Old Dominion Freight Line (ODFL) 22 Apr 212021 Q1 Earnings call transcript

Greetings. And welcome to the First Quarter 2021 Conference Call for Old Dominion Freight Line. Today's call is being recorded and will be available for replay beginning today and through April 30, 2021 by dialing 719-457-0820. The replay passcode is 7623805. The replay of the webcast may also be accessed for 30 days at the company's website. expected contain Litigation within including Reform others, Old may the meaning statements, call performance. regarding Securities operating Private Act Dominion's conference forward-looking the statements of among This and financial of XXXX,

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

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

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

take welcome today we After And remarks, your to quarter some call. call CFO. to is be morning. Good our the first questions. glad will me Satterfield, conference With our Adam on brief

Dominion. great start report to XXXX to pleased a for are Old We

the momentum operating per The for first diluted from economy. quarter results through the of quarter financial by operating were in and and we earnings benefited Our and domestic began half also continued revenue, improving second ratio XXXX share. records highlighted that new

flat revenue going two growth $X.X the of highest revenue highest our have rate the to in XX.X% years, an revenue and since commitment to After without years level us XXXX maintained future. a was relatively plan times We result, fourth and billion we through increase long essentially ever our for flattish our revenue during strategic unusually quarterly XXXX, of growth. term to those achieved. was also the that our our Our as quarter and go past which is long was invested over period for XXXX. two

Our first benefits validate results quarter financial this the long strategy. of term

capacity largest the has now strong, We which in plan is Our worked see our domestic market economy cycles. and generally is strategic industry economic throughout limited. increases we generally This when the operating. many are is in share environment

recently of We have received feedback the this demand our ongoing of for these increased customers our recovery encouraging services. business from levels many of their and also regarding business,

share a see as through expect result, to we our in a we market year. this progress As trends acceleration continued

Our focus revenues. is never to simply increase market share and

to as well density, revenue an to We hire year during which XX% already that a new intend quarter the the Our increase of first market workforce. time led full of our cost revenue with starts at to capacity is support environment earnings produce increase this best-in-class our intend exceeded this quarter. growth as all invest deliver employees This ratio XXXX our way quarter, initiatives. and inflation our year achieve significantly OD family the share. to employees, further additional in the operating in share to first a can volumes, XX.X% improving resulting over we in to of in per diluted favorable operating The in trends and to the by increase as grew employees ability win capacity service price goal in growth. to fair objective our We this that profitable contributed for improvement in increase yield the elements

and could all In include capital that total addition, four well expenditures service center six an superior new additional team's support XXXX. of during million network to service tractors our an $XXX investing as This to centers. includes in ability our by we trailers, service approximately as deliver expansion

also current capacity, strength for business. our Thank are us network invest focus This to Adam XXXX. financial our growth in not available We market win to on combined ability our team increased new industry this our provides year continue the This produce in growth of the and value. designed that will plan, of additional increase in service for improve the cost to and operation. and strategic we confidence to that first with maximize our and long capacity the our shareholder joining with affect over opportunities best LTL in the share both are execution technologies however, position and the OD in to the greater environment be detail. diligent can financial our will And will earnings efficiency productivity, in in profitable We diligence, believe term customer company produce us discuss long term. continued quarter morning. will this you results now, managing

having Greg, Old of the first less for and revenue morning. XXXX good was XX.X% work was from $X.X day. prior year which quarter the Thank Dominion's increase one a despite billion, you,

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

revenue LTL a Our nice revenue LTL in included mix increases increased increased our day X.X%. LTL XX.X% while our both of per yield. and tons per per hundredweight of XX%, growth day tons

demand has share market is service industry domestic the as our winning economy improving. are We leading while increased for

a of growth has marketplace. This service and cargo In addition investing proven a advantage capacity ahead center our with the performance to term further within which our and different by of number large past long excess ahead in that the network, our year competitors, is service many we we currently operated to growth. to in of strategy capacity believe XX% of has includes for carriers service anticipated ratio network over plan center our the our We also advantage line with provided us expand time average as XX the strategy LTL of other targets approximately X.X%, XX% decreased on claims our centers this service is stay years. have capacity of and our

with is quarter network fourth sequential the growth. quarter limiting tons plan never Our X.X% of LTL increasing from to X.X% increased revenue the XXXX the and The January, in for during February to basis, per increase monthly X.X% quarter LTL X.X% first follows; as X.X%. were increase increasing shipments February. ensure which declined is X.X% per are increase versus March per the factor December, day The as decreased compared day February, compared sequential January, a in On day first as a XX.X% XX-year and as increase in to day that of changes respective our for above January sequential compared X.X% an of March. average with an fourth tons and an These typically our trends, all in the X.X% per were increased quarter. to change LTL months of normal

there still remained strong. that in April, revenue workdays While many remain our are performance has

XX% has compared Our April increased month to-date per to XXXX. revenue of by when approximately XX% day to

XX.X% significant impact in a our the April shutdowns. the to due of related COVID As revenue XXXX, reminder, decreased

details form related revenue XX-Q. actual April first for the provide will in We our quarter

percent operating improvements XX.X% quarter and of both cost improved direct ratio our as with revenue. in overhead operating to Our a first cost

our improvement yield, to an in how that have before many by The the these or and term factors supported success. density said strength generally which macro of important operating ratio requires are improvement a quarter economic long We of reflect our both favorable first environment. times are results

