Old Dominion Freight Line (ODFL) 24 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the Old Dominion Freight Line First Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to hand the call over to Jack Atkins, Director of Investor Relations. Please go ahead.

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

this historical deemed this statements forward-looking For statements that call during purpose, made fact any are not statements. to of be may be

limiting expressions words are Without believes, similar identify to expects forward-looking statements. and the foregoing, intended anticipates, the plans,

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

that we one returning final we a before cooperation. but yourselves your queue. Thank your the question to limit begin, note today questions ask at As a before you to welcome time you for

Officer and sir. Executive turn call ahead, to over Chief Freeman, opening please conference company's like the this time, I President to would At Mr. Marty remarks. the go for Marty,

Satterfield, the will financial questions. to And some of economy. Dominion's first the continued your results Good is on softness call despite the call this quarter CFO. morning, conference in Old improved domestic morning. after quarter Adam me our we the take be XXXX during everyone, remarks, welcome With first today brief glad to and our

revenue in While per year-over-year the straight and the second quarter. modest, our both results we for in increases improvement share earnings was produced diluted

company long-term execute new of records family the first To represents helped share to $X.XX one that quarter. of our diluted plan of per record earnings produce and on for these strategic also industry. strongest a LTL growth continue profitability in Our OD employees the create results, the of

evidenced us have created as was we first and long XX% service over again a service Consistently continues best-in-class proposition X.X at the delivering share cargo on-time for a our customer market also plan, and to ability ratio deliver team's once claims by element proposition strengthen and value quarter. is central term price a This our of strategic our the for result. helped superior the value to a to relationships. create This win opportunities has fair

Our despite customer a the trends longer that than has we over sluggish years remained X have past been for economy anticipated. steady domestic originally retention

the a of slower eventually customers us Our environment, shipments to strongly give their we to had as result are fewer economic when positioned demand improves. to but respond have needs

our long-term impact quickly us present. -- can rapid that initiatives and so why to help intently in the decisions us market short This term. team the can make that share experience is we implications LTL these on Demand cost has dealing growth goals challenges change in OD with despite these at can very focus may the quickly achieve the and industry

to growth. have ratio, to short-term support but fleet headwinds we resulting service slightly improved prime first year stay capital have expenditures a depreciation Our capital of excess have this XXXX XX% to million that approximately total network in our has quarter expenditure invested recreated our in some we The curve. program this approximately and spend operating also future cost XXX.X in our is ahead growth expect million our capacity example of impacted $XXX as and center

or we that us months, but able and be from seen our for LTL other spirit. differentiated has what OD to X our significant but easy family equipment, carriers us decades culture to is and which over outgrow has disruption continue. carriers centers The strategic the purchase to more add will our advantages believe duplicate, Other allowed service is past have may industry not the industry we so

Our people most in invest help and the of plan element family and our of regularly OD our ensure are strategic training employees committed educating culture excellence. are of to to we We our employees is team. that important significantly entire a our

OD qualified current using our drivers. drivers keep driving intend We most produce and safe have program trained internal and program, training truck through X/X to of our this we to

management generation of our to of invest we for be willing are produce costs, in leaders. additional These which believe programs We short-term decisions will incur continue create help also more that to OD prepared costs and sales these but training future. next our to are the examples

industry XX wins to customers our and an I investments ultimately company consistent network And can have industry. we over to and economy. chains. any share is we years. to Delivering elements assure you market more committed positioned of add than we value also each why our reasons market to people, best ever one than is in Our the improving deliver OD's supply key in superior service benefit believe is our past other everyone carry our service our the in Having in our why the LTL continue team place that superior from service ultimately that to on what are these are share the more

achieve returns support for help growth. vision also and financial strength to the We to needed consistent investments profitable our long-term have

now in quarter financial drive believe As us to discuss we vision, plan to this further morning. detail. we our first execute continue Adam results in for proven can Thank a And will on joining greater we you improvement shareholder value. this achieve

was decrease of tons hundredweight partially per $X.X morning. and year. Marty, day. This from LTL good was increase X.X% you, increase Thank the a the by due Dominion's per in was X.X% offset primarily which X.X% LTL revenue first slight to quarter the a Old billion, in for XXXX was revenue increase prior revenue in

XX a revenue decreased our points compared operating earnings to LTL day per XX.X% diluted fourth LTL shipments with basis X.X% year, day to when share for per our to basis, increased XXXX $X.XX. X.X% and to X.X% first compared decreasing per per tons sequential quarter the as increased of while X.X%. day the quarter Our ratio decreasing quarterly last On

For as and average XX-year in increase of in comparison, these decreased were however, of for from in of months X.X% Good when The increased case, and the increase X.X% that increased XX-year compared decrease to X.X% was January, average in per of sequential of is per day March increase February February changes of LTL during respective in January The February. day decrease a X.X% increase X.X% these to follows: revenue compared quarter the monthly an and X.X% X.X% X.X%. X.X% of January shipments an as per December. change an per tons change an March that first the for day. this sequential includes remember, a as Please decrease X.X% a in March and year, day, Friday in for change in tons is the sequential March. average metrics is

still compared remaining increased by X% month-to-date work are has per to a X.X% when days our there approximately to in day April, of While few April revenue XXXX.

