Landstar System (LSTR) 25 Oct 182018 Q3 Earnings call transcript

Good morning and welcome to Landstar System, Inc.'s Third Quarter 2018 Earnings Release Conference Call. All lines will be in a listen-only mode until the formal question-and-answer session. Today's call is being recorded.

If you have any objections, you may disconnect at this time.

Joining us today from Landstar are Jim Gattoni, President and CEO; Kevin Stout, Vice President and CFO; Pat O'Malley, Vice President and Chief Commercial and Marketing Officer; Joe Beacom, Vice President and Chief Safety and Operations Officer.

to call like to would I turn over the Mr. Now, Gattoni. Jim may Sir, you begin.

Good to and Quarter you, morning Thank Daren. welcome Conference Landstar's Call. Third XXXX

The call, harbor forward-looking Before is of Securities facts, XXXX. begin let are during read statements. not Act following we this based made conference historical me Litigation Reform a are under statement statement. safe Statements the that Private the following on

in and plans, filings to and forward-looking materially strategies, differ should anticipated. publicly statements make expectations. forward-looking During operational, time. this limited detailed Landstar's update Risk contain could Form not for risks information SEC or by business reliance that uncertainties we to and in legal objectives, uncertainties revise including place any section XX-K those is, conference time such no information risks historical the that relates actual from to results information, and and events information. described the cause forward-looking Such undue Investors Landstar to results may the subject fiscal undertakes or These but Factors XXXX and obligation Landstar's or call to nature, financial, risks from to other on not year

third record financial on half. XXXX in to our first the continue results build Our quarter performance outstanding XXXX achieved Landstar

revenue, operating records. each share quarterly quarter Third all-time income, and per diluted set earnings

range we call approximately third conference to third billion third $X.XXX the billion, was XXXX XXXX earnings $X.XXX in in our $X.XXX XX% quarter provided billion. quarter second XXXX our of quarter the During quarter. be to above guidance Revenue revenue

second hauled the to via quarter. guidance to anticipated revenue similar number third quarter. quarter X% XXXX truck XXXX third the prior-year XXXX truckload third were be to above quarter volume X% over third loads of X% the XXXX quarter increased Our the

storms to services included in that third pertains the hauled note disaster related the support of relief the XX,XXX quarter comparison, approximately Texas. States United prior-year truck quarter and quarter that to it over impacted loads southeastern As XXXX via

XXXX Excluding truckload relief increased via over disaster XX% quarter, quarter third truck XXXX period. the loads volume hauled XXXX for services in the

guidance Revenue quarter truck hauled via in third on increased XX%. year to of to per per quarter on the loads Our XXXX load hauled quarter. in load third over anticipated the exceed XX% truck XX% loads the third via also range prior revenue XXXX

a XX.X%. truck as margin truck margin XXXX brokerage to Our third XXXX $X.XX. in anticipated our carriers $X.XX margin was Actual percentage profit gross for gross mix quarter XX.X%. earnings be the to was third than share diluted the the The actual actual primarily quarter quarter expected. gross quarter in call during earnings guidance guidance the remarks third for range hauled diluted loadings quarter due driving second profit shortfall lower the included be prepared range call to profit of in to per the during $X.XX, XXXX margin XX.X% on the earnings our to of gross third profit was of conference was quarter per share My XXXX the higher to via

quarter, X% third loadings X%, month XX%, August, the by in increased prior truck and respectively. XXXX the September, over During and July, year

in Excluding services XXXX, loads XX%. the XXXX relief September the via by disaster fiscal truck, September number via fiscal to prior-year loads from hauled hauled of exceeded truck related September

very the September in rate the via Consistent revenue moderate revenue and July low-single-digit strong per experience prior-year extremely the month given earnings third load we to increase of hauled month second via in sequential slightly hauled second our generally truck quarter by per XX% per a in these and August revenue conference September and expectations, loads Seasonally, truck quarter. we August quarter comparisons strong prior with from month load XX% in mentioned that over truck began strong in in loads over environment in call, and XXXX. As expect that July September. load to on to remain on increased

