Saia (SAIA) 2 Feb 242023 Q4 Earnings call transcript

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q4 2023 Saia Incorporated Earnings Conference Call.

[Operator Instructions]

I would now like to turn the call over to Doug Col, Saia's Executive Vice President and Chief Financial Officer. ahead. go Please

Welcome With everyone. and Fourth XXXX Quarter Executive Good for to today's Call. me Fritz President call Conference Officer, morning, Holzgrefe. Saia's is Chief Saia's

you within the of call, begin, Before of during Reform Securities meaning know XXXX. certain statements make the the we forward-looking we should Litigation may Act Private that

of and These and exact cause actual all could are made results that call differ. this historical materially. forward-looking you other facts be to We uncertainties SEC on that statements results to release are to for subject risks may differ number our the a on information factors more actual and statements that and filings not refer risk might our press

over opening call for now turn to comments. the some Fritz I'll

in $X.X thank the started for fourth number as a dedicated team XXXX. record engaged start XXXX my for that efforts for to discuss and trends in full results. word morning, a entire through we to with work us you of an I team anniversary Saia's year joining in thanks shy Saia comments year must with of also our volatile $X year a total the and XXXth and XXXX, revenue million shipments business delivered of quarter billion in their of was Good our for just company. turn, record We today

XXXX, tonnage months which as down of for slowed. XXXX was of were and trend the continuing really first a year, a economy in industrial we second Workday shipments two tale and Both the for of the year-over-year began halves. half the X

as of generational At trends competitor large service national ultimately, from on began as saw by July, Turning much operations. our to of a as the XX% calendar earlier. XX% industry moment day a we to increase a ceased given experienced just and volumes limiting month a Saia, to type month

the handle position seamlessly still put this our increased maintaining us while in for Our excellent to in change of advance planning service volumes contingency a almost customers.

business, levels X,XXX initial of that growth. the drivers, In the of staffing second in that frontline adding to followed nearly surge and XX% year, support workers leadership increased were we our which the months dock dedicated employees half in by

We on the the absorb half. growth taking team have focused as our we of the customer care in all second

maintain continued We while process also of have the pretty how and teams. with in our haul we optimizing to investing our expanding network our painstaking service line provide driving servers

to XX XXXX. terminals open have We to new XX in plans

and putting Our which our Those is teams to customers. have over are eye always committed and included first. the of serve locations more existing the to desire cornerstone customer-first several an initiatives customer have the to that with been and in success accomplishing this last years, new through our

significant results results. its for QX, latest Saia. released The survey In a Mastio achievements couple of highlight

First, the Saia's our recognizing improvement ongoing positive investment highlight our and are service. scores continued customers feedback in from

investments expanding it's customers national evident the Second, provider, leading a us as service, reflecting viewing increasingly but are our not only footprint. becoming that in LTL

perceived levels in service. critical there of drop-off have been is note, It no to

are Importantly, in service in that XX locations. to last recognizing improve nearly years. new only we've X ability replicate improved but added Customers not to the service, new facilities our

XXXX we'll results an our give So recap have a today, on plans XXXX. of to for and update provide

review of and financial full turn fourth now highlights. quarter to results XXXX will Doug I it And over a for

X%. average year. reported benefit quarter These shipment fuel from tonnage by million. quarter $XX.X by increased Fourth by last Thanks, surcharge excluding per was shipment XX.X%, including yield quarter lighter results surcharge, the fourth versus while fuel X.X%. growth and $XXX.X decreasing a million X.X%, XX.X% improved Fritz. with per by Yield, weight by the for the grew weight yield record revenue increased to Shipments

total national shipment, our per average surcharge X.X% lower surcharge and which in to the result revenue used diesel XX% fuel prices, $XXX.XX by decreased ago, fuel rate the XXXX. of are the of to primarily a of excluding compared X.X% increased Fuel tables. establish was to to fourth compared surcharge, revenue quarter $XXX.XX XX.X% Revenue year in

Shifting also XXXX to a approximately headcount support the the which in our key side, X.X% and last over volume wages months items to our expense the averaged year-over-year base. note growth of across from wage and our increased benefits a increase, to expansion our employee quarter. increased July XX.X% X network few and of Salaries, combination employee XX%

primarily in to the year, the quarter due Purchased revenue transportation to total mile cost by X.X% X.X% of X.X% offset of the transportation compared to fourth by XXXX. quarter PT same purchase compared partially in compared in expense per period fourth the increased last miles, was expense increased decrease a XXXX. to

by prices were total compared Fuel Purchased quarter increasing XX.X% quarter miles company on fourth the the in fourth basis. The diesel in to result decreasing was year's transportation miles decrease year-over-year miles national X.X% in primarily by over rate decreased XX.X% of fuel quarter. XX.X% of in year-over-year. line-haul despite average expense last expense XX% the a

increase increase costs by Claims and quarter claims in of increases from self-insurance compared was as the to quarter well and primarily increased sequentially premiums. as in million XX% accident-related was third and of the or $X.X in due quarter year-over-year XXXX. insurance XXXX the insurance up to expense X.X% The fourth

the increased XX.X%. Depreciation expansion. in to was and quarter investments expense network increase and equipment XX.X% year-over-year, with our due XX.X% ongoing in expenses year-over-year of $XX.X operating revenue million the primarily a Total by of higher quarter in revenue

compared XX% year Our operating ratio a to ago. to XX.X% improved

Our XX% $X.XX year, year share XX.X% $X.XX to our diluted last fourth increased in compared and was in compared tax earnings quarter the to quarter fourth to fourth per a quarter the the rate for ago.

year billion the was revenue $X.X was operating results, Moving our record on to highlights income Fritz XXXX $XXX.X as financial full a of and mentioned, million.

