Daseke (DSKE) 5 Aug 192019 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Daseke's Second Quarter 2019 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded.

I would now like to turn the conference to our host, Mr. Caminiti, with Investor Relations.

Roche. Thanks, Slide statements. review to harbor our for non-GAAP and X turn of a safe Please contains statements XXXX. presentation Securities Today's forward-looking Litigation the meaning Reform Private of Act of as within the are Projected including financial our outlook information forward-looking guidance statements.

from that statements, to that performance, prospects for expectations a earnings, to otherwise risks are applicable our as obligation business a based our occurring subject and future forward-looking undue to business any estimates, reliance differ whether current uncertainties our Daseke's strategies, discussion on on events information, of events to after Exchange or including statements any management's with today may I to those securities required to could laws. affect revise reflect aspects Commission projections as projections. Forward-looking statements. results encourage respect our of or are no read risks revenues, materially the can forward cause with circumstances actual result other and to and Securities and and undertake assumptions place under that you and new be not looking except of the We filings

there a some that generally net the appendix www.daseke.com. available of income tab both investor relations measures most morning, discussion on not free Daseke flow. also the measures and items cash the adjusted these included directly to their the U.S. will website, or Reconciliations investor accepted conform operating to in and GAAP of the of to non-GAAP GAAP, are issued press comparable principles, presentation ratio, which of this release adjusted During do accounting including call, adjusted be EBITDA, or loss, are

Daseke's Don to call over Don? CEO, Now I turn the would Mr. like Daseke. to

cover Joe, you, topics. will several X. Well, Starting we morning, Slide and everyone. Today, on thank good

that improvement Then phase will COO, you an operational operational the I high-level Daseke. for Easter, initial through of already giving of call underway will is Chris a by our plan focus. overview our start First, walk our

results Finally, as discussion provide update balance our Mahajan, financial to an well as our quarter fiscal the second Bharat an in-depth year. the for CFO, will of of our guidance

Daseke to since X transformation Turning just years has a X. significant ago. going gone through Slide public

of America. increased period, proudly relatively transportation carrier a the which, been you in size at as of have in the an What built Today, and in primarily know, and accomplished scope Daseke largest specialized dramatically we never our specialized here most operations flatbed the we We has short acquisition-focused strategy. North and are done before have through market. flatbed was

Slide to Turning X.

our scale. can we see size now in that operations have optimizing have expertise to pivoted You to deliver focus the from building we

result, As XXXX. decided we a follow [indiscernible] to

over delevering as bottom and free an we delivered driving last few the We on enhance years, recognize calibrate we frustrations. line sheet. the and Nonetheless, line exceptional now Just feel choices in the focused exceptional now value balance to that our required delivering shareholder continually top are performance flow evolution natural has cash to operational and disciplines many the future. tough need challenges, we growth

and operational the journey. the scaling to with and operational another efficiency On been you board in driving I'm quarter, has note, of them Williams, the team focused Kim phase bring initial that the been exciting These excited hard expertise the incredibly I've second will with new today. the our including improvement Chris's in growth. We guiding working strong details team share members executing leaders Ena added operationally with on he plan. Serianni Daseke terrific we welcome Warmbier. to profitable Chuck them operational X

high-level like Slide to X. beginning overview developments give a headline the to our operational on financial turn Before of I'd brief we underway, performance,

basis, acquisition-adjusted of versus last $XXX.X line quarter second XX% organic X%. of our marked growth, an million Our On comparable an increase measure of our grew revenue quarter. top year's by

million adjusted comparable $XX EBITDA versus was last quarter. quarter year's of flat relatively Second

level, our $XX.X up XX.X% flatbed the was in specialized operating segment. Looking adjusted XX% million at EBITDA segment segment our up and to in X% to the

Bharat our financial regarding get Later call, into more in granular will the detail performance.

first will Chris Chris? of phase our now new outline the strategy. operational

Thank and good you, morning, Don, everyone.

