TFI International (TFII) 1 May 222022 Q1 Earnings call transcript

Speakers, you are now in the main room and you can proceed with your conference.

Thank you, operator. And I would like to welcome everyone to today's call that's been delayed for about 15 minutes. I'm really sorry about that. But yesterday, after the market closed, we released our first quarter results, we entered 2022 in the strongest position in our company's history, and the year is off to a very strong start. company. now ongoing the Freight successful execution our are our diversification and we across the business, integration entire results reporting broad reflects of strong The of TForce

segments outlook a In which than grew our This fact, we're is the to overall diluted more quarter strong year double year. today, including a our raising of earnings all X per led operating again share earlier. this full of And income for quarter. first adjusted to performance, compared business $X.XX and

of we challenges. labor further higher included performance sure opportunities and shortage our First all, opportunities I'm have ahead supply rates, heard, strong enhance help inflation, a multiple global to elevated current despite internal that have ongoing macro-related energy headwinds results. prices, chain These you interest explain rising

we TFI drive to year's what acquisition, we're synergies revenue focus have maintaining cost International we always major and on continue While relentless best. a also at following last both done

through successfully to macro there provides can continue create It are we is possible. the constantly whenever identification navigate many get achieve run strong is operating while shareholder our ultimate of details invested produce say that to grow with goal on We the changing capital and before efficiencies. me the per including and we heard cash This earnings us flow, to shareholders maximize share. free times, our always to returning that on pandemic the capital this value, of you've the the business us long-term right strategic to excess focusing landscape. confidence acquisition we opportunities along returns philosophy As looking by business helps generate fundamentals that consistent which to our

many strong first internal as results, ongoing principle Let's opportunities our and a testament now serves unlock to to our guiding value. review which our quarter

More increase reached of important of capitalized more well our year-over-year year. pricing. that's $XXX adjusted year's our to as $X.X income And $X.XX profitability, Our an I climbed EPS diluted million our prior focus volumes and prior the across XXX%. the BXB, over we and revenue billion. total given generally that's $X.XX above with solid on XXX% to during up Freight XX% the quarterly mentioned, was operating than appropriated by were quarter, fully us

cash net due million, quarter to a activity from down versus fuel operating needs higher Our the capital associated was working although ago solid with elevated surcharges. XX% year $XXX

-- the strategically flow investment cycle. we As generate to value business ability grow cash our the value to disciplined I've time and throughout profitably through over said acquisition. to approach us permits before, consistently through internal our our This and

double our X into very the the prior to year, X and discuss. segments. well our and generated results, emphasis income, operating as on segments I'll capital produced especially income as on with growth I pleased results stronger mentioned. Turning profitability X All now We're given all invested operating digits, than

which business strong XX.X% during across period. BXB. income the points strong reduced capital first to saw operating up represents basis above a with reflects robust of in we strong segment decline margin $XX.X before was up revenue. yields X% prior operating to and a million, BXC fuel Return This at basis Despite driving P&C was our Our in a activity, on our increase XX% very BXC on surcharge year XXX coming XX.X%. to related a total both for X% points Canadian profitability invested revenue the in considerably P&C the focus quarter, XXX also

in year relative TForce the $XXX newly perform. quarter. continued This segment. to Freight revenue to XX% surcharge as million our prior the to along acquired Moving $XXX LTL of total before fuel revenue, of It's generating million was during the

prior operation reflects This up and grow from was year operation we lies earlier. $XXX U.S., business income of basis optimize and of better one X-year markets, to XXX LTL million, of created profits produced revenue by XX.X%. OR invested we points basis with was strength anniversary year. up the XXX Canadian XX.X%, our at over was operating the was the capital on the points XX.X%, of in our the impressive than LTL opportunities from closer year. in strong before an also many important prior year acquisition of Return last margin In Our approach weakest surcharge revenue benefited and business. Freight has grew on integration. ratio have for OR the surcharge $XX a quarter a been this look before right acquisition. of fuel internal million Taking XX.X% industrial remains seasonally an the historically in as fuel of what track $XX X% operating We our just therein business, a generated million and UPS operating within terms of a

of Our return XX%. the just on a invested was XX LTL first months our just ownership for capital U.S. -- is remarkable in

which Truckload, XX% of is up revenue. total Next our segment is

the Our and growth improvement of margin The with our million. over U.S.-based $XX this segment, is $XXX turned topline and strong XX% year's has considerably XX% XXX operating improved capital Truckload revenue XX% relative basis the saw on period, prior now example OR to a year opportunities. the a up our Similarly, believe XX.X% great of expanded surcharge year with a Truckload $XXX that operations, XX.X% to starting X.X%. up nature earlier, self-help division our Truckload X.X%, invested acquired year corner. to conventional last return million, our we over income an to fuel XX.X% was to Freight revenue further came at climbed our the points Within favorably our Operating TForce before ago. million, up We year-over-year. XX.X%,

surcharge slightly. we $XX.X million, produced conventional an XXX with XX.X%, up was benefiting $XXX to $XX XXX Canadian-based capital adjusted points point to on very up before Truckload, in basis a also basis out from capital on of return and saw at segment, surcharge business to climbed XX.X%. our by XX.X% expanding Rounding industrial XX% next invested Specialized return OR revenue the which with a strength Truckload well before as improved market. Looking operations saw million. improved improvement representing Profitability considerable of XX% million, invested adjusted growth XX.X% from our end This fuel OR revenue fuel with of strong

we equipment success debt purchases generated to given flow beginning ratio fourth XX after invested adjusted let's Operating our year now capital over business up before return balance at $XX of in Our $XXX relative X.XX, and and shareholders stronger during sheet. and free an XX.X% Logistics, to surcharge International. saw of EBITDA to continues X.XX in with XX% an revenue. our be quarter. of segment pillar to revenue a last growth total past of is March TFI on representing million, X% fleet versus grew to segment strong, relative is Logistics solid with further year's grew year, even to first fuel in million the improvement margin, higher turn capital invested cash Well, We deploying for a to as We now of XX% million. income climbing XX% discuss to which to year. also our points. $XX fleet to capital basis update to quarter ended up very strength Logistics our remained the Return for the the last

therefore, a of and million notes refinance our the strengthened we corresponding X.XX% financial maturing private maturities with term and it with quarter, and leverage-neutral a years and rates XX a placement of $XXX loan of fixed were of profile During X.X%. to The XX, interest transaction. proceeds X.X%, further XX used was

average International TFI move, that excluding years. grown rate, at XX% to weighted equipment average is this of Following the and of has X of X.XX%, and the debt interest a with March, financing end rates weighted maturity fixed

on is to own Lastly, condition control we what benefits year full I'm our stable provide an going which to reasonably assumes ability I've mentioned, which internally. outlook, our on what and from update macro execute

numerous opportunities we flow other Freight strive that of call to that profitability in improving and cash following enhance have by to strong continuing execution for growth. trade More last our especially to emphasizes level, increasing operating network. and increasing simple our and we driver We our only valuable retention addition density, to to acquisition, In efficiencies over right take TForce on prioritization optimize our principle plan year's freight simply our adhering to service a pricing, we that the focus fits. words, on optimizing specifically, concept