XX deteriorated ratio XXXX by exactly in operating to Our basis points XX.X%.

share per diluted were earnings our in $XX.XX XXXX, year versus full XXXX. $XX.XX the For

some closing Fritz the turn now I'll over call comments. back to for

operate improved our of an mid-XXs, To network testament team in the with activity over OR quarter the the given performance to to a few during operating years. last the is in Thanks, continue Doug. the the

is yielding tangible with to proposition growing focus customers value a engaged to talented organization our the workforce, customer-first grow. results our continues across Our and

improve. in also actually X facilities who is geographic these Throughout, our embarked We coverage the seen the time, covered terminals our initially success strategy the XX the initiatives. have service continue hours This XXXX Northeast. we've in we've to expansion in offering our supporting attributable opened to team legacy while organization as across underlying countless with our spent on enhance markets. Since to Northeast that geography we've refining

our important focus unique to an provide and couple estate terminals new this believe will at to facilities a the more to allow success expansion to be execute organic us the strategy. customers opportunity and to real the Saia our about current acquired in last of bring Critical hand proven over years markets, excited additions to on opening an we meet grow culture, believe our systematically our maintaining the ability the pipeline. be as once-in-a-lifetime to and January efficiently. offerings The serve intense supplement more with customers I'm which able investment have facility our opportunities customer, our to starts us years for next X

improved over to the As to ability and shown performance benefit in deploying seen the last while effectively network efficiently generating customers over make from several our substantial our financial and our capital. results years, that time investments we've

focused significant capital Saia investment a is of company's our XXXX, similar will fleet, at developing capital and terminal the The customers. for had but in levels time we investments approach opportunity. XXX-year as -- providing network our record on capacity flexibility well have in increased in no as our history continuing

XXX in ago over that and Key a has customer-first been to Louisiana our be the years Houma, success will century. delivering focus started refined

continue the terminals markets to have opportunities We XX last years. nearly opened other develop that the to X over we've significant around the

these the to these about we're we to build considerable date, Although see excited runway all of density locations markets. of in new success

there's questions, and importance economy. the uncertainty the customer can emphasized of opening on before a Saia, lot control. the we've the I call would that of focusing we things say around the At strength still the of Finally, for

to long-term economic the and So in as service employees, all conviction growing our remains to securing share-gainer great industry. steadfast, the are my a the great months, a adapts industry Saia footprint coming adjusts our of key about long-term our and as over prospects evolving environment position

that open we're ready said, the With to now line questions, operator. for

Instructions] [Operator

the Your line from Jack first question comes Stephens. with of Atkins

I kind that's So chunk just here the related of estate CapEx down kind break could we $XXX don't know But CapEx for with yellow between the start it's of CapEx of shake related of can or take kind want real obviously, for out that? what's how of Fritz, a maybe to but sort part us the is Doug, the if of 'XX. you beyond this know, purchase if maybe I what's that, to number, $X of to the And equipment? million, if billion for to that you guide about XXXX terminals. good that and first of think rest maybe going help versus

the year. We've I part were be of target, Like to of Sure, the got XX into get going upsizing investments right, you to X/X kind And up terminals we of we've across to on yellow the it, the to this going different about put these of some in call ones is are $X construction that some Jack. there's to major number that mean billion-ish markets. purchase ready we're And investment. some openings our terminals opening it Yes. to I them. related XX the a lot then then get you're want we network. and mentioned, that in mean, got of

a investment, to first year. there's XXX year. the had as and to I summer, all, additional So to so mean, investment have got customer. XX% estate us this call ready volume a We've renting of volume matter make stepped serve meaningful increase, that step couple we big was it, XX% in XXX-plus that place some up get in this or mean, another planning in to equipment contingency initial weeks, addition the, up the kind probably equipment, we're of in real a over I put our of last going of to tractors trailers yellow bringing

our to with rid that and want those costs. some equipment we get of do But of

the trailers we're just fill we've to the in every A to for put city. with customers night year, that in also we needs we'll of trailer and this up they'll hands, an for service. grow. upped their up if these more be -- along everything got value can picking network So We've them lot serving, the us. connecting by opportunity our And

the we're of those on several catch some chain limited trying of last been that this but do So year. years up we've efforts, has to to that supply the and going some

to call million we of, approach to kind see roll and of openings it, $XXX terminals, could in and technology is million, new IT IT whatever that $XXX investments you and and ongoing like then million equipment all a we've handheld you've lot you've related $XX driver got that and got So get the is that's got new in related to in terminals will these that -- putting the that. all security out things place probably

So those are the buckets.

Okay.

for give Doug. to maybe it Now can ratio sequential year us first about guess like that. start and for maybe question, an Thanks you how the fourth for operating to breaking quarter any quarter? on that's update maybe us to changes I January And trends thinking my really follow-up down you're helpful,

the January, well X.X%. as workday October our were quarter might shipments then up grew were grew you public. to in workday day was December, the December tonnage January published Sure. in we up add shipments December and per in November -- numbers and into day as In move numbers XX.X%. per I'll give tonnage normal And our I And for the our XX.X%, X.X%. per

mean, for days, impacted a I we X had where several in So the call some it, literally of those days number, just dozens days. or January commentary. X we terminals had of little

January. in it us. outdoor being for about a sport, of and quite all of an we So that's always We get the bit got weather same

to -- any guide. so but been to here give the it start us. years, weather some be will kind worst has And it's month in February I February, mean hard for of

that stronger we'll what's for to where point, us. how March Jack, That's the feel most see better maybe underlying Fritz's for month a then in with QX. this So freight on to we'll is important seasonally And economy. a start going that's And get unfolds. period

basis better, in So points to see better March. QX call we'll years like in look the OR XX XX QX it, what the a QX. terms little But and -- things gets guide, of QX last just several to usually to

we on but got lot expect. that's of March, going on OR we determined but out can to from January, to the we in it again, of And still some falls, is QX show how lot A reasonable that that, confident where still a that's of be into depending think weather improvement based QX. we're

line comes Amit of Mehrotra with Bank. Your next from the question Deutsche

questions. Just Jack's following on up

So obviously, is this investment heavy pretty -- heavy year a very year.