by During on third ocean in via hauled was the air, July from hauled to line changes to July the was revenue to driven XXXX loadings agents. of the from revenue and The August highest above June third in September seasonal trends weaker increase were than revenue from the via of quarter. air a air, XXXX included in quarter and slightly loads third new rail increase from and in $XX.X Revenue third truck loads. loads per and new quarter in ocean XX% with ocean Revenue quarter, Landstar in while carriers load was contributed rail, XX% trends. a third seasonal in by in August increase XXXX recent new loads The quarter rail, agents change the million history. was number XX% growth and agents the

remains full. XX,XXX trucks of We record capacity a We the candidates our by quarter the the the and XXXX XXXX continue qualified XXX model to trucks trucks and end attract ended pipeline count, for agent above business owners, agent XXX with quarter. above the provided year-end second

to a the also number compared prior quarter of recruited third quarter, the to third slightly year's significantly cancellations third XXXX and fewer BCOs higher as experienced XXXX quarter. During we compared

operate behalf truck decrease higher in loads by on number BCO quarter. a offset had BCOs quarterly number per as X% XXXX highest the BCO truck hauled quarter utilization truck ever quarter third our quarter. in third-party result, third the BCO record trucks XXXX in Loads X% during the third the per net increase. count, defined As quarter a third We in the net XXXX was increased partially via on over of a XXXX our the carriers of increase

strong third-party third XX% to attract capacity qualified operators quarter. providers. approximately profit XXXX $XX is and continues Gross increased and compared network owner Our the or to million

Here's Kevin quarter review his third other with information. financial of

increase the the the press covered in increased due XXXX, generated of revenue commissions primarily quarter and compared revenue The debt cost Jim release. $XX.X quarter in million XXXX. and purchased as certain million of revenue XX% claims and included quarter claims third compared XX.X% of compensation bad costs the agents, various cost insurance XXXX compared mostly costs the the million Gross the revenue with in an increased XXXX compared rate from bad gross offset million percentage transportation period the was third third XXXX decrease the XX to insurance in as in in million million the SG&A XXXX. The year-over-year. million contractor cost to quarter the increased the Depreciation XXXX compensation profit increase million of $X.X in expense. insurance quarter to on quarter the – lower Operating increase revenue was in effective million debt. quarter gross Tax was attributable partially increased in costs and quarter quarter and offset incentive rate XXXX in versus excuse in on third tax were so by the was The in divided the impact was in $X.X from increase of of as XXXX was impacted development due Insurance was in represented in in brokerage X.X% by arrangement. related increase company's Jim. also quarter. in expense in to gross for hauled and an revenue $XX.X on tax profit, to by provision was purchased earnings purchased contractors XXXX and rate impacted in Operating me, claims, increased financial tax million increase expense XXXX quarter as will an was quarter the our in cost XXXX. independent XXXX compensation cover carriers, income compared by the was favourably and XXXX XXXX. of primarily performance-based defined to in paid by of the compensation development common XXXX. the Thanks, third company-owned commission company's and our BCO million in stock, has the SG&A by $XX of and XXXX net on effective increase to in general, decreased rate $XX.X to the a in as percentage $XX.X trailing incentive under the XX.X% equipment compared the expense, attributable BCO favourably profit, and XX% to both prior-year profit claims in to transportation third income cost revenue, to quarter of for Selling, $X.X X.X% federal period. customer number XXXX of million operating XXXX increased information The margin information The increased by agents, for revenue revenue The million to of percent wages in benefits and disqualifying third revenue a of or quarter, operating and deductions revenue XX% $X.X third was and excess Stock was in income other XXXX and in purchased effective prior compared of increased the quarter $XXX.X a was third transportation XX.X% million less was incentive third Act of XXXX. compensation costs and or million SG&A respectively the in XXXX quarters the increase XXXX domestic rate XX.X% claims were rate to or Total to $XXX by tax to increased stock XX.X% million increased The the were truck Jobs carriers. $XX.X truck to $XX.X equity XXXX in XX.X% gross XXXX XXXX. commissions compared brokerage third partially mix to profit $X.X as XXXX. XXXX due The Commissions to XXXX compared by due in to compared decreased points increase than paid the margin, less $X.X versus The percent brokerage research quarter. amortization XX.X% credits, an a This provision dispositions increase in the $X of offset in the benefits, bonuses unfavourable to in due of X.X% and were was driven and in XX.X% X.X% in plans. resulting basis year trailers. claims mostly $XX.X Quarterly primarily increased agents to XXXX benefits. the of XXXX. $X.X Other periods primarily truck to in Unfavourable prior-year third transportation, by income was period. revenue, achieving to of in revenue, The the XXXX. was to XXXX. of was percentage in costs million This The XXXX. XX.X% of partially development increase XXXX administrative tax to in primarily increase to targets. third loads in by million activities, agents third Cuts compared an carriers due I production versus contributed

