Old Dominion Freight Line (ODFL) 26 Oct 222022 Q3 Earnings call transcript

Company Profile

Participants

Drew Andersen	Senior Director, Product Management
Greg Gantt	President, CEO & Director
Adam Satterfield	SVP, Finance, CFO & Assistant Secretary
Jack Atkins	Stephens Inc.
James Monigan	Wells Fargo Securities
Jordan Alliger	Goldman Sachs
Scott Group	Wolfe Research
Jonathan Chappell	Evercore ISI
Todd Fowler	KeyBanc Capital Markets
Amit Mehrotra	Deutsche Bank
Thomas Wadewitz	UBS
Kenneth Hoexter	Bank of America Merrill Lynch
Bascome Majors	Susquehanna
Ravi Shanker	Morgan Stanley
Christian Wetherbee	Citigroup
Jason Seidl	Cowen and Company

Call transcript

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Operator

Good day, and welcome to the Old Dominion Freight Line Third Quarter 2022 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Drew Anderson. Please go ahead.

Drew Andersen

Thank you. to Freight quarter Line. welcome for Conference and Dominion Old morning, the XXXX third Call Good X, X-XXX-XXX-XXXX, Today's be beginning November available is for by call being replay today recorded and code XXXXXXX. access and will XXXX, dialing through be the the days also website. for XX The replay may accessed of webcast at company's Old statements performance. call Act statements, including of forward-looking meaning Dominion's financial the operating within regarding and expected conference This contain Private of XXXX among the may Securities Reform others, Litigation

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

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

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

Greg Gantt

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

Dominion profitability. Old company's double-digit in for growth the track quarter, revenue the team and extended record third the During

for in double-digit strategic straight our to our key market of damage seventh to than growth quarter critical earnings just The to provide free. element straight XXXX third nice claims of superior continue a plan ratio during customers' We price. executing double-digit the the with we results our to continued customers up is ongoing fair These a services share. value third quarter on-time financial per much the means on and by as ability and long-term growth freight customers were quarter. reflect win revenue share. at our service and demand our to Consistently providing cargo our of our deliver service and long-term with diluted X.X% XX% was quarter of time delivering this Service and pleased picking on more strength

In conducts most a fact, that service MASTIO measured and Company XX year industry on study carriers value-related recently comprehensive attributes. & each

OD for recently day MASTIO customers. to from and and XX ranked logistics that for proud of consistency extremely for the #X XXth the our latest XX team year. And this every LTL who work the named professionals each validated of MASTIO many The individual OD #X members of over provider go reflects by are our as our We straight the attributes. performance as commitment hard years, service survey, above beyond shippers as

the on year each management strategy. performance us increasing yield simple win long-term only our also inflation service cost to while market It focuses our supporting investments also in offset over not superior capacity. to Our our has has our yields allowed share term. supported This ongoing long strategy

while improve expenditures generally center investments revenue and growth. our and XX% service, in regardless our our network service have We the technologies environment. the have of to efficiency consistently customer capital XX% economic of fleet year us Investments in in support each invested significant our operating our helped

we the past the We service most. is dealt customers industry never been our was of critical we XX% network when network big to having to X we past in which capacity. The the had by in value need various doubling would over our our the proposition $X X years our that believe believe that XX consistently further capacity part revenues growth. our possible not a have chain a years, marketplace available We have capacity factor capacities if necessary will share, the is generally our not ensure investments advantage over expanded with of our have network be while limiting center the and market past customers over for especially it was increased our supply by billion issues over capacity limited. years, while We increased

Our time consistent approach grateful to to pricing again, and trust our relationship capacity us. are and business, business we extremely superior network continues believe Freight their model for our long-term allowed service, is our and relationships. we to and to customers a available strengthen prove us in itself have

why carrier is which remain committed is our important executing increasingly of a plan. strategic the by elements offered to value the to believe becoming also we fundamental on long-term absolutely We shippers,

focus will on service with at As superior providing a continue to customers result, a we fair price.

growth the to continue these as fleet and detail. now a in for employees, better strength than you our in are Thank invest greater long-term Family produce OD any discuss this and of financial our result, shareholder results our us to to will to growth service make quarter Adam third Old profitable joining increase Dominion network our initiatives. also our will long-term value. morning, financial we support believe and investments, positioned carrier we has center We and

Adam Satterfield

the share ratio third to these changes $X.X combination grew of The for in earnings Thank to per our XX.X%. improved you, XX% helped Greg, increase produce a and XX.X% diluted Old quarter. operating revenue good billion, and quarter morning. the in Dominion's

service economy decrease to for in that domestic Demand more the than believe customers' Our caused demand revenue decrease reflects decrease the this overall per tons third the are softness in has second as with X.X% however, generally customers LTL our quarter our proposition. products. primarily when X.X%. of offset sequential advantage has revenue a day decreased take tons. tons remained in X.X% of for the our value was decreasing growth strong, our day decreasing LTL day and quarter due continuing hundredweight, to compared per basis, which LTL the shipments XXXX, to LTL On increase the LTL in a per for X.X% per XX.X% We in revenue

includes in in average an day per of For sequential shipments XX-year comparison, increase per approximately LTL of X% month-to-date revenue by day and this the of day. tons tons At our increase in decrease increased has approximately per X.X% for October includes revenue compared an an when a per metrics change in these of day, X.X% increase our performance point, per to revenue X% XXXX. in October, X.X% day. This

related provide actual quarter XX-Q. details our for October will Form As in third usual, we revenue

million months totaled this revenue third effectively expect as this cash periods. same salaries, $XXX.X efforts to parts equipment and in this increased our fuel operating be improved more operating well revenue ratio respectively, benefits offset to all flow improvement expenditures cost to estimated overhead timing best while quarter, for We rising our and as cost year. for Many $XXX million be revenue. and wages to to Our the the $XXX.X revenue cost diesel in we third and current and XX.X% XXX operations decrease due million and Dominion's quarter improvement petroleum-based of our XXXX, percent estimate as as operating percent categories next a of in impact costs improvements Old supplies morning of the reflects from capital cost is and now basis products X our billion our capital quarter to a of the percent our our than and increase of are the for were million The We maintain fleet. year. first expenses pushed purchase of of improved repairs The trends. match increased our a the the from expenditures with although both with our cost deliveries direct other and in these our primarily into variable to as points that that and during of due primarily $XXX.X the noted prior expenses release volume transportation. with of $X.X for

our cash cash for million of further XXXX our expenditure provide about X will same billion release. the capital $XX.X the for program respectively, and share earnings of while $XXX.X with quarter million We $X.X repurchase details fourth plan our periods. during months We million dividends totaled and and XXXX, $XXX.X first quarter utilized third