XQ. get I perspective are these investments. from on Or maybe margin and transition the You your a But these the there's mean more the I'd quicker full year talked expectations little of after love bit broadly? hit there's angle follows as about for be one where could payback it P&L that. a volume the to Fritz, investments more kind year what

margins to You could about that. more talk expect just if you get... And broadly,

here facilities are are -- in range us. thing of The Amit. a for they opportunities have in is provide that Thanks, year Yes. -- the our are we pipeline the we opportunity that the about interesting

So and And to be us to moving are going some you'd provide be in expect right of able generate those into customer markets year. to potentially them to we're that the away. are the incremental established accretive benefit to some

that customers. we where Great to now got provide partnered go with have those direct states You've to Plains be facilities markets agents to in across to other we'll the service able those and

And really they're excited and that feedback really about excited it. opportunity customers are we're that about from

OR mean around we're what when on we we of what if about all think look be mix and I backdrop, from year think those we're to 'XX. have about as ought things business, of and improvement I XXX mean, So we of think doing the a able opportunities to XXX I range -- reasonable the are points our we to a basis at and focusing sort

range, the opportunities -- favorable you end that in a sort got of amount of through second a economic there's in on tremendous capitalize on half So investments. our the that, think of top backdrop the but probably I to

about excited we're the And customer. those what for does it and

I range, that that's I think So favorable. now we're maybe that as doing I improving that or an strong the we've over our we is on the got lower environment even of differentiate environment, substantial that making returns the opportunity business. we have investments execute. to time, -- of end we an because think right this we're drive while a to can an quite team proposition in opportunity is for kinds not what and And is in softer have But customer think those even

about on Okay. wanted follow-up in ask my you quarter. of lot Obviously, And question, third just took a to I freight pricing. the

I where have, point that Are we are as expand, that you where guys happy freight. been you you at think guys to we a trying business now on? took that with optimize you're I subscale. the guess, you've And on

national network. have You the holes in

customers give some large you are could pricing national that As talk you you the you because about If back dynamic just coverage? fill that you pricing well. your does the go to kind expansion as from of in to it full more also giving network, the have discounted an don't of dots in ability maybe

Yes.

important think it's So Amit, an I point.

XX% renewed contracts And the quarter the it's have the -- contracts the renewal this our as pretty X.X%. So analyze of year-over-year. mean we've contractual -- was quarter on, we closely. of renewal we've renewals I or up in we -- sort bit contract pulled quarter, into year-over-year. taken up we forward of number fourth total freight roughly rates in quite for are fourth And renegotiated a about this our

pretty when making do of customer we service this we to sure of support level substantial on -- that. So to got generate make that, -- we're got for in we've also investments level And return investment. focused talking we're listen, year. about the we've some some the And very, very that appropriate

So be you on got the we're but that service, order for focused for the to great very making are compensated very, to job. compensated we a service, be in doing sure

but customers' value the our understanding to that providing work kind the and So continuing that's on what to is freight we're understanding through all and the to network. together, the impact of customer we're

The next with of comes from question line Chris Citigroup. Wetherbee the

get Maybe noted sort some just volume what that what -- I to perspective on there on. of brought your the as you of to around price want piggybacking relative just you

need So get of somewhat I priced any you about basis. curious you make between expand for guess to thinking and I'm catch-up if a opportunity the as ability network growth then to how the you're trade-offs continue to on volume the

guess curious XXXX. I just as I'm kind So how priorities those entering balancing of you're we're X

is that service us this I high We very that think always providing. But balance level we're what's a incumbent that. is upon that

So on compensated fairly we're that sure levels. those our service making team for is very focused

going network right That's going to get volume doing to of some get grow profile coverage this beneficial. At we're continue OR over by We'll time, the add that be So we're way. time. the we're develop going to growth simply same the we -- in year. priced the to when that,

part of we look So this our X, I you years, an at think X And is think important last do. business case. if it's I the what back

So level it. service are high for focus sure we provide compensated of that and making on

'XX. levels. about pricing heard bunch helpful. mix we've of in capacity type market in to terms freight We in a what Okay. at normal was of being a years broadly a That's of sort a more sort year And a after things significant then return perspective of some of soft obviously event relatively from pretty XXXX had elevated

normalizing think a the pricing the conceptually, Saia, more is? more acceleration picture. get So maybe of to bigger industry Or still and of for opportunity 'XX maybe Just is there's sort kind you of what about a it environment? that's direction you sort of of sense unique a as I broadly think years, guess versus 'XX

I those industry in the on costs broadly industry, to the balancing that's that mean right? important invest remain an right? levels, to I I choose And you And for I inflationary, focused service the have for underlying are Well, that equation. So think note. that, inflationary, think really that the think double probably that's

industry that are. think -- what to aren't inflationary coming that dynamics broadly, the in the I of year those trends the underlying costs terms going in change

at and consider about you'll opportunities. I business. think I sort our that to see our relative continue pricing think relative relative look in and positive service, I is When So the -- think at Saia, I about position our pricing of what I look this

pretty for us. that's think positive I

Chris, given too, made industry pricing, handle leg to has a been another and event say, negative a us I if could there there's capacity be I'd the tonnage you up for players little today, of freight, when in our our terms industry year case you nobody's the because but it, the bit there in industry basically a that mean see -- you happened right? macro that's But service. was industrial to if operating it industry in see away give give in happened. I backdrop better

all and we up case you investments leg pricing. improving industry the If backdrop I'd levels. all now that see service another They've little we're volume good gets a there's made handling service a that better, made say could provide to extra those in

see second we'll especially what the half. deals, macro in have the So to

of line Research. The from Group next question with the Wolfe comes Scott

yields perspective how I you think just shipment maybe up parts just in more so just were help Like repriced maybe We the QX So bit. And Doug, that? how we little guess overall yield going put up you can actual of business just, X% but then business a Fritz, repriced QX? a what do think growth forward? got like X%. per percent than can year XX%, with was of ago. you do rev many wondering about should QX your And moving or said I I'm then some you was XX% in you

up renewals. for let me Scott, thank my bringing the you just around the contractual clarify -- comments

