Old Dominion Freight Line (ODFL) 26 Oct 172017 Q3 Earnings call transcript

Good morning, and welcome to the Third Quarter 2017 Conference Call for Old Dominion Freight Line. Today’s call is being recorded and will be available for replay beginning today and through November 5 by dialing (719) 457-0820. The replay passcode is 4933246. The replay may also be accessed through November 26 at the company’s website. This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding Old Dominion’s expected financial and operating performance.

statements historical this to fact statements. any not that be purpose, of statements may this made call during are forward-looking For be deemed limiting plans, believes, are Without to the similar intended statements. and expressions anticipates, forward-looking identify foregoing, the expects words

update may statements. statements these news sir. result The operations in important Commission the forth the be company’s affected Old company and the materially and publicly events release. At undertakes Exchange ahead, Dominion’s actual any Mr. information, remarks, filings differ Chairman, in new Executive for statements, that no factors, cautioned by or results results a turn others, Congdon. obligation I’d morning’s among And the hereby consequently, as discussed and may time, over [Operator Please to forward-looking You’re go Instructions] Securities this to this conference whether set the to the from with the future Earl otherwise. forward-looking of opening like in

over and Chairman Good brief to than Vice for me call our Congdon, welcome by call. we’ll basis very we share Adam some questions. quarter our by glad your is of Dominion remarks, in Old David CFO. the With our be points quarter produced today reported improved per Satterfield, the a After and on conference CEO; earnings take more conference morning, and and double-digit financial operating XXX strong our XXXX, third and ratio to results operating row quarter grew third the second XX%. revenue growth,

company in Old believe that best-positioned said the the many have We before is we times LTL industry. Dominion

by a a can long-term price trends are continuing focus network optimistic we strong to our while fair service on-time fourth that our to has favorable to claims-free quarter, superior XXXX and revenue on industry delivering complete We support the continued, and in date on winning growth we With maintaining capacity market initiatives. economic growth share note. continue at

for during Before thank over third quarter, now is performance exceeded challenges the third morning, We with their in our again this David quarter. want David, recognize team once the Dominion to floor of the and I Thanks to being the greater us here for in and yet, quarter and plenty turning to team the discuss Old detail. expectations. faced

our Thanks, morning. Earl, Earl’s and good our second about employees company. of performance comments the throughout I

XX% achieved were And these and very strong we leverage cargo continuation yet favorable to to consistent family environment, of While pleased the record-breaking the it conditions. see another third ratio and of on-time execution delivery to deliver quarter OD economic continues takes X.X%. claim

with results Our financial for profile validated have years. discussed third quarter the once you we again many

and improve that a XXX growth increases produced about XX.X%. both rational. combined by remain has that? How I’m the with to third company-record operating other generated margins freight yield, improvements, included and to efficiency leverage the environment revenue pricing in continued to report operating that points basis quarter Our density of pleased ratio

offset the familiar, that fair to cost on maintained company’s consistent and As long-term, we pricing you increases strategy all are inflation. focuses have necessary a

hundredweight. manage per the This pricing. is indicator about is used most revenue yield per because Our the detail revenue talk often important and true of always hundredweight a metric we to as a business not industry metric don’t to certain pricing our

company. reducing rate that the a haul. This have revenue haul decline length and impact per quarter per in growth the profitability X.X% of management quarter, rate, in however, for typically lower weight lines, impacted on surcharges, of of Our the X.X% was those excluding fuel length process lower shipment our was by revenue yield X.X% ultimately LTL focuses the Along which increase prior weight quarters. of of for per Rising the than a and per determines a hundredweight. shipment instead profitability increased third hundredweight, individual account

in While have emphasize that want importance, its our of we to said have we times the pricing calls this philosophy. many we not changed

make start of execution the intend the has business. on to about success we and fourth thinking As of which we continue long-term focusing way quarter XXXX, the of driven our various our our plan through the elements strategic LTL

service We growth have proposition network, on-time price. and to by to our capacity, will and most equipment ability in consistently exceeding a importantly, demonstrated require customers’ fair day. people, share service who expectations every our win continued value a our focused Anticipated deliver claim-free superior continuing at investments market of our are on our

that strength growth long-term morning, confident and network detail. capacity this for continued time shareholder and now quarter your share financial can We discuss will with execution, Thanks and greater in in market additional available the Adam our combined are produce value.