Our hour and number direct costs benefited lost our from in shipments common line-haul significant a the per during quarter. We accelerate that an is and add on little a dock. new average productivity laden-load we levels delivery of business improvement the up when pick employees. But

would employees trailers is important our we to line-haul platform productivity like maximize to we damage. free in safety believe our improved, efficiency, from to while While employee protecting these properly see for also more it load

As second trends Greg as employees mentioned, our to will quarter add platform continue drivers we volume the to during accelerate. continue and

team the successfully workforce growth. a growth. support capacity continue purchase as quarter to We a can by also will during first percent cost our anticipated leveraging our our improved use revenue revenue We supplement the of overhead to until primarily of our transportation

certain to quarter expected of that As the our started fourth mentioned XXXX were increase. because pandemic in have calls reduced call, and on

to these many of travel levels. calls back While such pre-pandemic as completely are entertainment and not customer

expect that be costs in will overhead there increases We this sequential aggregate year.

flow We and program million to accelerated from the $XX repurchase that The center service inflation will operations repurchase and maintain $XXX minimize during first our million $XXX cash capital $XXX.X and includes discretionary areas. capital spending dividends anticipate share our this however, disciplined quarter. controlling approach amount utilize expansion were to make paid in repurchase total attributable our share to first share be projects. year, for executed Dominion's first million We We $XX.X and an to expenditures $XXX million. the Old currently was which expenditures for quarter approximately the million during $XXX for total quarter. other effort includes every cost agreement million million

August the delivery than occur end shares total a no of will shares. of Agreement, Our first later repurchased initial of quarter shares year. outstanding this and the final reflects of under this calculation

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

go comes the [Operator from take question. Instructions] it this We will from Please At ahead. time Atkins Jack Stevens. first

and quarter, Good great morning on Great. you. Thank congrats a guys.

Thanks, Jack.

if done the with know, maybe isn't yet. April. we can so I start So, And just month

the talk year, are So in both it XX-Q to of this you're what specific perspective abnormal The seeing was. relative know to happening a because picture April you're off March? seeing year, of possible and it last would -- to versus just be around on maybe what the want March comparisons, But seasonality? what from hold sequentially and maybe Can out. sequentially I year-over-year kind tonnage comments how normal obviously, you you and comes talk Adam, would to strong bigger April March relative shipment about and was until

on of of and to shipments throughout trends sense been the types have the more a the that seeing on basis versus strength continued -- the patterns will, seeing had with and following But details shipments just the basis, if has the followed you strengthens trending then and hard was gets in XX.X% X.X% incredibly some strong intra XX% tonnage heavy We've forth. into been that performance We nevertheless, little in And and because shipment a month at obviously in unusual, February. we average. or the up increase, XX-year it's per it and per acceleration weight month, we April revenue, so our business. then then are same And day, get that normal XX% that earlier the overall that the not at March, tonnage weakness our end. in comparison of was and been that to wider in way suggests the saw our

there, to see much revenue And So little bit that But standpoint. probably, math from a what just the way with that a work. recovery perform that pretty then number. line helps continuing I think in the we'd support expect sequential of we're

As such April, in little unusual. last mentioned, and we to shipments a per and are through the you the had late and March year, weight look year-over-year going weights increase shipment. an Whereas

continued yield, it's bit. off I quarter contributing in really strong But coming So that's the will look really in we'd excellent performing that above. the and see profitable quality, obviously revenue first a to contributing well, shipments of performance, to that's all force. They're to through think growth all and and and strong revenue certainly tonnage, things whether throw

it is. Absolutely. Absolutely

to hear hearing guess actually latent value We're that's then, the to highly from have public in constrained, that steps your they're I give maybe and LTLs, your private, mentioned taking XX% you from that a broader new capacity you chance this a taking trends. question think market. that would comments, bigger volume given both And potentially, follow customers. So number picture in great demonstrate they're the guys capacity And the the going in to they're you customers. your is to of to And proposition, April what's happening network, that given to on their prepared limit a up. I in really

those handling base? two you're to how your So factors? customer balancing in this balance you constrained you I guess, the sure surging approach that about environment base thinking your volumes, also How do the are but are making perhaps existing of needs using expand a between customer capacity opportunity

Jack, market is competitors and strong, grow like about as our you know, we've was always the ability today. our it talked to when outgrow

I the of capacity that. We're evidence not think we're seeing So definitely constrained.

increase made XX and it's tremendous capacity we've off think investments, XX in last the to I or paying our years particularly for. obviously

think today. From have unique call very volumes, a very had I volumes that. So, when is want the as of we limiting in not positive the whatever a constricting do you it turns it, or as market and to we're position to positive standpoint

some where to them shipments otherwise But keep our steam out of constraint. hire to some type those full have truckload. that more coming strong, have back truckload trying shipments We types we're and we're those workforce meet way and capacity -- It's in But of capacity add ahead had our March stronger the not demands. more today. limited much to limit than so we we're to

was wish forward far does. And a good it would in But so I we're having little all things it quicker we're moving position it than happen sometimes a go. success. bit and

for Greg, guys. comments. Right, Appreciate Adam, thanks the it,

We'll next our Instructions] from [Operator question. Mehrotra take go from ahead. Bank. Deutsche Amit Please comes It