first of Slide teams. with would understanding of review talent X. we well I've as a the in how across Daseke's the have I Overall, customers to we second highest quickly deeply our all I a at first like plans operating to said, committed results. position significant that and X that expectations. acquisitions spent solid quarter, on supporting operating as shifted have operating are COO. to not we Daseke companies the deliver operations and all to in That possible support team confirmed focus my recent of our building them our improvements Turning corporate to months level. my to I job and gaining also wealth Therefore, will us companies that our as the quarter them our performed some have

As be the first I to to to is that we initial just deliver business significant in a step execution enter what shareholders. our cycle work improvement and of our our should clear of plans. third in assessment has work the transitioned those and both the customers value of execution continuous quickly will quarter, today be the process

our in more some customers couple the shareholders? will of are in can actions these we in few a one while differently and Many to value to actions quite months execute cases, are of and done deliver the in over be right parallel sequential nature. to some will doing what be There we years. on next now coming So another,

challenges glance, yet we actions of intellectual complex. unlocking of of leveraging technical core simple specialized fairly I puzzle value will be others what equipment have and would the unique time, operational describe first know-how, protecting the appear The our within same value at an at family as while and the Some capabilities. assembled might companies

X. to Slide Turning

we actions operational Daseke. and integrations actions couple have plans. the improvement of business first already in the of unlock Let to me launched are share These order with value you

action companies, operating support operating will quarter. this both to teams. other operational effectively in with but The X all process of will companies We're were their sister from action considerations integrating integration, greater our XX first as in each operational operating different for is ability similar operating were into natural well as across There in high-performing XX. costs achieve functional merged integrations. efficiencies the reducing our There Daseke deliver restructuring terms the with of the when of onetime This companies third value selected. X associated be action some to units

costs have you update will we once on We those identified fully them.

calendar and of potential income million calendar a deliver with during million to additional the improve on operating run-rate year million XXXX action specific this year expect We an $X in $XX $XX basis XXXX. to

on of these detail more little a provide operational me each integrations. Let

E.W. Wylie its has glass are which but greater Moore division much team. the within freight operations, which with a commercial more is we support more a and operations, predominantly provided with Freight consolidating strength into over of will diversified Wylie. First, of predominantly substantial segment a by their become is experienced two size larger customer reside deep glass team. operating a Services, twice our base E.W. and of glass our X hauler, companies

with consistently into of top improvements of of with operating Schilli the space. combined this Lone a one our we haul performers presence deep in base companies talent significant are has been team. a consolidating largest Star of with Lone heavy and Lone is to business our Second, bench also Star Transportation. one Star drive

utilization improved The flatbed will asset final Transportation. Hornady our operational and combining defined geographic operational capitalize to customer path and and integration on equipment is will integration as of builders in merge Builders to Transportation sustained two synergies strengths Hornady excellence deliver as as load and planning with This enable together. operations a with rapid will join such as as improve and results. clearly maintenance and results. improved our areas well rapid complementary footprints well

are announcing to the the see simply Let's you the which labeled improvement side today, business can that right-hand plans. second on action is as operational slide move of as we

As we'd not performed as that expected. well some operations as have I we earlier, mentioned have

where the over of improvement operating improved include into allocation periods more defined units market currently as our maintenance improve plans teams accountability performance yield provides are While go been by significant to process as are active our our into their execution. such teams we performance taps truck across expertise areas ratios, operating disciplined I'm individual on and some support the softer have business business plan capacity to actions time. improvement plans and relative cause, as need as the for specifics execution. types for of rightsizing operating not this certainly the of a of going to individual management companies. The trailer diverse of recent and there some has driving the conditions, leadership cases that initiated influenced Regardless details

deliver income some this of we XXXX, the we companies that expect the our of improvement future. all in in We and with to million action $X will develop to operating operating practices expect be shareable a

within So XXXX. The be year-end expected the not have recurring outlined item. ambitious plan we them did will in $XX as be I performance. be a companies aggressive improved areas to either emphasize believe $XX operational by drive deliver ratio multi-year a fiscal operating but what actions our integration can summarize, improved in reach to significantly million would plan organic not if will and improved a well million constantly growth. certainly -- improvement as annual we to business to year remiss will functional that that look a fiscal I are to operating XXXX an shift we've deliver we as income action that the we process recurring certain or needed of beginning for are platform be to across These operating goals, see

