Old Dominion Freight Line (ODFL) 25 Apr 192019 Q1 Earnings call transcript

Good morning, and welcome to the First Quarter 2019 Conference Call for Old Dominion Freight Line. Today’s call is being recorded and will be available for replay beginning today and through May 3, 2019 by dialing (719) 457-0820. The replay passcode is 9602170. The replay of the webcast may also be accessed for 30 days 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

results statements these morning’s set important Exchange are statements, results be affected discussed in Commission Securities news and Old consequently, company new Dominion’s and and differ a otherwise. may or statements. to from that factors, the result events cautioned the by operations The in actual others this undertakes publicly among release. hereby materially And forward-looking may You’re the update whether in that forth of the obligation no filings future any with information, forward-looking as

note, time welcome but we the cooperation. Mr. final this returning a for President Please to to We your all, you thank the begin, Chief to a we At over in ahead, sir. queue. ask, time, go I Gantt. you a limit before at Officer, opening Executive before would today, just the questions and that call yourself to fairness company’s turn like Greg your for to of questions remarks, couple As

glad revenue strong quarter quarter X.X% a and take morning, Satterfield, another call be net financial With today remarks, your in Good our brief delivered XXXX is questions. and increase team of CFO. our welcome to a income. and in me performance, to will increase first we Adam call. OD conference on the operating After XX.X% producing some

quarter at beginning of than our expectation of the growth double-digit of quarters was Following the seven straight revenue, in our rate from lower first slightly year. the increases

basis And yields to and by points ratio responded XX.X%. XXX as improved improving cost. team Our our result, operating a our managing our

our ability you OD plan that place First superior successful ratio on results of our relationships the service have we is as to years. by provide for family many This built quarter quarter. has as evidenced in our These strategic our in demonstrate on know, with centered all claims execution built financial relationships X.X% plan on-time first team’s and been the are proven service cargo XX% our customers. performance and and trust our

We service, focus our win ability foundation on providing to will provides yields. market the continue continue which and superior to improve for share to

with fact have that in the supporting pricing improvement both operating often macroeconomic environment and in our initiatives. improvements the these yield, discussed ratio a ongoing We our density requires positive and

anticipated far While our remain of our economic volumes than so have general feedback we domestic based this customers. economy cautiously well lower optimistic year, on indicators been many – the from favorable slightly low as as on

discipline. environment, are pricing evidence by their stability the seen general We encouraged although competitors of also losing overall we have some of recently the

quarter per the as increased due revenue in hundred was Our during our shipment in of first LTL per shipment the to increase compared per the XXXX, increased to changes although to cost quarter. of of our a portion LTL X.X% first the revenue increase freight. offset X.X% mix this

offset capacity customers’ to the providing while also ongoing our and inflationary These in cost investments and to capacity designed supporting Our is support technology employees, efficiency, also increases, us yield help management philosophy operating our investments our while improve technology. our needs.

Our growth long-term is investment achieving capacity initiatives. ongoing service our in to critical also center

assets regardless of to economic continue We invest center the environment. in service

current planned recently reduced respond with shipment fleet to to about our match network the favorable so, similar immediately in tractors however, XXXX in and for to XXXX. capacity doing $XX provides our better demand, We we us expenditures million, experienced As what changes with trends. to

was that labor the volume appropriate the earnings for call quarter our cost our business process third from continued our trends. We regular of XXXX and is also workforce that we the on believe continue We to matching anticipated stated case. of current with size levels have of

year. the X% XXXX, the our do at the OD compared through XX, the second than employees as increased X.X% the quarter not first the first of see our quarter as XX, convergence full-time XXXX a expect during to and and major entire of day we change performance was in – shipments XXXX, during We of their the September for team average lower employees that anticipate overall progress drove of XXXX. results. headcount number in number changes year-over-year headcount per our command While to quarter any at the of I March headcount full-time

of continued and superior of the for spite quarter. challenges Our that productivity in operational improved service the level first are typical

are now results financial a over for service and Adam continued first to profitability. we growth of an share our have this continue at start will fair market providing discuss for remain off customer opportunities the unmatched shareholder and revenue our year value confident to Thanks solid price, quarter in superior long-term detail. in proposition We in to the joining With us of win ability and and value. morning, greater a increase

less and the first revenue our improvement and Greg, to per increase quarter was quarter X.X% operating growth increase revenue revenue first XXXX. allows quarter driven LTL by than share revenue us as increased first earnings per to for Thank quarter increase to to in ratio point X.X%, basis the in LTL X.X% decreased good Combination of as our of The revenue day $XXX.X the in The the XXX Old last $X.XX. tons by per our on hundredweight compared growth per the a diluted XX.X% first as Dominion’s quarter. the you, of the XXXX of had year. day basis workday morning. million for one was X.X%

quarter, day our LTL during weight While the shipments increased shipment X%. per per decreased X.X%

in shipments year. first discussed were sequential per have we this for weight LTL and of of we both As the decrease both below couple a per over for seasonality. the tons shipment LTL per day quarters, day the trend expect half On a basis, past normal