Thank good in and for records revenue morning. set you, did we the like Old David, second quarter third quarter, and XXXX. of Much company new the Dominion in earnings

to the XX.X% increased million, is than XXXX, new had we record. day third our While of a less one quarter $XXX quarterly which operating revenues

Our also basis share improved to XX.X% $X.XX. per earnings to increased and diluted points operating ratio XXX XX.X%,

mentioned per shipments day with XX.X% September third as once increases LTL tons of increasing and and and respectively. to and revenue per per excluding year-over-year his a increasing X.X% shipment above the LTL X.X% tonnage a compared XXXX and Our for yield. year-over-year seasonality fuel to tons well X.X% X.X% with increased weight in hundredweight as when compared comments. LTL of to increase LTL of increased quarter day July X.X%. increased for increases normal LTL third included per the August, day LTL revenue again X.X% in surcharges, per as increased quarter growth in X.X% of nice David balance

an also day increased pace at per in revenue September. accelerated Our

between tons trended increasing of XX.X% revenue XX.X% pace last thus far increase a the with growth day. XX% to the month. XX.X% the This few quarter we mid-September, LTL those experienced of and had year-over-year beginning growth accelerated until but revenue October weeks per in between from has Our for of material with XX% in business into a increase month-to-date continued

were Salary, compared improved with as ratio cost and operating to points cost XX.X% revenue the million with benefit costs quarter improved also revenue. flow of we a totaled and anticipation required the wages were Dominion’s million million overhead this for and $XXX.X levels utilization the volume quarter first to points purchase third the for per of quarter our the in but productivity. and XXXX, release $XXX day. increase basis cash XXXX. nine in $XXX.X high the $XXX.X XXX percent for can’t superior service basis our and third when continued from variable members improvement the percent both team We increase of extremely in efforts transportation operations we operating our XXX first Our months intend X.X% of hire while have as XXXX. growth. in employees manage a Old of million our shipments in and been additional third months keep this fourth to and pace morning, enough, although for quarter Capital the of we Stated pleased our to expenditures with of of X say maintaining growth to quarter

the year. $X.X for quarter for timing of million on We capital the during first third million the $XXX X returned real and our to subject shareholders million projects; estate of certain approximately $XX.X of expect capital the the to expenditures year, total months

$XXX stock million available million $XXX repurchase stock still current under repurchases our have for program. We

as was third third for XX.X% rate quarter Our XXXX. effective the tax quarter of to for XX.X% compared the

for result effective fourth we’ll to Operator, effective time. our during this quarter rate quarter annual discrete We a tax the open this questions remarks currently morning. the changed happy Our our tax XX.X% be floor rate tax as XXXX. of items. concludes of to This the for be favorable at expect prepared

Stephens Delco [Operator from Instructions] And our question Inc. we’ll take first Brad with

David Adam. and morning overall Good

Brad. Hi

yield, more lot to price? aggressive the picture, do I that on you maybe a that share to you tonnage, market we you how think, seems should big much big is Adam. first, on number. I to, that? do the think Or you a you for touch you Dave, wanted Just tonnage Dave. I think guess, thinking too taking is about know relative question that and about but get get number like should be for October of much question price? XX.X% this network And handle? how how manage

Yes. or to tonnage we or the to turn don’t knob, to other, one said slow price/volume prices to we’ve as the way tonnage. past, down – prices lower in the try We raise to raise

right customers now. we’ve We be And our have share service – to consistent of we’re fair with market equitable on because price, we’re and geared honestly superior our winning up. ourselves gotten just with being so

I are we of geared XX.X% it. the ourselves ready and some fourth quarter. getting And number the time that put total fall see we’ve year. sure our of to was stated been drivers was last get over season first geared this people, in the – positions for we a the – we’re challenge, filling have can within count not company think continue service. huge of the the maybe we Adam, as to in up we’re And It’s open to but up, ample folks first a release on employee enough our XX% we – up earlier, got You we get mentioned next us we’ve what just them bring handle but nearly driving year. quarter and X,XXX we maintained in want into make that quarter through schools to of and it, year, next peak number release the through to on-time the done still and It’s full- our in

degree, hires up. quarter. in maybe then we guess, And When some ramp folks to the cautioned Great. the sequential one meeting quick about about think third for margins, follow- I you

In a didn’t out. that call lot you noise addition, of guys we had hurricane

historical the XQ quarter? employees think, change Should So XQ? fourth how we sequential to it you in ramping trends read on from sequential in further commentary – should margins,