per X.X%, by LTL increased per increased has tonnage while to X% day revenue approximately LTL has X%. by hundredweight Our approximately

quarter. lower with April surcharges, increased the any our change metric than mix be clear want first are Certain first slowdown the excluding in represent the fuel approximately as impacting in our this not metric Our trending LTL which in shipment this change is revenue comparable changes does pricing change has overall in X.X%, the growth rate in to We that LTL or hundredweight, per our the a philosophy revenue pricing more quarter. environment. is per in

improvements exceed our continue our capital we of cost targeting consistent achieve program, those yield believe initiatives with we Nevertheless, that expenditure support inflation we long-term year. will this can and approach our and

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

the overhead Our than increased offset increased ratio of XX cost XX due than a point significance fixed in our our is our revenue revenue of This percent of as points and cost in depreciation costs percent in first a our expenditures quarter capital to Many flatness basis operating rather XXXX overhead past impact as the year. revenue. improvement increase more most XX.X% the to the of by for the over costs. the the direct increase of our from as the evidenced basis

in revenue. in a the pleased, our and salaries, approximately included This focus and points. basis slight operating helped percent improvement efficiencies however, change in us of of percent improve yield wages improvements as that as increase supplies are offset a expenses benefits a operating ongoing and by cost We on direct operating XXX revenue that our

lower with which standards continued to operating delivering easy efficiently to do our also service team an while variable in environment Our costs is not density. manage best-in-class

the continue and We which keys improvement to both yield believe environment. combination operating density macroeconomic that to ratio require of generally long-term of the a favorable are

those program favor operations Dominion's dividends for a have our ability million share working totaled sub-XX% factors for while the operating we of work our $XX.X our We of first during totaled quarter, ratio expenditures are capital cash confident continue cash while towards million repurchase to producing were further million. $XXX.X flow annual Old goal and operating in from our $XX.X improvement cash Once utilized we'll first $XXX.X the million. quarter, our produce ratio. in again, in to we

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

our of And Stanley. Instructions]. first Ravi Morgan come from [Operator question will Shanker

what Is in the you that XQ to a we tonnage So up and versus where or post do industry the environment, we and got seasonality? to if of best point. of kind you we looks trend pricing quarter have of comes XXXX Yellow expect -- kind XQ great where how summary in picks of see this kind like this

Yes.

second is starting revenue April. year-over-year and that seeing growth, X.X%. a type that's the to finally quarter and difficult with revenue see the of some second And average one but getting acceleration growth feel not in first in we're big the is top from not I we at revenue dependent answer. the we're Typically, back on quite still of in It's it's to seasonality. when to levels good the XX-year out increase speaking, the the us, Things quarter think to line. historically obviously

far increasing into not February, We March have our encouraged that have seen are. normal been thus really what levels and essentially we've those volumes increased again, seasonal into But April. into at

of the it's second going the does. quarter to kind what up very line be frame to ratio top dependent So operating on guidance,

to margins If at point on flat. grow we sequential we seasonal the targeting at levels year-over-year revenue line, at a that point growth. be about growth in and were sequential top be XX% were you think would If we would any time, last able looking at this we X.X% to growth, where year be weren't the what about would that normal be were

So that the middle would XXX probably target I in first obviously, we put from we at from are this us the to I growth points we're away Where that. of we scale. at probably would X% sort say a stay then basis of improvement somewhere maybe of X%, are about were ways of quarter. sliding If year-over-year somewhere

margin that are always, while ready things acceleration by some as first we And operating to we're us to and there, upon not quarter things, the definitely some can May see will through call second hopefully, be of second. accelerating much not allow some to make to But that the So quarter to go continue obviously, going for -- we're the how and we'll like from sequential say acceleration and create hit is June. density points our us will encouraged dependent to that and the improve we those we're we see.

from Stephens. comes Daniel next question The Imbro of

metrics impacting if some Daniel. for demand you per a to? may referring release what just comment more And of some comment There developments your around weight be update maybe the maybe provide provide that could the more was underlying yield that in a maybe April environment. on a little of on an your earlier? recent that Grant Is for comment overall also you improving. suggest a was is discussed bit you demand that shipment is it context services just This around Could

sequential we've feel I underlying that say 'XX. improving does obviously, seen it from would several like at with pretty now, been through we winter there January, improvement I far starting are But domain and mentioned, for factors slow -- we going turn. And I obviously, again saw first there Yes, see thus weather, long time. felt that February feel see, We've shipments cycle consistent, a borrow but waiting sequential line are in the we're of And that. of and and a we the impact like increased to we good back April to are and March some acceleration but But April. then bit. has relatively above just to like back things some right from into saw over through maybe inflect to for a the ISM Taylor saw is now, Swift XX% kind of

April Like little from It a it bit January up our and through bit March again. were bit you a little came shipment to increased back weight We dropped in per a higher. mentioned, February. of at change has but a point little saw this then

couple national from and reporting that a if developing. of the that industrial seeing lot business improvement that inflect we we've conversations history our So we a steal like wins in outperformed the on that's There's on of some you that retail will losses. ISM And usually reflect they're quarter. and our sort in feel after And at with as of good account repeats positive, itself, or well. balance something had look months first industrial that to customers things our activity start our

that's And a we something advantage some things start we're LTL the hopefully and if be those of certainly service. as itself. presents factors there, to recovery can all So seeing of opportunity will position that demand increasing that take for it in

of question comes Goldman Alliger Jordan next from Sachs. The

-- yield spare is talk bit more perhaps tied the know, around is little color guess, don't deceleration mix, to some And to way little I equation, competition core yield could as up? a industry broadly, seeing given capacity? this intense it way pricing the there the out any curious is more -- you more I you're of come if in side Just contracts a your

that any we with why That's respect change don't overall being there management we clear what this on reflection with be see Yes. to wanted in are. comments no as the the certainly, And a earlier initiatives to environment. way yield our is