day compared to of compared the per the our tons quarter day and average below as are increase to as holding to X.X% our per XXXX, decreased April, or of shipments their LTL also XX-year the decrease average volumes LTL decreased is XX-year yield trend seasonality of X.X%. steady. normal trending X.X% X.X% As compared fourth

per our included process is earnings the XX-Q. the result, in our first the when than we the April revenue trending lower we include Easter our we provide a will details call, quarter growth of Form file day actual Similar revenue described April was impact does XXXX. for our As growth of holiday, rate. on previous which to in that March XXXX related

both XX.X%, overhead XX and improvement percent percent and delivery quarter. basis point operating improvement in XXX Salaries, labor. were a as costs operations and wages Our our benefits included included pleased our and first direct quarter operating of to ratio improved expenses a the points a dock revenue. points as revenue basis We related and to see during improvements our XXX our productive of basis to productivity pickup in improved the of

load laden is average an is line-haul in per but decline, typical environment shipment weight factor fairly that declining. where unfortunately Our

investments Our costs aggregate in revenue overhead our of XX costs point the improved to the technology. as a depreciation basis capacity and in significant despite as due percent increase well,

the remainder expenditures $XX.X be were shareholders, our to for depreciation increase of be and the on to Dominion’s flow expect Old expenditures equipment to million quarter operations of the of million. capital of center and first cash totaled as during cost capital in plan $XX.X service a on this first to XXXX continue as XXXX. well We year-over-year $XX.X our repurchases continue capacity capital from a million year. regular dividends. replacement $XXX higher revenue of million to are our Based million for percent as to cycle, for cash including expected million basis returned quarter, $XX.X approximately We’ve $XXX.X share

rate rate the this quarter in the quarter This of to We floor Operator, quarter happy our open compared to for annual was our we’ll anticipate morning. tax at remarks of for effective last effective first be XX.X% for Our to prepared this XXXX. as be currently time. the questions the second concludes first year. XX.X% XX.X% tax

Fowler KeyBanc And first Markets. you. [Operator go our from Capital Please ahead. Todd with take Instructions] Thank question we’ll

Thanks. Great. seeing, is more color kind how you second maybe you’re thoughts quarter? your a and the pricing little provide recently. your you Greg, seen just some prepared that incremental it in of Good around impact through of what comments, on bit you’ve everyone. the widespread morning, competition commented Can that

see starting to our We’re with some it larger just accounts. of

business but were We’re not we lanes, losing accounts, we’re losing because maybe certain outpriced.

seen point, but we’re So, prior seeing aggression It’s some. widespread we just we seeing this years. at are have that not some not in

of So I last little more a but story, than the think used that tell we years. been have will over aggression seen couple we’ve better time

more it of than Okay. players broad-based And concentrated a is is handful that? specific that kind of with or

this – any is it it’s carrier Broad-based. stretch, Broad-based, just broad-based. there We’ve Todd. a seen not specific by – is

Okay.

just in trading is shipper of may published their just little lower Some the has too what of have in that freight out another some a the a business we the book change seen past from in been sense allocated perhaps, to, of carrier maybe that we’ve of behavior rate.

someone all dropping and a part in it’s not So it’s – coming of as bid that cost process.

in we best-in-class transportation them last at that some that We I to, related service think, we referring had proposition by some the to still so believe have that’s to out of things cases, what year coming some costs, cost seen to shippers that our but we’re experienced save but and increases and provide. multiple allows ways try to giving value other and looking are do

started impact into to be progress first of we’ll maintained continuing to our back weight year. second changing increase the changed now shipment quarter we progress this asked see then we’re definitely quarter, the last And the and it half to were hold that’s focused through our still of the significantly mix about got as time, what We we and on pleased you the continuing steady. that on. about see right April. second as yield and year, we some per train that’s the So as the quarter the was through And is

would mix and of our with revenue expect we’re increases slight now impact accounts. from renewals, per weight will normal of seeing the in reported just through So freight from increases and decrease the seen that running a shipment. same second kind in revenue standpoint just then decreases per hundredweight with the what that the that have that a true as per sequential half we more in that we see the year won’t it go of be hundredweight we’ve And big that contractual really what second quarter with we the converge

Okay.

that the just yield first the comment, quarter, comment sequentially the in quarter second the versus I’m that decrease that is Sorry, is you’re expecting trying is? the to what absolute understand reported

through frankly now Right. And that increase right saw may first about go a target April, it’s I’m accounts. just changing expect we’re we just as we our steady we in get continue pricing I not cost anyway don’t base where holding and would quarter saying decrease, the mean increases the philosophy for to our slightly, always compress and certainly X.X% to a in that with but

like they your of productivity understanding in then going be really what Understood. normalized are the at yield overhead. some you’re getting follow-up what And my just both growth, Can helps the lower about your with some In improvements, or kind second that incrementals? comments you also the sounds a thoughts labor tonnage density and question. are and margins dock, on and made this as environment, range forward? the It incremental

is you environment where how an in tonnage slower? about do think incremental Thanks. a margins little bit So

incrementals don’t seen and we’ve incremental as got margin, similar quarter to why we’re little the business been environment past This the taking for we’ve is that, been manage strong. few but often the really revenue out to targeting cost think quarters the in we a we where say first managing the past, certainly business have the the I that’s of the we’ve bit, long-term. slowing