Obviously operating us about basis that might we call, from in think ratio. the we quarter, costs it’s helped to revenue to second last our to with were to with with Brad, saw third hiring we we third end quarter our that that I the say. what finish a really achieve quarter. about increase a third only the of basis point up the talked basis XX quarter like the going increase normal lot increase. quarter, we the and to of that of XXX in out felt fixed in Normally, it’s and not some fourth the go hard back the a I point leverage And from point system XX acceleration think –

headcount mentioned, David our add, – still typically we that peak fourth we and but will going too. positions think probably the we’re quarter, normally working XXX set As got as about we’re not is the into through

we’re it’s upon little quarter. be fourth the of a in headcount really, where be will it dependent So volumes And do. out to adding norm the that going

be from standpoint, so share revenue the would continues seasonality We’re market to manage normal ahead a and come well see how just of into what to those we’ll just weight and us levels.

you. for will Thanks be Great. I and into back time

Citi. And our Chris question from we’ll next Wetherbee take of

morning disruptions be some of an thanks. helpful. some like a generally. I come hurricanes, you Hi, parameters guys. expense you what just any around if maybe perspective know network, weather could Good want I the back to can color give to on on put would don’t from but those look that

this Chris, honestly, had managed plan We We we’ve a Adam. is hurricanes. before to – the it.

was certainly, those were customers incurred our network of I that’s for other get deliveries And and the able haul storms where well. being general, is Southeast things month. we and of talked as up that we when revenue related middle line that goes equipment hit an Southeast total as our Harvey Gulf about And well the well overall The closed as we things to is. so our got geared Coast for a days basis and big our – and and network saw that being making within the incurred up And and of costs get and that our fact not forth, to percent about ready September, area and certainly, there were of to that latter terminals that But costs of get – that X we bit of back of of probably expedited we repositioning and back some that things to Gulf certainly, Coast we is we revenue. the some as and just revenue incurred we little doing Southeast, XX% the was pickups our but some and inefficiencies in prepare some in geared we think those. incurred to the as get our to start. part part region, impact and on those about when had on X, impact in when service a

is date, with thus in those ability growth transportation our on last get network of our was we our in of restore revenue few able purchase freight service, and month. that And to for back to reliance and track that being – the think operations, lack manage continued best-in-class think the to I within of a weeks driver acceleration far, big into October. that’s our our

all And of That’s network on just pickup do to I that, pent-up is now out. when know sort underneath that’s if there’s of of this the sort picking because of of you sort the pre-peak of are but can you demand is some demand about guys season think these inventory October, really get like this quarter. a I’m helpful. That’s that’s share I trying going just up restocking that, great. sort market into don’t of reading into that your type But of disruptions? you dynamics know you on? break to you clearly environment think some the how sense maybe Do coming of fourth feel this

hit interesting our really of solid this middle they this hurricane regions, our especially morning. into are XX being rates terms We break everywhere. And and October regions Gulf growth fourth- fifth-largest all Chris, the solid, regional Southern the I the David. XX the regions. company Coast growth among in and of right was in regions. it highest pack is the is of internally and have studying register is that

every rate have low denominator. whole one a rate good talking a I’m about growth denominator, on outbound a high the But just on has particular. – our of revenue It’s a been and not calls, in these time growth growth we’re across it’s high So so high company. we we – story see

Okay.

Okay.

That’s really helpful.

to over our Thankyou. turned we question. And next

Bank. question our from Deutsche And we’ll Amit take next from Mehrotra

job Thanks last name. that with operator good

morning Hey congrats good quarter. guys, good a on

differently. the question little a I last maybe bit, So just wanted follow-up to on

wondering the on maybe the talk you’re truckload thoughts actually talked just surge? cylinders you points volumes that Thanks. potential you’re any based some from the all of, about freight obviously, broad- sort terms So maybe traditional is spillover divers seeing. guess, at of I this year? growth businesses in but Can there recent Any maybe also further seeing of data is most recent firing drivers if what next Or least. growth You early? about and the

in of think the perhaps, there general, environment tightness into was little there that is it’s we spillover documented back that the I and industry Certainly, been in think bit freight that’s truckload that some coming and is tightening, LTL. a

of year. our did that into LTL shipment a that moved big in per in truckload increase have September. been the from We may Some have last freight weight

in X% And fact, per the weight of about that shipment In into much, shipment normal it count ahead was what our was But drove growth increase seasonality. September, growth, above slightly a August really seasonality. weight had, normal we from pretty per actually weight shipment.

