Daseke (DSKE) 22 Oct 212021 Q3 Earnings call transcript

Good morning, everyone, and thank you for participating in today's conference call to discuss Daseke's Financial Results for the Third Quarter Ended September 30, 2021. With us today are Jonathan Shepko, CEO and Board Member; Jason Bates, EVP and CFO; and John Michell, Vice President, Treasury and Investor Relations. After the prepared remarks, the management team will take your questions.

As a reminder you may now download a PDF of the presentation slides that will accompany the remarks made on today's conference call as indicated in this press release we issued earlier today.

You may access these slides in the Investor Relations section of our website.

Safe I Michell, to Investor Securities Vice will the further, over the Relations Litigation go the regarding read John within forward-looking XXXX to President, company's important Reform we Act would the that turn like call who meaning of Before of statement provides Private cautions Harbor Treasury and statements. John, please go ahead.

within Harbor contains Valarie. for Private Act a are our our as Safe two forward-looking the turn presentation review guidance Today's slide and meaning to Please statements. Securities Thank of you, financial non-GAAP of XXXX. outlook the statements information, statements. of Litigation forward-looking Projected including

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

of not net cash or to be in press the directly both income, or Accounting Tab U.S. measures ratio, www.daseke.com. EBITDA, available investor that there of which some and comparable not During GAAP, limited and measures conform flow are net income items adjusted adjusted adjusted Principles also included operating their appendix will the the operating Reconciliations non-GAAP are presentation the issued GAAP of Accepted free to discussion this release in to of adjusted call, most Daseke to loss, the including Investors website, but these a debt. Generally morning, do

come of financial of of In flexible a Jason structure walk and the then then for through our will quarter, Jonathan will the the business John. to will terms the review our few call the wrap model, our quarter, highlights closing I’d Jonathan review discuss today, like before questions. CEO, a that, line up open comments for back the call with remarks Daseke’s Jonathan over With Shepko. turn Mr. to to we your

John. everyone. you, Thank morning Good

markets this last volumes robust improvement adjusted with few the in Resilient in operational year's environment, Let our for profitability the our me by this the an demand or our financial begin initiatives a against of which on strong was the meaningful basis. trade and on our from another of adjusted revenue EBITDA, quarter. to driven third ratio a improvement operating XX.X% notable including metrics, quarter third evidenced outline quarter. takeaways Daseke performance XX.X% slide to I’ll delivered was improvement execution operational three, where contributing quarter trade extended as by industrial quarter end which strong across third a versus XX% XX%

company While convert the industries opportunistically strong these to rates our remain basis, looking remains business for continuing returns these on priority. a supportive forward dynamics our and our for and shareholders

Strong continue ability comps vendors no customers legitimate cash XXXX million, believe and the and improvement a are Adjusted business. to and demand this that wide though four ever business, flow to will at one relationships. we to into EBITDA quarter. an this expressly converted they to XX% continue third of driver headwinds. challenges will their in lean our a XX% shortages. face They in cultured this supply margin improvement, next truck us last For we margins driving while relationships modestly the note with that financials. shrinking speaks making records $X.XX chain our some to our the industry adjusted quarters adjusted has secret XXXX have were position issues OEM, at relationships post to businesses. our later, afflicting industry and growth even fundamental long I really It's equipment earnings our is Daseke per to are headline continue to with do would year, in investing decisively, to continue like strong a revenue driver drivers, improve acknowledge, resilient our $XX.X well quarter, those relationships year's ensuring third to our not capacity time also manage to the to each The in us third print of quarter. observable need compared the into its last cycles properly that was QX, across share important to customers is bettering EBITDA company propping as and such the and point diluted sustainable quarter we of rates execute these ex-Aveda as drive and the pool With up part standing positioned their It's margin

financial to Jason to on model quarter, that one we coordination around operating as functioning operating aspect highly to a and operations our take to a that speak the to within to detail will our of Before footprint the would provide turning our an better mission more for scale, the to model, of the for our of to critical fundamental leverage quarter. provided our we capabilities offer I our better rebuild call our performance companies which in network. priority siloed to from customers. call turn institutionalize one opportunities to like played entire collaboration about capabilities our moment slide brief the level a that to On of business this high And over last additional our function the relied our with network execute single contours performance role emphasis some and service Please of and and platform spoke this mindset, our historically company around shift success dour. to

approach our we with however key slab is and for our one our us relevance asset profitable will tenant The stability that within end decisions positioned the each opportunities gamut verticals by financial at and long time the enhanced process of deployment. model; we Our strategic span growth. verticals, to flexibility inherent will around believe business term business of in objectives resiliency that sub ultimately lead the to [ph] maintain this of making deliver facing which specialized segments, targeted, provide industrial real frequent optimize market