Thanks. actually in you're acceleration tonnage and yields, And understand that holding just sequential as on levels, April, to to Or think to yield seeing over level, question of at that of a been and about pricing. I the great levels, yield I'm quarter. shipment in well. I these shipment to inflect Greg Congrats, kind accelerate? it's attribution these If growth seeing the you're the Adam, at is the quarters. just because to getting reason meaningfully more declining when from asked high I if trying OpEx last Partly, X% to per has this to because X% couple growth trying understand, assume, back closer and

So up? shipment when prospectively are yields moves per just higher talk you think as And growth from OpEx to about here? get back yields, moving shipment needs where

to to well. around numbers The conversation a per in look been trending yield pound unusual we've average Yes. our range. is now going just little pounds.. XXXX about had was as we XXXX year weight similar April, shipment volume. They're Last And the

to So pretty in we similar what continue a March we're meaningful as and see, going that experienced well. to if drop, things

with obviously can revenue big So the a shipment, impact in a you has decrease on per that hundredweight. per favorable weight

fuel in And big there. so got when was a dropped that significantly. year we've April inflection Not mention to the last

fuel a the going we're So have from to bigger contribution surcharge as well.

revenue we're certainly per and from hundredweight. saw improvement at revenue type saw shipment management doesn't quarter metrics they've well. a tell process. on sales pricing continuous really couple teams, worked a the process of that that's years, our each improvement into one our profitability, think numbers well. of at fruit may And And bearing second I focused in all looking in go And shipment. story per and that a length weight higher make our got quarter transition we per higher haul our standpoint. our that in revenue ratios. on double that's be yield might that focuses digit You look first customers well. over shipment seeing and those when last a both And as And improvement the continuous we And to operating as increase the nice the necessarily certainly on team, per you individual how account benefited and sure pure of as We've from yield hard that and that into

at normal were from going everyone's comparison that sequential in on So, pure of XQ that know from number. first quarter be models it's hundredweight probably to I per sequential basis just a and to transition more revenue typically, that looking Look revenue see, drive basis we $XX in mix to if at on X.X% a an XQ is about it constant. XQ XQ. per increase from the And field, And at look excluding XQ. average right held hundredweight we if you

in there you increase, the per well that as you the cost operating shipment per with to been growth has focus term the tools $X.XX always shipment and if continue from if certainly the in beginning productivity, OpEx just benefiting keep But The asked and the strong keep to investments and through creating so that long But of another on $X.XX a costs sequential But hundredweight will, decrease to did customers, continue that just our we balance our like that and suggest investments is so to structure metric were top check going So year, shipment, plan at a core and excluding on to per in business. in about first profit kind leverage revenue support significantly we revenue having shipment would sort per that's rely structure you in we're there. our benefiting initiatives. right essentially fuel. technology, improve from on this inflation of well. the leverage And, us our performance X% and shipment see yield mentioned, expecting, behalf as ongoing our cost As delta and productivity, versus without making mentioned we're positive we as of forth. can performance we're our We're It can quarter. pricing of to the now, line increase now and can having right cost benefiting cost completely we per help of capacity lower, the that in we to X.X%.

that was well. Yes. And OR do XQ? assume expect has quite as see in But strong. quarter well. guys And a to step down -- expect do strong as I a from XQ first step been you pricing usually you'll

sequential thoughts of from the XQ? to progression any in kind OR XQ around So

largest quarter Typically, the revenue where is performance the biggest certainly. first. It's increase quarter we the versus the day that's typically quarter It's in mean, XX% per get second I Yes. well. revenue up the see in we sequential where the as improvement.

that leverage so And base creates existing on opportunity for that us. so, and forth cost

of So to And range in job been basis quarters But some for improved we that the -- performed aligned to if kind XXX look the we some went nice increased quarter. produce in points. have as year, three our to always stars as our the we to changes productivity the operating continue have increases well and expect see growth on We've improvement a progression categories That we'll -- and But we've XXX kind us. done what we've to to mentioned good look the improvement aggregate had some overhead well certainly, that certainly, to all had you is. focus profitable our at expect last and that the cost a continue is in any or starting get the given costs. leveraging can. We we're of first this at normal have ratio quarter much sequential year. costs would now, And it, of revenue that we in very initiatives. in our we with trying transitioned as will in stay second our

in Some we that focused put produce keep we're and right dock, the our bit mainly focused to going quarter, is operation can. we start on hire lost on on little the productivity of now. we growth much into And employees as the a But productivity. trying continue as where end them running the to best-in-class, on new of at of you extremely to little seeing day, can focus saw as But service there. secondary smooth metrics like we're making a first keeping our profitable on we're that, operation. productivity sure headwind we Certainly, the

implied so impressive. seasonality guys. it. in Low Thanks the by OR quarter would Appreciate again. Yes. pretty much, be Congrats second XXs

comes question Please Suisse. ahead. from from Credit Allison next Our Landry go

and Greg Adam. morning, Good Thanks.