So those contracts of increased would by year-over-year be the number XX%.

don't with was or like absolute pricing thing number that effectively the contracts agreements. book have as of just XX% is, that. It something business commitment know, of The They volume wasn't it So those a you contracts. the it. key to are of

up doing, end very with pleased that went. how process we what we're So

Now kind to forward. a pretty hang it's we a directional trend positive business But that sure matter it's going a indication of of that's making I on for us. the think

about the So physically renewed versus it we but in we was number this context, it that of that think contracts year last.

of in the into terms environment, put in saw it early December, just rate that GRI we our December mean, Scott, then, I you And forward. we -- pulled

have off December if looking year say, range, to because top the again right bit So little thing we're still was you're shipment But the that mean, okay up shipments, for might it revenue of at do. taken was low shipments, our XXXX GRI that that early full X%-ish. but I of the single-digit with I'd a per in

fuel last a year ex little that. So than the bit cost inflation was less

-- for So I shipment range backdrop, a again, more revenue mid-single, probably pricing to maybe think per And X% us. X% sense than that. the mean, get still better in I you makes bit little

telling it's the revenue right, shipment down with not you're and yields, But be pricing the I think, so range. single-digit per coming But positive, going is growth still that really per pricing confusing low to weight in underlying shipment the story. much

I should fund think normalizes we it's it? think and just the in billion expenses in to out want here How as your And Okay. rate sort this a mind? years, piece. should -- but then was we interest then new the is about back about of follow up forward? of a pull year, CapEx this D&A to it on a this this And bit down $X run and then Or

this all to mean delivered construction another I I'd guess depreciation terms these up we've XXXX. of increasing over of will I'd and investments I in some if the the would been equipment step mean, mean, up things. another as in timing footprint the we XX%, I be expanded of expect Yes. XX% years. I and it's depreciation, expect get

right. You're

the of and little made be we've mean debt but not line I year. on line the a using with we or our ended putting investment. we'll cash throughout bit year our We're of the into anything, yellow regularly lot and a

to expense probably income and $X on have expense you're you're I So in in XXXX, $XX probably interest going -- depending expect interest timing. going to million flip from interest probably I'd or or to -- mean, interest million some expense were

the a a or this level? And is CapEx multiyear then at -- X-year this

to yellow in I real here auction. the estate related think you obviously the have the one-off

you're I of that going as over company, think elevated -- of to see that what grow to time we the going levels CapEx growth. investment see you're reflective

to So see I step I or locations to think all or you'd see won't down and we want estate the to still then all ultimately you'd We network all order is that expect growing legacy it's line have some it that in it -- think estate investments pretty this, real underlying think support think have expect levels a to, to nice over of got normalize. understand that business. time, the I in and the in real we've important all we the

estate real see invest have time. The in match to that. fleet will I us to you'll think continue over So

We'll to be You'll cash time. lot see flow. OR the improve a operating fund able over from this of

Your comes line Sachs. from next question Goldman of with Alliger Jordan the

wondering of contribution new added could get around quarters? over of your perhaps what net new in have when the is you going open, could opening revenue this discuss additional I expectation thoughts this the was the you sort plan, timing think some for do doors if terminal And plan? the to

Thanks for the question.

couple a So things. of

the studied acquired facility to we requires that going Plains of out -- expect acquired they recently that standard bunch, you'd Great year. the will be in it's this, spread second -- and year. so in and out like a half the to that we meet purchased, Cheyenne what that had they'll Laredo facilities this of George, to Trenton the if know level we we over in some in facilities some you As of far timing year. the open open the of rights Utah. St. more bought facilities investment facilities, probably as There's The of the or we

similar, any not are the in there. way comparison terminals Those

some big, small. some So

those we're it year. see specifically you'll really think those share the XX-year over what spread any about have is and opportunity we I add is. don't the is the facilities when what investment a the So out opportunity on I and made because for revenue market investments what comment for that thinking

to -- looking based important a on codes we're in understand back, the enter that market, know when the and and So we around we market, history markets. addressable those we we our ZIP have opportunity that it's

And year, able to maybe share. And be discrete in X% ought shown in first market we X% markets sort to of of do the revenue we get that or that. can those we've

So still what year for XX of part actually forget is opportunity over about be we've there's that that, time will you'll well last think growth several purchased, I see the that last our facilities, well. ongoing a for as lot the as that initiatives. Don't of the there us as

opportunities we've are pretty with pleased for -- we're got I us. the -- think what the So some

I from probably and X% X% -- your XX door got count. XX another all there's expanding. And we think relocations X% question, then during year planned couple a, we if a it, the those ended or like planned, be door terminals And add door probably to XX of those the another aggregate the call year kind with could we're X,XXX the doors could operating that another based count about of count open. got our part we the openings efforts we've of door or of to the On too additions on X%

it macro done. like all if it gets and see slow the up I down little where differently -- as these or into better, too. the things get the the And worsens us again, bit environment years, you with we'll if walk year, mean, year, we see So that's versus plan it's unfold can openings. or we'll a speed plan throughout

So those always factor but hard there additions we're kind of to a are where the it, be planning. single that the point it's of on magnitude will put

next Your line Chappell the comes Jonathan of ISI. question from with Evercore

new better point to currently to that go be terminals it To many geographic some -- locations moving to like I going And on terminals asked relocations to on of follow net Any or those be of the say acquired. you're these up happen actually you've mean, that closing? terminals? to that you'll reason I doors, I upsize in and the out what's should how you're terminals for sounds and going sense or and

some to regional as competitor? regards terminals. leave Do you the the those for online back a come back of you imagine going you capacity think the do subtractions all versus in LTL they'll the view potential open is acquired market? to Just net yellow selling asking Or the to that like newly

that of view know time to good assets been the waiting the what the we're fate facilities that In the got over on that I think see how have I've exit. -- we a here. repositions still don't industry might I redeployed is

look you of some number lot the of our I years, our a at been of has competitors growth Saia's and adding mean, made may footprint -- expansion larger exiting. discretely be opening If over tied we've to facilities last doors at