But range, the we’ll got incremental where comes as to cost to to makes to plan short when continue progress certainly it the when margin something revenue at growth. cost So our million through looking an with and sense certainly up XX% margin, plus growth that – a got of solid costs depreciation to to target in the been with first that’s though to you we’ve increase, have got been and to $XX doing quarter to you’re run type sufficient to that changes incremental we especially have year. $X have and between you’ve what and get respect have it we’ve revenue the make million that quarter-over-quarter like have to

the said never the we’ve XX%. that or and XX% to goal, over XX% talk continue margin right So was long-term about we

into – been. then bit, the kind a convergence of little And our what has so, perhaps, term to – growth this goal that slows revenue back number longer

the makes that pass along. Okay, it for sense. time. Thanks I’ll

Ross with our take next go ahead. David from Stifel. Please question We’ll

morning, gentlemen. Yes. Good

Dave. Hey,

Hey, Dave.

the it’s to of service to looking expanding into capacity, availability? are real continue you in any in whether issues So terms or center yet, estate running cost

David, but we over we either the property or year we’ve needed full country successful or somewhat our with been challenges hands properties it. had all last where land finding in really,

So it pretty continuing see feel what where X the what right of, good and over with of right continuing centers hopefully, developed we’ve got our to we opening now. that for Really XX and working buy in future I and we and shape good somewhere good on. couple land we’re we’re plan and that year, need years as we’re we now we between the last this on we’re about growth. are

continue think good in we’re to on. think I We got We ready. just we’re spot. a

the you generally in you want identified do sites locations if or guess, they’re what, available I them? And have not plan the Yes. the

most They’re Yes, in the cases have and most identified have land. identified we all we and bought. of we cases have needs in where all

We this time. are the diligence all and due on and all that that working with goes at permitting

that executing plan. we’re So,

or away, Adam, then, much quickly but you driven? necessarily thinking channel but contributor an people quarter, button share certain I going going a pressure customer, to bit have a XPLs maybe, don’t to XPL that the want not the are and that’s not maybe in away And good. is with how decent lanes, about the some you’re when pressing any market is the know XPLs they’re outsized little rate amount call of going this pricing talking accounts That’s I guys where of on lanes switching? and some

had, XPL accounts first our We’re with did positive actually and of said and we about talk the of when originating feedback in why that trends that’s with XPL. we the some lot demand seeing with growth a customer we’ve related that or good conversations is we’ve the quarter

feel think constraint, comes and believe lanes from the times primarily both So going I save maybe business from you’ve I it on service overall real it we many business it price us also comes try their we certainly to it capacity and get a back lose away, I accounts that before. capacity be on some to back that just on And think costs. getting but standpoint, could maybe – to industry’s sometimes out of down continue feedback the when and road, may many national on we back on the it we’re back cases, service our comes to so where when see played many internal accounts that the customers. estate we could of it’s the played years, comes our like has and it just be it of about at month pressures capacity, sense oftentimes got call we’ve out a service always and, have can and feedback right got we we’ll to seeing trailing this quarter on end lose of of to a some back and or equipment some the level where doesn’t customers and a and business, cost and bit given some to but a are peak somewhat certainly little And help and again, a price where get a to of and end we’re may comes on us times in when we over little equipment a transportation some larger little don’t that give price But it where looking mean, makes of try we give. lose

you. Thank Excellent.

next Please Credit question take our Suisse. we’ll go with And Allison ahead. Landry from Instructions] [Operator

morning. Thanks. Good

mean, other on think are here? So how role if the about do a things from in any terms day playing some is as that in commentary bit April standpoint? the some and or I’m are seasonally that trying of into I incremental factors feeling macro pricing as trends maybe think comments think far to weaker, transitory there do revenue a per goes, you sort there competition a trends these to below mean, of I way little read you normal is the

now and, don’t some don’t industrial back related of lot we particular, think to sense right for to positive us, believe that’s I conversation the given lot that positive. of continue to the in do will are or that they of think what we of and be with businesses in gets of their business I macroeconomic assume be trends customers numbers have And the year. continued it’s a just weakness this that the a review amount

of yes, freight carriers you out weakness. But, a think different haven’t necessarily like any some cost coming their a large cost, in first given freight. the their just history based that seen just just to pressures service little it weakness But back anything given players that we looking and maybe, trying and so generate in other why, pricing changes to, don’t often that’s some that are go increased some and industry, anyone within just when are, some cost into some due come major targeting quarter, so So an and go may savings have some I of to may the at times get is business about, cost in really try expect think time. that has that’s center, – different may out that been structure networks done bit the of capacity are to causing levels where back that’s get I would we’d we on some to our feel some past

Okay.

at day macro some like what’s primarily is more driving is of lane that the what customers, going on normal revenue so than example? below these some issues, shifts like trends, for think seasonally bigger per sounds it So you the with