in closer we that weight and increased to XXXX. the our back of to saw per some pounds that’s of – to And levels getting X,XXX in September, shipment that so some –

can little or spillover, whether it’s of quotes that getting in quotes, not in. you bit So we’re the tell a volume getting we’re not I spot

We’re seeing acceleration not an there.

that spot can business change and We’re from day. quote every actually we freight the controlling through rate, rate

business and consistent, be And not David may as type that service. good across regions. protect heavy-volume so to seeing transactional shipments of that we’re all mentioned, we LTL any make sure we’re growth our long-term But to wanting taking disruptive

tied of I to our industrial certainly, business markets. most think it’s balanced. end is And

that seeing. think. through country, But seeing revenue, the down it’s of of than growth I really when that others best-in-class be share. would market market sort supportive maybe type when think And industrial seeing we’re capacity and in I fair service takes We’ve win little would to the counts of good certainly, price we’re industrial the break we’ve And some balanced of and the to bit that we And able macroeconomic service, to network some We’re pretty share. told And be a industrial growth while you the middle regions, continue numbers, story we got the from geared long I deliver price. probably and look are retail-related think capacity. that coming anything. the supported. of but some to more a gain Midwestern And look at tightness, it at

those a So elements working perfect now are together three right harmony in singing song. beautiful and

That Can me just caught one ask Sorry. follow-up? I offguard.

Adam, do accretive people do sort on related Do your you XX% you discussions. to or quarter. know to the some stay and that melting given talked on side? to I at incremental and margins in think into really XX% level heavier the kind the year? move margin Just more, should that – fourth actually you you down. we In pricing higher think for the next of what straddling network, about as can past, you’re mix incremental a maybe that moving we adding incremental range one obviously think this which the early of on at kind to of you’ve business you’re of margins, given But follow-up that more be high surge this in longer Or of seeing the out of demand kind expect the of end midpoint could shipments melt towards towards

the they but revenue it I bit strong Yes. expected the had at September. incrementals there to XX%, I were such little that very honestly honestly thought lower, I particularly for a growth, good quarter. thought be we in

what When shipment. a than little I we our our But for on was weight in look revenue I basis, cost driving more I shipment, per-shipment revenue inflation anticipating. probably the mentioned, when originally bit came look per you as a per shipment, per us. cost at experienced that So increased favorably that’s at

can and is of talked about it quarter you’re we these initially when when quarter, employees. little volumes with growth are it – above, a we of when and that last that’s inefficiencies. and will expecting, create in have you’re bringing on fairly you’re typical And during you dealing new maybe what and the bit some dock new of employees efficiencies And some also high bringing

on that forth, improvements our and to fourth kind them some any so We at in get get we’re the to this seeing slowdown the seasonal is reality driving and normal, So of us not the continue at in see productivity slowdown point. stay we’ll will employees but allow focused quarter. trained looking is,

just it, and service. to the at continuing keep is they freight, So focus deliver managing best-in-class the on

it’s obviously, bottom So been the at range, to XX% line. and to best we on controlling it to focused nice and margins managing good staying the the can incremental our costs and see revenue putting doing quality we’ll this stay

Okay, thanks good congrats on it. quarter everyone Adam. and appreciate Thanks

Our from Morgan from Shanker question comes next Stanley. Ravi

you and that situation, have morning similar hurricane wondering, of a Thanks the everyone. this it’s the share a to strength, you Or good environment? price. to but than service of with going sense during majeure just halo has force similar that do is it the historically Not a for continue belabor post lasted while? more think how normalized? long you that caused you historically, kind on I’m gained And do focus if about that guys go back of it’s impact to think like before normal ELDs, events shippers makes to point just would kind this

think we’ve own haul. through for controlling the but managing million-dollar been line the us ultimate our internal aspects and this our keep probably That’s control operations it’s our destiny I like all we of past, repeating with and beneficial it, periods Certainly, primarily having and of question. in

is why there. transportation reliance whether network. this that’s about to and make growth. network what been on like the And We we’ve to it’s Certainly to going element when increasing contributing long-term historical limiting our factor. capacity and increased we capacity in that’s an on We’ve sure and a an the maybe periods We’re good comes network. of we our our volume somewhat invest. in in continue and factor changes focus that to we at service XX% and handle capacity, truckload a to the purchase our keep of make capacity, that’s use back not But not their through see a competitors haul investments talked XXXX service network on rate to to us accelerated for we on to subject pace, about to we’re able feel went where keep through, impact going average having in line so tightening environment and our other got similar our issues elements: we it. and in be And the to continue threee