available currently to Looking and short-term company's were cash capital X $XXX $X was million, you, are quarter purchase for Back ended programs. shares $XXX cash million. There from at flow we cash purchase our of operations stock million expenditures sheet, with under and the balance Jim. million, XXXX for the investments

September. Thanks, most extremely of XXXX quarters truck first tight Recent of the a capacity had during in experienced that moderated bit three the trends Kevin. suggest market

through as tight be first of and Although in as the we few October, experienced in appears quite the capacity remains tight it earlier September to weeks not year.

remain quarter expect to relatively capacity fourth truck I compared as the historical the levels. to market For tight

XXXX had the the quarter-over-prior via project XX% continuation quarter seasonal of in insurance that plus in of is utilization in of single-digit comparisons of XXXX. profit part With anticipate quarter XXXX expect the I in Based through quarter. XX% prices XXXX Through trends, available above and XX% via quarters we BCO and revenue pace truck. a remains in early company's overall basis quarter gross fuel XXXX stable, to of same third strong XXXX the expect three and to higher approximately line in number in significant I on in number in costs the in year the year-over-year fourth quarter the fourth XXXX we to October still the the the relatively the three the in $X.XXX truck the increased anticipate XX% XXXX claim that XXXX billion. fourth range percentage performance earnings be loads BCO margin load first volume revenue to be fourth X% quarter quarter-over-prior billion I an to revenue per on XXXX quarter to truck Overall, quarter resulting load, to fourth per quarter XXXX our large XXXX in in during the record-breaking quarter revenue fourth loads trends also quarter, tight. truck are range. as experienced September truck of compared and will slightly third period quarter be recent upper be that a share fourth and I the not third of a to the I similar quarter, expect much loads of increase on of and However, a $X.XX. growth slight to on to quarters truck range I or improvement range truck quarter. financial first Based the XXXX said, over in rate assuming of approximately a to XX.X% expect capacity the fourth hauled of revenue to gross hauled robust recent due remain hauled X.X% continue higher fourth per revenue fourth on tougher in the range currently of $X.XX be XXXX via diluted profit per as with $X.XXX assuming quarter, to than revenue capacity margin increase load of revenue,

of highly to quarters the fourth note. believe XXXX witnessed outstanding $X XXXX growth strong revenue approach billion. finish many year-over-year billion, quarter will the XXXX truly loads, firmly network we to profitable a Daren, achievement include those to exceed formation growth, strong. big be The year on on off far capacity increasing succeed the year In all-time will revenue environment our Landstar. of XXXX with us, expect cusp entrepreneurs industry. three on a Landstar. remain for transportation available continues focused competitive, big remarkable volume first a we cap has of of thus a would The milestone that Landstar In haul organic to XXth load our to We records year. and also quarterly our been a have we the the for Based milestone. expectation technology-driven and And of we on the in XXXX anniversary financial an we're empowering view, That questions. record-setting that, will our overall will take be for $X.X

first question Thank Atkins sir Our you very comes much, Stephens. Jack from from

line Your open. is now

Jack. Hey,

doing? Good you morning. Good guys Jim. are Kevin. Hey, morning, How Joe, Pat,

good. Good,

Thanks. Good morning, Jack.