I industry you also, think into take got truckload the you in that’s the out account to Allison, now. there capacity

some of and we now last kind capacity there that the is there hard year to exactly put your is know our time in on to got So wasn’t this where that’s but it’s network, and be impact having quite case. finger it

a of That So to headwind little back we capacity up. with is a deal just time got bit too.

sort modest up any And of is indicative is length haul, the Okay. kind of two underlying the there last ticked – like driving some to Thank Anything of there of the type it’s then terms you. of quarters. that three looks is it slightly that’s year-over-year for of in increase trends? or unusual

going don’t that’s very anything few more I could of a just It’s be and a share in little we’ve those inter-regional a think network major and the beauty product. regional, there’s on some miles national longer-haul lanes and there. bit is our got up of service we’re that winning high-quality

still if we’ll that moving And of believe and of so, service more of share see will. incremental the bit network, we offering, it’s probably may you But those our within haul of have in lanes. little longer-term a freight up regional that picked just our high-quality some because longer-haul length shorten we

you. Thank Excellent. Okay.

our Citigroup. next from go Please with Chris Wetherbee question take We’ll ahead.

not a a Hey. maybe quarter, see little you sounds Thanks, as move a you here, or far expect seasonality like April seasonal into perspective obviously and you’d if in better to just see start something good to the sense on trends May. along we’re more we’re from it as first a meaningful morning, into to guys. necessarily and either wanted this to touch seeing tonnage rebound moving wanted I bit get

if move of out a positively could Just that seasonality you you the how curious reflect that expect a quarter? see bit would tonnage second of through of get sense you typical and to kind as play more to sort

also other moved at shutdown. there the like impact just a first trend that It’s the with nice first quarter kind in we month we and of felt effects that out of that certainly see snowstorms bit hoped revenue to normal pretty then part had we kind we few the a weather quarter that with this some play had the was the little governmental growth end through out. started the of and January we’d yes, different That’s and, unusual in early depress and of

quarter was below got of of of as March, quarter progressing increase. deep end X%, we when hole build us seasonal there So hard in you’d January, of on we a we the sort and would normally normal just March basis, good normal kind we that like was a the there but of what first with through see and up couple month of back finished down in get months. into noise see results. sequential break, And we through the our was pattern January. out a see was for a is, itself we progress to lot bit the felt started like to some X.X% The normally little such is a those

picking up lot to be. last But for hope was see strength some would planning. a things in the seasonality slower we start we’d again February then of on the consistent. Obviously, out So been but and slightly plan month got quarter, to it we’ve –not than the the from are saw just end, But of above have terms growth deals revenue the pretty normal just a year. below, with first back started April we we’re in the beginning in revenue what spring season and the what certainly seen way it’s

very talking of kind growth coming of on that curve of, about got XX% with intently, continued. cost the and and that We’re a year late ahead looking we and last focusing at year I think labor the fall we off started sense has in

helpful what continue we So results just more a bit certainly at that’s coming a produced slower growth good look and environment if continue certainly to look in revenue to, now. in it’s little we’ve and a get past it’d more but revenue and little the we’ll could to be now we’ll cost

Okay.

color. great Now, that’s

continue about the the dynamics, get of, the to the is of When sort would long get see need interesting shorter-term to, a tonnage addition maybe, there take what standpoint? the want or to need CapEx to sort about think would bit opportunity sense capacity to gas how piece, CapEx off maybe, foot side, you to OpEx take over you capital of of from the a certainly decide some dial to sense your sustain In thinking run you growth. to sensitize to of an to approach to, that you a expansion of Just back slower guys that? little for you and the the of significantly plan trying worst see Just a build expansion? sort to

Well, the primarily we sense looking of at the it on in the what’s pull apart short-term equipment capacity that’s needs and front.

And the so, about the balance and to made with as we of through trends trends we monitor continue quarter the progress just what keeping first $XX to fleet are. budget cut out somewhat decision the current in and that’s million tractor

So that’s normal this the one. year anticipated We on if also for. that is be volumes we we process would what can have would – with stronger replaced our this than number equipment and what are

be, need that You they’re softer, than rid if a And equipment get otherwise can would maybe sooner we done. of longer. some we replacement of hold if little what onto it have

help things and driving so, try through if those process And we’re to continuing go we but technology call. the you think Otherwise, or equipment us investing process efficiency on impact, can on that investments we ultimately will that in driving from and help depreciation to the make the it’s will, whether to manage automation side, that the and tools piece. is us improvement,

really estate go biggest investments was year we had we’ll when we may our save, time think budget I to in projects, complete, what those longer every then and gets but we conversations how may we built we the And to not and we take door we’ll to is of got these in material a belief what is the we we the to been it need though XXXX. the piece that do. that again. continue and take can statement make grow XXXX income certainly in you’ve company. you continue had spend terms in these then the wouldn’t because spend investments capacity on to these XXXX, of and to that continue grow don’t need own that long-term the And environment what certainly we they to like invest like assets, to slowing, since are but not that’s have the now And So to the way real in we and up it back but there able capacity did impact

to important center place now openings we do that the in go be the some may defer what and certainly and with service it’s those some along overhead So assets will we get of of the and cases that costs can prevent some that in openings.

believe be capacity that’ll So place the business one certainly when to we surge and to play. bit want can books. level service in on long-term have we to that cost the again. capacity product market of a little coming way that our We can a the continue differ But we is win share with

that’s Okay, color. great

the million that $XXX $XXX tractor, $XX that clarify for to difference is Just what from million, the is million that is? to the the tractor, the the that delta

that? repeat you can sorry, I’m

$XXX the million, which expense gave tractor quarter I from capital the you $XXX reduction The $XX is on of tractors, to expenditures? last on think spending us million that – difference million the the

It is.

helpful. that’s Okay,

clarify Thank that. to wanted you much. very Just

Sure.