and acceleration position our though people got sure changes. for the board quality kept And focused invest started destined this finally, to equipment when access accelerated continue that on make get that place. that with that seeing drivers was to in dealt We And growth. continue the on year, to you’ve fleet that’s we is them the in be to going on we’re there, workforce had to We and we and what to maintain growth bring operational to get in capacity. sold program And be and we equipment some to the and got the stay there quarter, to We with to certainly, able last training third XXXX. accommodate some drivers, trying had we’ve make back our in then quarter, good the side. to off going hire

the broader That’s environment right competitor that helpful. kind your expand But if of to Northeast. now, characterization you also in especially of

Given in good of pretty is the tight environment, kind it shape?

shape? Are good Northeast in

broad environment, Northeast, yes. the competitor especially Just

and we think is in of I serves existence region Northeast. impacted that by any entrants new the being into certainly the one carries that are one not by of our it in – It the we’re of fact, largest our revenue, is, best market.

a are of being XXX number of miles with trucks new or lastly, something just XXX we And launched helpful. Very electric seeing range. like

soon. truck, is electric I something version think Daimler else Tesla heavy-duty to just showed and launch of a supposed us

do and line these for EV to see Before them trucks operations? use trucks, you delivery haul pickup long-distance heavy-duty become potential

we something be say will Until trucks. going and early that an electric wait see not the in thing. marketplace, would see whole to improvement I concrete, we’re on of we adopter

Thank you

comes question Buckingham our And Research Matthew Brooklier Group. from next from

may you and have you perspective? Thanks much areas network question bit, ask add, my service to utilization are think a capacity talk how the to where equipment side either potential Where could think now? talked you more you Adam, to center I’m the Maybe the guess it morning. but is right anyways. I from you to good I question full little going the on freight handle do side. over the right how is And or months? next XX now

Matt, this is David.

up equipment equipment our getting we next I orders for on September, be capacity, October, to of in and in people regard. as that and Adam But that have yard say business try that’s pretty we capacity, And hiring were said in near our we there. equipment and our is strong far – this think, would As were people network with quarter, and the XX% we’re with damn the levels and in and to we’re why In week third XXX% earlier, XXX% do. we maintain space, the et And cetera. last tying. strong stated as year capacity. build so to – in capacity we’re I we’re big XX% But doors we’re excess able to we what network, our

through just to that, going We’re – add Matt. to

for we more ahead And service try process into always we the a ones develop the as we service others. when we stay than through we our And do, and to be go pressure plan. next those door begin look at developing to that – that anticipated CapEx couple ready getting but that years centers and centers of for year may early plan growth year. looking a have growth of through out going addressing a curve. curve, next will We’re And

you’re to to have Okay. And this September? to maybe, if increase. a case I’m talk increase through think Employees. that the to here. curious if the just to And Good pay magnitude historically, your hear of you’ve pushed then I was able wage the problem

we gave September. We average of every increase Yes. beginning the an give X% typically, increases of Xst basically September of our year. But

time. Okay appreciate the

Todd our comes KeyBanc question from next Markets. And Fowler Capital from

good morning. Great, thank

comments the headcount. on on Just the

think anticipated where are? getting the where continuing chase kind think the With how as next and you staffed shipment how are up into that planning And year, be quarter, would do with shipments then about go growth in of your you’d levels of what about is be what to quarter to and down from the move anticipate the some which you first Or a a the part bit what into headcount to headcount in you growth ramp standpoint, first you’d on we your fourth efficiencies? as little continue do slowed get we currently ‘XX?