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portfolio other of advantage this our effect competitive elasticity features includes operational such simply and compelling extends the network structure beyond operating the of However, as based model. our

in platform like logistics In to which by faced even functions of and our like equipment by leaning highlight this and able operating on market base periods heavily the tougher our on third our asset These as delivering our to Daseke’s guided quarter side Daseke environment, unique customers. party third strategies. it’s the commitment imbalance asset to critical opportunities an offer service supply was capabilities. driver shortages, blend model challenge navigate more our as of absorber, asset the within for market shock During

our logistics we our we customers. tight, the back our to owner that and able as QX offer was when assets thereby market to we capacity in this As flexed add company our will operator, third party to supplementing flow incremental we use, are saw capabilities highest fleet, best capacity to on

incremental freight incremental like us against this reducing that on flex of like customers, we is maximized to our results mix our free when our and favor asset will model end, to like our margins While To shift we continue owned I will asset this those In that, supply/demand and superior that ensure within to asset to in Jason. taking call deliver to supplementing for our shareholders. our accommodate Jason shift strategically of freight capture positions in demand our enabled more strategies, offerings verticals. like we transient Daseke in capture that towards reallocating freight our quarter outperformance across asset lower demands profitable that way to will more a strategies the to valued in performance. the our with assets. With mix our base, initially brokerage location times tighter and operating prevalent, maintain continue market environment offerings we excess isn't asset opportunistically returns and financial second meet to advantage market now the Bates cycles, position target review analysis over as for our to freight turn reliance this believe

Thank you, Jonathan.

level for If you'll the please consolidated slide the overview five, me have of a we'll quarter. to results high turn third with

construction to which continue our market year. revenues This in-freight and momentum improving quarter's to related year's quarter, a since a as of the $XXX.X in continued have stained their high a of to to beginning for delivered In This demonstrate security of we $XXX.X steel results industry. key million verticals well strong execute revenues as once million rate see the the has XX% ability quarter. in on traditional quarter compared the environment last the in contributor Daseke’s again up third and high backdrop. Daseke been demand the strong materials, positive uplift

thinks we the manages Aveda financial believe we relevant reminder, Aveda details a reflective business. most in of business how and As our excluding about the are team the XXXX the divested and and

on call. So the results on be focusing we excluding Aveda this will

we performance as third be the This the further improving quarter reflected quarters closely we that headwinds. where revenue highlighted expected the to in couple more have we in through of that our COVID-XX in line with to verticals had continued demand had Over end pandemic industrial last support. begun absent sentiment markets would fall the

driven XXXX, recruitment adjusted to This notable ago report our of would compared continued positive itself. revenues freight EBITDA adjusted costs share to remain were results segment. as continue headwind normalization in up atypically industry, quarter demand margins I our efficiency of results of the recall XX.X% growing record what in Adjusted excluding exceeded quarterly operating unusually of EBITDA $XX.X the of retention Aveda strong versus or $X.XX throughout the quarter. highlight may turnover which of that the wind are recent execution, XX% cited rates while $XX.X was the we by pleased with the coupled These combined quarter. you it operational Flatbed adjusted in by $XX.X driver improved and our growth and consolidated million last be energy in significantly At results is and by third most almost contributing the many, were industry were diluted delivered per has our $XX.X a traction largely EBITDA segment level, particularly income third period. year project an to operating of the with grew million and team million quarter year's strong rates below high unusually to Our in net of average. to associated million higher our that driver continued as

has of freight pay higher highlight our trends, with from a for of our to them imbalance focus competitive driving rates the have given getting conjunction company, driving implemented key present work ensure remains team we safely. we’ve our made high and on associates, for appropriate dedicated our and them experienced we workforce and miles, done destination supply marketplace focusing increases retention to all, today. our area driver home customers, pay in getting the providing professionals, OpCos excellent for attractive compensation demand targeted very the the in our are and with This work our market of above an prioritization where Our each the

quarter. have to companies, supported operating like on the in continued burden expense the I'd progress versus last made the overhead corporate category the on the XX.X% highlight we third Finally, reducing year's reduction by as

fleet did view quarter. and the entities, fleet our results we lower Aveda in through strong reductions six, slide this detailed in results. offset driven effort corporate adjusting expectations we segment by seven, for specialized services were operating to level. from our segment $XXX operational present divestiture and versus our outperformed was the various financial the previously I’d like prior by business year, On at walk that, derived nearly While the as categories, segment specialized demand. of slide million expense Specialized our On detailed benefits insurance size a you revenues segment With that our Daseke execution we industrial up drive X% strong which the discussed. supported of