And Ariel we’ll take ahead. our Rosa Merrill go from next Bank question Lynch. with America Please of

Good Hey. Adam. Greg, morning,

but release, it quickly, claims the get, the think if I know I know really missed the press usually quarter? provide just I and on-time quarter. missed that, ratio but I it what I to this deliveries for the was you wanted in don’t First, cargo

the It there in XX% – and was slightly above service was above was XX%, on-time the X.X%. claims ratio

okay. Got it,

quarters. consistent pretty So past with

Yes.

could different this from XX% we kind to step if of deteriorate to pricing a it range slightly your bit ability revert an to wanted of question that if are conditions the from just pricing So competition the maybe back in ratio about little competition discuss see or they operating talk Maybe a what’s and maintain up angle. you currently? where

points I and for look the and on a line. XX was revenue depreciation and how on the you in year XXXX we’ve to basis past have the think us we flat is was performed that it year at OR all what lost

in bit to per got things we but a what on and more places for lose the earnings. certainly a headwind look sight a cost managing to the And makes run company and trends slows, like can and volume by despite But end manage standpoint, exactly we well We in XX% of to with that general, in labor about grow lose day first we up above in still day discipline. depreciation, profits by points and us sense growth XXX through and want to spending of the so if continuously our first – the long-term our short the That’s from quarter the overhead, improved the the we’ve had may certainly little with in the don’t at the fact ratio that at up it as to of and some and And we is we’re company. do, process is a that’s as the basis operating just we’ll for a costs the in of discretionary the we growth. eliminate. it for our day quarter then we long-term go produced basis that profitable improved maintain causes continue creep pricing this shipment at little the that statement because labor and set try goal we go and minute, revenue income minute down certainly fact

somewhat mentioned That you then, it. industry the capacity And that see constrained. you Adam, makes sense. is being Got

you the Just you mean see specifically wanted expansion? that to you little capacity give a more what to color on and as maybe could what see constraint if there

service primarily the main of is at of number share center public carriers day of one you’ve is carriers shipments the side. lot investments we the a competitors. go long a that’s number why reason in least, center shipments time, can The per that’s today the think capacity believe seen through outside concentrated there And haven’t the the handling yesteryear. day how in the of the that on I many over been our service consolidation at run and two just that, over over reason larger significant review per which looking market you years. and versus us And of in one openings

with investing not be profit grow able and make to then those capacity the significant digit takes it making business margins, of industry that probably still may investments that’s with we’ve why and not So to sense in an mid-single investments. always any door operating seen capacity measure

necessarily So our grow. spare hear good ability and talk about. others generate feel don’t about our capacity to it’s of that something measure and we We

of I got we’re center think it but our probably XX% in where the on network, the service spare to XX% comes the the range to that’s probably to we closer capacity that still end quarter when scale about some of that XX% the to made year, given now. this last of year up softness investments we’ve that first through this and of range probably and that last the will back lower-end

place. in So about of us. that’s adding thing keep a the like XX% to a if keep recall, measure for to that’s because, capacity, want good to And you we we why

to that certainly if capacity in returns for in us, system continues when business. growth So we that feel for to the and the setup measure having designed better the regard increase

great That’s answer. a Thanks for the it. color Got there.

And from with we’ll Mehrotra question ahead. our take go Bank. Amit Please next Deutsche

Thanks, everybody. operator. Hi,

on Just price the expanding commentary. surprisingly

to goes to XXXX pricing just memory breakdown as of want big this compare well. very and recession held back obviously around that XXXX, make performance, misunderstanding any point said similar everyone’s because we contrast in XXXX in at was you a XXXX, I’m XXXX the guess in earlier, your see had I comment. or time? timeframe, just and pretty you not small your Adam, severity well pricing up industry breakdown a industrial as but and So Did sure I

XXXX, much a saw the selective of pretty competitiveness increased that half was first year. bit and it and pretty – the we think rationalized the little end the of think I I by

always in into certainly it don’t that mentioned broad-based anything broad-based much panic. from but the both customers support revenue completely expect our to only customers the being we to there, that’s the we’re And a so, just manage the some help an But that it there – strength first that should have demand our but us, nothing our to to and about saw ongoing lot then, well and to your cost technological in the and why cost want increase and capacity at approach we would talking get both now. certainly per second and that cost with help need we it but still we’re see as investments cost spending and we’re that very out see we to continue approach per increases hundredweight that’s well this that’s cause that and certainly investments and It’s based can starting quarter, our tools intend consistency as in a believe on maintain broad-based to continue that’s and same inflation quarter, have too well. can that’s based the not of point on We our time that us nice as and revenue air that of deliver it on as shipment is asked eliminate wasn’t customers it.