For up a a to we're year to per to raising XXXX, full our for share outlook $X.XX new of previously. $X.XX $X.XX from earnings range $X.XX,

capital in to flow within off the up value. shareholder they and create opportunities over wrap million net $XXX find $XXX million, range with is and expenditure the quarter the disruption company's the excess best What year We to many our performance. free a continue cash to continue start. it is the despite of of I'll first million. forecast of see in our we to most history, summary in position a We very XXXX and I in that encouraging macro strong these our guiding shareholder we executed Best quest all, team do in years, are internal to and have entered we've create and because focus, reach X and to our unlock whenever of has many best possible. in regardless to principle, involve return of shareholders past accordance opportunities so capital stayed significant value of economic to excess condition execution ahead our what we $XXX doing

begin now please Q&A operator, you the if that, we can session. lines, open So with could the

Instructions]. [Operator

Your is Shanker Morgan first Stanley. question from of Ravi

kind and As things you are of of of and where concern bunch know, about kind such. end cycle of there's a going

of the Your years. stock performing of couple the one was in last best

in So very valuation. at congrats pulled especially your peers stock attractive with multiple, there. and it new now your on recent But days has off is a

put have they EPS us and to might And the trough some your stock a think would be multiple what helped floor peers of be. where kind on understand kind of of the

and think do do long asking see how light XXXX you guidance? with in and way is the be your a the TFI what of kind see new do the right you where might business think of cycle, for now, you So of you where cyclical EPS based trough you

for Ravi, see, you Well, thanks your question.

is TFI, mean truckload logistics. not a at and say, compared, you cyclical our If at is would I to look of revenue about operation. is as if X% let's look I say our very about P&C you is LTL, XX% XX% this

brought truckload got Ravi, noncyclical that say, operation. normal acquisition year. going over We're important year. we And OR X. about been And more has look could company a starting say OR doing let's that scratch this I or it's would when that a is be UPS is lot there's that a a do a to at finally, say drive within to this TFI I that for year But -- being still we're less X we company to you us have TFI we this We've fantastic let's last more a to I within a an XX okay, a one that ADOR within because there could say, So bring to said, team to miles. I that, the the say to to with thing mean this XX in event TFI But Freight surface. years, that do X really believe said, the, so company to job. much just there.

more pick up have freight. We to

to up heavy have freight. We pick more

different. next what in when globally, even talking I me to in all. Customers this April, recession shortage you in Well, of now. because in so to please seeing that much that. X with And a an the a our little thing M&A, year, we're M&A-wise our us And And QX, So most much be years, freight of help look LTL we've us see are you our at more a it should this stock. with lot of can been that seeing not X.X tell at and us, active in so that see recession, TForce maybe but you important we right? servicing is Freight, answer -- now So with M&A QX. in own don't we're there's if drivers, results I environment, shortage question, don't kind improving year is we do. months, do what about in could got freight QX my X we've is at bit are our see us the us but busy to your mean, our power. of too that U.S. of got people asking me we've TFI, buying helps But network What That's a back customer? in or forget let

question raised about So like you our stock price. the

own us stock stock, opportunity -- which in for Our is that shit. right? to price the the an creates beauty NCIB. is but terrible, helps, it So M&A It's is do our is that the

I to So is we what good really U.S., When of can lots that our industry seen. all really done at QX, faith see all, our look have I far really, I've peers feel we we really, look has happened we're at so going And everybody mean, well in when really my in team. so in in what far QX. we And the about in busy. be what

P&C segment, recent an near-term versus of Maybe segments what quarters, of Great. as like. us shifts know of help customer outlier I it's some was is terms there's follow-up, just but bit little can you the I know change. but been in there your the revenue a trajectory in year-over-year that the smallest a other large understand business

Yes.

the And North customer. America improved, our our and the that reopening BXB at have our Canada that. stores, look is okay, not more is density, slowed is our through because you been BXB I BXC. roof, been largest down, of our always down. in it brick-and-mortar this slowed okay? e-commerce customers of is has look one when malls that, And guys, the okay, more BXC there our than mean, player But for all just better, way is of the if Since has and sure, right? you at Ravi, Because happening, profitability, what's why So went

replace the we little BXC do profitable see trying of see next on of in months bit volume more business. with us in BXB losing what for 'XX and volume, Now we again, X terms a that to

XX-point a job. our our there, Now fantastic a mean, who Canadian nobody. -- operation, of in our the team that TFIS, team volume is of BXC that. our mean I Loomis which XX volume P&C anticipate I more lost division during going which year, our one. be will is OE our that like only a We BXB, lose well, mostly or Canada, run it's can Yes, will one are on has we're thing doing course but up -- the because fill to most significant and the that of there. tremendous operation, are Loomis the ICS the

So we is QX in but the the of QX, go our P&C 'XX some again again to see for volume QX. year, and for going rest to profitability drop up anticipate year-over-year,

Your next Jordan question is Goldman of Sachs. from Alliger

You can on LTL briefly as the U.S. give the the timing an touched, margin in to question where take update the prior I done over time. about But LTL on trajectory think, you've in you'd past improvement and you like perhaps the and timing?

the you, Yes. Thank Jordan, for question.

manufacturers, in to our is question having which mark. about there, Let me far, X,XXX now 'XX. And touch trucks, years. the difficult you tell truck goal on ADOR did an We're the supply to to 'XX? we're is we get our be where end are a of you. the coming to next It's we I mean, okay? mean to equipment, X which the when you we having me this talk is at to XXX operation, I within ask now replace so going from our have another the team but based to because XXX to do if always