getting very the right the next business in put built a this a in more foundation driving the improvement marketplace. mindset will excited unique to that these entire we position organization, forward, leverage to operational truly continuous have excellence team is steps across us reinforcing operational take and Our

and now call review to performance will over Bharat turn to financial last the our Bharat? quarter. I

on XX% were which Revenue to On $XXX.X up an million year Thank you, quarter. Chris. now in X%. Slide to move increased are details, I our basis, to X. million ago the presented QX $XXX.X revenues acquisition-adjusted compared financial will

the million For of to $X.X compared quarter $X.X quarter. the income second was operating in XXXX, year ago million

relatively year or for EBITDA $X.XX flat million. last was per net Net $X.X compared of per year, was quarter. or million income Adjusted at $X.XX Acquisition-adjusted was QX compared $XX.X million million $XX the $XX down to to share $XX.X EBITDA share in ago XX%. million loss

claims. the of the reminder, timing include versus differences XXXX worth corporate all Daseke Logistics, in our IC and that to included auto-liability our a in QX our quarter management higher EBITDA, and upgrades also and profitability our new our results QX positions. It's plan insurance XXXX self-funded increased in investment noting second system in relating insurance As with costs costs segment health

our QX million. million segment, EBITDA in at $XX.X increased $XXX.X EBITDA was revenue and to X% adjusted QX $XX.X in million by and results specialized XX% XX% Looking to adjusted Flatbed revenue up increased to to increased $XXX.X million. X%

Moving review a detailed to segment of on of Slide more a XX segment. our specialized provides view results. our

mile second compared quarter. per revenue to in acquisition-adjusted X% $X.XX projects. business, year ratio XX% quarter rate to rate in increased the were $XX,XXX X%, XX.X% increased operating large to QX $X.XX was of mile to CapEx to and in per ago and Our and acquisition-adjusted in higher per particularly compared EBITDA Specialized Revenue XXXX XX% energy compared XXXX, respectively. by up XX% tractor driven $XX,XXX the and project

quarter. XX.X% shows flatbed operating tractor to $XX,XXX. in Slide segment. QX to revenue rate compared X% flatbed per to per Flatbed QX ratio mile $X.XX X% was ago and Flatbed our XX the in decreased year in decreased XX.X%

QX decreased Slide in specialized XX shows our our EBITDA in market increased EBITDA our the segment conditions. The XX% EBITDA. QX down acquisition-adjusted segment breakdown acquisition-adjusted X%. given was EBITDA of XX%. current the The flatbed acquisition-adjusted acquisition-adjusted Overall,

$X.XX period XX increased last Next, billion. X% XX, performance our increased and revenue acquisition-adjusted increased million. over XX% EBITDA June this was months Adjusted Revenues to as billion, $XXX.X to while XXXX. $XXX.X Slide EBITDA of to acquisition-adjusted $X.X highlights XX XX% million

free and to turning sheet cash our balance Now flow.

facility our and XXXX, million $XX.X of X.Xx, indicates, XX outstanding of was available Net Slide million, remains under at and cash at debt was available revolving $XXX.X June total million liquidity credit our had which $XX.X covenant. facility Xx accordance with for well XX, debt leverage As we in below million. X our $XXX.X

equipment $XX.X by was capital XX, proceeds months was from cash CapEx six $XX.X and the operating flow June $XX.X X-month in the was cash million, cash sale million, activities resulting of cash For provided free and million, and of million the for $XX.X property period. ending

cost, plan, It you turning to we plan execute some operating for an the Finally, and will also against discussed most quarter, be this assets. will other as business merge Chris the additional together of aggressive and require is operational improvement some companies write-off earlier, plans. in potential these notably the but intangible third that as the it heard, the

working still our you XXXX. of to incurred a our the and are the costs have provided run-rate be That We moment. impacts quantify through these unable for as are items plan to improvement and plans basis we the will of is both on XXXX in these goals most fiscal integration at execute final XXXX why