this but more price as sensitive structure related Yes. it competitiveness, environment, better about more that, – there? more maybe it goes specific to bifurcation have or customer-driven price look fixed economy cost to is down maybe that pocket way it heightened I carrier-driven and or guess customers price is to customer-driven? more to of or the – And any more they the guess volume a it, phrase trade and expansion or maybe plans is I just related pockets to it piece think hand-in-hand,

been there taken what just the we because away we’re in some they of shop, what seeing seeing get I that’s opportunistic. rates take. the – think we’re environment from we’re seeing and business is think weren’t some and Competitors cases that decrease favorable the customers willing us. our that’s to lower crept It’s that’s to

places far. seen It’s far, early and more Adam of there, So years. past But, the that’s just we’ve like it’s it’s still so than and couple seen we’ve what so it’s said, broad-based, not that in here game where a see we’ll the but few goes.

about Okay. have costs Adam, given one would took on housekeeping I one a for upward me. the of you The fringe just salaries, some wages and the benefits step pressure of that, in should the from it did the mean, that to a to talk manage just and year-over-year just think compensation what bring a I down benefits you year imagine employee? we out it per called you Can quarter how down than bigger per employee, – quarter. rest about the from last

basis Yes. labor from had. XX I a productive overall standpoint, was improvement that that that we that points of mentioned about

for have with expense with a was in guess of we the the that rebound retirement looking we’ve the going versus best how a hours, of and process working pretty can able plan the through close planned process or on a the ratio. we’ve benefit general, we XXXX that’s share able and and, at a an about some first that’s that’s some fringe a $X.X through been first quarter of really why undertook cases and first quarter fewer that operating and of it in to had, last needs Our and we’ve evaluating ongoing that otherwise we so and costs, similar of but maybe were expense and quarter additions phantom the continues. that manage reason costs thing year. big did where just XXXX that in deferring to where produce evaluating those been last the produce were positions, and we recorded some program less it’s maybe was that But I year, increase year million of last we’re in just But in program Actually had we’ve going late

to manage day. what and stay got always times bad in times cost that’s in we good and every focused on You’ve certainly

my it. Got for appreciate taking questions. it. Thanks I

our Please take Group from Scott next ahead. with question We’ll Research. Wolfe go

morning, Hey, thanks. guys. Good

Scott. Good morning,

Good morning.

doing? day if can but is per presume give number, if don’t I March tonnage talk the us sort on I you if then what give there? can actually you you can can know And negative, got say is of Adam, And I tonnage then the April is April directionally that. you still revenue it just

– down the the you up give March X.X% year-over-year on shipment and day was I’ll X.X% were on a basis. a basis was year-over-year per weight

last April, for what talked very similar to quarter’s And we so, on about call.

about conversation finished going to and is then wait a are to versus having We the numbers that reconcile full interim until numbers. final how month

the through where just publish April. But, out quarter So with averaged increase, first they over in details. X.X% once month, we’ve we’ll a what we shipments little in the flattened seen get is those directionally,

so second the increases are getting accounts we’re that seeing through through a we we quarter carrying first year I hold going type May that kind but of little where account-by-account first year, some progress intend effective of the on the saw in would into still earlier, of this increase compress the we’re number will compression bit that would the we changing with prior-year on of certainly good each the related and to and an same at that looking And to earlier the hundredweight driven. our that’s was push to the you so to how I little that mix we the yield quarter some steady for answer for turning of in increase the and quarter stay did was become that over, how versus will the just mean, through really past. little a bit, gave on, last it basis per the what’s actual that’s produced that accelerating revenue rate compression, we bit really and successful trend, and operating generate for caused what continue a account was as we’re been just and was But to that focused as that’s managing revenue just number general in the growth with help, us in ratio continuing of said June expect. quarter, you increase slight just is

share just And to these of renewals, can you right maybe, things tracking now? pricing your put Okay. competitive some they’re what context, in pricing where

level of about type cost certainly, but it’s we that detail, pricing. talked base that give it’s don’t We the fact

of basis, has up the excluding think what above long-term and we had X.X% Our our exact year. fuel, between the what this the call, becomes that were targeted, I and over about inflation, somewhere have to when and there something the again, that you’ve a of pace, top It that cost – talked I over was achieve think quarter that XXX but this capital cost, about inflation, we the And, and years there we we excluding to obviously for changed. line on takes wouldn’t in to first basis and delta in to going is be stay to yield able support growth last forward. of to network few that X.X% point then on are we grow be to to we’ve talk be the the have per XX going is capable but it, add-on into been we got about XX time. inflation continue this, cost cost shipment And expectation can last the the got revenue our range fuel, think the terms we these cover certainly our achieve able growth have hadn’t make to about the the done we we If expenditures. investments contribution wouldn’t also that from and we still to level