Jack. Good,

good. Good,

So for sort question Jim, with if macro I could a of just you. start

to Just have hear get October demand a I Do bit been and think pulled than started, think out do see marketplace? on sort would for of capacity bit, you folks, on of that the maybe curious macro what's of curious. has you year? into take a there's to I'm sort and would this season forward just what just more the slow to of softer get from a little weeks We're you to coming first there. peak going we underperformed Do few more little the what normally time more maybe on your you ports? bit driving be but of is beginning that? noted sort think seasonality think the Do guess You normal

little can would a it's it's side that capacity of supply a of from just short guess a you is Well, of trucks such that side I more think believe many because to of hard We both. demand it bit time a than I side put in impact. period a believe

we're more but little DAT wouldn't again, you So side. look at more that numbers in of when our bit it's here demand. a that. said, of that it both the demand But out is sensing coming on indicate with a September, thoughts the But

easier having trucks right access now. You're to

little think requests EDI peak through. season, generally it's for is us. Landstar it October. a for we things finally percentage And don't is really in off October; satisfying easier level, coming we're a our peak of see an through relates uptick But as more take is from I where in a bit come basically start the the see that to maybe we to really generally mid-November what when orders

peak wrong. year very as market. October strong So coming back last to the me demand it's the Don't coming see We we had peak. very, still rates. now; we the haven't into though, slight to a pretty anticipate you strong just hit like it It's relates softness get

Okay.

we similar November, climb anticipate climb October peak to up from peak would But the based we works. November rates and the December, way our and October, they do just will that our projected and on off of December

through. what it coming begin perform kind and makes Can sort then to business looking do a have seasonality. when is think down a mean, versus you so to allows are model through of modal of Just of it rates I guys especially you well well different really guys seeing think Okay, really flatbed at exposure, sense. off? okay. I help But mix? Is us rates of minute. markets mix, really quarter that. in just think to fall about outperform and I freight particular you to the normal investors thinking were in really bit That able But that sort of at the trying think points guys spot performs And very the model during quite a that lot the noble you cycle. spot obviously for

hook, those you and the XX% drop through a our market. capacity business, we have of and committed of within our hook, tend right, think firmer on little because probably you rates if to our trailers hold have freight that's right? business drop that into Well,

have but don't to than contracts that better what long-term are I they we little They to spot you situation a business better. to rates tend a So in hold little seem tend hold but see. think

we haul, stronger to market will little what those hold on better. depending heavy haul the I hold that like. looks mean, have Heavy bit a niches So actually tend

a quickly don't though hauling a even someone pretty some of So spot and couple there remove in they might as markets they customers as see who's in we're in in dropping we're into spot where penetrated us they remove our loads a situation day. just

up front So I all you bit it's a the end less reaction the drop it generally a over on way us. catches long-term, a stays end we now. off think little that's why or if you out I the to see In people guys. see think think in But putting the softer the the don't I of – generally time – see on it whether those DAT we front

And makes what a and to on Okay, hook? sense. way drop Is Jim, follow-up if about your just think percentage there I now is business that, one of quick could.

know Yeah. when exact number. back XX%. one can looking to it. go – I the We have It's We're about we Joe don't it. get if may to see we that

great. guys. again Okay. for time, That's Thanks the

XX.X%.

Jack. XX.X%,

Of total truck, Jack.

Appreciate Great. guys. Thanks, Joe. it,

provide. we numbers the with precise We're

Thank you, Jack.

Reustle Sachs. Please Our from from next question go ahead. comes Goldman Matt

thoughts next any what you what in of be tied expect Hey. and demand expecting quarter, part on think changes know of could how that see Thanks into tough tariff to you'd but in the demand strength to you're XXXX? the November predict fourth of I morning, getting And in of the at inventories for Good ahead terms early it's you're early of January? preloading year, to the and do question. guys. December looking much in taking When

e-commerce just the is one freight Christmas tariffs difficult think demand spot coming mid-November. Yeah. all it back starting predict projecting in for see and our I very don't half change it's anything The guys through moving a think season. model we're any next for during – push about normal market for in business being us with big year. to into But any not what there's We the we the thing or is the going