The need little a add bit are to positions that we both. of

up with trailing versus a increase were in We’re average. was still We increase per the our headcount. little bit X.X% X.X% in shipments day, that and

are September finished probably year. the of end X.X% over of at at we where the about at look you September, we quarter, If last

to positions a And have about we’ve to into we we get ourselves levels quarter. another one, So XXX good We add. the freight mentioned, that to as today. want manage the during third got I XXX added probably spot,

purchase into are will individual how sales that’s customers little and our freight in opportunities what day essentially to XXXX network we’ll service year. by start and take a the we’ll eliminate our just their to haul transposition making and staffing to comments, day need and we’d have and as their local personnel can hiring it that put if polling manager I generally that we prepared their as next go mentioned people then their manage equipment. out looking in and our they the And continue markets ourselves of to staff. know our what of – And level. and use They my bit center building opportunities through line be we We with like our at plan. will the decisions We’re how freight be, out we forecast

is? And, up a where be labor makes so Adam, it difficult has Or is count is availability the that the the quickly it that been with standpoint? fact shipment business it to growing caught just

into what to year, came quarter, be. were off first and growth. – pretty modest of trends And we revenue were we about even coming we this we the cautiously are had remember, When the going last optimistic seeing in year some

the think And the the employees people want get we’re that improvements a and on some retain and few be to said, experienced culture a a board head bringing hit give playing bringing also our made get want our and training but deliver people we’ve package. little pretty attract through. a our help immediately. it program catch-up We’ve time, the made certainly, benefits class We’ve to David to on as using some way little well but that have year breathe bit that our the to I so new the existing right others, mentioned probably we’ve And to that as us, benefits may be we the as drivers, think we our been streets best-in- increase. where will wage got a employees, in great – package takes well. spirit I side, service. into driver a connected, as get tires. then the spots a and and bit And really heart finding through, But family out tighter nice than in OD around country I got balance employees only all wage X% of not and of make – we we’re someone driver also buy and bringing that obviously can live sure we’ve we

with making the pushing sure to appropriately staffed So growth. deal going we’re volume that we’re keep and to

Okay.

quick a Just follow-up.

a – last the some is I of working OR we the you adjusting from year Christmas you or to compare holidays. usually of I how should on a when an holidays timing But maybe fall the this are do fourth quarter, think there not saying about about the about quarter good the you with And impact year, year? days fourth again, for guys this think it’s not when – pretty Monday on For in progression think know holidays? it the

probably much – don’t I you at the We Friday, I don’t how that’s a this is day honest. stronger Friday. we for the was the too the last make Friday when to quarter generally too of heads little for think know. XXth. year a quarter the be been I tails, mean, an much, month annual mean, or I XXth. of that year end year, don’t look and have of this days and Friday fell, been Last they’ve perspective, the make bit because a our the But

yes Okay, the today. nice okay for understood thanks lot quarter time

comes Landry question of Allison next from Credit Suisse. Our

morning Good taking question. for my thanks

switch maybe topic gears to to of a e-commerce. So the just little

don’t a rapid least starting a from know the I to the their seeing know, the I little Of at but on And whether sort LTL large the continues that that fulfillment LTL? appear mortars term you we’ve course, centers centers, and logistics of strategies, But Are new long basically Amazon, guys build you successful example. out compete building out play could of et a something And you seems located to all basically about facilities we various news and – marketplace? for shift next their if that shifting maybe seen with probably that over Amazon came to whether distribution ways at third-party sellers warehouse. then an online see midterm that brick near at Is of the cetera. that sort think term. or term stores it’s opportunity out taking couple weeks or think too have short comment ago any – in that a into for is of of that’s of some impacting that to to FedEx, Amazon’s out

we first things, of couple to deliver – Well, all, of homes now. Allison. The

We centers. that And business, we the maybe uptick of home and a do – across that, – rapidly, deliveries, centers, see large plays service companies but very a to they multiple we our want distribution part little that, all And of claim-free their business service inventory as not accurate, an serving our we big to their centers centers have that in that, centers that hands these in kind those believe from gone But country, our fulfillment fast, And centers. so to it’s fulfillment think LTL liftgate fulfillment fulfillment business. equipment into shifts need we have into from LTL. of turn truckload the well. multiple if

should do and well that to the degree, So e-tailers. to do a good we service

about mentioned statistics any really what any their you – providers. comment taking I don’t on as As have I Amazon logistics, far their over don’t that. have

of like you retailers sort seeing anything for or Okay. Are any that? any you approach collaborative initiatives

we I and mean, e-commerce manage obviously, struggling are with retailers have. We but product retail And business. many own of their delivery, kind

big Nothing way. in

That’s right.

monthly I’m for yield tonnage I not provide guys guess But sure you I Okay. apologize. so missed numbers and the the I did this, quarter? if

year-over-year? the or want like, monthly, You sequential

Either.