segments Our due shift of quarter $XX.X in our We quarter. comparisons. million, mix in the business, we was in function year’s at the disruptions, strong quarter. EBITDA came prior a supply adjusted margin which similar came the tough specialized at the of as in experienced to a chain trend carried the volumes year-over-year reduction This last which margins wind usually the adjusted our down EBITDA year in energy saw third from slightly predominately creating for which and XX.X% was a in year-over-year

enables when rate market the the including not rates quarter pleased flex and down us the specialized I'm on our third in broad diversified capital which to the $X.XX third at across flat in improve absence example wind margin with service year’s the in itself However, verticals for the was coming of to commercial to associated high shareholders. model, cargo to glass the of aforementioned strength quarter. up of $X.XX and our quarter the This to limited energy report high into but from resiliency X.X% our spite us the return project of another compared security needs comps, different and portfolio invested about verticals, the helped which yet headwinds in revenues of to various This the maximize manifested team customers for in XXXX. and segment tough segment the of was end is offset construction, prior

enhanced which and was Our to rightsizing, utilization operational to efficiency, done benefit work drive segment. coupled fleet our specialized with the of continued assets optimization has

results in of revenue tractor year's versus third XX,XXX last evidenced As by per the quarter. XX,XXX

hard in slide which number demand Flatbed and capture another quarter $XXX.X this and Flatbed execute, evidenced our by industrial in combined in the Flatbed XX.X% of end the as business construction, increased growing ratio charging well a prior quarter. position impressed yet at ratio ability markets coming the third brokerage eight, translated to The at the XX.X% steel, our for demand demand their field past came for are has team across XX.X%. have quarter. which year We with the $XXX We driving we with and the profitable results by quarter where experienced backdrop from in operating for agriculture. segment, the the improvement favorable continue results. segment initiatives million We’ve well where generated to our of to revenue million, quarter operating into been adjusted served business we in detail On verticals this a surge as include in business, sub-XX

performance last experience. XX,XXX which as year's points million by compared mile. third year-over-year in industrial continue in fleet those $XX.X results improving more which were able secure results rate coming the expanding adjusted to The year, to growth metric $XX In The in million market XXX EBITDA was was generate grow further XX.X%. rates. XX.X% of of in the operations This quarter, helped we XX% from basis EBITDA the noted, robust grew demand adjusted of segment segments increase our increased ultimately quarter quarter. last the efficient to we stronger market of each of nearly rate a margin EBITDA captured third our the As key to Flatbed the per across per continues improvement a tractor reflected revenue driver XX,XXX to with environment to quarter

challenging adjusted XX.X%, want sub-XX again, with at the Once improved Finally ratio in ratio we highlight the the XXX ratio coming XX.X%. basis delivering points execution segment's a of team impressive environment. to results operating to the operating operating in operating in

quarter Through and free $XXX.X slide collected of cash generation This cash million, $XXX.X after to was in totaled an CapEx sale we generated million flow in debt equipment financed I'll Cash performance from net financing cash is CapEx speak or the with capital our on $XX.X of $XX.X nine, about has operating to activities. million year-to-date. bringing $XX the provide million take in outlook. cash moment of from resulted leases Turning third cash million. $XX.X a CapEx proceeds year-to-date. flow our and update million net Daseke

On number the right snapshot of side slide, the see of the capital nine, a our updated you for year. outlook

industry a call, continue fleet as shortage muted forward been relation wide, new new felt has into portions spend forward dynamic As and expected sourcing The equipment next our the Jonathan we've pushed thus the of is outset in and challenge to truck be into resulted and to capital mentioned our has been delays to sold likely in older at our off of ability in backfill has subsequent equipment. year periods. equipment will

you the which in to then first at part fleet. and updated CapEx net as spill equipment with look million planned cleaned our used the next slightly $XXX quarter. you $XX arrive range coming the CapEx If than with unanticipated million, we've an to plan year, original roughly sales dispositions $XX strong $XX million above original of CapEx of figure approximately into XXXX you net incremental rollover, of And XXXX into you proceeds account mid-point in $XX combined of the of million take due million an $XX guide up our of market roughly higher fourth at anticipated a of will million factor

to back final to go offer few So ahead and with, I’ll a that Jonathan. call the thoughts. Jonathan hand over