don't pull big for based a the a in And that difficult is out be quarter, it's spot don't in just finish stuff; what or normal we're December on looking inventory that indicator hard quarter. requests quarter. it's to anticipate our at our carriers what's the of from – we predict much three anticipate those we're us of looking going with. So at first we until shippers numbers to until first the the for really going forward happen or going the work any into And get we year. the on we in first to world big there that

buyback. then And question, to second the understood. just plans deploy on Understood,

and the didn't You how Any stock that think do given you quarter. past any this repurchase around thoughts recent about program? might weakness using

under anticipate would about if in so anticipate the would authorized the I didn't average purchase that we $XXX buy trading at X we have shares the it was I price, we jumped Yeah. – is quarter And second look you it. the in on that I million the would third rapidly. tends to and in reason quarter if this plan. two – buy It was climbed we But have we we be it be from pretty days in I tend released the on to really a that earnings And don't can't – we the yeah, be we we at we would on range, market. settle we point basically up. up where run think from minute think

Great. guys. Thanks,

from ahead. Please Stanley. Shanker Morgan Ravi from comes question next Our go

in Hi. on for Is think just strong? This the keep strong wanted And the year third that you that an It case been quarter. on side? touch all also has recruitment environment slowdown, you do of can Ravi. (XX:XX) is count. particularly is something here more a the to in BCO attrition BCO actually and I the

third at of growth retention-related trucks a perhaps The additions year But BCO growth. in some been second in improvement the pace in a result count growth. we yes, we've really Joe. not had and And is do the net have this to has in throughout Hi, expect quarter. do but continue anticipate been to largely add that Yeah. the fourth quarter, we to we it's

okay. it, Got

a So they're utilization think moving on how and X% actually positive us drove about that what you this Can mentioned BCO we decrease quarter. or maybe should you just flattish. tell And again, that forward?

Yeah.

and has the BCOs pretty like feels seems a it strong such quarter. bit in maybe their ambition earnings our early bit were And it significant. a a third have been abnormal, growth their that kind performance as in year, like very Rate the the is ambitions revenue And made had there. not Just tailed that little of what best year. less happened strong so guess to having off that's of kind little

And the Last very quarter BCO very year's also. high comps are utilization. had tough third there

from makes would guidance margin see, And quarter? final gross to fourth Did someone seasonality imply? that for pass before you if And the questions provide I sense. else. what me not, I any

I Yeah. gave...

gross estimate We of margin gave XX.X%. a profit XX% to

Great. me. Thank you. That's it from

Fowler Capital KeyBanc We have Markets. Todd from

now open. line is Your

Morning, Todd.

taking for the Jim, Thanks morning. Hey, question. good Great.

just the third you gross the that the then mix this range. profit you're onto response that us like margins probably the had margins think can last to drove dovetails the the gross But the what in quarter? fourth It sounds profit of to guiding below quarter falling think and for help I couple questions. you about

and there a in gross XQ? BCO to a we was margins need about is or So But something driver main little that the utilization help us? XQ like down profit is the what that. function you're bit else can there that's with of you sounds that and guiding for to just think It the

the last Yeah, drove basically was is Todd. utilization Yeah, tough BCO and Kevin. year. This the again quarter, compared the very to third utilization comps

in didn't much guided we're So you it's will. year we if have the as below average, prior going that we still utilization did to we but that historical when assume the

brokerage we're So, we've in there so yeah, the fourth we're moved loads fourth more the anticipating move a higher the of XX% few had assuming due to a percentage to quarter margin on decline quarter. onto profit largely the years gross further XX.X% revenue. in Last brokerage,

Okay.