That's revenue achieve achieve We improvement continue per to to to in ultimately trying to to been leads XXX shipment. something shipment our we've cost and XXX that per outperforming yield target we've the basis our points targeted able past. weren't costs, positive environment on And and in to over XXXX past obviously, that's able year, more but that in to and with volume achieve we're the weakness kept investing we year. the invest continuing the spread we created this

inflect We're getting through otherwise I per will XXX per think to we're due. I what to point But revenue perhaps our spread, do coming would back new to positive winning some that XXX shipment now can cost our we going above shipment this not change be. see probably But close do think back full second we're business. as work they're point continuing and quarter delta. in basis the we a that back where to to see it do contracts

a be been haul, be can shipment, basis, can board look skew weight multiple factors, the when decreasing of skewed number has well. by that freight on that on which at as per you things and hundredweight the length the come of Sometimes class it

shipment were revenue overall a where fuel. first ex performing core little pretty looking at we first pretty the things it's multiple bit close the the we were in slower revenue number is were the higher that But can we matters now, per bit in There's basis, the shipment most, at our is where a where quarter. around quarter. than fuel, per that to from least in move and first quarter, right April But a core just the on with little a in including basis, that's what year-over-year and consistent growth

positive the still seeing outperforming of seeing continue I So feel again about spread per the ship some activity about to sight good the the that certainly of we feel that good cost especially the things and we've once and environment internally to ship. we line rev had achieve, per increases and

question Susquehanna. Majors next comes The from of Bascome

forward this think cycle moving and down around you've capacity changes on of the monetize your be I protracted strategy your with guns capacity the part really the and can at and waiting happy with in all especially the future in the sticking through your cycle the But shareholders held have require to here, some may the for X-year or in some of are that discipline competitive the way and as long-term to may better landscape peers. or to you strategy tweak that in OD. customers curious way, and the in for I'm shifted there form internally you're look there? have that wait market are what inflection, viewing for in that here does you watching a things see the changed shape things are just looking

Yes.

to I share think And it's will levels, market certainly, the our and business we continue tell something that time watch. trends.

in But least some have different you way reported, I if all of compare reporting compare pretty after All of to really carriers Yellow's share back otherwise is we looks where disruption And to at what flattish a now through hard the generally it it when event. the what and closure. with slightly our and something slower so quarter, post market line go from we a track we are is the at than a with other do. -- the quarter that look fourth much right environment. where those of have would kind have good you It's second the expected share before maybe like I in have way been with if shape market little we're

most in quarter, carrier the not carrier just to other change there's flat other And grown combined. as relative again, space higher the other at are to has share some percent look day. year-over-year market and looking the event pretty about but carriers you quarter fourth per largest same carriers a the one post And gained second us, when a we've just shipments then little And gained bit all the they the pre-event then the that's public shipments of otherwise. have, public

have wind model is when And so brightest, Once think some for similar the been that tailwind if historically the years, the recovery, seen X you once we've past economy trends. then the we the running again. get a we will, inflecting from positive, happen And improvement some the to and will starts lot economy. what we OD's against of get the time that's real we back of when economic some shines types economic where

will you network see to think able improved to we'll leverage I drive that operating operating in growth that and through our with volume ratio. come density that be improvement

our So change this pleased we've it's anything place customer over different. they way with past business been earlier, and trends. believe we retention their we're needs customers' really the said X.X years, We're slower. point to swiping that when ready to seen back that be any The levels Marty don't at will Like to the in see respond business positive. our and and

glass looking this green standpoint, half that there I at year. see things environment for the inflection changing all are do, have improvement need We capitalize later to event a in like feel we're and some potential if the from just read demand opportunity little been and that kind and some full through underlying shoots more point, typically can closer which perhaps freight and to in of So that bit certainly you place. you're that a on it things

future that have in so our I continue achieve time. definitely our to commitment to that from differentiates are excellence the short not be our buy we duplicated, customers share can pieces We certainly us the that place. and can buy we're those is superior are ODs out allow But of cannot things feel to anyone equipment. our period think terminals, earlier, And And each and of service it is allow our delivering you you shine for people and will thing initiatives. And model most employees what long-term market said into like to any the go can we us the all in And the culture. there. and

Amit Mehrotra from comes Bank. Deutsche question of next The

go I comps second it I I if the to Adam, back assume should wanted comment the given -- accelerate quarter. on to maybe revenue at just rest per easier OR mean, day, of it's look I the quarter. just

maybe the you're in So mid- growing revenue high single second digits to quarter.

cost, are to XQ? industry I And just in all implied the imagine taken to in to don't would OR like the better XX% on than I'd like get pricing XX% your so that's but the a opinion the I not, do front-end loaded the fair love that nature that. incrementals on And if with been get to could and view that. know of or that's we

my get higher maybe leverage XX% right, variable improve as the view the and you've already more level when maybe then is a cost, kind points now, calculations talk of do low probably if revenue XX, right to there. OR. got go recovery that hundred I got, then of XX and you're more a costs. And OR, on you I'm think, is there much we there's doing couple as couple this to on not levers you so mix your just margins the because And a next Can years about over direct XX%, of of if it's been doing basis obviously there's