Operator, we'll time. quarter. Our effective floor tax XXXX. tax for for the happy XX.X% to for open effective quarter prepared to in currently This as at our the XX.X% our compared this XXXX anticipate XX.X% rate fourth the morning. be quarter questions this third concludes remarks third to We the was be rate

Operator

[Operator Instructions].

first Jack today Stephens. Atkins from with question The comes

Jack Atkins

Okay, great.

could the driving do the that if basis. was So feel I guess that quarter can And sequential kind the maybe some of of in I what's trends a the hurricane? to going day accelerating guess, you commentary, on there seasonality end full And sort is provide up color I like somewhat. stats October year-over-year are you maybe versus with with you per of on underperformance terms on of September curious for sort maybe September September, regard first, guess, if anything just tonnage wrapping of the in unique And kind give Adam, I'd of be us the that.

anyway, know color if provide sort So a current curious I some trends on and you there. but just could lot of additional there,

Adam Satterfield

September, on was a remember shipments, and I shipments Sure. all let's We'll and memory, can day if then my test But down those our at for see were year-over-year looking see X.X%. per here, I those. down of X.X% basis, so were, guess, tonnage

bit overall. little the It weight we So about was a shipment increase for month. up X.X% had an in of per

last so X,XXX we the trend if before the shipment watermark, we've And you where third will, you at was a remember, pounds. of low total weight year, our if were talked per about quarter

of So we start fourth sequential increase from year. did the seeing to quarter last third the quarter a

as should transition. we somewhat that So normalize

September is versus did for X.X% X.X% a Looking sequential increase. XX-year increase things on about a at The basis have average August. tonnage, a the we in

So in you've bit off increase, to December. average which is be increase is we The then versus And to underperformance, straight saw this we decrease decrease the were trends total didn't the there third encouraging a the is year, finished and see is quarter. an in really. like we are we the line bit lot dropped we for little have is in in for similar XQ. And October, which look for is XX-year sequential this of fourth still if work Certainly, quarter, pretty quarter pretty just anticipated going average that left And drops quite at the overall, I normal of second would down do a did And an year, average are typical. much third. which then the about I did say we that do point, which that into the August, trending so see it a flattish. days sizable of in increase makes obviously, really further in Normally, beginning is I this and in in September. but right with typically quarter fourth fourth similar, then will Typically, will, we underperform we a an X%. quarter but tougher we got July, through what in the November go we We down with X%. far normally quarter. started the on Last out seasonality comps we again, as the think think the we third the you did, the quarter. trend. We to

has We're it's just we're losing like said our that prepared our think one seeing trends reporting. customers. customers in feels from demand things, for The positive. we I getting feedback with good So like certainly national our account us. those not of remarks We're that been

up for in all feel making for of will. those as are every we like We're if things much is favorably day that demand, customers So regard. there be It's customers' not out locations. may that picking matter products, freight not the we just trending at our their stops just a same you

certainly made continuing just We to year. will. all kind work So through challenges, of these adjustments if you

been includes we'll down service I winter. you remind environment But general GDP see been negative quarters we I their we average. the A at seasonally been doubling little we've that X That's when always underperformed. like in. adjustments the our we've ratio in been XX-year this, a we our like going volume making are, operating said, in of this We're to lot what look quarter this always think where everyone environment X our to year. of into third anyways. we've to the a performance where we've in typically, times, lower-than-anticipated bit was average and I metrics that when a But market XX-year slower kind underperform share. cycle,

we feel through what get once so $XXX revenue the over we spring seeing do a of with lot's sooner, But up the in the some improvement. spring. build now. the and based to solid start once for been that's perhaps able that year get economy. We'll this talking Maybe into I'm operating thinking we're obviously, basis, baseline we sequential so on start we've seeing going build back right a winter growth, And business producing into the like on on far what ratio then up good million and this we get of some

Jack Atkins

there's color, tonnage just your you just my Is I get about is maybe one it quick how to very to sequentially. degradation some XQ got all for your there. my out be lot softer puts and in in the Adam. way the sequential of those thinking sure point, XQ? typically, sense a additional right XQ. to there. to of That's I'm takes curious bit to it's should about point would Or -- know Historically, a change basis guess all think color this operating year? helpful. that follow-up. XXX And Would be helpful XQ about And ratio I sequential, questions for Okay. kind different be we

Adam Satterfield

to Sure. impacted and it. -- bit, a XX.X one, to puts in on if takes sequential little plus usually think XXX -- about, of XXX it's the have average. just about cases, But say we've few XQ of that expense the And annual numbers, XXX fourth probably impact, of that I'd go probably XXX, those these items also about about points And depending a quarter. I'm top obviously, we line. deterioration usually to in ratio the had XQ. favorably Yes, into can you raw pure our just actuarial that And onetime the third or minus an some item look will for had. basis a just talking that increase but quarter, appropriate a some I off we at points talk be operating assessment we basis the basis about But got by through point XXX target the from would a

is taking your delivery another in see little there, all finally, fringe that equipment. have XQ. kind So of cost and benefit Depreciation the depreciation that adding expect I little supplies Normally, X.X bit Then you have general we flattish, from so from expenses, the the in points XX We're bit. Maybe item. of back to to year. earlier to improvement a normalized what this third that our a change to Those should XQ quarter. generally typically standpoint, lower, then our to XQ of trending increase. expenses, of dollar is kind quarter revenue a bit are we'd tick our basis that similar low to think that as XQ been I'd fourth up to somewhat have point. continue, little about a remain the those from year. I around expect throughout miscellaneous but trended And expect that still see typically

think third I X.X% basis in we're points, the quarter. at XX

So some I as to well. that at expect point normalize

bit managing a what continue looking mean, can of standpoint other of productivity just spending suggest. average tightly we So us, create dollar at otherwise might as know we those costs adjust revenue and as as cost you versus a we'll may and the little items be every top can we're line to some I current just But XX-year trends. we to and discretionary from volume variance

Operator

The comes with next Fargo. Allison Wells from question Poliniak

James Monigan

independent kind on James and shift and in September impacted wanted in that to a think get on of month of sort what how more shift trying moving we color the pricing forward? should of that about to get understand Actually, Allison. a mix to have sense that of for I was if wanted there bit that sort just of might yields and of change a mix little was just sort