Thank Jason. you,

on speak components this of we call, expect strategy, Daseke turn the If our remarks a the by to ways XX provide would outsize our returns to like multiple through is walking opportunities we highly about please, business series on a strategic in believe of Instead, slide we there highly in proposition. hinge five credible, collectively. number end with are internal we me of foreseeable attainable will drive a driving direction. like market, market incremental I’d to of right that to opportunities across of nor cycles contingent team segment initiative, simply all this Daseke But our a these proposition When binary all investors Delivering or appreciate is to that superior meaningful doesn’t it from key and capable future. opportunities win, is single shareholders. that are segment you value going positioned events capably well to growth through value you’ll also of all we believe that each prepared success the conclude one value to with

our focus on improvement. off, continuous First

income, transformation consecutive more years As consistently commitments renewed our quarter, and Xth year-over-year we the We’ve our our earnings and posting operational to than delivering KPIs began demonstrated market free on now ago, improvements on operating for flow. and our embraced profitability since two cash to focus the measures. while

critical We and capable playbook on next and disciplined platform our have team is optimization, implementing year. phase cross we to are but of integration upgrades and finalizing we the by successfully address transformation begin next improvement that playbook consolidation intend demonstrated specifics which will plans, business executing thoughtful operational to where this approach, system a improved about of additional early our share drive in efficiencies, more OpCos further within our fleet to

and is trailer substantial focused target end as by advantage can gains from modest industrial sustainable all on resources focused end of our here call, end industrial even this underpinning, that mentioned market supporting competitive markets. leverage in driving both market industrial one in these centric opportunity one facing growth market adjacent attractive will we prospect With support to be differentiated our engagement emphasis. building vertical, market believe What the we so, Secondly, our as we in had. scale, positions verticals, that end better our current drive the In expertise on country's Daseke grounded to in economy, evaluating leading and doing we new asset marshal on end are well changed share markets, after this organic as a entering was that now market end only to strategic have we growth decisive and last decisions, and markets. tremendous to more wins

as is thesis top spend moment In specialized North carrier largest of consolidation the a Flatbed sectors America The is truckload sizing are remains carrier. is while broader specialized a it Daseke for industry let’s Next a of substantial With and highly estimate billion, transportation subset $XXX still fragmented. XX Flatbed platform. Daseke the logistics it sound. M&A. high a we the is trucking industry as

than built pipeline of a there companies are trucks staggering XXXX but truck fleet, XX XX,XXX more to have their XXXX the XXX XXX XXX with trucks, team, of with and While fleets, plus less a that’s We've with companies there are less market. the companies approximately than XX% a opportunities. than process actionable proprietary in a

will service our end for the complement/supplement to the begin on focus with this and looking to and earnings keeping in appropriate. while to expand markets, our do market brands, the We'll relevance time, very select scale consolidation with for XX%. and opportunities a We cycle industrial acquiring full differently in much targets manner emphasis M&A now a this talent to play, with whatever flow, the better on consolidate opportunities and looking culture an more customers, cash preserving free capabilities traditional our

will over we believe move to into which we secular tightness, capacity foreseeable continue Next future. the

side look strong the are building sustained If believe steel, serve either and any pick seen demand reasons why can time equation, on by side, the we equation as of driven demand at construction. soon. catalyst We’ve of there neither side practically the you up supply this materials balancing

to meet minimum to rate cost drivers, environment and On rates effect robust demand on. the and for segments this both believe supply those chain the the finally, of a a pace And keep to extend OEMs a only runway nuance of net backup variable potential the preventing Daseke healthy the the of the imbalance tailwind future, which rely believe serve shortages, not we infrastructure will specialized a but The this trillion healthy any inflationary side, is economy quickly equipment prospect continue challenges, services. $X the being Even rate. to provide industrial spending as for nature the capacity, we environment those for as ceiling, bill, foreseeable longer and Flatbed prepared shrink the also this to to supply such more the term raise, plaguing call Daseke, has and as trucks for many such to our these markets coming years supply questions. curious to morning, like With issues at the excited and With substantial building the with Valarie. we rate the as for given will a construction for turn materials natural demand. be well your I'd driver continue this remarks I'm that come. of for conclude specialized over to operator online to as

[ Instructions]. you. Operator Thank

of Jason comes question first from Cowen. Seidl Our

is line Your open.

to strong a flat you Rates a quarter per – as let’s I as third XX.X you XX.X. tractor pushed your from you Was excuse Thank the issue big that big of call in some us quarter them well took either me rates year-over-year, through specialized gentlemen, things operator, little kind from, of at and know that? Hey! on the bit focus bed. it, that here. a mix Could here walk wanted there really specialized increase a sequential obviously us good on up morning. both XXX to the basis, look but in had the

Yeah, so Jason. good question

wind flat we be was factors that did improvement to kind that know both commercial face were and We in the there helped the of top business some was the environment well year-over-year. think the and the year-over-year improving tough high pressure comp quarter, there. key security rates down an end offset that of comp. some those That we and end were So saw tough munitions construction, prior contributing kind do, year’s fairly highlighted we strength pretty tough drive of the that the glass markets which cargo, of well kind have as all the of yeah, you that I meaningfully on those year-over-year lot in being anticipating to comp. that side, that spaces this of as of we The all, realized of from really helped start actually sequential specialized energy in kind rate that were would the markets a we’ll right the