XX.X you had revenue remember, XXXX of the going we and a more the and if done XX.X quarters room on go we Well, and to in growth had when felt have there. like third we second from

growth. the take upswing, a to a that term But to we're we you've So would you where again, you And the environment that's incremental can initially part eventually, into things reason higher unpack feel it, but got periods operating got kind ratio. growth nothing's of when get get the ratio that start for point in question. improvement repeated to try costs there's rather to fixed operating of to us, where get goal changed variable the the respect go being to the of few and say sub-XX enough seeing margins of able the we I costs some that into when achieve in from annual preparing with with or we revenue that of is -- growth like along why we the overhead revenue recover for that to increase other which the some where long of

of already those costs. we've And instituted some

year. example, were day shipments For at September last people now XX,XXX about of averaging added per in year, about We we've XXX last since September and we're XX,XXX.

we I and would up continue direct just say revenue that for drive So if we've to to further be in of an continue second to whether is density, do But that cost our get in of not what uncertainty match things and all all to having tried anticipated the going and we We costs to improvement efficiency from of or continue operation we with of ahead manage the those seeing do. trends. will and and manage accelerate we're the that's to improve performance. costs, to all growth, the revenue improvement manage or elements here, will to our quarter of trying operating end those all our

the ratio moving have are all revenue. operating about XX% our apart costs I in our inverse, said the are variable, with associated which first we're cost, pull most of direct quarter you the If but freight, which may of in it you think

Our revenue. between which nature, to fixed in XX% more costs, XX% overhead are is of

it's that. minus. little going probably That to to higher going in in $XXX those million, million, be So bit than the plus is $XXX quarter closer the around to somewhere million quarter. costs and or be $XXX second first a are there

been all to XX% around. base we've in But in XX% being to up, kind really on -- to driving So and XX% cost there. that's particular, your bounce that past when expenditures the got you're that and of as yes, at low capital one other points, of as made you've in investments improvement leveraging the those

that of cost that around though, And tough XX%. On as still year, in direct those the were was a third as costs last environment. operating side, late quarter XX% just the

side. those ratio definitely a leverage room got further the there And confidence us of basis. have obviously, lot on for factors to we cost there's the are sub-XX. improvement what can operating overhead And that then a So we direct from get back gives

But tougher long to make strongest flattish times. invest got invest we're like because in be jeopardize make help our run. lot XXXX, strong in outgrow decisions able strength equipment the our that growth X,XXX we basis The going run is that's our higher to we've the where short more cost that to points reason opportunity be financial than periods of for periods and decisions to We've and to all service to tonnage oftentimes may would the able those periods. competitors in in able why that not be center competitors growing of growth volumes been the our things can in those to ready growth in a the in And in do or growth. industry XXXX, invest to the in be employees are growth we're double-digit the

growth same ahead the real curve, all those get to the advantages, we a environment pre-investment continue of in place and into leverage be of the most on them get those strategic when all again. and So growth we'll accelerating

that case is player the happens then? national years, or service what maybe for plan strategy the because up I that if what to to seems of follow deliver, they last But B? no action that's because going we're have what's Adam, plan be just screws XX And second the XX to around and wait in on been screw when up the a sit focused market is share opportunity somebody and is and up, the could if actually on for can Like but everybody quickly get come.

in in which to their volume, them. to and go and and done have going conversations not with But to to and get one that be sure of there. don't to unable working the accounts able Look, of sitting we the with we're get we're past, just how customer grow. every need each we're they back about also grow out to many doing day chase fighting nothing. full our to make feel try have We're then We're competitors having to network better they're

not quarters the there's the last been So you quarter look as to the sequentially quarter. earlier over couple the point happened that of I much what third was at has from about when growth making fourth

see improved fourth from from quarter I our third I quarter quarter you mean, when to second share as look, that has well. to quarter, fourth

of doing a activity. we're in an that not environment So creating this lot freight is

I environment, but in out model environment not long challenge growth, to and that I of be there our we think get the a to anything, we're economic when would we able are this where we're is achieve that robust time there. if think ways an from

Eric Barclays. Morgan question of The from next comes

up the particular, demand the and industry bit to follow both how a somewhat Because to slumping are you kind the of since if on of industrial obviously, wanted would characterize 'XX. try your of we this XXXX underperform look is benchmark depth environment I through quite volumes? early pandemic, kind to flat. production the in and But

we've catch-up if we more Or of industrial a we're bit if curious of just So improvement? think an from on if the production a and kind should you overcorrected macro some here? and type see upside, maybe now of growth equilibrium there could is see more think

the down But double-digit and tonnage When way we've to along by our position environment. past try X to cost X%. more Yes. other opportunities. see were you keep best was continue share years last the look industry. tough felt periods is it and through some all like back And ratio a overall to I for our in mean we operating managing very operating far away I think for certainly of have in year It year, done, the market we the and in producing incremental future and XXXX that's again, what power what recession. ourselves

truckload I general, to weak. an particular, environment get so been that in transportation in And market, has the you where incredibly when think back