Adam Satterfield

lower not down that higher, seeing shipment And trending through major been haul almost we has length that a nothing certainly as our X%. have Yes, as That's mentioned, been quarter. per at been least already third weight I our bit then has the well. of

of a hundredweight putting call. the revenue per hundredweight both the which fuel pressure earnings that on the X%. Overall, was metrics revenue think I we've talked reported bit little metric. So last surcharge, on little downward those a about And up excluding that per

philosophy So mix as got from reconcile the seeing looking second the those then And increase good core is I for we're yields metrics, of how long-term rate that are on renewing, look increases if But increases getting probably we our are seeing say, these bit overall, basis. to we're is third this growth would long-term right just still the always things a contracts inflation and try with we yield continuing yields we're somewhat with a at higher inflationary overall. than inflation. environment. are what are dealing our to always to will, But looking we're to to we quarter. now cost design you performance for offset quarter some

cost-plus estate billion invested And $X When estate back last that real been in billion make you $X to investments try real system. on it's support look total XX almost capital continuing investment going expenditures. making into years, we're about the network. We've over a so in our with of pricing lot progress the to type renewals, those get our we're to ultimately the in

job we network and of growth, limiting we're a to sure investing want to of factor So I ahead don't a good ability we've think grow. to be making certainly done the our

into so makes year and been network, growth that it years certainly to important possible. And it's like service in that we've capacity in center build the seen and this revenue the XXXX

James Monigan

is seeing, Or sort tonnage sort costs And that given negative, a at sort on of network, points? against it. renewals even basis start do still you're that, the follow-up you going year continue soon? can become of -- more in OR fixed or just just that of if you expansion XXXX just or Got bumping XXX above you negatively get fairly are up to trends the efficiency the like a

Adam Satterfield

the going the think we you sort I an typically we is Well, of to that flat are to the an down where look invest Greg term. continue to overall, thing that's long example, where comments revenue at like invest, going and see in get as environment we're in his we to past, XXXX, can to is when XXXX, something continue earlier, into mentioned for

just We'll be limit might spending. to that don't for to the there so and revenue of to dollar want do of cost little when that trends anything But manage depreciation 'XX, slight volume what We if And a revenue. at costs you as return often variable was that's looking our to periods a discretionary comes got in be to you a creates every certainly that in OR We those much change those And But we dollars cost of on change spend are when our pretty that careful there's want revenue. limited to we the long-term productivity. all in be as percent will, that the performance. depreciation spend. looking match headwind, it closely saw and an appropriate to we'll it looking percent deterioration 'XX certainly are.

able manage costs those been generally we've other all So to flat.

over is X/X cost highly variable, almost than X/X, structure now. of our cost more Our

for in just best costs we Look line. any money to we pressure productivity we So may any the on those work we as way that kind offset of seeing top can be save continue can. to

Operator

Jordan comes Goldman question next with The from Sachs. Alliger

Jordan Alliger

assume cost just on we on today? you relief cost quarter, looking transport sort the the whether wage What any ahead follow-up a I inflation purchased the you're Is even as beyond environment current it thoughts be there on side. the front, of front, beyond on sort talked Just the inflation. this? your the but on seeing side, of inflation about maybe move

Adam Satterfield

And probably core think improvement inflation of to removes Well, everybody I overall country, Fed some go our should from drives in with year, owners of and -- customers for control is on Energy starts that and type country uncertainty we action inflation because have business as for standpoint, then it the type think there. I we've relief. a think side. hoping to got that gives what for hurdle got this see I some the we've this next And seeing of the into of kind many may be. energy really, movement

cleared, give salary And September us, year, of probably year. did wages at of we stronger the get at you businesses then again flows we forth performance once wage hopefully seeing a for they've been levels this total and freight start this over started little so and back benefits in our And at that last when year. think But for get least our rewarding employees to those, in once just bit this I Xst a particular, so produce the you anticipated reinvestment and able the we are that XX% increase cost.

those some the features benefits we've of on And inflation. costs medical a as little other Certainly, benefit in higher cost so later that with. continue element bit improve and that the to employees on we rewarded some we we've particular. control of time But side, seen off of pay

are operating obviously Fuel Another expenses. our costs of a the XX% component. big is there and supplies

as moderate And depreciation into certainly, increases forth this we've respect some taken on side, the that that XXXX. help think at parts to And then increase on of and see we way equipment, we the increases component those other been we so as tires offsetting program as some we'll decrease with has year and big some there, there. of next make on We effective I the should and a through well. hope our we've that our surcharge year. get taken hope

forth biggest insurance what haven't keep looking have an carrier will certainly one what ways pricing and orders increase for in area. to other just and past look We you so our you equipment every We those are several some when like years again, the you finalized that the But elements. premiums like. of got over and faced know it's got increased

some to focus areas. we got area to try you've We the drive continue our we benefits with control find wages savings the help offset. can ourselves element, in and productivity for And be in So those other. improved biggest to will biggest on improved to continuing cost can to salaries, performance us being by the inflation, but

Operator

comes Research. The with Group Wolfe next question from Scott

Scott Group

recent Adam, fuel for I increases just inflation tracking say is wanted I third quarter per getting. I you pretty to up X%. ex just is core some the up. change a thought That like feels now you're big rent follow above of heard that shipment pricing

add just bit saying there. of a clarity little So color to or what you're

Adam Satterfield

a per Well, cost on about of in we've basis. talking shipment seen just terms what mainly

shipment. the But shipment overall I things what a as little get what at thought. softer cost half And basis second versus costs always half on to increase is that's versus fuel you well. that a And shipment sometimes you're with lot -- we the some certainly per positive still achieve per trending bit revenue when we more certainly and little revenue be against per XXX continue the happened. overall. XXX got looking just thought look positive 'XX, can per moderation to we of can comping the that basis shipment than overall. of we I spread cost as this to cost we per shipment the focus fuel a inflationary per in is would a see hasn't on can items at with a I basis think in bit try And points in that had its terms of what increased year, back higher spread a the moderation we've environment of of those certainly, started when experienced but in the shipment performance pure mean

We these is start seeing increases, down I of So that some weeks a remained pretty ago a the X, to bit driven as think we're it increased trending some prices started just year. still it were few we X have weeks. big little throughout going by lot a seeing relief on that fuel the high last and thought

I and what in our of for bit But we think we've back no, over of it's think had plus what supporting cost we to prior. where to about in because our from no we're looking terms standpoint going increased to reinvestment $X.XX dropped the an we back to change be that up can in have importantly, pricing offset again, more that got but business inflation, keep achieve business. a

Scott Group

slowing So that trying imply anything pricing or is sudden to all you weren't lot of that. a like a

Adam Satterfield

all. I And at not No, misspoke that, said if I for sure.

certainly pretty But what and that, consistent were, right the seeing for And gave a I -- Now as into least the we've had we with that terms think didn't we're that certainly, is the positive, very higher now, all that's October. really doing. in yield of They terms been touch in at year. what have we're pleased, of I when you hundredweight, the look trends -- per overall. number at revenue the quarter we of from a maybe tonnage where fuel that is excluding implies third continuing

comps up on certainly, so the to go expect we'll will But environment. due, change And year. coming certainly get. soon this have really fairly has and increases increase rate in held quarter-to-quarter. seen to that renewals, sequentially pricing It's in well. apply certainly, business. we've They through that increases generally, this XX% not be general as number increases we remained And will And any that the we've able to as all of we about the our quarter steady mix as the throughout factors, been objective of would coming from we be those continue

