ArcBest (ARCB) 6 Feb 242023 Q4 Earnings call transcript

Thank you for standing by. My name is Danica, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the ArcBest Fourth Quarter '23 Earnings Conference Call. [Operator Instructions]I would now like to turn the call over to David Humphrey, Vice President of Investor Relations. Please go ahead.

us. joining for you Thank answer On today's business, recent update our and provide quarter we you through will then results, walk XXXX our full an questions. the and on year call, some details fourth of

are Joining President McReynolds, Matt Chief and prepared and Chairman, Financial ArcBest; Judy Officer. me of the today Beasley, for remarks CEO

Christopher Yield addition, Runser, be President call. Anderson, Chief and President and Officer Logistics; available Seth answer of Dennis Leonard, to President, and statements this In questions.To better of Strategy results, Chief Adkins, Management are and help could Officer; Commercial forward-looking during some Strategy understand ABF Freight; Vice our Asset-Light help made Steven ArcBest you

nature, subject risks. their uncertainties by very statements, Forward-looking are to and

discussed in over Additional section reminder, are the the also this provided Information or deck a call conference in there call ArcBest's section be refer presentation arcb.com, the recent For a and our the and slides.As financial the call release. follow can more to comparisons, our in complete you non-GAAP a along morning, GAAP on Judy. found of call of SEC was financial measures certain discussion the and in is that affect results, tables includes slide the measures measures can non-GAAP now Forward-Looking related outlined public this as earnings to future on this of our of turn Statements that website, ArcBest webcast.I press could in earlier factors Exhibit the XX.X release earnings discussed information provide X-K most Reconciliations of filed the will filings.To meaningful please the press to that described

giving. customer our $X This XXXX our and we focus, communities over good and and special million this XXX-year with with centennial the recognize and ArcBest's events morning, including programs extraordinary anniversary. you, company's a accomplishment year, resilience, as was of innovation throughout supporting reflects David, we Thank everyone. year milestone celebrated

As present excellence. solid looked our focused slower innovation, operational in commitment back on our year ArcBest we we quarter solutions, portfolio diverse delivered results, investment to past, our fourth full a remain our future.Despite and market, and and technology to and on of our freight thanks

serve advisors evolving continue landscape integrated helping service with them complex We and experience. trusted our a to as navigate customers, logistics offering to century of and our

one XX; winner Award, their $XXX us we including launched making in Excellence and of achieved and measures Let excellence the with go center increasing of XX-time third strategy over grew than ranking in $X.X Claims benefit and and America XX We year.We that of the receiving list operating last won in bids the me to the American X with our movement in more plan, also of industry into to award; than while effective XXXX drivers wins market more bronze ArcBest dividends travel the participated million us fourth We XXX% record. the as more X-year repurchases.Our inspire consecutive and others Prevention ABF system, recognized other highlights XX productivity importance to and who a on top July, Freight awards earning in our is the We readers; strong year.Furthermore, a Vaux medal, through X Asset-Light our will metrics. Employers work better only business key the Best-in-State as Company chosen FreightWaves' Cargo these our rated hard third service that share which existing by honor of XX% Road efficient a were proud Ecovadis relationships. our has Team by and that that Management history. compared FreightTech not Associations' did of reflecting safety invested XXth Asset-Based labor for in XXXX, quarters, marks business, dedication shipment We XX% I'm team best tremendous in Fast agreement recovers. program educate nation volume, our of the was for it billion, of measures America's and our a the finalized Awards placing quality of organization accelerated second our about annual Trucking believe XXXX named Logistics share joined employee from process, represent and will across They we Loss XXXX. trucking.Finally, the XXXX, as and And returning facility and implemented anniversary Forbes' our in year's the new of shaped ABF recently $XXX We the for #XX the ratio inventions. shareholders Time and our to LTL when We captains some employees' improving unnoticed, America's being the our while our our and growth FleetNet today. We we professionalism selling for from aligned freight you companies company cost-cutting highest Asset-Based by million. capacity. improved captains fourth Quality showcases and Quest for excellence, revenue business sustainability; increased