just XXX% kind had improves, that that volumes to been adding we've if as keep the service back we that as as will And that again. going been that ultimately, like cycles. economy than the I heavy-weighted that think centers that all come the carriers spillover the cost already the challenge, in their despite you centers change process will, be some future just trucks I But of tight rolling. into the I another to with will capacity industry cost in seen played That's of to challenge seen all Yellow, contend we've operate prior there weakness the LTL that continue of industry, out the move is to with. believe And market, with of some into have capacity to existed some gone we've and And X freight, given service that there that will door for think and our has players or not a well. overall large willing it's other that once maybe industry shipments months. be last less just are to take over

were and that in basis that we overall look period back operating ratio. the we Once able if we've more So year. And through any ratio those given us to things to get we points. lost. and us, really we've an past leverage do from were the at look to significantly deteriorated our that in will for we than XXXX any the to that capitalize the OR think are operating the of once past, to at or operating coming growth all I model, be again, XXXX, anything able back that that and improve when opportunities ratio able we again, be think go been end that XXX you then that, industry points and standpoint in year things in by creating robust power basis lost the the lost like recover able demand in up we that grow we've example, period have tailwind volumes XXX when In and we'll leverage

the you it But year-over-year that's through where from that part the thing continue go good of are to growth going off kind the similar to things to and about we then of see as improvement showing growth hopefully, it further cycle like getting we're though taking the ready give So is improvement feels XXXX, along. as year, the sequential middle our we'll updates improvement to from there. on we'll feel edge and really of start And mid-quarter some some I and go again. start to to we things go getting

know predict ball through results you'll our May and in crystal in to final the you'll big the it will results the final XX-Q, So to April publish. inflection developing coming. we'll revenue when put versus look we're And see a standpoint from see is going revenue me the having

Chan from comes Stifel. question next of Bruce The

heard helpful. about Jack, those in on quarter little seen everyone. missed last a extra tortured morning, of can you of in trends from pricing the rates, Good push just in for as a didn't lower color We've like seen you the of of first the there's congrats that? for forward ride kind early Any and activity take certainly pull borrow especially her shippers from here. well, you felt Adam, I Have this specifically, couple Swiftie, of that negotiated bid pricing some any department year, And the a one maybe that there. bit a 'XX. be may any I And but have line question of going for on they year? the a if

teenage a but front, year of can't of consistent really But seen got types bid pricing house. material for so it's how certain music I've Yes. in. activity. I us, pretty or the through activity in we've the in in daughter, help not bids change terms the on coming And any hear

in And past. types again, basis And earlier, so on we've the core business that increases as just to of seen same continuing pretty there. we usual like said get the much a

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

I the Ken for This side is other you on is and hope Adam Hoexter. team The Rusckowski treating Jack, well.

next balance average sequentially. expansion run Could So up the the lever? term of the noted current think you And capacity you cost the headcount How should comment why years? back serve maybe XX%. near And of of then potential this rate remind for us in the slightly was or we a could as you about headcount the excess couple about over don't the maybe plan get to capacity year?

since standpoint, about From of year. XXX a people added September we've I headcount last mentioned that Yes.

feel I So like we're in good shape there.

that The ]. [ other truck we driving our are is thing speeds running

that platform we've backfill the business some from in people that to sequential And fall acceleration a truck so and we to in those put into able been respond pulled the a position to them you the employees to will, drivers train and also but in drivers it respond and from demand if more increase an with hiring, to continues those roles ready platforms accelerate to to have if reserve, of here.

with So now in it's pretty shipments. right balance with employees in the much change full-time

cautiously and that's that of it, about for last get been the to but we bit the has ahead And feel optimistic balanced generally something long try a over I But like term. little we're quarter. is

why this that of volumes we're little a that we So capacity. our Maybe will feel with material a the was got But here. bit We've that further address we'll levers employee employee pretty but no that growth, through invest don't we tried hiring. September seeing. ahead But service to and Marty count on ahead on to we're are kind well you flattish But point different pull further basis went in now if accelerating need might hire center the to watch a balanced do say, through, at anything to May one-for-one see like there acceleration to way. and continue with of require we're it. that where have some be in can real I growth. depending is volumes good in a from we anticipate to coming spot. and then immediate

XX% those XX%. standpoint, from maintain at what that comes tight pressure as report some had some of try basis. the our this some a we excess enlarging XXXX, capacity of economy keep in door finishing year. we we a And next capacity a which because to year, confident turn is to for XX%. monthly a we from keep From But going experienced for we try the expansions that pressure door have least now, the always up reason in on and always started that we beginning to docs Yes. things not with of are going if this in some we're that's us But we

an for influx nothing worse handle there's than it. not capacity enough from customers So additional to business and having getting promises and

XX% that's times. all to we So at that why XX% try to keep

The Jefferies. comes of from next question Stephanie Moore

but that How you on you've Old think Joe is you again Dominion Stephanie. continue capacity question, of the a with environment to for with the the This to you the incremental themselves. in And excess But of how and excess trying the industry of was does couple strategy do the or the like a essentially capacity sort past capacity? on the national and that tight. thinking hate trying everybody than XX% today are players playbook itself will about more the of Old capacity mentioned Hafling lead to rest all to incremental keep to become XX% would work they there [ times keeping prior I copying ask the capacity be ever overall to having industry adding Dominion, decade? ] that just think

Yes.