I that. to some continue take sort theoretically, as So mean, are we grow, those below that of that us on may of

the you exit So the a the early where industry saw go, but what were cleared. of I number fair on likely not them industry the that that call unfold, will that to of -- I all probably specifically as still think you watch in auction ours process it's because think ones

of number some probably there's entirely. the think I that leave So those market

for organic the then with some acquisitions growth. these obviously filled geographic holes and And the Okay. follow-up, you've

pricing really does so industrial speak, coverage big better kind national with geographic major that well? out box of filling customer areas your have consumer, you how about to pricing accounts? If national major like of think we a does massive push as that massive of retailer or filter needle the with kind As a with that through need,

situations, that. value strategic gets they're some and service you problem. consider people very accounts appreciate a can that level large high they're really look the they those very we -- those points are helps, service we we've they bets we of requirements. what greatly got certainly footprint, high that about help get now, value those that a and have levels from we've with and They for solve getting for more very incumbent And service. are and the now of customers that of them, our some because that customers, go And like at service some it in right added for paying they customers excited just It a Saia

supply And a for and and dependent LTL is on low partner them, is that time they and and damage. make business upon their reliable money chain

pricing So thinking about worried more per they're about not necessarily se. They're value.

getting in So for the from for that. that we lot what as us been with win us. that's have we scenario, accounts batch and a they've And we're of larger that deal that like having more national been satisfied with seeing a them,

question the Your Ken Bank of Hoexter of from America. next with comes line

it's Fritz you're and Doug, said weather an for spring on early groundhog March set. all February, sounds like the so, Doug, your concern

as bit you think expenses talk we about of how time of operating the can won can a all a we of that that your move ahead cycle You and about life to 'XX? lot year. Maybe handle about on talk Doug, through you're should freight Just, you conversion? making brought you early the progress last

a And shot. months in normal the terms major levels. you've kind with take continue I'll mean through pleased to I of really seen it's our new a step last out. to process. I like the up volume growing X of QX of QX kind to think I mean leveling I'd was how workforce I these mean we meet Sure. that

growing. number is headcount Our

year, to those were folks, up was how think. of headcount I and we're a only to about end use compared But FTEs, about our I around on the of the about X.X% QX. over if our managing X%, QX FTEs think right little QX up So average the

So seasonally these as throughout we But of build, you on need we driver in exaggerated. soon they that and And the dock that know count enough, density kind trained become just and come happening, mean, business, every density which new just of and example, with are year cost it -- and because normal build more like costs, the getting seasonally where is volume say, of most we well-positioned hires fixed levels, kind spring. employee do business variable. the be the is was we this again, for it's I into we'll as

already more the those the get make and I've got efficiencies. handle them now all as And freight cost. kind I I absorbed -- from of

the And stronger see, we've with seasonally see think getting been into pleased I how period let's look out forward it. we to through. So flows and it

that So then, Doug. just to clarify

that people got you've you needed. So the

was which equipment, the getting concern. your You're

the You mentioned lease up.

volume more -- can got where that. you cost you've costs be understand we maybe and now get Is incremental maybe or see the So D&A from added already but relative focus that leverage should the ready? will trying growth the wage to growth them at to the -- just

just Well, and and volume adding opening efficiency business or new we're can things see volume bring new Yes. get utilization those them. markets to you'll added now costs because expect start seasonally, in to we volume because better. better because better you've across you'll its It's

the kind of... then And

QX kind margins, because is Tracking quarter. softer a of tough seasonally always is QX QX into

You've additional fourth quarter. holiday in got noise the

on was and So trends, exaggerated every hard have different a It's said, how because this always of of QX. compare I'm manage versus the it's up. kind through like in you workforce the to QX ramping kind seasonal which doing cadence was year just to you year

You're typically that not doing QX. to QX

this service the or guess, are And you talk that contracts. the about contract or book yet doors accelerated I of, capacity, pace the the renewals, at mentioned you you of -- guess, pace maybe of number has reprice of you additional then centers? to point? entering, Can renewals percent Fritz, capacity where you the add the excess and have the I as

Yes.

a would carrier be around as mix sort disruption, we're is the contract industry business to carrier the of part taking the right? I of what expect But freight from is moving on for -- you to here, of the from we'll we assess what the year. know I bit pretty mean, So ratable here to balance too. continue renewals of as

coming again as on So of way, push assess our continue may to we some to we with accelerate maybe renewals that. those

for about year, we facility than up time in freight feel off we think a good in added to so pretty I on Lake in where dependent and capacities network, bigger and We've as that And we've QX. in Salt continue manage that of that at think a you capacity what comes we that's When were, and with last added where real I point it's to significantly important that's example, But started all kind here, we mix. in the it's us think any point City, has -- that had an freed market. pinch from.