strong about embedded they do the margin the as take there had standpoint in Kevin, think the you end what of fourth want and in is you from the gross your standpoint? a off time embedded already BCOs from to and a what That's a And so, quarter, both some towards have revenue basically have year. are expectations year

a To yes. degree,

on that Okay, got a as high from we're understand XXXX are maybe predicting pricing see standpoint some volume can a moving up about about going you of level, then it, in good. the And you going market move experienced help variability costs we big some this to a that kind inflation see of relative see at just we what see buckets you're softer cost the should and top to you cost could where where think think either could side year? some But tricky. if to do what into I and line what we've us or be

basis comp, $X XXXX. If year-to-year about targets item exactly, we and assumed got big rate should line the run there incentive million number. that that back to go a on number we've we where moves is $XX Well, a million for hit our the normal approach

more a million on like Should bit comp. stock million also you be look guess could $XX I the little as That's million range, pickup of a at would say. in $X to I that So tailwind. a $X

consistent Kevin, And to and year? going so XXXX. think the the into at then anything, relatively way? IT cost the any other be would fully But in need we next I inflation those this are about costs think point numbers,

compared XXXX. spend just be similar a merit year. year IT to the should next through increases the midway typical yeah, And, No,

this Thanks helpful. the morning time color. very and for the Okay,

Yeah.

Next, Bank. Amit Deutsche from we have Mehrotra

Your line is now open.

Thanks, operator. Hi everybody. Congrats on quarter. a good

maybe of XQ can anyway. for but in kind nice of said could be ask understanding or guess that's demand-driven. to demand-driven I a demand better imply X% And volume if it's volumes, know that. Initially, sequential Just going pockets and a commentary. of guidance season-driven. uptick don't question to following-up you just get which seeing I you so, I'm does on also, are the weakness? you answer, the peak Where it I a want specifically is

up stacks on years? help If a us previous kind seasonality look move lot does lot. you to around can typical tend Thanks understand you if at it because just that of a how

is This Pat.

where platform As we the on to it relates the widespread side. platform slowdown, side primarily and it's demand principally see some on

at in that's the look put year-over-year in look you the there some at you If of building commodity a of that variety on the accounts platform charts side. out are that we down products, declines wide and

we you on demand a the the platform areas, of kind light On about lot been principally you year. a into capacity coming the capacity and see think piece if the in throughout side van see marketplace. A a similar that from platform has an new it certain equipment we've demand of the standpoint, little And don't seen side. but

that's on think that that its indicated demand capacity think I platform more Jim side. we why than

is sequential And question that's and in the this your and based about or a is volume Amit, On six-year historically QX on – average five right truck increased about – where changes, guiding this we're sequential Kevin. to. volumes X%

Got it.

both. in just achieving, the the of given Truckstop I spot on pricing relationship. a Thank guess. helpful. what equation on continued just the that's in understand yields Okay, And follow-up strength very you, one yield of we're I more to and side negative seeing market I want the know a there kind growth turning with are not but year-over-year And clearly end-all, be-all DAT you is respect the to Internet are basis. the

more pricing in confidence help what data. confidence you visibility, have in industry positive why your your stellar just positive a rate the ability achieve lot And of XXXX? the but level don't I so after your of given full maybe company's tenure us in to seeing the performance and to your XXXX importantly, about knowing and the yield how the is versus well that just we're And guess spot diverging you what's could if think

To than it coming that of spot the pricing reports now, be weren't right prior last we out lower it took the even when still started Like said, kind was by honest, about first October looks that. above us year. was XX% running because to it's like year, surprise close we

of rate so we out decipher it growth any we're showing mix carving getting the and two. to mile in So could our versus impacts last business correlate find comes haul anything. per where decent sometimes length be still revenue of it over of trying haul they're spot our to it's at Maybe the numbers looking in, it of our difficult even year. was or But flat van, length where from, their anything,

by out we're was of what our hard being information to aware but it's to speak reported what they're entities, difficult. putting those to correlating So what been – has

that. mean, they're truckload own Thank carriers I business, other where leave ITS their it's time. we're versus it. are you, Yeah. reporting and for from what guys, real hearing it there's between for same spot what the bifurcation seeing what a thing Appreciate the at but I'll DAT in worth,

from Our go Buckingham comes Research. Please from next question Brooklier Matt ahead.