I think day, initiatives. the achieve to allows you share capacity wins not market that It at the business. what of is end

grow. our they that having of anyone to as ability think All well. of our pricing that able and time, the we've our consistency that our strong Service teams, gives just I doesn't it been our forming mean going well. relationships strengthen practices, this over customers, relationships in So be to yield our win as our goes business necessarily the sales business to is capacity with able that is customer between us practices share grow ultimately And to and formed customers. consistency the the relationships bonds into and management what

for to continue to is further continuous which we a process, improvement we our so execute And chains. element success. on customers' to that ways our central continue for we supply value can we a at that ways of look look add foundation And can

last anyone We're others us actually the service better a Mastio year's service for Quality else analysis. years in the got between than a and industry. in XX and proud product gap we've wider in the that won we've our So got row Award

something to a superior we asking are on to and price our that deliver remain do as that's that at things customers us So that be service well. to from and able focused customers fair to our keep trying

someone see and gap service value sure something to to So for the get sitting hard watch have catch sincere imitation better We'll it's to continue we're and they're not day about emulate the come emulate us. working to the make most try us. form of gap that We're that wider. flattery. years, let and get say to overall what competition trying trying doing, is people up guess being but add one been that I to to continues and every to we still that to that's

now, weak lately Great. right then you the Or environment just on point, from just anecdotes that's on maybe And still any heard have too customers an so service become that issues? issue? maybe any really is

we reporting up. losses. anything ordinary, wouldn't our some in pick start normally we're improvement of And reporting say, the out wins generally, just But the increase, we had would are things the national that starting starting with see -- and service account heard get we've that haven't to -- to hear. I issues to those I

So that's one in other our the just pace of on something item kind favor. press of kind of changing that's

Cowen. next The question from Jason Seidl of TD comes

to in of like little sort probably now. seems market a bit market back we're questions your expect sort either case back it seems of the you towards ways shifted one, thinking of It Number that chain, being that sort share something the that of here. Old a and Is leader? does, it supply was a model just just-in-time get bit to when more tonnage quick And the to JIT. operational favors of moving of couple this of A old sort share, and sort we service of standards? Dominion more or little if of we're it the about pre-pandemic, just should

post-pandemic, cost, line. case adjusting managing tighter tight we their things inventory in overall so, all for style. look at And I and once you start you inventory and think I agree improve managing to of I But shippers get with like bottom an to to elements stay of more one management going felt Jason, Yes, were have type way is you.

back trend anecdotal seen as had we've visited that through. have inventory may in they we've from us worked of that have that kind had elevated And work now its so levels JIT. well the that And come and feedback way have to customers

So hopefully, good us. that thing will for be a

inventory, managing on you're shipper if obviously, that is, on generally without tighter it a deliver damage. can time and you've And got to rely

come sitting to around, have with inventory If you damaged a afford completely can't to situation. type a return and and shipment reorder of in deal got you've you that's don't have excess

full something win with us has retail it programs the continued any supported and over market we place win hit business to manage works with well. make our retail and as take we retailers and our the for the of continue That's of the XX% in of type both our so It's the in at those that damage. go we think But put opportunity ability market on-demand in And share allow a and to and as their to and share those time industrial our will side, growth freight tremendous and meet time. we're many expectations that to inventory. And that able sure forward doing delivery that customers. retailers vendor-controlled on without to we're windows, have

programs millions minimizing delivering cases, into some place. full for and are retail-related those dollars chargebacks on-time big in of box those of customers we're retailers So in that with

We where confident we're So capital runway And ability our into growth. in so look why program. lot down to long-term see look good the the from. continue we keep winning I a have we determines share when curve, opportunity that's of for and growth it's what market our coming we long a and like to expenditure future. at feel dictates

dictates is business network. out the conversations that expand we future their and levels continue our we're as having that be based on how to for how lot going customer are that A changing well to of into

of into and of of X kind long for. as the years what as growth, pre-investing that's So we're line next have we sight generally

line into a grounded it share expand all and market the will just the to We of program It's network. the invest continue estate But opportunities. and they hope center real come. in money a it's build our service further on not sight

something. Right. up I sense. clarification can And if just a That with follow makes

averages? did historical April. give But talked You rates your did to month-to-date miss about guys how I that in compares you growth --

In terms on a sequential standpoint or...

missed the Yes, this in I because don't tonnage if or I in I comp. think gain but you April, know average sequential mentioned

Yes.

done, XX,XXX shipments I completely obviously, but mean, somewhere we're we're day. So far, not around per

year. we up we'll look But increase seasonality were will this in But little Friday see from hopefully, the that what just into where that average we So is XX-year we there average March. in will. from And you in a April normal increase a had that March when March at Good slightly a if shipments. recall is X.X% count, bit for

increase to So in where it the March case, X% is from would be years that April. a

again, kind growth. that to than of So but growth, February and you back look trending lower were right achieve at X% we in when what able March, consistent now,

pickup from we X.X% February X% And a then on February to from about side, tonnage of January growth weight just the in demonstrating little March, saw it and bit call sequential to shipment per metric. metric rather that And of March. the that kind or being in essentially alignment Friday average with XX-year was help adjusted Good that the reflects average there that in

versus industry a month-over-month So on an in declining environment before all mentioned were that through December good the that 'XX we're April I've to see of the immediate and 'XX, much we December that finally we of seeing day, that basis. had acceleration per and saw then from from improvement a at December, we just step happened shipments event kind change August big pretty there when way function XX,XXX flat to

Ossenbeck question Brian from comes of Next JPMorgan.