So would to say we know I do. that what

on in would less QX. We the we to and well, know not like pick we the all mean XXX%, be U.S. an AUR drive create try different operation the have come to And slowly, which unionized you really look at lean not And operation. operation, these were up is Canadian were reduce the than team, done. in to and Kool-Aid, focused our things to say they're When able in that our what but freight with LTL this needs they as execute miles, claims, it. to our drinking more up focus less reduce is we past,

is, Canadian at the of you environment, night. the is look versus MD&A, On look Canada like U.S. of you which at our if and quality revenue day

matter It's this it me, good to pretty and XX know very convinced the to make that to it. because They team obtain great we'll goal it, there. what what team executing I'm we I just And So feel do. over gets do. this that a have a happen. very, know why next is the we months we'll of

Like then a on been outlook I Canada And quarters. there? the negative mean, what's it's few just LTL, volume

Jordan. the look X%. Yes. in mean rest is were you I about flat, we Volume we the at down about What is year above anticipate X%. plus for our if QX, flat, volume of maybe

got we So up. that some of are our divisions

of our bit. Some are divisions down a

mean with being 'XX. So I reducing was about on got flat But more I'm Canadian our I LTL with this you running and think about run is for Canadian why, fantastic looking just our at month OE. operation efficient. that and to just said, we're mean, all April. this we're going to you, I being a me, of telling volume costs to cylinders

Your is next question Konark Scotiabank. of Gupta from

of maybe to I kind guidance raised dig in wanted So here. your to

on a and dependent on power, is great guidance demand, of upgrading M&A. much congrats guidance So continued the quarter How consumer here. and buybacks pricing your new

There's for M&A, what and Konark. based do all QX in QX could may in sure, except QX, done we we've on okay? So in or that QX. in that No no M&A there, change in M&A

there's in So no M&A this guidance.

So the want mission but we always what, of and our know terms what And we're I've to stick nothing okay, costs by power, promise, $X been said, the get right? as QX year, a to again, deliver. million doing over to cost. conservative, it's get you who to we're in maybe more in QX we'll we In believe end now. always shed right? very So $XXX that's knows, us, pricing million. and to just of could very, some $XXX to We that under than

with a question U.S., the key in to can ask lanes, changes spot are earlier and the et down, cetera. respect to what think, I follow-up, creating you in especially obviously, spot a you, extra, and an especially as and your Van wanted are be of rates, drive panic. seeing to coming rate And lot where I sense. how Makes that's

you're I spot the our business is, company. understand but So we're right? is what But saying, a rate where not Yes. contract rates

UPS mean, business, like we X,XXX any working freight these were is medium that why Truckload didn't because we ago. which -- money if make dedicated, division are been with much to division. is So look that our X,XXX contract, losing in that's so I which and contracts we we trucks TForce of trucks at are on, year long-term we've a Van U.S. more okay, the some about sense, so you our bought run a which

is if And do this there So control again starting we're well. to or over of the temperature being not spot. look you our fan at road,

this is So affecting not us.

we right? XX%, there's big that The that's create I that rate, cannot at Greg, always got load a mean of even this. talk of now always, are finding says, when okay? service overbooked. right is have he my what XX% issues, contracted bit lot now, to finding XXX%, XXX% now. drivers, okay, what think I is little I'm And issue right of I those and rates And that look And great a I've to I trucks.

Okay.

in at I'm yes, really are what what went okay, happens down, look low. way see in the inventory Because and inventory and -- of the QX spot of So if it's level you And the the U.S., big our ahead based of let's on deal. QX. shippers of users most what But reading, was. really, the it in still

good. Absolutely. So about really the Really, we of mean, 'XX. I rest feel good

question is Brian JPMorgan. from Ossenbeck of next Your

improving that can feel slower self-help guess, the So of on improve especially the are the you bit I to even comfortable market? you a softer the we are those facing confident I talking Or still when perspective, density, on you're a if it you just the get how into demand Can of can the still about do volume you improving or there, rather things we of that environment a in a maybe still -- the when bit like able deceleration. to you side, wanted might -- comes pickup. dig to be how accomplish that a do some here

servicing So miles organizing think Brian, when that each in much, I so, any This have too and number look It because every is U.S. is at the make us, way we of work doesn't us. the okay, right? we travel the right to Yes, and customer. this pickup. the sense. between It's

take your deliver have that to let's you away about of okay? So from XX you say one hub, miles your hub. And

why the But the the with that, you U.S. next from next crazy. do XX terminal, away. just exclude U.S. than million because to I than I XX go So of U.S. than on density right? in shouldn't compare within X just miles, drive are Canada next density Canada. miles. in more we your each every miles why We deliver is a the X the the freight, It's example So different. lower miles I maybe you me, in Montreal to And I'm us linehaul. doing X.X. the to terrible, let's focus within is very stop within and right? if if such But X, Toronto, miles service you no doing try between mean excluding the number let's the month XX Vancouver, a mean that more and versus would miles, of

working drive that, up truck. management guys, and we team freight the want This a So understand is to team and and us. us, sales not to this to trying pick is the drivers

have travel to to the because miles cetera, miles Now drive do. get we et time mentality drive freight It's want skids every all cetera. et freight need truck in to of We deliver a But XX to a of and this none. per have they master less of more X don't takes don't but we that, that to between culture sub, it's trade and be Jack to change what stop, I and change. want each we guys, that we have is up and pick to

at do of XX get your versus the to X you're miles trying So that, is to away to running footprint, more terminal, ZIP It's freight servicing going skids okay, deliver to that closer looking the how terminal freight. slowly we're this and Brian. looking code terminal at by

So guys, this we to efficient, with This create density. to is recession, got better no have us. or it's more way do recession nothing be

If at look from P&C, you more get customer? we good? why the we Because are so our money No.

is Because our our our of Why? shipment matter more improve money. fact, a made per we and As down density. also But revenue is down. revenue we

the same that it's story, So team Brian, with to have we our work there.