So market. for us, manage it to we market

XX-ish make in when got in really total, pretty that significant our And us we We we've investment got to excess to capacity sure seeing make extra think position fleet, ahead got capacity, facility for to want here we're provide new of continue levels has a get namely that invest a you'd trailer extra I also opportunity percent of great probably bit that there little ample in a a high that a drop but that, that job customer you're sort say to that we're so service. business in position to or that a in them. and that do

we it of -- market. So market by it We position where like the are. overall we study

where we pretty with we But I we're we to are. invest good grow, continuing think feel those points. pinch As in

of James Your Monigan next with comes from Fargo. question the Wells line

I on like headcount follow full points? the are like cost a there coming little that you're context that bit cost of prior understand PT up question it about guess to OR talking of utilization in getting Could of headwind positive Is the adds of in spread through? around really year usage think growth just more the Or to is context XXX to the and a a fourth you -- trying bit. way Just I like on that or sort get the is a quarter or too? improvement in utilization about. that that XXX basis kind

QX, of -- year-over-year, mean, purchased quarter. in about the line end were miles linehaul Well, QX. I was the it miles XX.X% on fourth PT I we the like our at our while brought from mean, don't of know. down that when I And up I of XX% think

for again, helps us we to that's we in a to take something just So drivers get onboarded drive as position have PT that out. manage us,

our we feel XXXX, our into needs to with lot As I ability the of we terms better handle own a positioned think move our in workforce. linehaul

really back volumes we an something, somehow utilize So a If opportunity. we that's effectively be good. bounce and tailwind PT. might strong macro PT get or

I to comes that QX it be year but up in better in you challenge, was on a where So doing I and think was and was this having build that a might to than QX goes, and period not pleased try seasonally, to so general, ago, year. otherwise a we'll staff see

improvement is for utilization XXX majority full Got year year that it. full OR? better workforce, XXX the But year of of the point I the basis -- guess, -- is the to to

No.

making assets, own Great those make that's in Saia of an freight what that but that to freight, talk and truck about we opportunity over in I time, time. to only scale freight we think talk Plains how that building network. our than have driving selection We agent linehaul delivery a we how utilize you Not sorts utilize off pricing It's that is that about study the we to handing optimization over averages, at, PT, having load rather the when opportunity delivery, also look it's that things. over time. states, That's right?

things the those drives maintain in that what around to together the over business OR time. We'll improvement all to that's proposition, continue improve value invest it. So providing and that

to you you of infrastructure little balance as or PT, the in your network naturally the the scale have company, don't all the some a that. because to As said and linehaul business have you you do appropriate scale the own this you build network. when build because maybe business, we've it build along as the PT opportunity cases, In a the to internally in in you more comes bit scale have smaller use simply

So customer. you to service to that PT opportunity use assets the leverage

PT Now balance more little a your of of doubt grow in use and your a the using right, important, getting value pricing network -- you're driver critical biggest as less improvement. without -- across because But of the is lanes opportunity that size OR the you business thing the that, the getting right, further and to most assets. the business, you grow have relatively the of to bit own that's mix business all

of higher capital the higher-quality about high-quality How what like what's we maintenance mentioned quick, you to higher sort real Got the of And quality service. like service think should for service, of just requirement? the sort capital for it. -- maintenance CapEx sort Helpful.

kind target. a the open moving footprint expansion in XX probably in gains year our like give and where as is kind network year and this We've getting important Well, higher plans let's terminals years. and out. fleet XX the a support the network to see I to volumes. mean bigger. looks well equipment what year It's we've longer-term the of outlook, got opened bigger. think it's The XX X getting I to as The to last of adding -- is share

always our So on XX I put ongoing to double-digit revenue in business. industry percent the good basis have low into an carriers think the -- of back

what model But take means longer still to for. competitive and term, said, you maybe got opportunity like that's Fritz that more this an So network investing. we

Your UBS. next question comes Tom Wadewitz from with the line of

shipment like you guess, low of your framework flat, that? maybe one freight look broad in growth. see on the half market thoughts it capacity than how to to more yellow about, Wanted and up is this that strong single some But in when business or expect is I driving growth that you first Is think at When service, I stays about if big given offer obviously, of if digits? expansion kind is think second be we think kind step could would a tonnage year, might you half. of grow, you'd

a And what think of then know your precision, actually the if of but you of X get it's could and saw a you freight given pickup you not about lift, expansion? those freight cycle how in should directionally, given saw stronger scenarios? kind if I we capacity a bit growth market, just kind

the what about -- is. my anything be, a right? going growth but And see probably say that it -- is with you think it's that's would to could is could comes I big kind think it's be assumption second I of out half, second think from don't half, see be -- pretty In change, going start we that whatever macro that to of perspective, to it's this got way The Tom. the in the that. Thanks, that you a I and that

things Saia's of the I national position look in a look a in some I I I the focus would of on only And as at first think the continue open some from not quality the equal leading business, there's think carriers. to right half versus for carriers. a continue that second perspective, an I we the we we're And national I say on this What the other on to is footing opportunity, settle, with facilities, at mix gain as specifically though, think if as position us, but of we're half. share these market, into

to So -- us I I of what probably for control, range, through opportunity think we But any growth. it's an end market. continue tepid shipments grow focusing sort tonnage that and to at there's can think environment, the in on it's more in of the a low of our right, terms

of second for that. a little it's we're is Now the and very more the focused limited us, opportunity in environment probably sort there slower. bit half, economic on But in a

volume to would the them than terminals, like you use right? there you've you're I in just other the people people sitting them, the Okay. even doors around. And but on you XQ, the calibrated then be people question anticipate the want The if guess sit don't added you probably more so can side don't

have current Is in growth? you the given the say, for growth Or So shipment terms is you mid-single? than what what like given you of it would added? terms of shipment different it calibrated in X,XXX headcount level, that

consistent months. probably the on. in update from with the it's seen few last had think trends we've the us gave I what Doug we've mean I Yes.

it. up how that's positioned feel think now. and think But to operated scale pretty we feel there. tradition. I That's from to. think seasonally about positioning ability here we've peak as of from we kind if I times, a good pretty But we that's We our about right appropriately scale need good here, our yes, further what -- our we're we've we continue into go I to

now. our proposition So pretty pretty right and need, good value feel we good I about about as I staffed feel to attract we're people

from with TD comes question next Your Jason Cowen. of the Seidl line

bit a we little a of about on you If Clearly, Is weather, in sort X% trends was that tonnage You bit X% think range? that hit. mentioned, as a it? weather the little in talked a how are to you guys of up should January exclude about basis. we

since off mean for weather. workday Well, I shipment Definitely, the mean, event. it's of business of probably see I taken summer's we've shipments. was bit shine impact XX.X%. better that about we've Shipments little continued picked to last talk up the some a weight up to from per from a

say weather. they all other days We, few operations workday the have your thing. making but that to in just of up limited upside. And kind deliveries, of they're close not would a So a or shipments our XX.X% January had able impacted I'd they're per pick competitors as by some or the freight, either closed had of are terminals lot customers

say the So that's not XX.X% unusual for could January or February. It happened, just better. been have but number, I'd about thinking it