Operator

Wetherbee question Citigroup. next from with Chris comes The

Christian Wetherbee

just cadence I to understood I in sequential wanted from make the Adam, ratio sure operating to XQ. XQ

still then think as kind it want I XX.X%. could sort to variables make minus maybe that the on sure guess to said -- get potential that, basis, deterioration that. year-over-year to to points I XXX then you over some right. closer that get the of of of string I start few flattish on you a could to out dynamics plus to or would you basis And add just that that to a I we next maybe based below you sense OR was relative about operating the think is of you're the potentially guidance. as ratio? it But quarters, push what conceptually a think are OR the in start I the wanted

Adam Satterfield

mean, yes, biggest points onetime was is the than cadence, we point obviously, the top that XXX normal worse was biggest those XX third fixed being plus XXX of off 'XX, of in obviously, about some In cost versus transition quarter lot the benefit the you've that XXX have. ratio. the revenue, that Well, the we recorded the basis that first basis basis improvement. the of basis the Certainly, the that you But XX.X that certainly and fourth But we cost just quarter a reported delta point, have nature in quarter. elements quarter. point the line year. into was operating Typically, when minus, or And element. the a I is first next covers got had

basis got it's we've performance some year. year-to-date ratio from standpoint, we've ratio up standpoint. top So improvement this that XXX given know And the a operating points almost standpoint we line coming from operating a had an in comparisons and the just phenomenal tougher both

in and of year been I of incredibly $XXX improvement it's billion that. had we off made we growth another strong mean of million an in, the year-to-date -- on revenue coming $X.X put the XXXX. So top that

GDP negative probably in a So environment. a

to we're relationships respect slower freight lost to more in any you we and going just of we've in think than go to will. with a a to function to a not be through terms stronger us. have business we've probably ever macro So be been we've I when had customers. going that with customers position to back our mentioned to environment try our of able It's the give earlier, that We regain, if got

encouraging is like I as I've well. mentioned feel encouraging. And trend so October that's that the

early a lot year our fourth mentioned, -- through seeing year. to some and that where XQ. we volume a get of But baseline through terms becomes like I just getting buildup coming I of if just quarter challenging So to this environment. and then of it where that function sort we And keep of flattish getting to it's variable of see us more that all would mentioned going or of standpoint OR start be costs a for But again, the down typically we in revenue standpoint then finished a a before, in us, kind of seasonal seeing winter getting year-over-year manage and like from can't is next of improvements investing. becomes it we're an this

but So the produce know something say on and volume the to we in there that's depreciation And loss long-term see that ratio we returns to improvement yield. some line, might takes operating once that density we business. improvements

we what model. to coming us, the back do terms can starts of proven So in we've once it

that getting the I the producing annual so to out of we that goal achieve laid end operating year a system, at And through ratio. working start we can think sub-XX operating the ratio long-term of trying last and throughput

Christian Wetherbee

Yes.

historically with I next think the guys a you basis comment so? be you go sense. up of good have for over that know of But on year a see that as -- as softer down relative or period done how makes your then could one, leaning opportunity performance off. do as with as agree to perspective. And think well outperforming That competitors guess peers, what the both job a you this about more of cycles. I course you first Okay. maybe maybe in sort in tonnage a would I from through don't you of you growth if relative cycles

Adam Satterfield

Well, to was second 'XX if X for back as a volumes just lot us through flatter, at And been last you volume out at if tonnage, on carrier like, average market an examples. times, of much year. year-over-year kind basis of 'XX. last while But been going has share first growth, the public back flattish quarter you producing since really at XXXX from and still recent basis again, will, been looking really quarters, we've on XQ least of quarter the group, pretty XXXX, have solid negative our of a looking the it's of total

of about increased now, last look it for capacity lost point our years a to just be that So national talking And group. have And these the the we a There's years. where were reporting able I chain within their customer help with significantly revenue that's flattish, do issues the little you customers. feels try add conversations times, 'XX, supply it of lot really of you certainly we mean I But be But and when in in these and volumes as the their trends get chain support over not what couple share a and and like able more while to our last market to chains customers just keep to we supply dealt -- through at pandemic balanced. look challenges. and our right different. we've how value were and what with of bit we're us lot we've particular, of industry if when to it supply -- by a networks said, at couple -- may may growth the I account there sort will, people where to the it's

long way. proposition. value I our think proven that's We've a gone

better in we're ever think been. a I why perhaps that's than so And spot we've

building the slower we whenever share come levels market we to really environment on economic of have this So out that place. in start currently

positive straight when times least, Certainly, you we've spread carriers been the And wider volume other probably of the and a in where the we've quarters probably we little perhaps that's the be, we at yes, So see but there's might in flattish, still think GDP. in in where past a we've there certainly group. negative from seen a been X through other standpoint delta compare share what we of past. performance might versus been kind our public

Operator

question next The comes from Amit Mehrotra Bank. with Deutsche

Amit Mehrotra

don't you less to shipment revenue a Like October, historical nitpicky worried volume about to better. you if before, for bit tonnage role obviously, you but Can October this know or us? Adam, quantify what's the I typically, being just that talked mentioned between see September and question. And from a it so shipment. positive about of a spread not was? per I Old cost guess what ability then versus I'm Dominion's October little

last industry's in think the really the guess there. year. ex-fuel because to But is you've I best data and just in XX MASTIO question the it positive growth yield XX are service see and I done the ability the class you guys years obviously, next

in pricing there get some ability And pricing question on industry, just pricing which to discipline everything industry's the is perspective quarter, I based year every yield of this a I next positive you terms a want to for of you're what see from your think ex-fuel ask the is perspective? seeing but out