I last now its the So wanted the about mean, sort I the to you're and for just haul few haul. length been quarters, of at longest increasing of ask

five think so. I back you'd go years have to or

some the I'm understand to of an mainly this would just you this e-commerce understand. cyclicality? think shift or maybe in that? kind And curious Or dynamic? freight shift, or attribute market is underlying So of the trying you secular if to you Just do something your like function to think view, a there's

underlying and of big will a and of many business that for growth. COVID probably change. little seen with we've XX will a more is quality, of improvement business. have growth necessarily picture changes on that across the now, West impact we it. high our probably our still bit would our medium the of with balanced like we I market But all haul coming regional continue share feel more shorten in months, certainly over And out big haul West long very in of length past associated freight lot the really, out there's haul just the think business, say, The don't that to business. a I of saw a a periods the and times contractual since haul the right regions, mix our of length And very will have but our longer see

with So think seen long believe we've we'd continued we that's tremendous tailwind those we expect when to probably the been and continue causing down with probably growth term that length back it. and increase share exist there. see But pull uptick. haul freight, little shift about to lanes and regional market a of that e-commerce And that

Okay.

mixed characterize down right driven. Is time way to length haul over that more comes now of just it? be and So that then fair? the probably and Is

Exactly.

can speak where the expectations wage your that inflation and where front, And just, to it called there? as Thank behind even more conditions the having meet you're of falling or workers, mean, -- Or difficult finding want in hiring? terms far you as to and are then you've you. upswing you past for be guys on maybe everyone's it warehouse broader I are cyclical And I you that. guys you just that? obviously, challenges hiring plan drivers dock seen Okay. able than labor is sort if in to capacity of tight mean,

years definitely would past. bit earlier, sometimes been it's say But happen would I Like a I I job little it adding little and mentioned has does. having it We're the we're nice success. Allison, we're getting more a in wish it a In we difficult fairs having we're run that, we're, But ads where needed. having where like are whatever, locations or success. things than than quicker we response. when And significant a a to Adam -- April pretty XX% year. it quickly Still, had needs we're needs. down be wish quicker. as a were business. it last significant success the increase, again, that's in uptick mentioned, little pretty at difficulty about meeting the our And coming I having meeting as in XX% was We've business business as the uptick you. is talking is

So, we're I on which But I to think We challenge. it on just the that's the get again, focused be to think stay I we'll have doing board, confident well. and able folks do. feel

limit do I us that not think So, going forward. will

we X.X%. wage was or X% gave to on standpoint, effects year. of would all core the We part September that of to inflation And we're labor -- X% was that. overall seeing That of the inflation not last X.X%. expect in probably, that increase And in our of

it talked we progress fourth was number quarter. this at we see decline hoping the where the continuing coming second the until So on level. And and And same this the point, that through amount in as use we're transportation, pretty that the are standpoint. of we it's in though, But staying as much September just same seeing range about, that to quarter. year inflation pure stayed at purchase to

to this to be. bit just anticipated gearing be will with to complete would where handle PTE really half, [ph] it the But second we the everything sourced that's using keep workforce the on be XXXX. see still and up later team we'll But decrease growth just supplement, for the may to we're needs like be be our not that in workforce getting where So in a the it probably, in year. but able and but goal to we really until for little expect only year, preparing really position

great. you. That's That's Thank very Okay. helpful.

from It Citi. Chris Wetherbee from We'll the take Please next question. ahead. go comes

you thanks. little the Maybe sort overall I of Can bit some right just efforts the a keep out Hey, pricing morning, renewals. coming in? pick on the are pricing business obviously, that's Good on you side. want But know some contractual strong guys. of a Where the environment up network. guys truckload talk of now. freight to to making

kind how numbers if us So a trending? of are give bit just those you little of curious color,

Yes. That was initial how a process. because increase we're in But would to that coming cost inflation many probably a And years, long right trended over we target with we've XX of my per consistent our XXX an term over we've averaged revenue response. consistent had long we've want be where points. And our X.X%. is winded in in to shipment basis about of and

through may costs the an capacity And got management for then we profitability. strong from standpoint, opportunity So, we've certainly demand to that demand this, us. certainly accounts with those how when a be environment you've try more operating account focuses from think when on you've In we about allocate work individual as performing a to got yield those accounts process got may that best not the ratio be like asking capacity.

much and and the more again, year-in good seeing core continuous on inflation. differentiated investment increases cost to we to supporting are a also that to approach But this customers year-out for the inflation be a increases customers. in behalf in We're But and that would weaker. be environments when about where certainly so, an offset consistent that experiencing, contracts talk we the with the and need that's year-out. we're try we're that making capacity We our have tried are little And to coming year-in as increases well. bit get get are we able shoot little we may that up. not environment a as going our what But like think and of

is right supportive well, going our all this now, pricing of initiatives that's year. and very the environment So certainly

some want of you'd the sort to tightness across challenging? what seeing, terms physical up it a growth kind real demand difficult maybe and keep of Yes. of of that that looking picking just capacity opportunities you estate continue base of case. Certainly in strong but year. the becoming real Is And seems Are be guys industrial you we're that like more sort the just to commercial, it in obviously, mentioned and to those then this on given footprint environment are in additions, just capacity what of with very estate. obviously, sort line the at

guys you curious creeping out? potential of with see seeing numbers? And do you maybe that okay those are into you Or are? kind inflation playing where process Just any you how

great that's Chris, a question.