I you moved how some in wanted about other the to I view thought more past, said freight over. know just bit the Adam, market little a you you So here. ask truckload

a to mentioned I do kind can topic, of perspective? think still indicator it that of stabilization watching a But that I per what Yellow, interesting And of from that on up? and it are to early maybe improvement. normally in you anything that shipping So come terms above you with tighten see April you over that with earlier. of sort beyond cyclical how LTL disruption went much shipment? signs a weight Is see leading you guess, for the seeing think related is of and you're back

of of move take is with of X charge load XX% couple stock shipments a or the a carriers full and in truckload of some They do to X along Adam did drivers truckload nor year. form carriers agree slowness hundred that stop-offs they really bucks this Marty. like like to back in this over this that LTL Yes, picks offs. the where Yellow don't do with I move agree I will year freight market do And to because but the do that it, this to moved back truckload market there believe to I once up. last and do also over their the this

So -- that and I the time will suspect LTL happen at same flourish starts again. the to market

will that the to LTL straight come So market. back

that's trending how of and shipment, per the the throughout rest should weight expect on year? that we thoughts Any how

to continue That's an into March, improving increase. hope a bit mentioned, increase it indicator I far see little as increased thus to well. economy to We typically March from from as an April it's well. an Like of Yes. February

that of some historically Yellow pounds post terms probably still we there. a demand and got pounds overall closer room a with the and X,XXX changes. got that's that low end that skewed, We're down speaking, if of ] will, grow we've saw environment, so X,XXX some incremental scale how [ an on It So been to the you something we're metric to of But as the definitely in freight have in there. strong around we average. little

is too, of that, of getting creates increase, more with revenue you're that if will kind over you're be seen just that standpoint weight past overall to and very will. continues that's you weight -- and we've load, per shipment you ratio leverage operating offset per should and per shipment, getting more call is and part more years. speaking, from And that gap an the that get close The the relatively cost similar, revenue but help

comes of from Tom Wadewitz question UBS. next The

environment the in me it you versus give and guess, or the kind you're on any strong chance What side to been the still benefit of optimism. in seen to there's freight you going from domestic where service is for I to -- a And more what number customers related retail it's improvement pretty a you behavior a container It's maybe guess yet the capacity seems terms of like can customers consumer I and to wanted I catalyst been of that retail to imports industrial the have difference offer. trend and the freight -- key for soft. see side. have seems environment of pretty like months. surprising kind or tonnage And the

I what much. if on So you aren't inventory. But segments might maybe in on I know if domestic customer there imports any why color some be have any translating going don't thoughts activity on guess so there's to the or differences

the the retail actually Overall, our -- reflect when seen continued to economy. industrial reflect weakness growth, we've X% industrial-related And the quarter, was the in or look but at rather we that slight the it in Yes. industrial decrease just accounts together. first a group revenue you had

bit above frame. be in speaking, been that slow this we been that XX below better stay environment, that hopefully, performance improvement ISM that in long, the So first of should in through. coming, that generally XX XX, now it again, for if that I could indicates quarter. XX sort and had that that trend industrial But retail slugging that's we've seen back can environment a the May offset incredibly side mean little just on months. above But we've to something time be

to that's So improvement of as logistics business there. in the the that an that's it's third-party perform. well, early We've companies. continues kind seen in And retail the some continue managed but by watch. we'll seeing also something stages to But improvement

good systems, identify to a look that earlier by have shipments. to entire of referencing of I able that some their Marty XPLs through Oftentimes, the the top-off inventory think being they're was versus able is shipments those capacity sign.

fingers some just starting truck able manifests if maybe get a if of in early course. think some things it's more to lot swing that which our those watch you see overall but keep to to versus are growth win to type increased got if will, that so think stages in that caught -- again, for see our and watch we on the and up I might kind to there overly don't of continue I share. with the I it we're and and into trends will of start on pulse, But demand be than reversing LTL want keep the and of again we LTL And

The of next from Research. Scott Wolfe comes question Group

April questions what they way are we're pricing a -- but getting today, pretty Adam, -- at quarter but make some numbers, -- this it helpful. like have hard So the of stocks LTL I this they already, obviously, you are repetitive. to sure, there but lot But on doesn't so the are this maybe in feel renewals of some you could Are but changing But yield in know of are. they you these know hour, I change any Is price may just the it, hit of LTLs been in be like I what's competitive like dynamic? pricing environment every other underlying mind? it the any your don't quarter communicating be kind are here, the share want slowing?