Okay, well that’s from on terms anything if QX? side, Flatbed relatively probably sequentially, felt like it market, up tractor. great Was market more a looks revenue was because in holding conversely ahead per the little that color. of flat QX sequentially to just it the And trucking back, then that like was up overall bit

that’s got I realized second the a early point when bit that improvement at It’s just think the I outpaced to kind of think we to that just third, detracted little third anything for kind know then second starting the you look of business looking Flatbed little are we as quarter. more, at moved and Yeah, you the keep we in between point of that the mind. first There wasn’t important I and quarter an able kind to think at the particularly data sustain noteworthy we the in into from.

as we And sense. these for about XQ markets we numbers division? go each think should that into Okay, how

rate just mean a that or a from perspective From you normal...

Rate perspective, yes.

normal dip right there obviously seasonal Yeah, I that mean is happens. a

high know a low seasonal QX. You QX, support QX availability demand, customers Four that pressures see you slowdown. which for QX and in kind can are really rates here favorably one and experience we capacity which typically the those of

it. will off tell so you, optimistic You got into there where plays all where based equipment, we I know retooling it’s on and you sitting time drivers time that cautiously your taking today. are a we are

about not the soon. and supply as thesis probably hasn’t you reading are demand is disappeared know well you think in I as the exactly anytime the coming

about don't optimistic to hopes that impressions false and to or continue it’s trends through I false cautiously see seasonal but as be able want slowdown, anyone we're to So QX be what to might strong, through here we that give going QX.

hear That’s over. to good that. I to wanted switch

running touched older equipment finding sort of when as you're, very telling back, with? away system roadable and the are capacity sending are partners referenced lack they ability that that coming you you to are of equipment, the get new that you back. in bit to terms little equipment. then the more people new OEMs you of You that about not a are What hard lot new sort are get the right to them you work on of are you push or and What out to a equipment,

Yeah, great Jonathan? questions.

of Yeah, with on. as strategic look assurances there given use XXXX. critical we vendors they’ve I and in equipment rely going they're that we got and – certain really had OEMs, we whose front look, be such Jason, And given conversations us this us way mean for the relationships really in suppliers to we've market they’ve us as and

the importance to given assurance their there challenges to industry So with we terms cycle going but the that us given respective widespread their think us. Daseke you the of market we've know trailers, at are they of top the are that relationship the visibility conversations of to for businesses, the on value top had be in truck, they’ve the new and across new OEMs fairly cross that and

competitors of are issues, So disruptions of these chain anticipate our some related dealing supply meaningful what with. any we don’t to some

to me hug Okay, – want I the here. questions I up guess let don't all

other in you're Has What really of ask taking just that? sort cash more focused me than and It the type what's it. drove free like good different stuff changed terms slightly the that fit more flow M&A approach in was side. that a and that of up markets of companies now approach on brought of the end Let at one a you're people. about

deals skill market guide kind better portfolio then of little growing play a and a our for listen the We come this think to and out our got that that spaces and build of kind that equipment that Daseke like itself part after about to Yeah. professional got can how I taker, of maker to presence, to we was, growth, have going drivers can't set, lends do. mean end is going of Jonathan I going standard now saying, bit strategic about and about of defensible, you be good forward. term kind in of bones want we know price to, was blend But think off do today a we're we kind not listen, be where mention we've chasing of things that old really CDL a a think school market No, a of. meaningful capabilities, and lack our diversified business’ are we sure right. where unique of not the perspective niche, making you of ‘hey, we’re and just I our kind be it’s refining to alluding segments terms the of huge of it’s where us to price kind can your right, kind of we in know, can that want and

consolidation a up opportunity to markets. opens it great our really leverage those think I scale to and for itself ability further our end in

absolutely be of going key as the forward. a that M&A is think tenant about So to going strategy we

of broad strategy is, some line to think have, – parts we some after growth, our being much call focus kind have that. too. add around and this. going I really acquisition last instead to there's mentioned It’s of drive we're and as the having I to on we type we more some One just truly the of look, definition, Yeah and this trying mean to purpose focus opportunities some Jason, two now. agnostic our just top I’d so

front line about we’re The full second like We're like earnings, assuaging any just thinking in part to fast really we really is of do to really on work. thinking original, just to get about concerns know same kind of diligence. the the this market cycle above that that growth that good of old communicate is trying and this, you fashioned economics, accretive, look, we're just all, mentioning strategy accretion top and

We’re we’re inheriting deferred are, making sure it price. CapEx be to and in purchase the not we if reflected any needs

at looking customer looking freight markets, We’re end we’re looking at of we’re sense at lanes, we’re that looking all seeing markets, how baskets. could end at origin, help; we’re

truly and more you these I our mean extensive, food supplement a look piece much offering companies for more So holistic really customers. together start much our to as

to is So approach what the just emphasizing know a this but quarter wasn't just much it's structured that much really diligent, last shift – or it a you not we in a two, evaluating it's more more really not communicated opportunities. necessarily

so going guys time Well, new to luck that are embrace, going always. think this of be one I the holistic appreciate you to best approach wish investors and the is as

Thanks Jay.