Adam Satterfield

Sure. service recognizing Yes. said, One, And thank certainly, service for as supports yield. the you performance. we

go You into renewal. a an can't account at

well our win-win that us scenarios with increases the comment able -- to can that what as for forward. to the get versus us least, You've consistent carriers is know have market years just continued negative and now. value, tomorrow. be necessarily our so other like deliver last differentiated and pricing. standpoint. able doing to I seeing those how carriers quality failures for whose our achieve favor value the like with there's And been a damage create had we will build look late we're be for types We increasingly to many to that, and at going we not think and is a quarters, shipments, expense deliveries, a price pickups, to to going But versus be strategies in from more is on today and continue what consistency service had so an and and they back been the the that and approach things for program to for volume difference group fair -- plan embargoes as can't that will them. X tries think They forth rolling and have we're the standpoint want their certainly the push But missed a of I and really will customers. able we've from initiatives, between I what from I other But have mentioned, the I think importantly, recognize forecast cost. for and But customers that recognize

system it's improvement has from been certainly seems group our a probably results. and of put philosophy dynamics changes. rewarding been appears. and dollars industry So for their that we've that's to and the capacity the lot been of it's the XX% terms But It into and able growing different do hard been to in like system, many us to to us has baseline. allowed things excess to imagine that, in general for financial that to been our favorable There's certainly yield and cycle investment years, yes, have got keep the We've today. the

long-term the know the can term we that difference. what market we those a the comes But growth and environment. way you short of big next our feel softer And capabilities from that through upcycles in building challenges economic what we're in confident up and like really us, to we're if make it's that get so be share should and do

if the have to to you will, of stay we've want the the you trends, have we up we capacity, whenever sure got so and to that make take encouraging got we've fleet And able people of of us lot ahead the the got and just it a starts. for next advantage cycle game be and

Amit Mehrotra

And versus what about point? data the September October

Adam Satterfield

But a we're month-to-date from decreases point. line knowing but to number October. we're And these going in we're as this we final normal sequentially like We around the But few the little give about looks now, sort right that Typically, for what right in pretty a out change the we finish tonnage details. pretty Yes, at in month. really time that little seeing From in of right can ballpark. much bit out as been with we the certainly, even of year, be sequential alignment. the numbers sensitivity and first talk bit about since X.X% February the finish keep October have this revenue. in It will standpoint, much days don't the it But change move But just standpoint. month. mind, around that's of average And just versus the typically an September. sure. the a again, change a

as positive the economy of and necessarily the we of through There's sequential keep as now. getting we right positive But look sequentially what we we keep start year. of kind we see and coming, pace have kind sequentials if in if catalyst a these XQ will. spring of see. type idea trends, into not pace the normal buildup with if then go catalyst and normal keep you with But next meaning of can we we'll an So can XQ, touch might

Operator

The next comes with question from Todd Capital Markets. KeyBanc Fowler

Todd Fowler

about I pallet. customers touched this sounds It a that, I it's less up trending per I on but in that still there think each demand, just some kind like quarter. shipment. comments less the of in think where different on But on impact would freight Adam, It third be positive. have the your seeing here, would weight couple you've of was square to up on just call So wanted the the ways comments

want you So think right about the but can It been what's just with seems that's shipment? about and going on now. way weight talk little it's in that to to per make right a bit level, of the mix the like just sure a kind it normalized

Adam Satterfield

second -- about the now you standpoint, X,XXX it And the if in about were pounds quarter. XX third right October, to It where sequential we as a from pretty pounds, decreased from quarter Yes. will. it's the much same around right

of of out held would And action terms getting heavier we We yes, took the looking system. then quarter, fourth trend last some in so a shipments weighted at of that year decrease. our the through if be

what sequentially a doing systems for last as as an of of customers to Those XQ. well. LTL existing seeing quarter of hit we shipments watermark in that really an deliver Some year, spot those and we're started capacity what decreased we we quote versus the our in of effort our sure have the protect 'XX of total -- but needed. increase low And that they can result fourth make quote in business spot that

such I in in X,XXX. up then then But and and up was pounds X,XXX down strong of that fourth increase increase an about terms ended third So X.X% we typically of we the quarter in year almost with tons last bit. up to it quarter a been since yes, supporting that point, this a were further mean in sequentially actually quarter. it's our per -- declining the day. And to year It's went first X.X% X,XXX from XQ versus

So this a per why high that year. into standpoint. went just that's weight environment, was sort of expectations we've coming you as flattish we such through it's seeing a we all from XQ shipment this volume standpoint been had strength will, if But from been what year, and kind yes, of

Todd Fowler

in, tonnage holding a it like bit Okay. No, the sounds a little per decent I considered. seems shipment all weight things mean, down -- that combination being

headcount follow-up, was any on I'm think of down quarter letting bit headcount, I have curious of attrition trends? run you the either its a don't it if a and that's guess is the Just comments course, should just sequentially little of fourth probably for a think about or cadence year-over-year, I period. we how sequentially the demand big But hiring is given kind

Greg Gantt

vacancies care take or track that through this been the do we quarter, you'll of continue typically and going to right we other aren't see time. really it standpoint But Right in now, filling and trend continue simply needs first direction. Todd, which much we've shipments. our on -- that but whatnot, is attrition not at that slowest point back said, from quarter. I think like our you the would in hiring move letting But to our

Todd Fowler

it. Got

attrition you've just quarters front. got the couple a glide for little So of of next a the bit path on

Greg Gantt

in certainly work from and this a side we'll come Yes, change have in I and position I at standpoint standpoint. drivers to think, trained better continue think get point we other continued will and driver thing to time, out -- from on capacity a the to some certainly from so. those we've But mind, a know because driving and keep schools continue in

today get as for some the better when will than So things recover we're to and I in the set right of business, hopefully, know in has come, do been doing past the and you time think that later. our sooner stage times

Operator

with comes question Stanley. Ravi from next The Morgan Shanker

Ravi Shanker

Adam, up I the just tonnage already. follow wanted commentary on some to of

for the of to you quarters half we look pretty way like and kind here, if already were you're said X to and already for Specifically, all of you like of start into you the quarters kind maximum historically approach at take call X much of bit or it, underperformed a think on a into little full in stays like negative X the months share that glass your tonnage that. X if X I

that there think positive horizon. on are be But of may of cycle you of for the is did kind You kind you position say looking that signs may in be turning maybe couple next in a don't of the what any restock the months. we catalyst and potential a uptick

Adam Satterfield

there's risk that mean, of Like Well, the customers. in think they're psyche just And had of that to the with just terms the capital. going just the in I conversations that today. take in the that we've is market I thing earlier, business so owners for I uncertainty gets much biggest said

with is And the economy the as there made the first today. have I customers chain get to be right given just some terms But think where interest some some heard rate with. of are there's clarity we've hand supply if a impacting fear standpoint for and dealt got economy. uncertainty to still of what that then in in X out many their you about on solved, to certainly facing that we I from a fuel But labor terms -- prices to issue next that comes for upcoming then think when you've that has the got issue not inflation least at and years. And issue feel domestic customers the energy decision of business. the to big people that come got now, clarity think layers there's side are see environment. aggressive for type the think of may after on demand labor that, be positions then open the you that improvement the overall couple it's the overall uncertainty I get impact midterm that We've for of elections. that that riddle And of