Hey. Thanks and good morning.

morning. Good

that? guys you – month? truckloads Could provide not, year-on-year by growth get And we can if the

Matt. Volume But X%. went out XXXX the take in I loads September the to quarter related you third if was have XX%, the XX%. XX,XXX and those, July storms, X%, August September it from

X%, XX%, went it So XX%.

then, do number that And you have Okay. October? for month-to-date

No, we don't.

that guidance I in guess provided? with it you trending of line is kind the

side volume is price The is a more seasonal. side than It's softer seasonal where Yeah. more little seasonal. the

And is more conceptual question. then Okay. a this

having You the exposure side talked of on to things. spot more

capacity terms the little contractual get maybe the some contractual shifting more volume to a some businesses maybe in the this how bit I'm cycle a starting be more months point moderation in in shippers your could and some putting hook of question some the and and of of in this the but I XX potentially still spot of maybe bit pressure on had talked market of past about more it's drop over therefore kind side spot markets? certain contractual. we related the system the is that maybe guess posing spot spot also downward over to demand You little to at

XX have characterize Pat. XX price them? can us the you Matt, earlier Can lanes; in them? what Certainly, have less we and what saw lanes. year that year. the was price seen We through hey, we we've you the or gone a course is these fulfillment we these bid of bid come to as We've of where customers as would this mini say a

their very RFQs RFPs remains send However, and their consistent. they where bid cycles out their

saw call bids they they've we moderation out, bids, activity bid the of lines. terms bids, when consistent in, those been what mini send those what very fulfillment a those So again, year-over-year in along is but those we'll

for got. the Thanks Okay. That's all time. I That's helpful.

from Our next question Bruce comes from Chan Stifel.

Your line is now open.

Yes. morning, gentleman. Good

on that the maybe addressed. something have coupled maybe my clearer had It addressed, you hair the to have capacity that's looks been follicle so law with pose some question. want another know we step-up big items more in and gotten tightness, which, to I here testing Drug may Alcohol and ticket I think turn conceptual most a of could significant like I guidance Clearinghouse,

end those impact maybe of the when you of So your is next magnitude for things, year? outlook two I year the of sort guess kind what terms about in think of of or

the I of the things is off. follicle this are a both think clearinghouse, and familiar hair Joe. with ways those I'm still testing Bruce, and

and staying think ways think and in the I be and carriers pressure some from hair I been like was up in looks that on be tightness of comes have to that testing, some it a I little was by quite a out. it the numbers other of have didn't the I've details candidates think from that. bit worked door follicle the that there some I there to be road anything what a from But so perspective, with read the industry could could a near-term. that some the from capacity thought down tested industry, in of the still timeframe put coming of the

and Appreciate so a there you load right. all air XX% did then like down was a growth fell bit, Okay, just off Can it per the it dynamics are down walk quite year-over-year. or so And for color. load and quite little but looks bit, why me what nicely much? at ocean through looking revenue that

Well, if rate doing we business in in the the load. the carried and last That were stuff were per of several charters activities some Rico. Puerto a relief you doing about think we significant down support of air year,

Got it.

Okay, as number far a if as housekeeping know you gave question, that count. Dollar final I Agent And don't then makes maybe sense. agent count Million or

you that'd that, be If have great.

a up year But through tally up that having at this so Agents, The number the was, above annually. that. we're point, Million record on Based the it number. that think or we tally be we we should XXXX year. get XXX Dollar we until the I In at we don't really had

thank fair Appreciate Okay. enough. Well, you. the right, All time.

Yeah.

we Please Scott ahead. from go have Oppenheimer. Next Schneeberger

morning. here. is in Good thank squeezing This us Daniel on for you Scott, and for

Sure.

Can peak overall loads? season some you provide in on and year guys How much you've up done shape please or might historically that for particular? e-commerce-related how this perspective

specifically do. say looks closely very so we some like. on with much have good what we shipments we Obviously, for difficult to It's of us visibility how work e-commerce delivery, of providers kind that into

quarter e-commerce so anticipate activity, to if you the very And year. fourth be similar last activity will, peak the we to

you. Thank

questions. At no this you, call over to remarks. show the further back time, like turn I would closing to sir, I for

you Have All thank fourth speaking day Thank I And you for you, with Daren. on January look again our a to call right. scheduled conference XXXX quarter earnings and currently forward good XX.

this Thank you Have good call at for lines Please the morning. today. a your time. conference joining disconnect