Jason. Thanks

Thank you.

Sigdahl from comes Craig-Hallum. question next of Ryan Our

open. is line Your

Good morning guys. Thanks for taking my questions.

Hey Ryan!

Hey Ryan!

I’m this I comment see curious, no I can didn't maintained the doing update or an was is guess think a guidance precedent I or going I asked here. guidance historically quarter. forward the it don't you you of is guess on old as new precedent commented that but it, on every at

for Yeah, going of so it lot take I bet on like at, our little you would pieces long there's we from think won there second Ryan. a had it so was Yeah, expected fourth right recall kind where if moving last quarter perspective a was a accounted definitely We guide third reciprocal results – for now. we that first and I almost quarter of and you out our think quarter. our how

good, in deliveries We that, encouraging want With things that’s that in we we had see looking don't We're still that that a you so of going not is continue trend headwinds. driver market. with other. quarter terms nature more to right. sure better of know we positive quarter, quarter for to the do optimistic the into quarter fourth could than I to about fourth quarter tough we our think be that third and there the on cautiously quarter seasonal things and anyone fourth a account the means to people cautiously of second third want the quarter typically watching some coming tight the challenges the business and make therefore we're kind like optimistic. slightly if that expected, the looking each as but of slight be that first like It’s like take could equipment We're it. be talked assume seasonal consideration similar right, and the component,

underperform point, to So we’re but that not expecting this at implying definitely no firm guidance what we previously communicated.

any going new the of the norm? things go on comment and this to stepping to Helpful, back normalize. some of kind forward or away in once a Is guiding is these then plan

away. to Yeah, intent no step

of to the go. understand Our goal vision, kind be to the very plan, want help the direction people and is we transparent

you you of offset and the of regard is a think out I lot visibility year guys with you'll year a kind of business been out kind know we're of plan what three the know form you an of five done of kind we’ve Day messages as mean talking of full and see us you to more you know, year you rolling kind comprehensive and kind of Investor about, know capable the targeting at provide kind we've know the what everyone then that person of would stretch guys next any in a walk transparency kind with in we’re by that of doing know year think I to what midway we giving a that’s do. put get more prior do and through. together achieving. love update here that and now. lot No you the and an through guide early imagination. to But years of and in hidden We

and Helpful! One I'll to others. over turn last it the one

of guess the of data network. year. theme detail overarching leveraging Thanks. months thinking across But you kind had you'll technology networks. data greater I we the namely, and and an opportunity spoke here, I of better update, so next kind on technology last go-forward across on share update said initiatives several know since last the last about any talked You've we the early

that. mean, same now I’ll got OpCos of standpoint, really of to kind XX so first We phase of visibility that. versions, we've on I but different solution, think the we're and OpCo and fleet, mean Right And better that standard sure and so we're a kind definitely one. going much different kind to them I so our of harmonize solution, stack we're TMS offering. on but hit from TMS much of we’ve overhaul the technology is solutions. doing just XX first TMS system a going by the sequence to going a everybody's deck have that's the several standardizing across our really have Yeah, Ryan. kind our got of

have and data real functional capture got that and real how drive to we data, really OpCos a is gap back running to those kind back our to analytics decisions. do really in time to efficiencies. integration going is and have be much we synthesizing we we to out going right a it use drive of solution more we certification and We decisional make varying going so now think all are we're a to that of really And one it to holistic table are within lot of going start doing data that we're office at be that a the so make time with dashboards decisions. which We’re we're corporate of Right and last areas doing corporate a of data-like. there’s OpCos then all of initiative down the some overlay rolling that, better so with people the kind continuously office, It our overhaul. different conforms within will be lot kind stop supplying that ERP accessing, we’re with to of this, really levels what office a really using one

manage those those that We kind first that organization think balanced of is our first all items. of that's must business. have the we run Kind So so a kind step. think step, view the the can right kind of to and of we hygiene really step as withstand

So that's stack the leg of system overall. first the

Thanks to guys. I’ll turn others. the it over

Ryan. Thanks

your question is Thank you. Our from Subin of open. comes Stifel, [Operator line Instructions] next Bert

Hey! Good morning.