As a of okay, fact, having go like May Paul miles. just early per I another the matter and LTL rest is Mars. is team, more mean, freight to not is with and meeting what address, to need less pick of up we're we in this the This normal trying drive freight, and more business. freight, stop is this to heavier

Understood.

loss is a delivery be catchments Would reduced any there? offset by quick and fit not in of the of that think terms than Would follow-up profitability of Just might volume in network terms there. you better and that pickup more operations? miles

same sure, our have improve Brian, at time, forget we to the I'm Absolutely. also, convinced of For don't And service. that. Brian.

much U.S. is Why ago, that? et service there, et truck so service when peers like breaks I than not like the an do, you a not Our cetera. Well, the we mean, the is the is year not old but down, best cetera, now truck in run

we at So we of a that the to time. other have same also lot have things fix

only that's got XXX So XX% fleet. the Well, right of trucks. we now,

little shipment last did just we do lost bit year. P&C shipment, we'll my power own this well. Canada, in if But But my trucks, compare investing, versus to okay? because you get X,XXX going U.S., have seeing We way in we thing we new a XXX QX. don't pricing in to We're bit. can't bit okay? you down flat, of is look year, right? the better the didn't a okay, LTL at the probably and last at we're company Canada, it If in you our about still year, because look same count last and right, see So per on there, revenue than the me, year, although volume, little a between And are we

there this more what we that's have XX up that lot operation But the XXX less and we driving that have of simple, working so work drivers you miles. when me, months is a right? So get It's picking to terminals. team have mean I'm saying with lean a good to that seems freight,

One quick and the in years. the XX% just Right. follow-up on next OR the of couple

a too Teamsters up have negotiation We coming before long.

that. year? first half discussions give the you will high-level of in inside with believe, terms some And any So that involved of of you of just Freight one, comments I out? how back that Maybe if the can this initial with TForce there's go see us as be in playing you sort next

too got getting For sure, we base low, that Brian. expensive in base We're the is carrier. I the too markets, mean, our has have. ready salary if unionized versus in most other base is some though, other markets, salary that our salary that. the TForce that do base have Freight salary we for salary mean But already you what the high. see, is I base compare I X

have kind mostly this done that union it's of national the the So we people. done because or with was because UPS last discussion a -- a is and grid the that by negotiation was

we're operational discussion in We guys, guys, labor We for sure, Canada. to is people change operational those involved like a to HR we're the with going our this in major with us for So guys. going be getting in have lawyers. because want there. them. we do our very next want a now guys. And We lawyers There's our don't discussion want good no

way. what fairly, we pay the But of to okay? is our in managers importantly, people ask our goal have most is Our people our we right to manage

the nothing XXX drives to sense. It's any got freight, this management to So day with a doesn't miles do if driver me, something make It's deliver driver. do team. got the this to with

have mean, deliver people start, And possible, XXX to to a feel to very I So We We're how have don't good shipments, good. we miles really if as guys. better have early day ready we next we so to with our for now, working manage so discussion. XX in want that a the discussion they get that drive okay, right? to

is from Spracklin Markets. next Capital Your of RBC question Walter

of you buyer you're my focusing it just that will now right to want larger now asset seller buying you're getting right And as pruning a M&A, quality return is now? you lower of the the rid and seller's get be the is this base now be And contemplating So something market. event first mentioned ready by a overall question side? you contemplating is the market, question. with that Truckload? -- reentering Would right the contemplate seems getting that of businesses. My market second Could you though of improving on if selling for I or some on environment current in your if come to rid envision that you --

been You have this Walter, guided we by principle. see, always

You like him XXX,XXX I I by we'll our it's sell on in Walter, okay, right right? major news X was got another the blackout, to and of Martin, wait. And That April, to is And mistake. should have good and went the we that we buy, In Finance, told the XX%. just right. trucking, buy month problem, got news all now, buy news, bad mistake just to shares shares. a you VP said down our stock bad about before my Martin, said okay, million that, was

Okay.

now, buy right, about you Right you news, trucking. news, news. in So sell in bad bad good all it's

sure, mean a job that, right? EVP we're doesn't are this say, company very better, on -- than maybe mean, M&A, my there's So it's fit let's "Hey, my right? sure I not because buy strategic, all to really more So I smart Besides no me if right? in to sell that someone, asset discussion see So But is within right?" time Maybe time. through That's sell. to and fit TFI making going what that approaches to clock, it would right? that right? 'XX, the me, So that's do to guys, walk us to for what doesn't you transportation the happens always really say

if now like -- might you that's said, for, in and are Yes, that was I sense mean exactly a fetch people going enough. people right desperate where got now selling bit selling that I you the power nice right

be. May

Yes.

Okay.

On ramp contemplating larger, is of Is LTL you you a the Or perhaps up? M&A this ramping bit it mentioned tuck-in? kind tuck-in a something maybe QX, side, talk are little up Or... QX. of,

winter. Don't what Because mean this QX mean, doing VAN truckload in working winter. is in I will have announced no, logistics XX%. in I or be in U.S. MPG if is I we're mean is This Walter. in is at to unbelievable QX you our or X or guys in X Canada. and on our XX% QX down our nice No, division in fantastic. the mostly we're U.S. sector now, transactions forget, that division maybe our guys what the the in done specialty right what are with in the this look VAN Canada, doing and in the

the bit little a big. There's of maybe all truckload So U.S., are specialty in but Walter. tuck-ins, nothing nothing these big,

Instructions]. [Operator

is Group from Wolfe of Your next Research. question Scott

to just couple wanted I the side. LTL get a on things more

you to think of close a the gave do tonnage expectation. think earlier much a call. you freight, there how actually in the maybe I number. Are any the you much how any of you terminals need -- talking Just were one I might questions, update sell? about don't OR And or that on to XXXX term think of

So I there. you any have thoughts if know don't

Yes.

a terms in by think far we okay, taken terminal Chicago company terminal, In -- done of was April we've another over was that Scott, leased as X. it of I trucking so is what closed down

another terminals have Virginia company. trucking West to X that also sold We small in be will

right buying in a also own owned we by leasing the of we're we We terminal -- trucking midst that but California. are in one that's California another city one, in because are now terminal in

another buying we're one. So

of away in we okay? nothing in from, terminal business, major can hate far a we got that mean was side $X I we're mean, right yes. it, didn't nothing lease lease because estate to estate, except it. real we this buying million needed. own I leasing working on So terminals year these really -- far so mean the right? which there's time. at we're But we Chicago so we're if the that Real looking another that take major now So things I

OR The question?

the believe, within an be Scott. earlier, LTL The company, I OR could X ADOR mean the said we that okay, U.S. I this question, next company like years. strongly

today, at in to you XX%, quarter huge a But can need QX it's we right right? be change quarters, a So say team a this, or all thing. I be so, right? job quarter running because I Now would okay, hope to of what within X the sales on focused the

trade master none. the And of we're and the need of You change not to approach. guys ops all Jack

less all driving got be miles and focused on that. So to we've

to terminal start and is CEO at the to you to So go -- this and terminal manager. a you okay? where at that's got then down go And the now, you managers. VP then the we're with We're