per For day ton tonnage yield. or and

a day that’s August per up September. basis; X.X% tons XX.X% year-over-year up The on for and was for July, X.X% in Yes. up and

sequential. the And

X.X%. when was and pretty the a material shipments, X.X%. it that mentioned to shipments And drove of that negative much this the July was step-up for weight for It increase per that just plus average had part with shipment average X.X%. long- I then In big most normal XX-year August, line term average at long-term was and that sequential, the versus was that And change. we The was and the seasonality in X.X%, what down in in We before, talked weight the up about. September, you being per being look were weight is that shipment. quarter. compares a positive was X.X% X.X%, what I think It

got Okay you. excellent thank it,

question And comes our Stifel. next Ross from from David

that or noncontract to on freight much bad come in you’re they want do terms gains. customers it to have decision to that business, tight just customers use managing [indiscernible] in pricing share because allow truckload Dominion into do the I maybe what ask But don’t think little OR, with and you you when making How to inflow Not environment, of bit with moved, freight too don’t the any here a might extra market a existing versus you process? deal you customers potential new more Old give network? what’s your

how talk LTL’s relationship really on And it. is about we it’s a case-by-case we always Dave, manage business. basis

them to of have how account at doing see capacity manage And help good and good supply make way want we’re jeopardizing not service accounts. we any in we and so or been we in look that long-term the sure and ways, can. chains the And can it we that provide measure if certainly, their accounts. right find we any they’re and look some But to that other the capacity struggling

willing truckload to way. coming some with business think they it’s find to year, to we’re a weight that Whereas of shipments this of or was it’s It’s world, saw in of we that us. where the fluctuation the But is we’ve in last see got environment And some the doing where accounts that it it’s XPL varies. little we fluctuation. And And the the a And year, some shipment. that customer I a by that, case looser, freight all that the managed were seeing well. some XPL business like some smaller in and were contracts that carriers with, do truckload and per the we some as multi-stops. some with case everything have and relationship little decreases perhaps anything, – back take able right was

you. Thank

comes from next question Seidl Our from Cowen. Jason

you in going for where the covered the I marketplace? don’t you quarter? And truckload in see pricing think Real this. But where is it tightness do quickly guys. the given you’ve contractual

go account going revenue target over XXXX to excluding X% a a the – increase. hundredweight, the and to but that, back increases. X% And has per X% too, is little to target our still still fuel, We commentary, by averaged David’s we back account, when you

that’s and to that’s price customers. look our And philosophy buy certainly, we’ve manage fair with our what want and philosophy and got our OR we and we pricing consistent at accounts, is. so objectives that and be how is And we

that We’re getting markets what that we we focus When we’ve not just current to thing need, are the continue on those but going marketplace are operating, increases is. the the on side. we to consistent flip [indiscernible] same accounts manage do when got certain

And are technology got good you you invest us. tools willing to that so that’s capacity if the and give need demanding a where the the from in they’re to – you that relationship, accounts information increases

to need appropriate we’ve and to so. continue to up yield So we’ll we an all got and front go invest do

with – like argue this, philosophy. your Given your pricing given doubt quarters people I will

Wolfe from Group Scott from comes question Research next Our

the So, you did Adam, shipment you the give for give fuel, for revenue weight ex October? did October? for And per hundredweight, increase per –

I for trying on really give yield any about to talked we’ve yield metrics. not focus And the monthly October. didn’t

weight per up closely. just for But I I October, month trending down between and and day LTL up revenue is drilling is XX.X% to said think XX.X%. XX%, it’s too date that our actual

that that, as going And the managing mix significant customer see can We the with it’s operating that there. is shipment putting you and of got to And you when it’s was think. we revenue, increases our some per the what yield haul good we weight So length all up, get to and I accounts. at still hundredweight mean, gave can we I And as the yield per margins guess our locations. kind changes third forth, that’s quarter, changes, But that kind is saw. I had finish especially taken a you ratio. freight if compressed to bit of point. so what but of about had incremental clear and in what And I mid-quarter revenue update you’ve make we’re back on into in and and change.

weight what’s October? And Okay. per up in shipment

Weight X.X%. per shipment

see did sequentially September that Okay. from continue to And October? you increase to

per it about X,XXX I our back been bit. a in still was shipment were the August. at sometime. Decreased there still I wasn’t to we’ve September, month, little little flattish pull the basically a so this little much see pulled bit. it’s weight so mean, get bit. normally per people is September out X,XXX, And pound pounds finish weight kind it We which were surprising July for weight averaging a X,XXX back in shipment. in it’s basically increased it when mentioned October’s we X,XXX, and little to range typically, But that a way and of