Bert! Hey

middle exercises the question, think you following integration guess the how other M&A about of that up on sort I you're of doing. do just in

the be of, acquisitions. as you're sort that'll the build OpCos new, and new a integrate potential team integrate an that opportunity a trying you as you to You experience work to challenge of to think is able or tech

You have that of sense? makes how like if understanding an that do to

side implementation. you those single have we're different know functional kind involved you at bench, going kind and on this a to initiatives a that front tuck-in are – front, a we're capability OpCos multi plenty They to of that we a technology of will handful in ability once, kind process, so are so of be aren’t mindful – when the are entire that sequencing – from of some a for and And are doing have right. onboard very so know kind all works. that’s And Yeah, evaluate, and months, same the or ERP heavier month OpCo IT initiative kind we look, of full for more to diligently it's robust they pragmatically we in we’re But the little the respective that think taking so at about targets systems know so have on points we offline acquisitions. tuck-in OpCo, address those time. the an we ones XX those back – and push, of comprehensive upgrades, the so aren’t range will four push, month of systems onboard the now. XX we isn't we of that some former that, very it of of make a than think not kind like not the XX OpCos. the of bandwidth for we're They back be of targets put these kind very think so targets, lift acquisition our that three area a a still as to in, select, vary within integrate of don't the debt there a back you months sequencing going we're today of a that stress this to to organization there’s will doing all of These to the targeted

know you innings, like know minus this integration sort terms this can Maybe of is playoff you these the of innings. later of where in are, when this, conversation you is middle like spirit season, of just it. all us? all exercises in mean of innings, the sort Got sort of you behind of I say

opportunity I Yeah calling transformation. The company that special the kind for could and the I function of here look, trajectory is and step a in improvement think the is opportunity you transformation what we’re evolution probably it’s us. a tell of look, –

think from our rather if we’re to unveiling going really will and I out for than to think several kind piecemeal months, going to meaningfully know the the I that over Investor you few grand next the shareholders benefit are you of Day. just that reserve

I share think broader early it you when some might can have we the have might is the think to year, but about in you which integrations, updates we I tell some, what transformation includes really this includes includes right of the the at about commence probably think it a that'll you M&A, as I can and XX systems upgrades beginning kind the year. month XX think of to push

gassy I we’re we're cut that team know kind twice, – nearing and current the so a so you And think is measure. end measure of that once the of second

that think at It’s process of internally about that to I so start to But shares deck. and want granular going We’re going overnight kick of if OpCos the the you an off going providing the XX that of organized about very have think we’re benefit to up. going all month kind the getting really show to the the be kind as a be not on dotting I's T’s specific messaging of I all think you year. should XX this to and all crossing ready formally all we’re to kind where we're this really the really to this beginning

bleeding stopping you around able we feel add that that the to undertaken company operational deliver that a of the the efficiencies and earnings and we last so to we've like you kind could seven consecutive stable improvements, building and consistently which quarters. been platform, demonstrate over know in and and Yeah, initiatives XX last kind XX improvement was that Bert, business has of I When really to this maybe focused little color. about think months, think over bit the a to more just

not just time operating a And so has not that’s been start making refine months hemorrhaging, kind look the a alright best-in-class true last it's of or like, and Daseke like company, right. now so company things really to six

take process. little measure overseen, phase value, we’re to be and today thinking The our to like about this – is easy is and we'll that table that a care you'll responsibility given we continue That employees is how that duty leverage this we that not drive global our be talked drivers give impede and be we’re that, that taking we've that so is system and of have shareholders are level. do the to going references to phase straight of you forward transformation calling perspective to care to things want challenges. where twice, the and that’s to and real bumps we're to company, all and what really I us don't insights of to to it's the deliver going to a hear there from past able kind as been team, it stakes stable. won’t we’ll of a secondary is the once. able in next have this alright. flawless ability And able kind run mean almost we're to it’s across with so conversations and take It’s way, along able kind really, be big that What is through and no. continue to here a haven't a of not time when the start about I returns good be and customers, of for Whereas a really cut you we but for truly saying as part entire the Jonathan going

for color you. additional little a just So

really that’s the no in-depth I great. answer there. Yeah, appreciate

of [ph] like concern you XX that How market? of to Just asset gears. impacting California. sort that do one today or portfolio pockets of your in a only ends with me, major Is sort you for up the is exposed question trucking more switching think the regulation for

down think really should they know and heavy people be have I dependence there, you that’s who concerned about. that something commitments Yeah,

places its market directly to in got uniformity You and know pretty out you so are consistency that when of operates what for by keep sure of out be in that there, we you've will not in know processes to that everyone. close make and Because you an mean just we're can think on that and and other all but one got protecting about eye business, your to small place affected practices our there, [inaudible] sure that. attention. it way the percentage that us, It's make happened paying doesn't we

for much so you Thank the Great! time.

Bert. Thanks

Thank you.