So these there's XXX guys. XXX of to

takes it why time. that's So

in be got one that. a we So OR were X, or QX I the The They've pretty mind always And But in we've Scott, worried within disaster year old should guys did that QX a to that okay. a well thing, done is because keep done. quarter cannot team you company. was what days done said We that to about a has this years. commit, XX% of was prior delivered. compared that the

good, So We've mean our years. time over and built LTL we readjust feel correct. but it to Canadian I takes

much the bigger. this U.S. not time. It takes -- So U.S. but is is more

then want term, And you thoughts you the more just that Okay. any of where When be? one on like businesses? near to tuck-in and about time, sounds side. think the types over deals in larger you -- on deals What M&A it as

U.S. And of going from got anything but more what do. right? say the know to can't in the 'XX, I we're So do But too what that. can't going getting for from I something we be say much could we're to in for it is 'XX, about ready has be big big we that may like Well, to U.S. and maybe, mean, I happen everything Scott. size type, sure, probably in come to Canada, is that's I mean, what

a than more There's have always target. only one there's never plan. like else, everything We But X.

Your next question is from Kevin Chiang of CIBC.

could I improve to from purposeful down And the of P&C, year-on-year. break maybe was is down BXC. as maybe versus X% amount was What packages mention you wondering then in you slowdown revenue perspective. your from you just BXB would did you kind weight that within your demarketing being a if say pointed helping a you offset roughly

is offset Is we rest BXB tonnage progress of as the expect from year? So that you of flat. the that the will tonnage overall BXC perspective, the trend kind this a through your from a even

Yes.

team team we summer plans 'XX, didn't our what, we know you we're the in in really with can't get these to more had to we the want and all We pay do. with had which said, what Kevin, So -- QX mean, summer know the We that. because what we okay, you were So the our because 'XX, repeat okay? sometimes, overwhelmed the and I service than agents customer into you. of freight year, the 'XX, guys, don't to of that to were last giving control started coming is is volume. stuck,

you Okay, with were because volume. just anointed

"No, a a what we us," are QX, it's by we don't us crook, shippers, this no, we to to ZIP let's job saying want wants fantastic want right? that." also did deal guys okay? okay, this region, agent. guys for we than ready, to was the guys we And code, guys, Because have charge said, get you more an QX. who So with QX, some which into So over and boiled paying "Guys, So said, don't this that

losing. profitability of we the our because at is market it, look largest is Canada, you e-tailer because didn't share okay? if also in of volume okay, that our gaining are Some lost and some customers want improving, is So

now, little in freight didn't in that QX and So more QX but can they probably on time, all and consumer, is because of go we e-commerce a getting But like in busier. bit some okay, reopening the BXB same because mall also that they QX we that of are our losing plan getting of okay, losing. malls, to are our the e-commerce, it's we're complete now at Canada customers is

this our more right? in from QX XX% XX% and So okay, a at of has Loomis, the or year, guys BXB that's if we So BXC So Canpar, BXB get ago, you change. right? look went instance, for shifted, year XX% these to BXB BXB,

okay, So we would are of bit to losing competition, I a e-commerce, say. little

And because of is also focused profitability. want it we that volume on we're some didn't because

more it the okay? of our volume, similar in profitable, Canada, again okay? in improvement, we the guys when And bit about So say. talk BXC is probably to the QX, QX. see in profitability at will QX, Now as our April, would will month P&C probably of BXB look but our to QX look today, BXC, way a guys continue growing and in same little less QX BXB less you what is volume I That's we're standing and where our I in QX, When our and improvement. down, but

is do your EPS the first think do to pre-pandemic. different just quarter outlook. at getting be historically an and second be my above based you're of and Maybe when end it EPS that, just your sense. business But revised conservatism makes annualize That if of Right. of the guidance top EPS and guess QX might what what like for I take in some like know looks think But is question, printed your on where already QX you I than you on a you weaker here. conservative you. I know I your you the $X.XX quarter seasonally maybe

Well, also everything be is that, it's everything is to but Kevin, okay, it's mean shareholders. should to recession, a freight, I'm going blah-blah-blah. and because we're I TFI. that big deliver freight I see, oh, guiding in bad, business believe of reading, But our principle deliver a always results to that to under promise have deliver we over we

do why we okay, believe if don't our right? people $X.XX to share. guidance, is a that could do to $X.XX, this we are very even invest We TFI conservative we So in on want going that we're thinking

conservative. be let's So

and Let's say something of I be as what on in And Alain depending the out, want don't -- in an when will $X.XX again, comes all hey, say, guys you because Because we very to happen we at conservative like QX. talking then right? clouds. we, a come different conservative. QX $X.XX let's these guidance, revise our what are about, So okay, see then example. maybe you were And

Bank America. Hoexter, question next of Ken Your is from

want on season. early really there you and peak maybe up of ran right end like talking up you're of is what about kind peak kind when after that year seems the signals up started of the contract contracts market, exactly the Just to now, last strong, on mentioned follow ramping at spot right? So about of it still season

could rolling that how know that about a the that signal just is something different not about and to now, do is you guess right spot telling understand the of But what business not I want you the precursor is see into a So here the that over. about I the on read think spot I earlier is when we question a contract signal? Truckload side. Or fact there future spot coming you guess good. of I market? it's mean the that market contracts

to to follow, you availability right? for keep U.S. contract Ken. our absolutely Truckload et are is return right us, business. portion invested capital. when going see, not with of X% if that today, power And is a look that, does of not running exist So come look based and which a is will of spots And operation et very rates at start one say, you mean history history, on You cetera, we that at thing availability this Greg, It's I on in down, that when -- small we people, the listen, cetera. we're

do We're going other the to to going a So sell guys. to fortune to the equipment, selling We're make to we're logistics. more do going that. the equipment going do We're this.

get than when supply chain okay? believe because that is last the the that same as years get we of people. the think can't you they're peers, is And issue, our different we all I So something can't the to believe, us, the XX listen to I power, you

talk rates Now service? really okay. provide don't bit, that talk now. we about too can a change. spot price down yes, -- you are the But may it's more the customers, about when So We right talk we to much