just to best are parts that. needs other country be. recall, it that some and as you last of having I is there country is And real to you worked than do And side type we've harder have estate others. rural it we're the on difficult much extremely hard it estate a can. We've over trying areas. the we brand I've some some have our much work success. we've the about And where searching real more years. We're for And think that the doing than got more if we mentioned of it. in in than we it the talked we're you of to But, and active more definitely know, increase today anticipate difficult lot a more very at middle past, several used are those places that that department needs, at challenging to the

think we're it's more success we it I obviously, expensive. you. So, difficult, more again, that Thank having it's the and be need,

a estate. we've We're of real seen of lot this $XXX talking estate that is capital about expenditure You year. the to heard related million And that the real budget our inflation numbers. because

anywhere year certainly ago, of we So we not near -- number the if did doing what XX maybe it's XX, this wouldn't years be were that.

more a inflation good work And about it just it. I costly to harder again, to some there. than It's there's definitely at it. used But we're have having you success. be. certainly little So feel

Yes.

the very morning. Okay. time That's helpful. you. I Thank appreciate this

from Our comes next Jon question from go Chappell Evercore. Please ahead.

seeing what quantify tonnage you you. certainly kind some basis Greg, of one that you'd for much to to to LTL. freight? stickiness TL? on your time consider is that extent lot something traditional you and traditional going Can into of headlines would in turn tonnage TL -- your then any there a on that? way the longer growth has that business is enable come you out some And maybe Good how of this questions something networks. Is of you'll contractual Thank been actually get price I a for earlier the we're duration, think, add the the what's of about to of you morning. to And a of network. that better can an TL your comes on being mentioned growth? the Or answer also, to the can it on that limiting

gets. it market is time. sticky It's between at all, It'll truckload capacity at slippery as the and That depending not truckload the that a move Jon. LTL has business on about the

got load So feel network slippery. that's we've like certainly goes. it's and our with down very we truckload certainly And why, to It business. regular don't our obligations type service shipments want to we LTL comes type when normal

So we as manage need long a that will continue to as to have it. we try manage to

a better know, you do. that Adam, I So, probably as to? that far got amounts than -- feel for how I don't as much

and of Yes. It's been from revenue. X% those X% through shipments. only probably anywhere end and business quote volume the of to X% of been X% coming now, And a up our spot they're spot other shipments Right revenue. our to quote in type network past where have something lot

So, we a have seen decrease. certainly

our Now, they year, contractual -- heavier increased some with accounts, that especially shipment rates. those their larger last shippers, weight when just shipments on said, per some type move of the

by could if us may So some carrier shipment multi move a have of tried them. stop a for customer truckload, to that that they have to that a is performed may pounds a X,XXX transparent have found

So, just shipment us movement shipment, need on what's characteristics, revenue to and for the the we is costing understand freight of have But the to clear that all clear. each that each trying not move. always it's we

harder. some terminals of Now, in sense. And work through real commercial early those two February, that estate a makes to year. hopefully, a comment follow-up And so given follow-up six as to the challenges, Chris to having Greg, then is, the open mentioned XQ, on of you've then in just and plans to your and three or rest

of get most competitors standing growth, of and are at up for look a the some when maybe you still, ways to of of outside if to where You even your inorganic there's time that point make growth not organic contracting? kind

And you and have we're year. having estate our and before, it do or well what side. LTL four, talked But in lot build. at we're are is, about And well execute we real feel They're those talking places underway, find making six If plans like now we've of we've we've we Jon, still for talked -- the well lot going a them. whatever And forward. that years. in continue of do. our opportunity we're about opening -- can talked wouldn't no, that sure the real success acquiring That's That's are about those be this underway. or whatnot. we're That's strategy. to again, a estate left to as that's we We underway. be point we'll the the I about there's centers growth on not that like we They're plan. planned on trying what said, for and trying service where got to

Great. Thank Adam. you, Greg. Thanks,

next Todd time, take go Capital ahead. comes At it the question. from KeyBanc Markets. from We'll Please Fowler this

per Great. in But you Thanks at of XXXX. trending above was kind from still call. a down been year. about and second touched into had it different thinking around But XXXX it's know where XXXX, morning. right and you've the ways the even on shipment this the throughout last quarter it's XXXX where couple now weight good in pounds, I and of

weight haven't works Is the that of the have come any we shifts do kind that customers pockets basket? there per kind back how think to freight mix of pre-pandemic that are Are still back? is shipment Or now? right it out So to there happening about within see levels? your

I strength shipments about the shipments, range, of the spot with weight X,XXX decrease with oftentimes that, goes I are XX,XXX the quote number pounds. of And pound really economy. think we reflects what I where the in in typically improving an to hand XXXX mentioned, averaging think are, increase in an think just hand per shipment economy, to quote the a spot

to base that improve where contractual good us it percent recent customers But of reflects underlying larger tariff accounts, all shifted shifted as our months, when you've the think than customers has smaller well. demand contractual strongly a and performed is now our So businesses. into of our In our result to tariff rather were just business then business I that customers, a percentage with as accounts. really pandemic. XXX for into performance we've got mix our last seen than a which we year, trending overall our slightly pre as And of based well continuing and ahead for perform actually continuing is revenue business

decrease categories are as a they more so we're higher well. those And bit in up just picking that balance the spot quote. mix the from both seeing the little are, And versus actually of in

us. that good out of hand at market So that weight from freight for our it's our And sales with improving. to there's improvements. businesses widgets team our for the and think certainly, the per opportunities that's in our goes that of just are creating the accounts, taking that across And advantage demand we're opportunity there kind we're share shipment with customers see hand that increased in we look when through the board, increase getting feedback