Fair guys could guys that there you Okay. that terminals not yet. acquire took But And Is told you well? bunch other there a as of out think on been are still obviously -- bunch a on yellow of here leases have there the anything we enough. as about dispositions. from

kind those well in pipeline. market, at continuously the our So in we as Jason, assets as everything that's of others aware we are the of still -- and look in

that assets for for opportunity a potential leaves of particularly facility. facility. those -- part that's facility then sure. to maybe us to to and of an move And opportunity another in new attractive from competitor that's that some an current creates yes, maybe And competitor, So for their are opportunity maybe

it's, So opportunities. yes, I potentially there's some think

timing And assets? know of next those of the do round you the

I'm monitor of aware closely. right now. Good question. not We anything

Your with next question from of Bruce Stifel. comes Chan line the

couple of here. cleanups a Just

that you comments OR overtime And SWB squeeze line Maybe the about there expenses how got that some progression on you've about line headcount? than is elevated bit. the offset when to much a other that faster is if talked think this there due or by spend. year specifically, potential You around some But just item. the growing because maybe so, less

we like to bring our employees line. have have to upward there. mean to up, I own as get And driver do side, folks don't decide I the then And onboarded wage it trend-wise, I where and right? expect on just been things that probably and pressure we removed on put like and go you'll mean, that. PT I because able inflation we still benefit out some trained stuff. on we

got we we opening, the get as them open new like staffed So we've so terminals, can before get trained to them everything and that.

So plan, the expenses ramped-up that's preopening opening up some go the and of wages.

see to that think increase. you're -- wage I wage line yes, increase, be So and will benefits going salaries,

helpful. down now, number go directionally, rail do the that right how outsourced you percentage? you relatively on you are long And or side about expect And think then That's it or using PT Okay. as in much that to just up stay flat? term,

last really things lot I ramped when Yes. where into we couldn't up needed September, I we to July, even freight, lanes of was it mean come in and mean the rail August, it's optimize down. move October. use a

heavier that's generally and this it. that use on we a develops. to in low truck high XX%, more for to, we'll So rail back probably And that while. seasonally were there at XX% And it's it's of chance they'd see a environment, team rail. truck to they the what side manages normalized When how range love get kind

of Ravi comes Stanley. Shanker Morgan from Your the line with question next

the you said XX% about right excess now. that you network think capacity I have in

to Just kind run to kind normal that closer to expect given XX%? rate XX% looking are Or you of you number expand the at stay to XX%? kind -- do the CapEx of what's of --

equipment expect and Yes. I mean so is would CapEx right, expand that, to on I us that going investments. think particularly at trailer the more we help side,

your value are can you -- those value important the incremental that flexibility, So that's gives provide to you customer, the really important.

there, we'd a bit. drive that to So bit look expand capacity a capacity that

follow-up. a Got related it. And just maybe

you given LTL the auctions kind thought the away capacity think that disciplined the the seeing capacity June much of step-up and organic and that out in kind of less network as July? given risk of there like of all little bit? the comes of your a how of the like space, run I kind in given the stayed of or we much of of CapEx not from maybe in Kind is risk peers, yellow some in the you're LTL what's just within space back as a players some post kind

in going you're yes, the growth mean, I see industry. to Well, natural

the You're people come the see and plans. I all that their going to see remains be But think so percentage markets what at industry, their is capacity seen. we're to greenfield anything going as to support available. when to -- only where I new you're that of business that they're we're investments places -- are that facilities back model making don't adding to look it, there in isn't

to So don't that I a that's that, know not generally. -- market the that's material --

is mean they percentage I weren't redistributed, back. that capacity. you're think its is seeing I most what weren't don't operating of of all yellows at at basic level, And capacity others, least it's think the they I in but some coming from operating being at

that surplus capacity anyway. had in business they So

in -- the capacity become So the industry. suspect I new don't would that that

going So a just redistributed. lot of it's be to

Eric line the from comes question Barclays. Morgan with of Next

wanted on ask I to another pricing.

above-average the GRI You December. in had

you some of that? wondering you into the gap how insight peers? to if can more talk about how you impact it Do than And pricing could volume your just you or less any responded closing see were customers to expecting? was I give So tackle does you

we know don't think I what would way what I was any one the that to the is consistent that that historically. other. or pretty we've is GRI seen materially the different reaction say -- that with of the

So we not is a be I could period in externalities, need think there that right? highlight be the to in December, it lot of think it that was that's important, I of -- could time. weather a are though, holiday, GRI

so it's seen good far, that high level of of that thing maintaining the level we've The what from we're service. there. but -- typical So is acceptance

think, little saw bit somebody speaking, renewal generally you hard switch. And a plus it's So to the quarter over contractual fourth I in X.X%. time, the for

get making the speaks right sure around mean of the that we right. saw pricing mix GRI, I to business You the the initiatives and

maybe follow-up that. Appreciate quick just And service. a on

year capacity it? in that step year service, a with way to Or and claims you is I this the, think a can it steady function kind this few do better Obviously, where see impressive. you CapEx ratio? now. just You've the a is of improvement about about think a improvement But and time, kind we pretty claims talking volume over is years the maintaining been all given on guess, that at I for number ratio took X.X% guess of

steady we pretty That's clear. think But number. see that's how number over good reported, right and now I you'd improvement and a time. let's calculated low be it a as is pretty

freight number is thing other really is It's has a that you really been differentiating and although you and it think going deliver it's say to when pick a number, expect customers customers care deliver consistent. that you And bit I you're that, consistency. it up about it. a And steady, the the

around our customer. other if critical service the sure So are also about you think about fleet, the investments hit you that's that making the making capacity that metrics for we're all that

freight, don't freight we but pick expects. to the able when So certainly, it be customer the damage the to we deliver have also and up

So service that those of equation. are also part

are doing. services. close those and to markets terminals that you that to your all the And we're in where the deliver further enhances fact needs you add then So add things customer ability you to be,

more services defined just than So claims.