So into a we acquisition of next great, right? TForce there, you who and may at year a And lot there. is being these a mean Freight in better, Because QX on to thing That I maybe all maybe focus but change shaving that's the our TL look really our a Truckload QX that more do we're although because or mostly doing losing not to doing work U.S. okay, these terms shedding operation, in it us is that the mean, still we knows. our busy this in right? took year, Okay. costs. season I of if were us, for day-to-day did fortune there and we're get stupidity efficient, costs have of guys rid just But of

maybe you is get future you power, of the versus Now contracted Truckload that base, different can't spot, our rate U.S. will today there's get follow knows. something can't people. who that historically think I But

very difficult and a that, the is in agree my with trucker's on I When them. -- also I listen peers position. small So to

probably have Well, we'll to tell will not Time it's same the that, story. see. Ken. So

peaking seeing guess fourth where still in still is acceleration? Are sequentially. the It that you're seems seeing normally like Obviously, get thoughts the where mile, logistics my some Okay. logistics managed logistics. out. the the on would and side, services follow-up, Logistics see of first And to last deceleration. the acceleration But maybe your on you that's you that I presumably from you and quarter something quarter, demand.

very logistics brokerage but our mean, don't Truckload. do logistics guys. we don't in I do But absolutely. much some, little. or yes, We Oh forget,

it's in last logistics mile. No. No. Yes, over and

Yes. Yes. Yes.

So operation. mile it's mostly our last

in I to a in Courier. well. small U.S. really the we acquired doing well. going that's company really Unity just We do California, are So And mean really,

is doing Medical division really also Our in U.S. well the

I at feel I our last grow. asked what about me is early in our or sector. question logistics in looking U.S. mean now we do of our good And to no, that And we really about And XX% in absolutely mile, It's So it. on, we're the the M&A. something right Canada, revenue. okay? someone said logistics

question Tom UBS. next from of is Your Wadewitz

OR, framework. I a Let's clear in on and of see, and you've had your LTL Alain, questions pretty lot think you're

And really equipment on? focused predominantly things think get we've or how the lever. -- haven't getting. is there asked I you important the it on you the you fewer and is thing priced pricing is from I'm to operating you I OR, the think then side on down, because if pricing I one less all progression XX% do the touched the that what is really guess lever, cools miles and maybe new wondering, XX% And been freight and than

to years, on course X cost that. with to still side. on and that's terms for -- Yes. have freight more Well, from that XX% would still customers course We focused past less the So and we'll today be an X are you of described have during an this going like right? be that that we is have have of mean, goal on pricing we the ADOR customers, the solve cost, okay? I still on the XXX%, the way our we But of some the XX% to servicing OR We today but issues or So say mistakes and has to I've right? try of in that, correct way more efficient. sure, mind in see we're run also during next to we pricing of the next of be with right? to what to my I years, superior do, to the

less. with more do to have We

just is of ton to get guys -- mean, get mean, just more look have up stop, saying, if I pick asking We I freight. P&C not we stop, which normal. every to at a to Mars. you per our freight We're we're

in a Canada, maybe incredible U.S., because get every is stop, If I we've you every at the of lot average, focused on stop, LTL shipments never look we at get on my in our I which look X LTL If freight. that. operation

we it's more, help trucks. the got us, okay? the So going maybe X,XXX the cost -- cameras, the equipment, that's into but which a we more an like cameras, over efficiency, XXX if right X to little the a ever with equipment, our bit on guys to get those MPG accident, next XXX, you forward-facing involved have maybe now, trucks the the years, truck like said, So me, on productivity cameras

is okay, during So this, our all estate of equipment, to of Maintenance also real our the course of maintenance portfolio. the next years. us going help X of

terms So quality past. to know spend to site, okay, we we the way maintenance, of our control done improving in have better the was all expense way but it on of that also, have the in we than more

So be same costs -- we results, we're long XX% spending come answer but to way and money, going the more pricing answer get a from that be to has right? to to to that So of to I customers. with question, about your from XX%, not mostly believe

And I I understand. sure -- make just Right. guess, to

If if of sounds pricing, like LTL track. you to an went still -- a had really that kind market on it be issue, wouldn't be single-digit you low you'd

Right. Yes.

Okay.

back is Is even the that's you X time turn leverage you're tends buying logic to term back lever, get stock. if down, of the a other sheet when there you we come high-class question Is buy cash for lot of a right. deals guess, problem one just about? stock, doing So bigger I'll I do amounts a right Or an a kind you. of of just be we the that say, where have right? big hey, can do to not little we or instead chunkier balance you may should you think turn, in say the Because near that this is the when at okay. then and floor deal generating half

Yes. Yes.

us I is But do every do You doing, you really NCIB because company know we're out. plan the M&A, safest right? some our mean thing we're know to what the is the risk. for what always back of I inside We TFI stock, know time simple. when buying we mean, there's for us

'XX, the the mean, I So XX, this the let's jump on And USD it. we're is TFI. me, to to year why, hey, going that's for NCIB Why? price is what Because to of is do. the floor,

way buy guys, offered probably U.S. say, for you back I more year. an shares not we X no, million that. $XXX -- mean also we've than buy for QX. banks, back give need X.X cash, there this is going QX, generate don't ready to by right? in we'll a $XXX some sure, no, million we're to get issue been stock, okay, to credit million we'll million, of And So

of Your Cowen. Seidl question next is from Jason

in what's running little believe you a back side. now. And XX% comment seeing? made on that I where Can the Has month said about so? or recent down it XX% trend come the to right was to Wanted you the compare they're year? about at you're that to that up you last come jump then a bit or Truckload overbooked maybe

Jason, It came came down, it down.