Yes.

sense. Adam. That Okay, makes

change customer shipment of economy it weight shifts the right is sounds in of the like mix in big at then now? So more point function normalized. base kind per the And this a that is the

Yes.

first follow of quarter, expectations be ramp expectations on the to then up headcount full I sounds like either share trying obviously, growth, for shared up. the your Do or know catch And care just kind you would you're to second thought process around year. the up what into of some you to in sequentially quarter, any Okay. the kind side. and headcount

be numbers, thoughts of productivity. would around then kind any also have you overall And that great? if So

that six get a things of efficiency should Are would to think to more up we new maybe that about any it's that? the been historically, of think there kind employees nine cycle? Is experienced impact of hires. to Thanks. that months way I level right this

average side, pretty initially, the headcount versus first fourth headcount were in On quarter. flat. we up quarter, typically, is And X.X% the our

and mentioned. a the was big increase there and reflect that there, Greg success So shift programs the and on

catch of biggest done a has us. a and ready team little The the through in bring had third HR normally headcount to X%, second having some get the use year, great and up with in XXXX, we that them ever up job like continuing again you second seeing. going curve, freight And another that if typically An to see transportation is is see really over mentioned. year trying quarters. for growth We're the we're second X% on average we Our make a I quarter. and people the the that. strong will, still we're number to was probably purchase to quarter more period. acceleration was that still board for Headcount think of And

exceeding our moving that line-haul more typical especially remarks, on following would to the and it's But we're expect change in a metric the And, so claims see you that the They're scale, the we pretty end new, certainly for team second we're in even quarter. terms on cost learn of costs, high and to important that see of prepared loads that safety and come So dock, to our our possibly that maximize we quarter, our mentioned, X% productivity from it's And biggest they're they're we sequential make on first learning, to forth. that, loss the productivity. ways mentioned, that they sure they the of trying that prevention. face. the we're element is protocols like

got the make to of these So loading properly operation. efficiency trailers maximize that to we're the overall we've sure that

growth, the increasing offset, some when something But experience got that's we're revenue we're gives we've covered line certainly, headcount. little so that of we'll cost this continue seeing. And a that that maybe us to top inflation is higher

time the guys. for Thanks morning, this understood. Yes,

from this of go Please At question. next Ari the pick Bank Rosa We'll It comes America. time. ahead. from

Hi. Greg, quarter. morning, Good and Adam. Nice

assume And salaries in year. employee, hiring, was I bonus special about if related it's expense wanted some So, benefits presumably that's for can at you line. in benefits last I of recurring I be sounds to salaries down years this took revenue It it like coming probably per had sequentially. year, know And new look that that at a which I and question, quarter lower as step percent ask as is won't some first payments, to the wages. my best a far average slightly of I been a as number it tell. and And

it and So given up, I question carriers per about hiring? we're inflation pressures guess can about have comp take stay to seeing I when of some the some regard a my step sequentially? the it a is, employee, this of other Or of little that with spoken range does LTL that think bit in challenges wage

we to the back employee, X.X%. year to per between X% increase again, gave comp last going think of just pure wage I

pretty that on to think the a comparisons But when have you in dental higher costs start are and things at looking year-over-year to second going related going be I of unusual. group the we're benefits. basis, all health quarter to

we'll that think I per some acceleration our there. see benefit cost employee,

we pretty progress, have we As performance. good

quarter of were percent and XX.X%. the salaries So those wages benefit fringe normal a first as cost in XX%,

We anticipating initial XX% was my good were And kind forecast. to of for so, more somewhere that performance. XX% year, this was XX.X% like

performance good saw so, And there.

see there. some inflation that that we'll possible think I to continue

to That and keep our helped really with family financial contributions personal is, inflation, gets With their we're comes direct certainly our with performance, connection all culture our benefits when of the employees. it retirement and that easier compensation based that we the performance improved are our program. driving have. success through But going about And to all people. talk wages we certainly see of increases back other Those for factor hiring well. seeing has that success when into there improving and XXX-K we the and focus company employees performance results, to starts spirit to have. attract that and something both we're things to the the It engagement made of link financial to The that's the company's financial connecting as that retain the it the company.

we're in-source, So natural salary, should will those our But spot. see we reliance is on reduce leverage. that getting I purchase performance, continue well. both and there as the keep in increase a to wages and And are increasing there some be and inflation think transportation. some income as revenue financial great we to too, line, If benefits

So kind corresponding catch there be there. curve shouldn't up decreases we the back of to once some

number multiple be So factors that us. going that's for driving to

I in That's means, Understood. weather spoke question, help And second available my bit that grow. mentioned lot transport as what little lot can maybe of think a Kind step challenging helpful. then the very you'd expected. Got XX% about that'll Obviously, this -- just XX% think freight. implies a of up CapEx capacity. of of And give companies about capacity it. I to room related and grow contextualize terms you obstacles from these ability given to if available that your first sequentially to quarter levels? being a moving that's

sequentially sequential room what year kind has about much normal the outgrow but there -- from How comparisons, over year we forget here. of to pattern As the just is been? think

call. XX% That obviously the that time LTL network, and we've network. And it's doors critical process term is door capacity, investment long earlier to and very freight. we In that have a discussed our it's a the to reflects as an expand in required capacity on the long

within LTL. to that us. limiting like key to sure And one on. ahead we far capacity always of But curve three that's focused something growth is we stay So, make that's factor elements have feel network a never our the to of of