So see, to a long how nice thing stays that see above is pounds it there. that and X,XXX we’ll increase

thumb a for Okay, you X there how on rule helpful. much good operating in quarter? margin of day costs Is the less

operating is XX%, break of per about ratio trending, I cost. days an kind you these you day ratio to what when – to operating our we variable down typically at our when XX% with XX% talked closer mean, operating XX% think how the about revenue that’s and

or use can out of margin X contribution less you of what be. day X to metrics kind would the those that So extra figure

Or turn accelerate here right just maybe of better. negative environment the you the doesn’t truckload question, because LTL changing, environment philosophy pricing then when but past that from getting question environment not the do do understand negative last didn’t couple to better? now you should your back And years? go that is I pricing truckload Okay. is LTL because getting pricing truckload broader I turned pricing want think apply about pricing to the think

increase, mean, bit starting We’ve I pricing that to to think we’re think that the that they’re that we’ll we’re experiencing said needs and accounts. is from of increases some getting that’s that – industry see customers I of year. see I this long a with feedback little And other

of the and up to continue And where improve for process. ways they so a rates. market But I bid increase carriers other increase. margins that’s to margins are, look at opening think would to you industry be their one the when easiest

raise X% share. more, to carriers stick with when if get more we’ll is we’ll accelerates thought X%, and your pricing even industry pricing But that’s but Okay. other

has been that the many years. formula for used we’ve That

Okay. you Perfect guys Thank appreciated.

Our next Ariel of question from Bank comes America. Rosa from

wanted Hey, good start. morning guys to nice quarter. I

truck during just an us broadly fleet any update age give quarter your the and could you if status views just the on looks of used the sales what question, on like equipment market. First the and

it The year. fleet age, years, we we finished I our anticipated get last go necessarily and younger. year that the would through X.X fleet update age don’t at as had we But

we’ve before, in equipment to the mentioned of planning operations. some had were to sell, the we’ve keep year, had growth I As this we with that that though,

our we pre-’XX where year, cost, experiencing we the I of a equipment, multiple this CapEx lot years entered think we to the of are take engine mile. primarily but changes cost that some mentioned we Now replacement was per going equipment, operating for were while increased out

kept the we’ve in units So those fleet.

We’re dispose evaluate are orders, our truck exposure we year, don’t and get trying But be needs of what those our as we mentioned, a for older XX we’re and through units our what when continuing those fleet. really them, at of David to looking our at growth. and there. putting market, some in in to replacement We go operate as like we’ll next fleet will used would units. and older really big out And have of use scrap so to they’re equipment years, value X, regards the we to

wanted helpful. a And that’s just little a I bit guess, I to ask, I question. – Okay, more of philosophical

favorable up Do ends it cyclicality benign experienced. a cyclical and some was factor? you guys Looking found of that was something to because other what you – than that XXXX of kind Or more far or the carriers than kind your just think one-off some moves kind been is can the like impact seems way being maintain? – Have guys at a business, XXXX operate other it downturns? so you in years other or of that that certainly a kind will you trough if of a mitigated made lot year, have of benign is it more where you’ve of

when can gets processes the year, our control at. and considering down-cycles. We pretty on cycles. business, good operate good how do we it’s But costs, last all what you control, principles through measurement a sure flat darn tough. the your managing periods real getting did we good quite true and Not think year have strong core through about periods systems we But going staying and was. to you’re and weak best well the And

more your in effect going that don’t you guys and downturn. David, are between well past? extent fixed versus downturn might think that benign downturn do ability. cost if was than the maybe manage downturns guys think there the following kind I if those in cycle, you what you be wondering cost might that for more are been the it’s be up To was with you the mitigated I’m of of the exceptionally be did Yes, – future to or variable agreeing there, Well, through I actually I on know the balances worth that.

withstand anyone else. operating cyclical mostly it’s mitigated think lot I We whole than downturn by better can a low ratio. a XXs a

Okay. That’s all for thank you.

are for are this to remarks. over call appears I it would no for back closing turn like to At Mr. Congdon questions. Earl there time, closing the And further

Well, we appreciate thank you today, your all questions. for participation and your we

great if have call free feel give You you further. please ones. anything had And some a us to

have thanks So and again, day. great a

This for participation. Thank your concludes conference. today’s you

You disconnect. may now