If you look say, being XXX%, were of back, instead XXX%, maybe XXX%. let's XXX%, you

down. it So came for sure,

Okay. of LTL That's you to And of you about on good. mentioned your whether in important replacement? And little bit or at a much Can tell that, Truckload of fleet sort get And in I know how terms LTL. be inability the it's us division. where more you're equipment. it your

sort get stuff expecting of and the then into pushed of the some even 'XX? the And year of what remainder you're for will

Yes.

fine. So Truckload were

issue. LTL, and an That's our The problem get about at that we have X.X, is you'll look the delivered is about Truckload you see If MD&A, our not product in trucks sure. our we'll 'XX. running X.X, for

okay, high. starting normal to a that's started far. closer way age bring okay, so orders, okay, in March LTL, there. we're We U.S. is get We And order. June, at us average fleet the the 'XX to to of summer. the to trucks but We Our in And got not We XXX, get X,XXX the end going supposed XXX in to were get 'XX. 'XX our in trucks got 'XX. too

bring not our normal, back an 'XX be I 'XX. to all. Truckload, issue it's it U.S. another right? the should needs 'XX to a it where year, and power LTL X-year mean, thing. So at So in

that's a new I maintenance must mile And because it was cost a tractor be notable. tractor per older older right, terms mean, differential of an the deal, between operational your very big between and in cost

mile. $X.XX old right is one Jason, now new $X.XX are tractors a The $X.XX out service the to of taking mile. Yes. off to that $X.XX a we is

that don't satisfaction, And because XXXX effect, service guy's trucks So of the I we XXXX, So mess crazy break is different driving domino on right? money we XXXX, it's The this a so equipment, want." it's or the why customer guy it's mean involved him, to that trucks service, going effect of in be just went is that's in it's next X not lucky get got XXXX can't on parked we're in 'XX, the the driving is that it's a half. peers morale, that priority. have We the provide you that okay? guy But so you with the of the everything of were where on a driver cut we in says, my versus the it on. same the problem where down. "Well, -- not suppliers the in to the in why order I 'XX, The had spending availability terms we amount domino to easy. all the and that's

suppliers. we with went that's So why X in different 'XX,

of Capital. Desjardins Benoit is question next Your Poirier from

Congrats for the good quarter. Yes.

I about XX.X% rolling coming Obviously, there on you on stock TL. back U.S. the a -- $XX.X the gain million. at was of But Just disclosed look a OR.

So it closer would OR that to seems be XX%.

margin potential upward? profitability thoughts for the in So TL this putting improvements, about to U.S. the initiatives place any for specifically and you're drive key that year

that's Yes, down in what in the yes. of to Benoit. the thing important bring And gain I But is QX level same equipment. right. selling And mean OR helped see very you'll a a is acceptable on trend. Yes, what's good huge to absolutely this QX. us more point, you're

We're my okay, way QX, our a finally lost old finally my acquisition the So improving you'll losing this that was is our is OR QX. XX% April money, if Freight the disposal losing be business us, dedicated been because Because at -- right? and why Why? down, at come finally is behind level stopped more dedicated to slowly this okay? That to truckload of shoe this going acceptable. TForce UPS money. a should okay, you net we of look rocking in of business, us year, So in of see that's

to hit or got has XX%, So to are be we that going the XX% goal.

XX%, And by growth Okay. the XX% be the year? of would end the

not We is that. is we that that showing profit, finally this small had I April, were you of kinds by bought terrible. our that UPS operation, the commitment XX%, now, that because we all XX% do look bought seeing a which Truckload based end down, is better would all say we we business my with like okay, believe the they customers. not up good Us, we if a that early. dedicated issues. on the year, what we should This than peers, really at way So I'm We good. had have didn't but just is with right? of was business It's people, I bogged this said, be running

Now we're But starting get of time. it's out okay? to mess, that going us take to some

Okay. That's great. it's my P&C. for more on question, follow-up And the

If level the reducing you about eventually opportunity just could or its does discuss about the your Mile Mile, close also U.S. I'm Amazon out Last wondering service at Alain? versus and Canada play how the impact to Last of Postal market service. it gap dynamics U.S. Service with new the

about We've lost. in there, Last largest e-tailer of all Canada U.S. because them some a to months the or a has volume ago Canada been services friends -- in at year terms this in now in lost our X year we Mile the volume year don't affected

Canada okay, U.S. but in both operation, our growing, Mile -- So and keep Last we the

in U.S., growing big is the also division time. medical Our

Our on bank growth you see We on taking from services new we're Canada, soon some should the there. in just competition. very market took --

come course for there's and Mile, e-commerce mean, the of and a it's okay, QX So I P&C, very that growing QX because our continue that will -- e-commerce favorably. choice. In our Last to our down in bit, of in question we're no

the X% QX, the get look don't time, And in able it month, mean, we've of growing. OE and because my XX% to been per volume in same is shipment. I revenue OE wait. is With Some my of at winter competition, but at X% BXB P&C a if my less you never less

at look Okay. X,XXX And reached the number in operators, very QX. owner about people of you I quick When one.

it's they it are because of year the ago. Or working it a now function that back almost you lost? companies? people versus larger large is X,XXX So down a for Is e-tailer

No, a Benoit. Yes. It's no. no, combination,

guy of guy so owner. look got if -- mean got I at rid that's you all out. mean, X X So A I truck, California, we car, single the this is

a for guy works understand trucks. with, probably I'm that's got this guy Do we what you XX saying? that now deal So

Okay.

Okay.

consolidation So already, okay? there's been some

the true right, is California thing with because same Right, of the situation, Massachusetts.

to deal like don't we So want few ago. a years

happened So owner-operator single to it's don't want California. in that a California, consolidation deal now we in with huge a that okay,

a XX that guy the with XX has trucks, guy that's deal got we trucks. So

you number what dedicated if you from okay, hey, the division, fully say, happened there. CFI at they look and our when at ops, road these U.S. why to operator went TL that's some Also, changes in of So X, just from we've owner lost mean, X we dedicated. over did I owner the to

mix the have change. will the to effect is versus okay? long dedicated also over So this So road of an term, starting

over to going be are now we running our XX% including So the division. road, and Temperature like dedicated Control XX%

for major year. a road, with what versus X like like years the more it it's was versus a months dedicated it's like more rate change X X-year So is contract deal over customers ago. long-term, And

question of Tim is Securities. next James from TD Your

to improving wondering, just that the sort you you seems met the But intrigued since now I could to wondering you little. thresholds say acquired turning that turning it. corner. been really expand it's It I just reference Freight was causes your you Just corner? a by maybe today you if on like was TForce causes have that what what it's of

TForce money. we turning Freight Stop a QX, $X losing We be in the we're But money. about March, and QX, when look stopped these We million still finally turning look Truckload, the of Truckload last talk corner. losing corner. Freight And loss. month over it we $X lost losing we that is finally, because And I my business reducing confirmation dedicated when it's at Truckload. When that when we TForce division, see TX's finally, should why when April, we of on kept okay? corner, a money. were saying it's at month QX Truckload million money, I Tim, of the QX, okay? That's Now losing I between year, stopped turning took I'm quarter, the

just my or it a market in we've that's signs that maybe really does any in capacity since Or it's Or risk? market. second you desperate opportunities helpful. any about the Is challenge? That's softens? it aggressive think of resulted or pandemic, P&C create that seen Then seeing Okay. and Could Or could if a businesses both? strong as you And competitors question, excess does I maybe if then market if talk create is start return potentially a the for it to the that minute. the the capacity more P&C pricing?