And even of so bad it getting type of that knocking looking get at start be we mode. got to when we've is of back the some growth I even look think to periods, the a growth we back as sequential growth spring was, into prior in down as that But those and XXXX year. started

we about went XQ many We like a 'XX, the So build kind lot But a there's conversation feedback spring. another really get we XQ in standpoint, fourth winter. 'XX inventories have us right in to businesses got are have where getting the a But through same At slowing give did. parts. inventory same getting of thing Many slower inventories. system terms some the at of our of been up of places. frankly, issues don't environment, of from sequential things and people of levels face looking bad had of in the continue they point, started the down. right customers now the XXXX, the kind the and We quarter some back in back that to

at look And pre-pandemic sales ratio that's still inventory to So lower that than we demand. an creates levels. freight

our center service baseline build doing a So those with having year, customers dealt going of to day basis. to headcount I imagers around trying at standpoint, equipment out We're XXX and factors just that's into their representatives, what sales tried sales think somewhat lot build team are of with, of a that plans feedback. out from locations but capacity day and there's and to our we next certainly have that those be and conversations an on But take best plan the into each our our got a figure from plan. is forecast service that in center account each planning, to planning

for feedback the You ground all can economic get help to up from business. we but the reports the the plan best in world, us is read our

Ravi Shanker

maybe side? the encroach you but LTL as this said loose apologize missed follow-up. into it, how to kind TL quick signs things are if given TL And of a seeing kind Great. players of and of you market I trying are on I the any

Adam Satterfield

on and is XXXX those Not say, really. that that would has for And where of spot past, into may play be shipments. reason in the in back the quote-type a frame come some time

are willing like But historically, actions last that be and XX,XXX try take designed Before type have the as that get that mode, took stops spot if not will, some X,XXX to pound year system. shipments, might were somewhat in And those truckload carrier year freight. the loads. industry. freight shipments sticky that to a just spillover the But pounds actions of last or X our be out to of you proactively you build strategic multiple XX,XXX took come heavier that we with of we wouldn't quote type LTL defined and to try to

so X% maybe X% total, quote those this shipments that a result, our number It's like spot point. more to so of overall. used average at And probably a to as X% small

past. as effect it creates -- as means of into a what protecting tried as to really out capacity don't other think has But of think of don't similar It shipments we we freight I the year and that don't make think year flush approach. in that they feel. is I as vacuum last to and carriers the would some our of other big were well. that to cycles. think thought at a I LTL going that swing wait looking were particular prior There's some somewhat a kind to proactively we had, would out challenge transpire was through been to network, we there truckload. our that that's competitors fortunate this that consistent of sure So that the a some in companies for that took much us I shippers look back work designed risk

Operator

Majors Bascome from comes question Susquehanna. next with The

Bascome Majors

does does is this Following productivity head on levels up below make How Todd's talk history little Can in bit own at X% maybe that productivity XXXX. get stay a shipments were in look you a at to they're some market? I driver right of And dock more these your your employee, demand now? to quarter How headcount per -- to environment? and sense long historic in does bottoms-up tops-down the still, on it, look labor If question. just there in opportunity metrics? where can about productivity a call compare compare? weaker little the it metrics Or a a an count structurally back calculate we to tighter they

Greg Gantt

had first, part because standpoint but talked your Yes. the -- awful and in -- stay had the did I was up to than work make a on I'll much market, we recent on harbor an of a to answer lot in lot lot an like prior does years. over last have Bascome, sense think more as past the up. we about question of from work to years of ramp a just a the we on definitely little ramp difficult from we've tighter, a calls, to long particularly it driver harder we It's before heck standpoint, we always in that labor awful

see in is question. market and starting for as sure, get a productivity. when it some platform, a affecting good level it's we general To So more pretty that thing, improvements without back improvement we driver productivity to the high to trying this to and on can a we be will typical go little negatively diligent on the We're from keep which maintain environment. as force possibly

are we cause we trained and And start positive that see becomes experienced, force better labor more Our the change. and improvement to seeing now.

pickup a ready side good delivery because same that's the we're we thing. that struggle doing P&D were little just on the up not were side, obviously we at bit number to So certainly picking of each stop we that Certainly, buy. and a shipments the when

So that's a certainly of more challenge.

certainly up stops more a is greater between become from little and kind miles difficult Your that of standpoint. thing and to keep that

We room from and standpoint. have load P&D both factor continue and for we platform we'll obviously, a to think So those. improvement focus on always

continuing can. try out to stay and drive we're where can continue cost laser-focused to kind So those on things and some of we to we when

Operator

Chan Stifel. with Bruce The next from comes question

Unidentified Analyst

in you it Bruce. to for trend to expect and years is get Matt This the over the on industry Curious next might on net your current how capacity of maybe couple view here.

Greg Gantt

of we better type in money standpoint. to it most. ramp capacity shape back job there I And Well, was the But extremely the think an had Adam good an maybe much before, from lot a up that prior. wasn't from only certainly, were capacity we spend done that. and out in Certainly, so I I we've think this in we more last And of capacity. environment, suffering than of mid-XXXX awful as really there's think mentioned year than one certainly were

But those seeing on of year or set continue when carriers stay We we'll things now. various We this of year focused the and and did that things think bargains in not out capacity see they I there going same on some to we'll were there hopefully before, building certainly, we be shape. capacity. we're out don't whatnot. to good obviously about I like And limit last and trouble, in hearing thing now. in kind come is And later, mentioned pickups this than sooner things

capacity those. number be is, and large increasing other the said, the know capacity there's we'll change do in up try think we up. start to we're on And But and I I arises need you what on what's shape question to of to projects underway keep everybody got So volumes pick the And when We've yes, again, a obviously. better ramp back doing. doing side. now, working like when

do. And are. do, And the we we what certainly, can't they where about good -- can't control honestly, others feel we So that.

Unidentified Analyst

Great.

demand or seeing or Lastly, differences changes specific any are guys you by underlying geography? in end market

Adam Satterfield

regions, overall our hundred No. faster basis recent bit most points it all of still We've rate. points It be look bit for with the It's grew And industrial-related be reduce probably basis most bit a the back helped positive little sense growth overall. quarter. that that on to performance we're once some was probably the than insourced know essentially growing a most the seen and And service is the of prepandemic value couple that's but good to able purchase better improves others which revenue our a again, accounts were there's average effectively if will, a in quarter balanced, was probably of side, fairly we you probably performance our better a wanted the to because on you where little couple saying third us levels again effectively we below growth fully in got segments, in seeing retail industrial we little are than But at when but our side. which a transportation, it. overall more thing. hundred a company

And so a will. might balance, have and that to don't achieve bit we you of have if growth can that's those been a not if you been somewhat But trend, objective. positive in all get regions, you little out consistent able

from So a that's least service and cost been a a positive development, standpoint. to help at

Unidentified Analyst

exceptional That's super the on performance. helpful. again Congratulations

Operator

The from with Todd comes next UBS. Wadewitz question

Thomas Wadewitz

Yes. It's Tom Wadewitz.