We will quarter update the of you the impact on call accounting the integrations. third of

Moving Slide XXXX, excluding integrations. the our the which through on walk presenting outlook I'd fiscal XX. of to base like to I'm the business, for revised impact

flatbed the is well secret in business headwinds, that specialized performed no face our While environment, has are tough macro environment in the it especially there segment. this of

for of it's believe we expectations the such, As remainder our to year. lower the prudent that

now we revenue to result, forecasting billion. range billion between $X.X a are $X.XX As to

$XXX adjusted debt our Xx of at to expect as We year-end defined million. between We loan million be to term net now $XXX expect leverage to EBITDA agreement in X.Xx.

terms range million in of net $XX expect to the in $XX CapEx, to million. Lastly, remain of we

I'll key and truly spectacular from chapter, transportation industry. we our Through very unique takeaways platform built summarize today's Let's our that Slide XX, a on is the first end call. believe in differentiated we where

to We strategy need shareholder this and long-term leverage scale. growth into that to value. our our opportunities we so it down But can costs and we leverage first, numerous turning to drive have size drive execute pivot platform

our execute operational second We the our fiscal and we and half of the phase in to XXXX. begun outlined you forward already on look plan, first updating to progress have of

remarks, our and prepared call concludes turn questions. for That we'll the your now over

[Operator Instructions].

of Steve Your line first with Dyer question Craig-Hallum. comes the from

guess, I on, question rate versus a contract. Just spot

those spot I contracts? Given follow-up to obviously, negotiate And XXXX, guys rates than I a guess, cut the rate have assumed. And to the factored guess, how and conversations steeper as on down second probably to what ticking amount I that I half you guess, seems starting forward the type of, are have just you meaningfully being contract, that, are these guys are declines going? into would

regional had is Steve. on the X.X%, mostly our Yes, we're factoring overall you extent, month of obviously, this the looked year. a I'll think the think, at remainder at I Chris. market, take being budget say sequential I spot rates one. associated on is capacity at month after if embedded. and the -- it point, we right discussions this X.X% to is now, our I will Thanks, rate a where slight still so seeing XXXX This everyone's a for spot and into below indicative mind. some at Yes, And there the contract of pressure. and fresh with that, there that We're would probably tied tight some increase year, forecast degradation is contract initial around pain rates But least where the go. is some

there did same that caution some fall the to because, being think, discussed and shippers I not XXXX. when the are into want in XXXX I think, others situation had is, in there So contract they rates

that there's overall, downward, So pressure our and factored some into we outlook.

Got it.

the couple opportunities portfolio a operating restructuring further of guess, sort further consolidating revenue, are will lost, consolidation I questions do companies? How of around you within any, then. just Okay. much to there X forward? be think, if the by do And the going

that. parts Two in

think, arise. recurring not the to always and net, negative a integrations. the be be in off as adjust revenue there of in to never market secondly, this of going On say event. indicates terms I expect not case. event, business not these see That's a to first, the a recurring terms impact do opportunities We're would loss, being of we net any And should we

they've time It's to you Roadmaster our and units, did was the Also in XXXX to If we've I been and its not it type the business in future even similar doing Depression, since changed think, things. operating first over The of were in integration. go any of their expect we'll and one in companies, that been have R&R. view one, many times other model operating be with we we those years that Great

So recurring business is the for it's recurring. of event us, plan a not a that unlike plan improvement

then cash just it, I but of the and do missed items CapEx net I guidance of Got guess, a you bit Bharat. that a from of year. exiting Does debt And Maybe And $XXX flow have I a million when use I it. -- perspective, used it couple housekeeping given, year? the around for free for leverage implies when midpoint you've seem what reasonable? the of then,

you a me let things. update few of on so Steve, kind

still $XX And we're not When a at guiding would that we're $XX.X number to debt the operations, there. million range. of we're $XX.X second use have. the look in that terms CapEx, at year-to-date you cash million in on So million. basis, in a On just we flow basis, $XX from million the quarter, net I

You remember range. debt we for have and calculation basis. standard on that backs are million do of that reported than agreements in use $XX get is debt the statement the the leverage historically have on kind agreements those are to our million $XX -- that would add financial that different we to our calculation recurring We generally a on a

allow normal debt to wouldn't debt of back synergies do add impact add the you agreements as also of the future leverage case us back well, Our in which calculation. a

it. Got

one. CapEx much was quick QX last in the of One Okay. How financed?