very Yes. question. good Yes. That's a

You're absolutely right.

right? Okay, and e-commerce company more transportation the Because created consumer in Canada, wanted the Amazon home. Why? delivered to freight

you what what, the saying, mall. to more see now sure, to and to for are I'm is -- the So Oh, reopening, going because consumers get just you know that, there's

contrary with as day look at at look okay, us you when and e-commerce my like is have peers Loomis, down. BXC we The slowing at next peers, in same why Canada have small chance is TFIS this So big is But slowing my Canpar, service the and that to the even the no players time, us There's that. UPS, about ICS. is we the question down. you for

in So we're P&C. e-commerce losing BXB. do gaining we're on what we my on the Yes, side

they Canada, a gaining Mile Last mile how Now markets have a very through it's to say Mile a I DC. in if Toronto same for e-commerce on solution. last and would from service we're a solution because DC our at customers, the is solution right? the If last in these my logistics mile Last our Montreal, time, operation where, interesting that, is or great DC in they have very,

the opened right, are mile e-commerce new we're our networks. And P&C, a of up okay, on Hamilton, through makes trying U.S. this the that, improve to we up other our cover guys And looking and to So in coverage more more in south Last provide can. our for sense so guys, we're better network? expanding Canada okay, Mile. But to -- e-commerce division. we for because create Last the station more we that opening the Toronto, service with have last is our BXB e-commerce We're Mile, this action BXB goal at of huge, of through of service BXB. more within in mile our with our Can a that get P&C and is our focused Yes, we instance, in is also density last And network. keep is the our just through us. we the malls. In the to sectors our

our coverage we better? as state an Can Absolutely. up why California bought huge doing in opened in really to well. Unity That's So this Okay? Hamilton. do we of example, improve we that's

at day, you you look some the Canadian happen. the of we'll So have out. market, at end That may that may say, know when this I we competition what, want

Your from Financial. next of Doerksen National is Bank question Cameron

then of count utilization? market point for tractor availability and you from of positive slowdown, because doesn't have with had, to sort view an drivers mean while much we more potentially there's some really U.S. a you year-over-year. do So my have is, unseated I if improve segment, you've an is that the a improved for reduce trackers back guess seem question I operational I just now. Truckload even to the It go that and unseated can of guess, that issue

because Temperature we're maybe, leased maybe. a Cameron, right see We'll Maybe, doing division. have that Control our we to what now, is within have truck

over you're for Maybe QX right next soften, absolutely busy But So we'll X right. but Control back trucks the and don't believe least guys really that Temperature just okay, transferring months. have to have way start It's a be division, really road, something right? months. could to unseated we're buying to this and And our U.S. future, these predict, trucks improve Cameron, see. TL now, well too we the done we're far the my way our is the then said, trucks, TL risk X selling the those that, to see, to like business, into them market, We'll going to to X, a dedicated at trucks. operation. get If right? X season. months, of market to in last to have too 'XX the of you focus to the far, have U.S. in these we continue over unseated X really And many it's our many unseated What's

So by we horn. the take to got the bull

too as So we many trailers well. have

money got trailers, was thing And now. we've same that were selling from a probably guys So of is selling I at lot mean, huge absolutely, a selling you'll Desjardins right profit many made why and and X,XXX QX. Poirier -- see too this saying, Mr. trucks, the trailers you trucks in

more a that. let's see better get could guys that drivers, we in if have really Now then could customers. our we'll are what of active at But with we understanding dealing and do QX with what is and

Okay. should that's expect receivables, on just surcharge. in what's you Makes on you fuel explain in, capital. sense. And a mean related just guess, increase going question, to QX? had just I working reverse that to Can quick follow-up And a big I there? in we

pays Yes. the thing Fuel supplier X-day in the customer always fuel same needs payment. is days a you as XX surcharge and

to killing when company, to I customer. to delta have mean XX XX fuel going money between the back delta is of from is your days, energy that the get you XX days okay, Because okay, you. wait surcharge you days, pay and X, more XX, that up, and to have So

we starts year, recapture to QX So this stays see the oil of cash if But our Cameron, generate huge of with million of we're you cap. already on steady, right? requirement we're to QX come okay, even down, free oil end will won't going in the Because the of that this in price there. or over in USD by If that, working price QX, XXX year. or

from is Your of last Susquehanna. question Bascome Majors

Mr. growth Bedard, set mean, compounded introduce the and of I and you've cash Street. about that voice certainly with opportunity a certainly the sit tremendous business to some over on to business you've the the investors help you're forward, for been and Is comfortable of and there continue -- bid the this down period. and up get also an investors and targets longer-term manager SVPs the When that opportunities of with ahead. amount talk of decades generating look here you seems

how XX, XX think of X, curious Investor you the next Just format an months? type Day in

Very said, question. Investor group and we it's show -- Day, absolutely, got set were it's But planning in good we point, COVID to to just right, point It's were our after in taken, Investor sure We to something So right? fall, and ago, have of through New New very a that. we're well want it," years an York up you're COVID, this that go us, our in going that about We QX. A Day very And just that good we before hit mind. doing do X.X York an can't tell you're the up a is we "Oh, right? point. good before point. absolutely you to I it's through to -- a And for hit COVID the okay, is we right. and and then need that in good EVP

sure, it's highly that a XX It's the absolutely build of a I right, have been show of and TFI. and And group we years show. fantastic As Canadian you're team U.S. community. with to dedicated investor of the to the on side. supports one-man has the had CEO people both side company, that the not success very for a TFI on chance to a And the

right. All

[indiscernible] half So potentially sometime second in in the line?

Oh, yes. Absolutely.

Second half radar. or it's that's our -- on absolutely, something

turn It for have back Bedard no to Alain remarks. appears now questions. closing we call I'll further the

Very good.

us we in keep you, year. thank well, for we International, and on today. as interest call, will facilitating joining much appreciate you, everyone, through posted move for progress our We So morning's TFI operator, and very you thank your the this

any us please always, feel As safe. and stay again, Thank free weekend everyone questions, a contact terrific and with remaining and you. you to I hope thank has

all joining. today's you this Ladies concludes and for conference gentlemen, Thank call.

You may now disconnect.