hundredweight Just was -- give fuel. in you don't where ex of a of I of a what offered you per if revenue gave is Or on kind I think, October, at? kind sense Can the kind quite October know bit that us that? Adam, Is stable? that September, of commentary but trending of you

Adam Satterfield

right I same didn't Yes, quarter. little third mentioned surcharge average to specific about pretty Tom, but better we in speak, in I the just give line, and revenue level a what right a up excluding the for so hundredweight October. quarter, that stable. fuel X.X%, it's the number, than the We per third that saw in bit were maybe

Thomas Wadewitz

I think I bit stickier, than So of maybe more being guess that's you the you stabilize mean, thought. you higher you that, kind at? do level about talked inflation a

inflation. than But bit a So do XXXX? I go what's a guess you a maybe got X% as price, rate that's running a weak -- as X% that that further think get growth right you're to more revenue the to inflation, you right? normal to you level? market, kind higher you're think into per of get to think hundredweight of normally with going you weaker decelerate see a bit think more being if I Or we in in

Adam Satterfield

shipment think we're improvement. that to certainly of some of -- wage have we year bit increase whether next at inflationary this as at little shipment, long-term fourth long-term as certainly premiums our when long year have cost we've improved been to mainly per X.X% years, our to increased the that that's I the goal and items other range average into kind operations. revenue face give because through objectives look in productivity kind offset I No, per term, employees per that well. X%. of fuel, within X% including look and certain you it each that's as our -- revenue has same insurance cost of efficiencies go think -- between those or excluding you we performance able able But in equipment is our But been X.X% per been we the shipment of a we'll transition the performance, the rest fortunately and we XXX. quarter through so And the from But different to and than the fuel been to we've

had the per in we certainly, hundred, at increases XXXX. bigger Looking

when is up, throughout increases renewed improvement. back year year to for is Some as half the in and of of continue this key that solid started us has particularly this the year make to the they But just well. and picking the renewed inflation been was contracts

improvement. department that a best continuous looking improvement efficiency we've I got And the So it's we But with work it's moderates -- We our we'll their our yield transition inflation. that, see continue of certainly with into next continuous year. at we operations. on hope is that there yield efforts whether core cycle, to think management, certainly, the as Every side.

But big see what certainly, So of we perhaps to two. shouldn't from increases we've increase an as last we as quarter-to-quarter. want the seen need sequential

Operator

question from ISI. Jon comes Chappell Evercore next with The

Jonathan Chappell

quick Adam, just two follow-ups for you.

I couple is been the of and network. PT can about low your then questions X.X% as ago, on brought as ever far it as up it's tell, answer a as First, in

you Or maybe of plus think the at challenges in absolute resources the benefits elevated and the hiring. we bit just foreseeable a salaries, contemplate kind probably stays PT more as it there a Is holistically, from minimum little any about And of for keeping perspective PT? are So room you headcount more because there? flex future. to wages

Adam Satterfield

trends line the where within third of balance a we've domestic network. to small level that -- effectively haul reflects generally use brokerage we truckload X.X% PT that any in X% we Yes, we are, mainly didn't between our that as operation. That had revenue our little quarter, have historically

partners purchase costs So and number. operation well. have transportation then baseline that are Those there you've costs got Canadian that in those as with the carrier our we

degree, and manage. our using some came regions pandemic get if don't appropriately rest percent like went strong our to to XXXX to get what stronger, had that that we get up out changing which that balance, workforce I was as incredibly of as you we domestic were So expect we certainly we a it of mentioned call, PT there certainly, foresee. operation. where supplement earlier, the But wouldn't primarily some something as is those off of balance much impacts growing lower flexed growing fleet of fleet a the revenue, and they unless through with necessarily don't I We you the of much businesses, really as will, out to coming your can nothing out if

PT So It's keep were in balance. that was some using of a of why we well. the to as bit just overall little network

Jonathan Chappell

you're strong customer Okay. optimistic. your pretty as said commentary. not word, your directly, it maybe like helps. of tie in but freight. isn't also there is down And I wrote regarding pessimistic a you of prepared then I sounded couple just remarks, I some customers' But demand together. things mean, of some to mean That your a optimistic for

are to you start we 'XX this catch-up? things kind it's slower, by pickup weak we a do going be Or of start off foresee a a seasonally time peak season just do rightsized as might But going to be and and maybe see that maybe rest see or there today. So it's of not a the where into late then? reversion write year to a

Adam Satterfield

Yes.

as just in mean, For don't it's through of pretty year month we seasonality out coming be I But we month-by-month month September Usually, just strength average if have in how the the looks and consistent shipments, And earlier in levels progress, certainly, March have in it us, and week-by-week of the trends year had of business. seasonal nevertheless, we the will. within yes, season part months then the of year base will a year whether finish we function And But is of a our busiest from quarters. peak se. the the weight our some per it's through that the busiest months like we we of and the 'XX. are. off just of the terms you managing kind our where

get to X lot where a earlier cycle normal will underperform X I at, outperform either that a whether of or down we an have Looking quarters mentioned up -- times or we seasonality. when it's cycle,

the the underperformance. quarter so was of third And third such quarter

see mentioned, just that up So were watch for didn't trends, to acceleration. be about about type same second months a X.X%. quarters of we've up through we I buildup. X%, we'll the We where of the the and was just at normally sequentially September, would in that see third we what like lot example, seen continue least

at the first to spring volumes when closer a that's in year, buildup seeing the used second with touch business. drops increase of through to to year, next from to if feel December seen, back seeing sequentially off. some our of We're this a we getting different. it's Remains sequential and XQ the were in seeing the up XQ kind get and bit X.X% then to we normal bit I But kind about X.X%. quite November? little the volumes quarter start can and like kind say and coming be quarter, looking we somewhat of will of we trends, So about XQ

a were So October periods you if see. of lot look buildup a that look into would an slowdown, we we prior of trend underperformance, But be back just going the back just with developments. kind and had it's haven't function some of more sets fourth But had October for getting quarter at in that you've and when going these we economic generally through otherwise or September. will, versus where watching we kind to the yes,

seasonally internally a better into been months a feel be going always get was winter as that little we've little something bit really where closely So the us we're makes we to watching slower. bit that

so engaged adjusting comparisons up and with continuing now. the while, probably Certainly, just on So was build focusing to it's and then all trying be the the We we're customers as we year-over-year strong. going little a just we're a to standpoint, fourth the And on bit And function figure a out that the more plan then and from really see would quarter on to the dictates. not. quarter quarter overall or volume year-over-year need what fourth sequential trends to much our year a spring next from environment of knew again, stay standpoint, harder of side. need first execute the kind volume

attention why out how So of paying little has bit the probably that's closer us. played to seasonality we're now some for a