To greater XXX how small, on it striving our to to a turn reenergizing our as results you our us are no excellent means high-quality journey excellence excellence through milestone, we next on daily over embark Matt which big to take into we do, for or everything years.Now, I'll service. in matter detail. focus the this in we this deliver expect celebrate customers product, Our year,

financial I'm that despite fourth XXXX to Thank performance for full Judy, and pleased year report everyone. quarter ArcBest morning, softer good delivered the market. and you, solid

of XXXX, mainly brokerage revenue, an last revenue was increase operating which lower slight down revenue. year me period the fourth in in generated XXXX.For year-over-year, Asset-Light results. a full comparable $X.X overview reaching X% with $X.X same income from as billion result year. on billion, was of truckload basis XXXX. was lower $X.XX, in of the revenue non-GAAP $X.XX a achieved from our adjusted to We record levels Let XXXX, consolidated $XX.X in we quarter up Consolidated in start of the per In fourth share, down due earnings quarter the revenue our segment to million, a

business. the quarter Our results, $XXX non-GAAP quarter, operating segment income last earnings which adjusted the per $XXX our with was the both $X.XX, million to Asset-Based our year. me from were revenue turn year.Now, share same million, line with fourth down and let our were in Asset-Based was In starting prior

to by cost X%. I improvement our pricing, transactional a to point decreased improvement operating by higher operational who result basis considering outstanding improved This lower a These point driven needs our basis third to higher was XX and a non-GAAP of to shipments as XXX XXX while basis declines customer efficiency want integrated thank value daily result.Our volumes quarter due highlights due prices. transactional the quickly This our excluding fourth also day our is as our X.X%, our well our year-over-year and We and employees decreased management, than tonnage approach. quarter to ability to less collaboration were operating was respond ratio quarter, than to notable points per to contributed sequentially. disciplined achievement fourth this a XX.X%, pandemic accomplishment historically, XXX points affected ratio basis that periods.

$X.X third declined XXXX, and total was down X% revenue preliminary renewals highest XXXX XX.X%, grew shipments and our daily contract of transactional full XXXX XX% hundredweight, our revenue increased XXXX.For of in customer LTL points our We as on Asset-Based X.X%. by these pricing during at XXX the quarter achieved XXXX, to accounts we've quarter, over since our core prior non-GAAP including operating the quarterly was increase secured from result shipments shipments surcharges, January tonnage the fourth levels lower of prices. the an agreements Our a and Asset-Based results, X.X% and for up the due quarter from types basis increase transactional per year-over-year which year higher of fourth fuel quarter, year.Looking by from billion, percentage was average deferred ratio

In scale ratio past of customer has during Asset-Based tonnage the ready operating softer been increased to with core to the first market sequential segment our year-over-year changes average and pandemic decreased increase and as have from the We weight year-over-year. segment shipment a freight addition, larger demand mix, Asset-Based years up over Asset-Based our occurring changes affected and average and orders quarter on the environments. an due are quarter basis freight the economic periods, remain increases responsive declining agile environment, XX in basis. Despite business to in to points, XXX about shipments smaller per ArcBest profile increases.Excluding in the fourth and change

Asset-Light year-over-year trends, $XXX our filed January to softness morning.Moving exhibit higher our per continued basis. due revenue fourth segment, market this on was increased quarter Solutions, daily decreased shipment on to a to For on Managed day XX% more details Form demand XX% down while X-K for by refer XX%, per driven our Shipments the revenue we please million, in rates.

billion, and expenses daily Asset-Light productivity, was basis. the on segment year for from down operating a loss operating reduced XXXX, non-GAAP full $X.X of million improved we While revenue quarter.For a the saw $X XX% XXXX

our per while shipments shipment revenue decreased Our day X%, per XX%. increased

filed January provided operating EBITDA Our and also million million.We was $X trends X-K business income exhibit XXXX non-GAAP the morning. this for adjusted full Form in $XX year was Asset-Light preliminary

storms.I'm carrier We generated adjusted limited Purchased in this see saw capacity increased winter as reached more market. flow, growth per that pleased our lower robust after million. cash continue softer is during from as expense share the consolidated momentum ArcBest's and operations in percentage to as revenue by transportation $XXX continuing season shipment revenue several to offset EBITDA of levels revenue shipment we and holiday business lower a XXXX