We $XX.X million. financed

in quarter the disposal was second after million. CapEx net $XX.X So

Seidl the question next with Company. from Jason comes line of And your Cowen and

the end the the the sort and demand a bit markets in Can weakness? on little seeing that into that delve talk are where bit little of a decline talked flatbed you side. You more about about

been it. I softness, say, we've look commoditized you're that generally, And or across areas the is seeing some be one, had of across ups the materials the In more more downs segments. whether roofing various commodity seen general another it one of and I'll and back, year, Jason. I'd flatbed, take Steel this in has if where it's I it been appreciate that some construction, has lumber Chris. those course but such. Yes, segments. some the during

Okay. did I an And like and Also, you good think you you before. memory, R&R did with color. our this sort what do learned mentioned how That's think from doing go? of you that? Chris, that Roadmaster Refresh guys integration

early that. first we run In it as learned deal. did I Scott. with complete the the was a year are of quite amount were up operations. is a and what case, from to integrations centers operation brand X. in This Jason. that went other XXXX. the the integration direct the a had we time ever developed were We've and one, case, map that, that close R&R in those and take particular Roadmaster X rate synergies doing Group full of that that that We about way. had Chris road million competitors We a did that we I'll And is of of companies and result the each from it a away $X and leading those of we a using We of today, think great picked significant bit synergies became

expenditures. to That's would How $XX And consider Okay. CapEx? Bharat, color. net great of $XX much million maintenance you that the capital million

It's all maintenance CapEx, pretty much Jason.

right. All

So down you're CapEx. the maintenance right to bare

can in up sheet-type me? Okay. payments the sort here then ones? lumpy coming months. have you XX And we question. balance of another remind Just any Great. Do next Debt

It's the last the that pattern just we while. generally have historical No. for little

been our consistent and portion If fairly got million in balance $XX we've at year-end. you about of since that's current financings look sheet,

Ross of comes Stifel. next line the from Your question Dave with

you you different current is at trucks When look X,XXX Or the you at where guess, given I and all it? level? higher you are a at look want about and that first, market, thinking specialized, roughly level. downsizing trucks X,XXX flatbed, is targeting

is Chris. I'll Dave. this take that, you. Again, Thank

single-digit it's we number. I'm be number, now, Given a going this now improve small -- a percentage utilization. to decrease be truck but to year, to expect relatively small fleet. where we're tell There's I going you are right to that end right as our volumes working that not a decline overall in prepared to

make possible. effective working getting we're yes, So to most the sure we're utilization

RN decline And do IC side you would think small or the that more be on side? company the

on more company be side. It'll the

All right.

guess, place, to there the about a you're about yield or business the cost-improvement looking talked I operating you're also income? You anything What on or programs development putting lot a that standpoint inefficiencies. management from redundant Is attacking at grow in revenue costs the of, side?

grow the the much management and -- work of I stopped at give that. means, against it's we're on and to Yes. think, not to we're through make have, I'd that say, yield piece state. say, sure perspective, formative time, It's same from certainly million, for a our assets. looking rate going as best a part I is that we the our in the just formative, and still that answer putting million, maybe trying I'd the by is any customers in the exercise And or of developing on $XXX on And a revenue are the we're on a brokerage, we well. absolutely very but run in capacity the yes. freight business, that and $XXX take, know

approach we're to So improve working as our how we definitely and grow well. and to it margins looking business

purely one the where me be the it you about to remind can Or it to leverage you brokerage improve trucks? that's own of unit? your one might able it Is utilization stand-alone? And is