that that respect changing increases with the to repeat, nothing again, and we're And targeting. contract achieving we're to Yes. core is

plus cost little different target mix a getting a to continue decrease seen bit of It's of just a We bit we're we're freight of haul. in increases those. that length the seeing. and in little We've

per I those mentioned, Some per weight change like revenue shipment, in of factors to hundredweight. increase all in kind lower lead a

in just basis, X.X% April. growth gone looking on quarter it's in the hundredweight So it, fuel so from, at far call per things pure first to excluding a just X.X%

we the that's cost and back we've think around do is every why of cross-docket. our that that's shipment. What's having I revenue a up revenue That's haul a But move figure what's what can get And quickly, a to of we've focus per shipment shipment I shipments more mean pick we up pick said shipment, out what to line we anything. per on positive cost shipment and hundredweight our per performance. before, day, got internally, on shipment spread Everything versus driven we basis. the to can cost than a per

with as other initiative. So bids through the so the see don't respect and changes that the just our in carriers renewals seen April. environment revenue mix and to industry. But that continue that reports regard. to we've we'll in pricing with changing not their come far when respect changing gone that obviously, and And to nothing forth the are I seen we've anything they see metrics be some impacting we've with It's out. change anything per thus into hundredweight will

so or guys just But I I'm you didn't maybe think clear, that. don't just accelerating I with shipment talked mix it per hear this is, about revenue shift

in The with the surcharge. we first in We but excluding the shipment X.X% fuel it's far rev revenue consistent were. where staying quarter, per just had with April performance in pretty is what shipment up the thus consistent quarter. first No, per were we

Okay. And then just one more question.

talked about leverage. of the like just power You

you're Now growth suggesting you're in mid-single-digit issue, that QX, sort QX? OR, you're we plus come come if take So real improvement. OR that we line, top line see saying flattish top How mid-single-digit power leverage of get not -- what right? see sort a timing of saying of and right how away the just historically, and we about I it's maybe

earlier detailed actually Well, costs. We've volume the on depending we quarter obviously that's that sequentially. in we something I growth or factors significantly create that in that short-term many invested much how not see think

it's some to kind year-over-year that points forward, improvement, improvement like be tried there's kind were of still rate that's continue from therefore we'll basis saw But -- that here quarter would then where can of in and leverage we would only a to XXX X% which last we weight shipments April, sequential grow a if we we of factor and that. second improvement year. maybe obviously, in a see and year-over-year of, okay, the give see from of come if really So revenue, accelerate if a if we we're further lot something

give we density mainly wages all improvement system. mid-quarter that moving our that's by is points we X.X% not sequential growth hopefully, lot from revenue op the operating those A X% the basis will, quarter. just to that advantage and expenses, we're I on And it's It's ratio comes the and But we'll the second and further to coming just there that's the freight how first based that the obviously, a yet. revenue move give see June. direct But to improvement. we the in update we of costs. the quarter for as mentioned, typically, going in from of on go through to supplies sliding of see the May incremental And update And think typically May, benefits with comes scale, taking -- improvement along. you improvement the XXX operating and between if in of XXX much like in. and improvement is and And I are X.X% and salaries, way

we do in I are. produce costs. So if obviously, those all from earlier, And those things further a standpoint, mentioned headcount can about where feel develop, we direct good then like improvement I

like we've workforce. our got scale more things that terms with existing of hiring practices. like not But we'll it's up So doing to in and probably more working even be hours the

line like incremental we scale to top be going opportunity any growth that the for growth it's how do other there. will But just see bottom able dependent period, line. and much there's be of much So put to to how to

Jeff Research The next from of question Partners. comes Vertical Kauffman

lot's A just congratulations, up, down, of want private to had a closure. in We right? working had you looking We've had back. this with It's take a inflation. been to the had big been forward We've COVID, couple of We've years, asked, role. Jack, so really step a inventory I big growth destocking. weird Yellow lot And in fleets.

to where resemble of I we difficult business. [ back these happen to additives eventually, get relative more think normal what be it it operating foggy anniversary this, most And to ] start things do is All makes all to you and we considered what with what's vision But that? without might When occurred? a to think, have would do be your impacts environment. that predict these going

will and probably our are is and company And a we've that. change, to thing been going Yes. built opportunity buzziest when robust able And holding we look we magnificent we've [ ] to inflection able to believe the lot Carnac the some when when that's a up. reason, to a got growth of handy environment most things out advantage We the at on a take -- demand predict company the don't will years do, called into We've to point into that continue back have it's for happen. growing be get we my point. obviously, future. I of for we be as happier cycle but

lot revenues, we XXXX So and growth. slowdown economy. then $X ran a able our in of to grow the and into in XXXX on each of put billion obviously, We're the

if able making produce So that And the that our essentially challenging an we in year first had environment we've still We flat reduction of will. last produce we're proud a in ratio the share been were operating of well. in per as positive ratio through woods operating that per X% to environment. very had a able in tons not you day we're way well, out the very a yet, still quarter, earnings we're to and but

level today are what operations base about So where build of the good feel I able we've being and to on we established.

as So out business. a further room to believe a our we've growth top standpoint ratio for comes line got it our operating there And that well. we for there's improve runway when long to

shareholder profitable to will that an drives of that achieving in long-term vision achieve us so value. our increase And growth allow

our moving are that stands and forward. like around be customers, as have we ready, chains same those supply may on X go But to different some X we'll the significant we'll all the in drive OD our to elements and service all feel continue value last So business and taken that's place. add disruption to over customer centers be months. growth given different to we able in been There place logos

I about funny As can the all culture your centers, service centers thinking add doesn't want, as service the was were equivalent. talking service just but that you make or you you your

And that's a great observation.

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

like appreciate to your participation, I'd of Yes. questions. for we you really and your thank all today

And you and If I you the week. please give to have good you. free hope rest further, call, it. we'll of have a be glad to a us answer Thank feel anything

you The you Thank attending may now presentation, conference concluded. and for disconnect. today's now has