Greg Our next Security. question Gibas comes of from Northland

Your line is open.

guys. heading or high level absolute the results! Just know market Thanks maybe in taking guidance anything. general I morning for Good give thinking the a to on don't want from the of XXXX, some those Congrats of the dynamics, are well, focusing how and about questions. you kind But next know you've financials some high that operational on dynamic been as year? addition a year-over-year you level of then improvement would in expect dynamics internal basis, that benefit to to improvement, how you maybe on you

that to We're that upon on well. dial move right, do Yeah, on nothing as the that embark continue inhibit we to sure that’s focus the into to has I been a continuing we mean really in great executed to going touched teams ability is goal our of execution. question last plant kind make to there's improved that. our is very are going year to year, the that to going and the we're driving the up This

just and we that going we that don't the improvements. move to to we this as business. year-over-year so the forward. similar to continue and of quarter be juncture prepared to year But headwinds I over there tell And kind firm our Each how about want I are because it. in you slight intent being can would tackling drive some is we or to haven’t, while things want we skies, we of be some are disruptions and able kind improvement out that’s to to keep don't tactical guidance, blocking them vis-a-vis doing we drive quarter, that the such to think improve not at be, that to of factor up they that we in, to that have us get prior are kind going that to from those year's give need

about demand think market there challenges the to it, think as supply we think likely given will given about, everything wealth sense and that continue I the to shareholders service provide of of to be be So that these talked we we for to in able XXXX, think exercises as ‘XX. about and the us to undertake level we right returns customers to continue

any a U.S. the And so helpful. you I long of near seeing at the you're then the very and to what the beginning to from but know, if this ports of talked pandemic, in degree? wanted it, about many Got you backups impact ask if

Yeah, it's mean crazy. I

in that the We neck couple down members have of a our woods. of key who live

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and trickle yeah, But on and you paying I what that’s to what’s question issue think all an to right. having on that demand. though how a spending, to on industry and that and when kind attention it play something overall, is going we’re a consumer it’s how supply there whole and that does domestic the it out. of know effect It’s real through is no effect going to going inventories, the question the entire on will look of that space you like flow the it's have know see close industry,

than And you what a I Is premium retention ask, better I follow-up are to? of well. driver – to of that you Is kind to market? you're How driver managing it. competitive? the pretty wanted market. on to you Got It that kind talked remain it about seems thinking benefits market. about do the that to like wanted attribute having

the know mean love for in I I we Daseke. talked past. about us, one this things It’s about Yeah, the you of

set spent that opportunity of a where in part to just vanilla right. of they that can’t reasons different certifications most kind career technical. professional you career the got a what know very be do. sure gone and attracted drivers team, capabilities drivers. to this to to where got advanced van of driver we unique their drivers of This be foot around, space want bouncing and XX are and customers, was you I choice, of We’ve They've is really my things equipment One and is know people other are is than of not very do that do the that out I

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them role to attract in companies. network, nimble know teams with our OpCo part the that it for means able the the plays You a talked drivers they relationships what when the frontline. That's to be very things the to ability it that and different on change want our OpCo and rationalization we I to brands drivers of don't a to and to but retain discount a those about lot have and be big be important have impact that and of those those

to able change. react are We and

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sense. and of comments that. But lot priority I of Last get big of makes appreciate on to just me, one a that M&A already strategy, you how that Yeah, provided a the Great! a know is. I from kind wanted sense of

have opportunity actionable you said kind that an you think something and of right, advanced I like in discussions. three are

to near safe the pretty would see in know term. we you So assume something

mean this a assumption. market. I right that’s Greg, never now. think Yeah a of just I safe know sea you got with We the hooks in

we we’ll be can so next to we we at acquisitions a two But a fell call. going them couple one We’ve we that reasonably and in actually we out we I we – got and or and diligence – can’t, now So high months ‘hey, place of, as we’ll said look non-binding at new. ultimately it’s it. of doesn’t It’s diligent have we’ve tough If checks they we’re terms, are working and into right we we’re get don’t make going So hope would the again be sense.’ made and couple everything call buyer. recently when a we and XX and LOI’s, on over on call, something last had shocked get done. balanced away the agree least to close away if said kind we walk and if this priority, we’ll a a in

Thank good. guys. Sounds Great!

Greg. Thank

showing any turn Jonathan I further Shepko to would to back you. at like over Thank the no I'm time. closing call questions remarks. for this

the We we’ve We opportunities Thanks with for thank today returns your Valerie. continuing you generated look stakeholders. company. the look and us and for we in you, consistent your facing Take commitment time market today. again momentum growth profitable our our care. Thank for translating to confidence everyone to forward forward and a

does you conclude conference. for Thank you. this gentlemen, participating. today's and Ladies Thank all

a day! Have disconnect. You may now great