-- one different that Scott. that is accentuated and is inside legacy with companies our this just I'll grown customer. absolutely that inherent them one. we part the so take existing and David, brokerage largely and And it's with that of of had It types brokerage. significant execution X and that's parcel of one operating relationship-driven is brokerage have

is broker lot been up, in a we Daseke space the it's pure over called more it like we hasn't been just quarter some slight But revenue in that's fairly this we've of that is in active but seen quarter second group margin brokerage the success greenfield we've the second would transactional-type margin Logistics in as there, is uptick, and startup We a but and liked. the -- doing what flatbed stage to would've that And have the of significant things had it new year. starting very very, brokerage. recently last well, terms as the in is year early

in those will operator So normally tightening that would on freight or see a go you we an market, have will but encouraging truck. opportunities brokered company instead there, owner a

it's in guys certainly What tougher smaller a gain And which this well even for seeing there good. or either you that market? standpoint? market been opportunity and think doing there's van, you And been all exiting? an are markets a some capacity you even competitive flatbed from dry other do flatbed hasn't because do players the share stays How are to the is if soft

better what strength can market. sure, there and make is moving I've with where I improvements see we're as for we're our know in do and and we a competitors, one position a in volume be our position can weaker facing we we happening equal things and might to position these that's always control what's challenges what's of improvements. where I we on for familiar to out observant I in position. know of perspective and else operations forward will tried some stay the a us think the And they're regardless with some think going happening as driving rate be But there from and

able a not we advantage compete. the take or the to fall in us position by others put if will wayside can that case where think I of

Brooklier next from Your question line Matt comes with Buckingham the Research. of

but flatbed your business there's about a about another pretty I decline. spot, on just with little X% quarter. bit more like side was So comp, your I question than a it mile had rev That seems in than being as big contractual anticipated. down per the thinking was know the tough more just it a just

revenue to had I terms that'd weighed in your have in mile be any quarter, the of may what So per think more you if color helpful. on offer

try This answer Matt. Chris, that. Yes. is to I'll

down more. that that much know I I was don't think -- it

I very we're we which the it some including and working the Matt, we heavy acquired in business I'm with think our fall BTC, kind that -- where that. of has had to market sorry, was last though, been I'm BTC had spot of adjust sorry,

have some over So the we do is market there. chunk there spot spill and fair in a definitely

Okay.

is it sounds little the bit the hot market obviously not feeling Bharat, above. and corporate to therefore, more has So like mix right decline, that a changed expense now. year-on-year more so but the was contributed

you the I previously that year. in above expense that. tracking the like little you a about how guys an us half? bit million had to think terms $XX talked thinking you're update a give of It's maybe second for number Can into

Yes.

in health So, Matt, lot and the than tracking to just with is fact it are programs a to we and insurance higher it anticipated. do a self-funded higher related bit of all respect coming liability is bit little and we a that have as well, those amounts

I of we're is the million expect quarter $XX.X us balance be per the million in. to to where to more year, going the come anticipating would for $XX.X So in I'm

for it that gone that? helpful. looks like the just That's ratio then little What's And just a off the lastly, Okay. year leverage driving that's bit. targeted

we that was when guidance, our fact had midpoint of our $XXX our at in It's previous guidance EBITDA. previous adjusted the issued million

million at million. look revised you $XXX our the that guidance, guiding we're If million, to in $XXX midpoint $XXX so is

So is causing in decline you've be different. leverage the ratio overall the EBITDA, to had a which

line of Seaport the Sterling from Global. comes question Kevin next with Your

coming because basis, Bharat, dollar debt the that about is the of seems your EBITDA. question function be But focus real reduction cash on I'll Is right It's debt now there generation. down on follow-up leverage ratio that right? flow on to a quick a up. ticking free Matt's and

that end net basis, were a at expect we On from the to where debt we Yes. correct. down XXXX. is be of Absolutely,

Got you.

cut. bit think the I walk Okay. on that you've this, of EBITDA greater And And you a some key some kind Can of guidance, your touched versus adjusted you revenue percentage than into your the just level through? your cut EBITDA of a deeper revenue little lowered much cut. really on digging guidance updated larger us drivers of of but kind

it, as you've that margins seen, of lot Yes, and compressed. just are a simply is

in You're segment, a that seeing we in the also coming anticipated. seeing are higher costs and bit you're that than corporate flatbed

So impact versus the on really X are it's EBITDA a on things combination of the cut revenue having those the that greatest cut.