Next question line with comes the Moore from Jefferies. of Stephanie

you're you and some seeing markets it bit end what on helpful touch if of your would just Maybe here. could little a be maybe

on it's more negative? or think pockets environment or remains that the of end hearing strength that either either of the weak, clear pretty positive the any to I you're commentary that maybe pretty but

business the we right is that across for interesting it's Thanks pretty now say that would What's uniform. Yes. see what I that. is

out really So region a good call or either vertical. a have for I a for don't

right? actually that's sense is end insight that -- with we're there in which So -- it's an a but what So or not way not call the other. the one happy markets and we're out there's in important, the seeing

Susquehanna. comes the line with Your of Bascome next from Majors question

you years, of talking to today does line And be years? where you where year, get to you real about network if sit Just go Can that where go by is with be us to planned. the of it'll on all we walk back pull forward, as what vision sort XXX this bit, to sight goes forward and in XXX, estate If XXX. XXX like to opportunity years where were can a XX it this geographically? above X at terminals, plan year-end, we ago, look XX X get adding point a to we any X the think the at needs

good a it's Yes, question.

of [Technical we're think be. a is exciting uncharted for I bit place to a Saia, Difficulty] territory little which pretty

bigger in national the have do. the at players, us, a I think you than bigger as look folks we they footprint

there's I beyond some XXX XXX, number. the think So runway

I think pinch potentially. scale like to you year they're develop piece, probably important I that and investment you to the plus per facilities. once not further getting where I there, of we're and have business But your -- of couple after invest for of when say those points the really think we on a want XX important have, already kind years but what's become kind don't facilities some there's of

we And facility, mean, XXXX of balance seen this we've year. develop going Northeast double time. point, business the And reflective of have here we that of to I in facility growth which sort all the basically density we've that of case into of kind -- capacity we're in Harrisburg or that seen, the in moved over is so.

think us kinds continue you'll I investments markets. to see in of make So those

think a market I sort just So business map there's in pins that facilities national-level growing but business got a scale of it investments that's -- the not it's share. on legacy with that's be of with sort a will maybe incremental have

time. that this capital So interesting for redeployment -- I think the business for an some remains of it's

Your next line the Brown of comes question Tyler with from Raymond James.

immediately. and that in balance sheet maybe kind be fairly those of Is will be that effectively, acquired Fritz, stocked this the the judiciously assuming on thought call you took leaked I'm And it, service will that into the be the just year payments market quick. the real next? you facilities facilities out first? and over put lease leased then on kick will into will

Yes.

good The around if Saia for good that lease come work terms the safety gating to place item to insight, place a going the a day. in think of that Tyler. a there's a facilities, colleague I to standard make every facility, -- it's that's one, we're meets and opening sure

sure investments and that to going sort got the to We'll be that make it's make we're it there. So the of remains if such. needed term appropriate leased,

So the of yes, the those list. closer to would front probably move

in The that maintain to in active other got of local at be zoning. requirement zoning cases, that have to able element has business you've maybe is, sort got some look says facility be you a some to you

also next which be we've that a then moved So ones just line. line. opportunity, have would meaningful those And market are those in real in there

Now some term. us longer others, purchased the we value ones of significant have all the to

into upgrades them may simply an that we we later ones of replacement. this at Some and be just The and or lease available make don't important upsize a be put of time. year would service sort a open the

how be we that. manage So would that

door prior come Yes. takes to going back No, the X% 'XX. from then X% door But there's that super exciting. in I you there's network, it second in side, with call it, is XX% extremely on the helpful. facilities from did to XX% ton me to So to and a another so obviously get But leased want on that to But growth and Doug, it a aggregate, X% to net question, say a all maybe expansion? X% straight. acquired

we XX, mentioned, up Fritz got Tyler, expansions, opening we the and and numbers relocate to If relocate ended are we've what all of example, your for then right. plan

So if that's could year. it everything this did we be what

we're you looking this we about we a network know XX- expansion, when or think horizon. year, at think Tyler, don't XX-year about

So runway. about that's all those doors,

esoteric absolutely, an bit question. a this No, get of it. Fritz, Sure. is

want maybe to conceptualize So you help power footprint. the maybe tell will of But I or me the it not. think

way service. it's down, have So to today it ago? to has it XX Because say, what years which assume P&D likely mix I go to virtually opportunity versus, would is zero assume interline over of and your an you idea margin I do any internalizes still control gives but X you

Tyler, sure bit the to this up got right. a beginning. broke at just make want little I you I

to -- said you interline? referring were You

Yes.

Because interline gives and over go was -- about I what an versus but to your that. service. P&D years you is that to just the still XX there's assume down Sorry today mix of X What it's control your way ago? opportunity to zero,

I the experience that But in in network. customer That's in critical that the right. don't terms us, so building a density the Great. perspective, a tremendous Tyler, opportunity have a absolutely, that is there's element number, of from around for you're customer but certainly, positive. be right, those Yes. cost will markets,

along that, revenue, the splitting I mean, And not right? with

Yes.

to over closing back Holzgrefe call go the remarks. Fritz ahead. turn Please for now will I

to talking Thank about time start next XXXth year the opportunity, exciting of really, join Thank with talk to We're the about the end to compelling investment opportunity, Yes. the excited taking us you. for company at you for growth of quarter. to and forward opportunities our Saia. those really look the a success we

lines. Ladies and now you may your you and gentlemen, all disconnect today's for call. concludes joining, Thank that