And coordination ability on be ongoing would the this year. I equipment spend that Next would feel have $XXX CapEx handle as today, is this the as million our increases spot, we be like where on planned for to the that we're really the we good anticipating freight and a with the based we In fleet year. have fleet well in side. that

fleet, like So unit spot. much And that there. carry in center higher service we depreciation I the a per obviously, there's in feel to like your deer don't want you really capacity our fleets on cost good side network excess do

importantly, we we're to trends. volumes that's of month at a and purchase and to here. we're that the constantly excessive short to with accommodate to then And And it's right And most that that you like is is use And of of volume in But be revenue manage And we're additions and catch that make have with that the now, up to able the we're level. sort the capacity. the we and we that relation growth. enough same be the when able just end to something the finally, continue balancing lever do You peaks something of certainly, transportation. team people until quarters want the handle maintain more end pulling currently to experiencing. freight we'll little the complete pull, don't we

continuing across we've employees center So, And to plan, we're for I and to the the board. plan add accelerating in detailed team and that to we're how think by very drivers spot and is volumes handle platform good continue region a service good got different by a we're the to a seeing.

the Okay, understood. time. Thanks for

next the take question. We'll

Group it Now, Wolfe Scott comes from from Research. go ahead. Please

about margin you line incremental this year? impact it Hey, thanks. fuel the Morning, guys. of means and Adam, can just top bottom what for talk higher line,

were we're where in last year. at at in about will. looking us, line in a obviously, turning prices from that Well, being we last sense point, the are prices most fuel the fuel March. faced April so And if year with to it's of or for turned for top they this than XX% down It be of basis, of headwind finally you going higher

larger fuel to year, of we last a standpoint somewhat that their on a we many customer as that we we And Last the tried felt our we a down, scales like have by for bottom stress didn't showing within And the the as and effect the line, lower -- be that'll looking of and would what minimize increase, scales, thing whether when over based year So it internal year, our about at well. like, it's effect neutral, scales. minimize felt to on good much test really revenue those. standpoint, up be hope going contractual the certainly the From on we'd or as that our line contracts was But inputs scale, too to the top decreasing, end on line it. basis. keep us. the through own accounts we is we both a talk now have fuel are well cost the much line inputs talked fuel a But for from about are, customer managing just maximize to profitability. bottom bottom year

longer see just Do five to are doing use then as cases you trucks? a guys and autonomous And you What anything, for any the term question. so? years over relates Okay. if electric either or next

to Yes. do some where technology process be but from hear point, forklifts. electric it Sure, us to everything is see that not be we couple -- actually and/or in still Scott. switchers, to wanting test trucks of we vehicles. needs a it help We testing. Be the and this some purchases at We it to making were are or

I the in the of So any speak. that's near in process see that as future. we again, But, impact don't

autonomous? And

Any impact I'm from Yes. saying electric.

right? side, electric the On

Yes.

I out, one practical of investing whatever advantage efficiency industry as in got with it's safety. are fleets that ability tools or always it we continuing watch. of feel something that we the hard those that that's the with passenger board financial really to seeing benefit technology piece, would autos. and manufacturers can know we develop, continue at there is up But strength vehicle and regulatory available, like I year come as it's that we allowed is, become got to be to the that don't well. some a and to whatever sharing we've roadways continue implement we've operation are will certainly standpoint. us. driverless something incremental the From with. And the we'll think the to we improves, to as think like improvements and feel safety a from year are that regulatory the to technology And could look available and certainly opportunities look road, continue And obviously to But the and invest before drive autonomous in But our taking may get in On standpoint. the to within on drive the want youngest at on envision technology we'll things. ever,

Thank you guys.

next from Please question The go from UBS. ahead. comes Tom Wadewitz

morning. good Yes,

in comps commentary in day very April. you the kind So two One, XX%, representative much know about the you is think for think be I could that have do that, XX% I don't commented you. May, June? different Are of growth April in questions per the I strong, Or quarter? revenue on of

was that freight And the standpoint, XX.X% of trend definitely June and a XX.X%. had experienced were just that of for in that good per last levels down things But period off once part we point revenue -- was we April, we cliff. were biggest down were day a down XXXX, That was pretty mentioned down forward. like reset, May we revenue from recovery increases were and the like the year. April, in I we drop sequentially basis, a on most In fell XX.X%. we XXXX, May, worst

that more just of for guess revenue a down -- little reflects I sequential we quarter the improvements second but month, change saw. difficult, the Overall each So XX.X% was XXXX. quarter comp gets the

up possible capacity. you growth, in that And the when achieve I helpful. like other kind XX% quarter. look growth. had tonnage Adam Greg, the you've that peak a elements gotten compare obviously, times periods got That's good. That's of maybe I a mean, super at you've second Thank then that couple you've year? over got door But to obviously year tonnage this back as highlighted. talk about Okay. you two year Is you XX% easy you. if it seems

to is year? get or hard trucks for Or So, or feasible this whatever? type a it to is growth achieve to people mid it teens tons of

continuing in Tom, we second XXXX. But pretty sure the see get those mean, stretch. my I We'll quarter. And not be levels normal probably that's handling in every a to March the top clear, growth, comparisons, seems. But XX kind here over we're anyway, were also growth steep. I in back But that tonnage, on when had that's while we're XX% going so see not of that, from year year obviously, to I'm quarter XXXX. sure capacity, that we to days. pretty of we're it recall to the that's, Incremental not that's we back that's percent a day. that in once expand freight memory in Maybe far first capacity a that's steep. on growth. type I'm