Got you.

Okay. And your at any in you're updated guidance, factoring not right? in all macro the improvement

at macro anticipating it where stays We're fairly moment. environment the the stable is to No. that

Similar those seen far so what terms year? trends? we Along in in you earlier in what July Okay. lines, have the saw of to

to line Kevin, trends just in that the comment basis. is through monthly trends say with seasonality or don't to we're our we a would normal I normally see a would that the quarterly year. that be are expecting see going on we expect What to

pick question the macro for I what do offset kind think put going I in do, it it of don't -- weakness. is is Chris. of low-hanging just sounds fruit your see me macro listeners you, sum some might this you to you to a If that words macro last the today, will, And can like you that to lot be call want could and mouth, and but off to some you I cut, but if can the of more Okay. for going up,

do message going and Is our hear love you've some or companies little any from do things. some of your got you're to I'd to and base? to that arrows focus that Is on moving your we've off bit the but XX can some fair here maintenance weakness. we're macro's it's operationally? like operating that do, going got tools, to macro kind in we a looks You're expense do -- to XX, a The we've maybe going quiver what I'm to offset got thoughts. assessment internally

in we that think shift, and there shifted become overall are a those I when readily it's and today. and a years, old happening yes, as the now, market, have can energy shifted time I up do which and the now drive regardless started. energy I we the to of in tremendous would experienced focus really do of on think say, unbelievable can the back we've correct focus, story, with is that And what's It just majority certainly putting execution. in in operational very shift from consumed, vast and against we're similar, they, the back yes, we've opportunities we few apparent that, assessment which last to this things resources that, -- was keeping I those growth focused

months, it's field So, those coming yes, playbook the our just in may next years. going of off out couple the outstanding we've us of various to got opportunity pull playbooks, the and I whether in execute lots along the brought or for leaders the there We're have playbook playbooks. of in a

more one for time have We question.

of with Northland next the question Gibas Your from Greg is line Securities.

primarily performance? all? flatbed to all, reflect be of specialized the your are changing weaker does assumptions First at segment Or outlook the new in just clear,

generally stay HX We're of expecting. segment, weakness looking at Compared predominantly is predominantly we in rates the kind expecting we're XXXX, a on to in it, the than compared And expecting XXXX HX when again, to else. what flatbed we're more slight at rates, flatbed side. look anything focused to we're flat decrease

worsening specific market within quarter? Other are Got onetime flatbed. the of, it. we should than in of follow-up be Got that you I the just aware spoke a conditions that it. there, weaknesses there any guess, then And

there any a perspective. No. to from nothing note there's onetime say, I'd

And not capital versus for priorities it. near potentially be How gears, the shares? thinking if about term reducing buying you respect shifting your directing acquisition-focused then while. a I to maybe was or you're are Got in back with towards ask to to going just leverage going

continues free and our that question to great to this be are a delever that always That's we looking and out at. remains something flow set Yes. highest cash and the year to priority. We and generate business

contracts sense in term the Last makes that renewal me. for that one there That up be for we should major near aware are of? any Are to me.

broad of up there given largest our have No. business, just business. we customer of total X% over say, diversification the is the I'd

we and say material to have -- would a months. coming So nothing note consequence in the I that be that'd

now to back would I the like Don And Daseke. to conference turn

Thanks, you. everyone, for joining Thank today. us

in but quarter long-term has forward and value and improvement on the us market's place about momentum for a third us will build to strong everyone. creation. of we goals have And We've today. the slowed, today months. industry's the our clearly growth We're call strategic few outlined our thanks, momentum. We updating continues focus weakness, offset in also some recent shareholder operational position you look to here that While help plans will very execution that excited

this day. gentlemen, your today's and concludes you Ladies have Thank a for conference. participation, wonderful and

may disconnect. You all