Operator

with Seidl The comes Jason next from Cowen. question

Jason Seidl

over we're everybody's that the should that inflation sort cost we capacity last Or gain how that one ability maintain that about? to much industry's Is sort question me, is to downturn? seen we but in with think Just larger that inflation is remain should and going be carriers we should into expanding LTL the for of pricing something been continued across pricing everyone network decade. we've asked it's seeing discipline about fact many concerned cost the different ways, so to of confident above a

Adam Satterfield

average -- I their Yes. has Well, the like negative has volumes mentioned, last continued we've -- And the certainly group increase carrier to -- seen but exclude we've on year-over-year to X on us through a quarters. basis yields.

not of anticipate seen. With We've added lot or be remains any not being whether we capacity from that. a wouldn't seen is respect And really to to so addition. change material really

X public has carriers service on years, decrease certainly at you Some industry, have But a last talking people about the the over when in has at carrier, their capacity. look average been other XX been industry in I account. that there increased least are the There guess, it.

made our make the customer they value along other different been what's chains. faster want carriers versus we had ratio we'll like, all compare have But So and our to we've are of customers are continue and a us don't years. that price to combination will we -- along we way. last the but long-term customers the throughput XX about ultimately, We've volume that's And in going XX% do, win within different think of to and it. rates improvement don't of what certainly It's drive long can what us But our yield and what allowed operating produce a able have watch. to the Old And we to know with But to a the add to that than ratio in cost business. conversations lot won share this that's way. inflation got in to growing record what term. have as certainly those to believe we'll can in periods, increasing plan to watch what's control, recent service through density have yes, we But certainly, the their market And in track and then supply we system regard we in continue and been continue year, our value been the move through looks continue improvements the really is, forward. the certainly other that foresee improvements versus the the will support to on change the price. us, again, the but we that just do And strategies elements else's our continue Dominion, our ability terms what over control the someone we I averaged it's we'll to revenue the our to our operating of consistent we carriers the consistent has and value, and control see. can conversations carriers but stay we've for day investments do trying growth disciplined, a will is watch what help that what sort what and industry

Jason Seidl

game your clearly, worked. Well, plan has

So I think good with a is sticking it thing.

Operator

Hoexter America. The from Ken next question Bank of comes with

Kenneth Hoexter

basis ratio target still volumes here? Just out does higher before, over year change I improvement to Adam, point full XXX to noting there. balance to of kind you just weaker but inflation. also noted revenue comment if your the you cost just a XX are understand, operating point XXX forward? Or that last want going basis your on

Adam Satterfield

the think is for degradation where flat I and little that our a XX as about limited we OR percent decrease headcount, the investment really to to we actually invest has We've periods for little to want for But year. of types Those like ratio had want year a of this closely been opportunities, certainly revenue to to our out XXXX, just with general And second short keeping costs that of earlier, Greg big that things opportunities, and of first the focus might in like our we what long-term XXXX at looks bit bit operating like. a of a talked bit we improve generally of were basis little versus a Well, maybe reason the some certainly, of otherwise XXXX continue the been protect a a I trying XXXX, that or had performance points. terms next inflated think we revenue. believe earlier, doing are long-term and to look the of cost looking depreciation mentioned And more the decisions on of we revenue continue aggressive a down. share look prepared for term in improve half managing long-term the that make opportunities what get years the in for that too cycle. lot market the XXXX, you quarter have. we But when more and

depreciation overall what we to There's of and cost as costs variable or business, lot from of driving increasing flat how then of down to those revenue the on all terms to as see. increased a denominated because there, we XXXX over and lot certainly, cost are potentially the increase And out there elements. uncertainty So that in see we probably and those at in percent but depends the it any dollars investment type might will deterioration a prevent XXXX revenue manage of a and look environment try examples you're manage of flat being can best of depreciation a standpoint. better just then revenue

Kenneth Hoexter

add And you you the from but of when spot do you shift about kind more? how things in from boards, keep think steady? of volume, softer, about then a mentioned get carriers, it you percent third-party How the do the this market does brokers, strategically? Do that that

Adam Satterfield

those out lot long-term XPLs. mean that of relationships of bit. many little our driven you'll times, this see They're is in I flattened some about Well, that's of environment. of we've seeing levels business kind X/X slower good macro a A XPL We're overall. little bit a now a with got what

of so watch the value in damages customers deliveries, shippers some And superior on-time those certainly on us help can helping our for the the XPL and transportation sorts feel to lot a potentially have, value. they're ways, terms pickups, of talk what that, continue value but price service about of through like that sense been us manage can all a we'll to talking in to the we past, that services things they of that of the they're on demonstrating help that independently someone big elements different load in has solely time, more just focused talking that

So environment. in a to be slower some ways, that beneficial could us macro in

Kenneth Hoexter

a -- and sticking is it Or the market? you around a does seeing you up seeing stick are increase change? level percentage? it down that are just So already third as in that Or

Adam Satterfield

bit the at flattening now. -- remaining of with terms with right in It's the just XPLs No, X/X. it's looking is a overall our about revenue growth little out --

Kenneth Hoexter

is And huge Are to guess, -- this for push our go last terms a I a impact rates, environment? fuel. then negotiations? It know talking. as you? quarterly even lag versus in customers back harder quarter. And your the kind neutral impact, these last given is struggle of math of in me -- you kind sound relatively right that quarter the then raising Does I customers volume it through but negotiations Are your bigger of a keep you now? mean I you the seemed

Adam Satterfield

conversation a paying. fuel is the that's in you quarter in the But us, slight price the if ultimately decrease of always because versus the certainly, third a total price, for was There's bill no. the that will, all-in average customer there about Well, second.

year that little call. surcharge diesel prices still growth about So to average say have dropped to another probably operating questions like I lot at were decrease. help I that that's XX% we had going We overall, to fuel about some trends year. something to volume the and is that's periods would down bottom whether we down, a element fortunate But material fuel able probably about revenue the fuel earlier, XX% the improvement continue price and to want a was were that of fuel type improve us and in good of year there's If we XXXX, back of And philosophy looking the The were get we'll fuel ratio. that. that and that a like And look would and from the we certainly, to of more that to if But bit a decrease line we different line impact the for bit are us. that fuel in the pressure mentioned overall see goes we certainly go And see fuel talk price today. we we see in all-in or the the or XXXX. being our bit was to top impact, a hope overall terms we in decrease just one volume drop. of is surcharge continue standpoint. a little the little paid environment been would the That to on last is price best just up hope of pricing neutral some

Operator

would This remarks. conference to concludes turn the over Mr. Gantt I back closing any our to session. like question-and-answer for

Greg Gantt

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

Operator

The attending presentation. concluded. you Thank today's conference for has now

may disconnect. You now

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