XXXX, XX. When XX do close you it Greg, reason or XXXX, and you did think what's you're do hard Is probably the in achieve, I just it people, say couldn't or that in it'd be that to XX%? that's and tough you to

Tom were type if more numbers. ramp then it obviously, hard that we sure economy's realistic, quite If that to that pace. up, It's I'm anticipating we not those not I I'm that mean, the realistic, we'll sure, was at be would see knew but that. certainly strong.

positive. highest That the in mention, came quarter we've we to Got and the we is XX% over to off bit had things While quarter. are reiterate, we wanted are ever came remember a certainly just good revenue where right, just first rim. today. off the I

numbers in we'll expect. top will. easier you on column. numbers, over normal about we'll comparisons. year numbers, numbers. that. But more in And the talking year would I you're second certainly have So we if get bigger some see I impressive like don't That's big Again, ignoring I think he's quarter, big obviously much the, of say,

The first comps. easier and fourth year, part where more some of we've the the quarters got are middle normalized versus

on Congratulations Okay, great That's the helpful. great. quarter.

Tom. Thanks,

from next from Jordan take ahead. Please question that Goldman the go Sachs. comes We'll Alliger

Yes. Alright.

big the strength pricings extremely as is Just sort of you LTL, strong. demand With in all freight obviously picture question. mentioned,

the concern, of, capacity not you but spending. just some maybe, Given capacity it standpoint, -- mean, what there mean, there now? there the I scramble industry to the add or sort see guys, is I Is industry to LTL right capacity some players broadly, or trying private cap you're with increase public potential from your is a doing a too? broad

to in of here again, see period I movement see don't the more terminal whole I when sail. the do positioned of are operation I like focused every that know that now there. around part. shippers longer that's the decrease to proposition. But the Old because Jordan, seen carriers is, are lot certainly number some And something. haven't in there's a some country value, this a and we over them that And that seen the you'll like that We we're there. we total we a on adding on value earlier, centers offer, time, out service versus we believe there the opportunities than obviously been most that -- to we have as at that. capacity. that mentioned know we reality increasing. don't as I value And But services, that been of expect what trying market are environment, the we've we a with certainly And doing more and levels we're well a continue anyone look the for better focusing service share is of we've of feel in seen all. Dominion of

customers now from their able certainly they've with not of from handle that contracts we competitors made levels in the and we're all they're some the the fact handle to that that of increased getting place right seeing customers business. And capacity our investments of us. with certainly benefiting many acceleration of to are business are we've And feedback them. can got in continue these Our

And freight have advantages driving that seen quarter. way. capacity our So too, is the that, continuing where is that's in first certainly we

anecdotally, from average, opportunity down. at Old benefiting as are for when to feedback have just And Dominion. we're on tailwinds. as continues So industry that's a customers service well we more from creating just operation, total and And that in are time getting what they the terms more of we that centers see think we and

you. Thank

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

it of the it some can that share obviously I've function which of kind on couple as But explicit seen just is Once you that? Kind like you you vulnerable? opportunity hear. bit. industry of quarters? go-to-market Thanks. competitors market the to Is are comments the feel it to little the in heard drove don't gain do last kind on something is? share, more or of of strategy again, changes unpack Do structural what Greg, I in internal a your did, you initial or Is where of think the some as great aggressive Is as your kind change messaging? cycle and that sound of you with a

don't been strong. and change about we've a strategy in I've expect about then think the growth all. that's time. And Its will it's we've as at seen to come is we stronger that happening over than our more of mentioned long grow capacity economy the I be, a And strategy this us. talking And we've when before, our for certainly in all like it talked the as customers will competitors. when limited have appears to most we the competitors recent I And much months. what years, is

back we we years we've see, feel done. us. I about positive things now waiting that any standpoint, it's for and not that And pay to the that before, from having to Pretty I success so. the Yes. continued but good doing its we're some sure. it the And said, set of that and we're done, where So, are the anything off starts the ago. execution we've forth time when for Is just change. like strategy executing

on automation and of on autonomous dock be I question it here the just but rightly labor a I of which parts in times. hit I on other few some you side, terminal you topic. side, Understood. the labor truck ones, for on the even opportunity autonomous rather keep on kind can the I think of the business up And kind can question, if think shorter? the hit driving follow of should that than the the What's if And which the

of robots that kind and about talking you're assume I thing?

reduce and at Yes. any that, can intensity automation things like forklifts the or studies? the all robotic, I'm yes, trucks saying, kind need have of Or you like things load to increase you on there? done help opportunity any labor that is for there

this Not we've seen. point that time. Not at in

Okay. Got Thank you it.

remarks. There to more the for back And in queue. are turn I'd any it closing no questions you to like over

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

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