is competitive at of XX are now? of environment you’re points to you’re get of what terms risk Or to right able still XXX real that is basis that seeing in the you that in sort that the market pricing, put talking And now? about,

we last accounts to we pressure particular – we underperforming and account to that the year level on been increases accounts staggered on increases and profitability or on get account-by-account management last manage we year, maybe talked I felt on a basis. have our back been the account We’ve XXXX. rate first they think this in pretty the quarter may successful And in were have faced we about goes may we’ve getting some needed. to the Last like able our of year with back more

those this some of lot embedded X.X% increase in but that in than level metrics conversations with of they terms nice some we’re I’d obviously that to mix customers get our the cost-driven just this be what them capacity, the table the we having it’s relationship-based that I of service are still with a types in terms asked in increases of it environment what conversations based change and conversation now successful the so the on the that some that’s continuation rather the account, increases a able easier So are But we’re that year was those, what type can last on sitting to like. is about what commodity. in can the very down facing being of embedded – across the and we were is environment year basis more with we’ve addressed seeing and give are hundredweight technology what increases of there. we give year and a just we been of the just from far account are last of and think have

Okay. just And then last one.

one So, talked in we around? XXXX, sort this when is we dynamic, this different all time pricing about it talked carrier, of of about sort last

been a decrease but the we in that places aggressive quarter to talked anything selective – focused offset one this in the see in X% results that’s been and I progress is anything particular and either. certainly as what on impact their just one particular – if release what just not as person maybe we’ve in produce Because it’s or price, on point certain about it’s it’s area, from to person improvement for the aggressive, going X% in I it’s at out not very and being and I’ll we’ll overly line so the one places profitability typically more the bottom not standpoint. takes think other say in carriers couple second that’s that volumes like players is. past quarter, specific are this, definitely it’s Greg of just driving think slightly said, a of

So volume want the we that price not for run the something played certainly long not and has play. out gain over to

guys. you, Thank Okay.

next Please our question Morgan take with We’ll is Stanley. Shanker go Ravi ahead. from

wasn’t pricing the up following also you on clarify. confirmed competition I was earlier the broad-based think just it’s but saying important certain understand I that later this, in it but topic I customers? that this said restricted was broad-based. or/and Thanks. here, it to for is just just only players a multiple Good you in to us few players, Adam, you that morning, you guys. help think certain not but think on with and then this regions call you Apologies Can also are said

I It’s broad-based, not not region, I if apologize it just it’s pervasive. that’s particular said – something it’s any but it in maybe is not carriers. incorrectly, I few

kind there and and few – been I but that and here not of everywhere they it… it’s everyone, just is a it’s meaning Here it not say one and

accounts. Selected

Yes.

Certain accounts, broad-based accounts. not all over

accounts. certain Just

usually with the this, disciplined going is snowballs right industry nipped you the this that And starts before it. now that mean of got it enough is do your in to Okay, how this think bud? it kind be or experience I

where it and something our go environment. play and that was I be – out a think won’t back that XXXX that slower to will belief

if the have been been that approach that been in in more difference aggressive revenue operating and belief the belief would have decade wars look there healthier proving, an price when our is a our you a you When setup may consolidated when ratio then margin that mid-single with when but industry I back you’ve that’s at last top got of digit so other with very pricing. it’s pricing the especially that constrained, really not disciplined it’s go time had position is XX% more in forth with to players players Our now can industry lead over and support you results that’s multiple a has now still little in improvement. financially, the carriers capacity think in range you that or getting XX a and a industry’s multiple that

so, discounting the the out. like end the we of any deep macro environment still certainly positive, expect is play at day, still to see kind not is growing. still And to positive. or anything would or And of broad-based that is environment GDP the

information information positive. consumer still industrial think positive, I is is still

the the we’ve is their overall we’ve got still still growing with customers conversations anticipating are that customers, had and good backdrop macroeconomic So businesses. that

just on maybe of revenue bit volumes so So trends is the impact seen now of the go everything fill curve weather, fail I and so up a had what measure positive have think, whatever overall there’s people to behind a of some seeking and with from out that that we’re quarter, before. lot backdrop and and standpoint forth the and first in about perhaps, discussion capacity may you’ve is little

lanes some at get and looking lanes. freight they’re to so, And certain in trying those

what sure seeing next the it’s see not weeks, any of see and other something couple are of anyway. expect discounting we that in not to in that We’re guess would massive certainly some but the kind we’ll of players in I

now? Understood. I That’s apologies really is this, helpful. I give what – just finally, capacity did if your right you missed excess but

the Closer to the still kind the now. XX% range to ballpark, XX% to but XX% now, XX% closer of probably in

Got capacity, to it. if additional dimension on, to investments, discretionary you all of your it’s back that stuff, a OR so And whether it’s whether were can it, much that or just pull stack like, approximately? how we add will growth your

planning our real – back If we we’re estate. were to on pull pulling not back on

the world the apart a fell in let’s I know, much if in mean, your like how kind I of can – you we that dimension say I’m months, mean, but now? have right six were just next so you just defensive, OR just I – cushion that

to give any color going on We’re not that.

