personnel you, little place some follow cycle again We've Arun. cost. nice a here more

Yes.

tasks system productivity as a enable have can but our great talked of question. got track we the that status. So because structural, reduce actually we of to they've that greater that's done the work work more improvements reduced result The by we've -- don't automated of number do, a our from call more to information trace appointment means XX% about fewer obviously year. We which of carriers, we've this in work have them. and for proportion automation productivity carriers we've the right, automating Similarly, to measure touches that number is

way down touches see it's we go structural a positive go that know we touches actually down, a we into the here. as cycle go per in So load cycle

final We're question for today. showing time one

Citi. coming Chris will from question final of be Wetherbee Our

sitting we Are do progress to there kinds move making the opportunities big sort through things and the Congrats, of guess on of Dave, of think listening like Generative I call, as X-parter the It Short one year and things. rest discussions maybe we the guess, full I those the a opportunity, those here. headcount you of term, better the cost? like been what rest picture the the year I've further of Maybe goals. AI are there's year? guys looks through towards been sounds

the be to segment generate down talked historically would been big that they've margin that cost road. interesting. And would the and relatively of what picture similar one savings productivity, the opportunities targets, about level second maybe operating potentially comes, greater we've then kind So

I those the and Forwarding that. square with these upside? margin about to to some be relative tools. sure Global Or is just guys the there talking are the to to trying make you understand same? Should just opportunity productivity NAST So it want I of the targets

let take Yes, me that.

continue because you're and XX% all, year-over-year. we And right, as great in had we've will and our great ongoing on efforts So we first things place have really, that that on. the continue of progress headcount, think and of down that to I we've work got to forward down of pipeline We'll a to some of get things. these draw initiatives go headcount

back the say would I as half of the 'XX Although we as reductions nearly be in first won't half. saw dramatic

growth. giving here like waste, us Now when with the help ability that to the issues, of -- or process, the get finding you and diagnosing that's with to you adoption, of eliminating headlines these with whether talk the macro technology, our performance, about lean self-serve of And and things. on in principles, things, understand with operating efficiency carriers, customers terms got kinds trying we're to getting are waste, those targets accelerants we've our those improve we our to our feel some

And so that's one accelerant.

learning you in find then The about if really is here properly. been other our exceptions. the really cases, it was and exceptions the handling the staff talked that handles where input many model been have work accelerant machine has in work go And the been enabled AI, Generative where can doing, the but combination going things we've after that everything people build a that can our historically, and by it as then of we

we've AI, with really to folks more in in now the and And automated that a so them. our place ability Generative got way do enable

So those are the headlines. key

those just targets. They're is of additive are about way we think the sort the right improvement them? to where sort to in don't they of But of macro the necessarily Okay. change off of curve the the

we've the made progress yes. Yes, far, so

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

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

for Robinson. concludes you today's C.H. thank interest your gentlemen, in This participation and event. Ladies and

disconnect off your or this time, the log webcast your enjoy You lines day. the rest may of and at