real is it little OR line look Much you the overall OR we from then in XX a had look be anticipate sort when going be. and let trends, you’re go is based quarter. I’ll will the plan and the out just impact your for that obviously top in obviously, that there of of the depreciation think impact you and increases going where there year through what what’s basis at dollar to forecast revenue CapEx the for if points how but the first a the a – does, standpoint of you we’ve – I is from of on headwind, rest to bit figure see

Got you. it. Thank

with Matt go Research take our Brooklier from And we’ll ahead. next Group. Buckingham Please question

can I This the about is curious revenue was talk for floating? because about things, or difficulty weather got make how of in the just freezing of Brooklier. on expenses. if claims Kyle and and management in the Hi. potential maybe weather next Robinson the the coming any question Matt quarter up but fleet expenses you guys it We’ll impacted the – of side some I insurance

of cargo three from the Our pretty X.X% insurance call typically That’s items X.X% somewhere around just two consistent to averages Those revenue, so quarter to line of that’s claims year. delta, it ratio claims quarters between and in that line first have our which include we it X.X%. and forth. every X% we talk that’s about generally for that then truck auto just call X.X% a X.X% and the the

an annual true so And the have of every And an consistent. actuarial in year, quarter through that’s where pretty process. then fourth we up we go

So there the that shouldn’t the the we be in first they we material low claims through anticipate thinking progress ratio as quarters wouldn’t changes all-time have to cargo year, as change any of the like three of been. continue way certainly material any with levels manage

I color. Great. the appreciate Thank you.

go And we’ll ahead. Ben Baird. Please our from with next take question Hartford

capital of this morning, maintain guys. an past improved, we years, cash business Adam, Hey. the is debt to built are acceleration in cash or any free did there low, couple level the see Good has reason balance net could returns. of over levels balances cash

that about cash thinking you management are how strategy? Just

of we and levels debt balance we carriers in in advantage an we continue with that’s take that the estate and generate we’ll to se significant have those any But discussed accelerate. any that don’t past, to side, the look present. build flow may at to priority to a some couple of kind going opportunities other of continue be what certainly sell that or present if necessarily been of capital One, that us, want the for as to and real themselves, And our cash have and might opportunities certainly cash is look facing different sales may properties strength, position earlier of other could first on needs opportunity obviously investing be Well, always goal ways. to we’ve on – sheet. opportunities like the per

so properties longer list I that got some a over terminal the or looking out a where we center areas XX think about need still of we’ve term, point. at think service we

price something for certainly dollars that something if that’s this from when stepped where there our little into to going and out purchases increased we a that then the I want the shareholders quarter, fourth share available advantage year can capital from fits we buyback look of then we’d certainly increase, be, becomes we go more given take program bit standpoint, And so we’d dividend in in And return bill and think back the opportunity. declined. and the the we When that a up standpoint. you and to

And and some and up step that so, we buy think the fluctuates, type that’s to is be that something do. just continue something general has price mentality purchases may that the But certainly can monitor of more to certainly that we we’ll continue going in and as we those past I our of program that price lower forward. when share the been in

per an of Is going average to way cost is remaining? could about different, each you center what XX build there average there a but new you to one know that the is think I have to center cost share? the be per service that is service

vary centers service much all the the where all building that The variances. different cost big you the place averages not is to from typically that But place themselves have land average to place, of doesn’t from it’s place.

Right. cost there a of develop is rule average, about? property, there the total that a And think then to can is thumb an we

We’ve got…

the Including Including land. the land.

rather able in we we’d cost, Greg is, there of but that level as cost that a rather that’s cost the sort of per share not Kansas in starting land the a we’ve have land out not will it’s And the the investments service and more facility, talked We’d Northeast, target Those area, said. variance but the West and embedded significant. it of in of while to of our Northeast. we’re cost particular, and LA defined and properties in LA There there. in in to and And markets grow a is an the particular, that property have takes center dollars, the biggest cost, to general to may many and cases years is targeted that’s have available be what variable, we’ve suitable got need door you time available location can a the move to where – land versus about see detail, into. and long is the be find to biggest tens and you what The it some of give take cost. the cost two and millions the same location is before a

curve, that why to for. areas those try those of so to that’s [indiscernible] upfront in particularly California, growth stay ahead our stay So metro in far areas areas, out are the we definitely got land, we

certainly don’t your and to growth up ends want network factor happen. becoming Your limiting a that we

last the changed continuing share one, all And or to organically strongly Understood. LTL? the penetrate is around still at acquisitions very emphasis perspective in your

continue top our our in share. certainly and that’s top To this priority grow our our That’s invest to continue to sales our – is share, priority grow to at point.

Okay. That’s helpful. Thank you.

you. Thank

go And Group Research. our from with we’ll next ahead. Wolfe take Please Scott question

all Thank I’m guys. Hey, you. set.

questions. And turn back Gantt conference the remarks. to further for closing no there Greg are I’ll

great for today. day. a please feel have and Thank you I your We anything if to a us participation your further. free all appreciate have hope Thanks, questions, give call you and you all