enabled faced we chain million estate, in and lead in and delays million, carry-forward allocated anticipating have tractor with tractors last were year, challenges returning future which million shortening, resulted while and and our future financing, new The investments Our are trailer through share XXXX, our including resolved, the shareholders city in part affected and which strategically net level was repurchases us orders in equipment, We supply portion expenditures equipment. CapEx planned $XXX are being a to dividends.Our innovation, invest business position real of primarily to periods. including same $XXX that of revenue in over of $XXX for solid issues manufacturing performance and been CapEx, capital for and equipment financial to times mostly deferred equipment XXXX, XXXX revenue XXXX. to trailers, shortages some the technology

respective purchased Yellow million million facility long-term we underscoring entry the lease facilities the high cost new to related We XXXX.For items enhance million $XXX to equipment of $XXX road equipment, value part are The to that In markets auction will than the for into and their effective net equipment revenue some are located real sector. $XXX and January, had opportunities are facility. technology network. X also evaluating anticipate our estate $X million. of and XXXX, the more ABF project LTL estate. barriers $XXX real $XX and highlighted These of Remaining over to including map, locations includes construction. strategically the acquire constantly we includes of enhancements.We and range for expand in financed while to capital in million process carry of estate and another in real are work Yellow expenditures miscellaneous Yellow million dock amount upgrades our spent This assets,

opportunities, updates We are develop. evaluating we'll more provide currently investment estate opportunities real you additional as and with

market, last as average almost an valuation proud we almost of performance share million. navigate X approach mentioned, for are report $XXX prudent while a pursue century sale company's program to authorization announcement. This shares to We while with we $XXX in million We flexibility strategic expect Judy position a we capital a in returns.As returning continue of that to price shareholders and changing Directors We of to the conjunction yesterday, XXXX, per opportunities. XXXX, I'm and value always, former you our our generate shares this recall, Robert year in undervalued over manner.As sufficient liquidity less our in I'm share pleased increased $XXX that invest are any share Board our than $XXX shareholders, financial recognize report repurchasing November of intend As of attractive narrow. us investments that remaining maintaining leveraged that also for being and to repurchase XXXX. will and long-term ArcBest's financial February in FleetNet and will and allow continue our growth the pleased announced disciplined experience, total we million program profitability.In solid gaps to business may repurchase million. creates at repurchased customer-centric opportunistic Chairman CEO, disciplined executing and pursuing program a A. to to and

a dedicated one men who to III of success. seeds Young planted on and grove women retired the of campuses company's of for our ArcBest trees the

century, our Judy turn second for the future confident opportunities to we enter ahead.Now, for continue we about and As comments. final planning and the back the call some I'll remain investing

you, Matt. Thank

of quarter costs, we Our such focused the experience, emphasize full are to work dedication performance a above ArcBest always investing of who want on a year not and is but people also beyond.I go the team. testament to for managing talented honored values entire that fourth group and with our and on I'm to growth. only

efficiently. employees enable to technology to We work are smarter and more in investing our

just AI poised following development. the significant gains and already for have not which delivered leading but with trends, the further projects, way are our We efficiency are

Optimization improvement, investing our Our operating customers. to and a this to we've over with solutions million begun them to value pay solve to City program in exceptional challenges. pickup contributed in $X extend their deliver We collaborate shipment pilot Route has month feedback customer project per process.We attention into are logistics to and our income

are the pre-pickup that of from are is feature is One the into before their many visibility one who even tool investing developing the status year.We're And them shipments. and rolling that requests to to of we This for just our picked will LTL success. tomorrow is why enhancements set a of in share are arcb.com more they common give excited that are our we I'm launching digital that shipments hear new on up. out this we our real-time customers people heart information have

an sentiment proud that experience, built to a engagement routinely have customers. team fostering say echoed by in productivity. industry, employee And have and the best We industry-leading the we I'm our

the our into employees, unrelenting shareholders. as and suite local focus company a in benefit supply beginnings year, through it that Over business.Our assets, ArcBest to from hauler our differentiated last our of solutions global the we own has do keeps people customers full-service logistics have leading our freight logistics moving. evolved chain itself customer customers, and technology, our makes for solutions, capacity continued and which including investments easier a partners

on logistics available better customers As challenges.That century, prepared positioned to by ever we David their the to complex partnering opportunity us vast Humphrey. solve enter are market concludes than second our to capitalize I'll our remarks, our we turn to with over most and it back

some Okay. questions. for Danica, we're think I ready

with Cowen. Your first from Seidl question comes Jason TD

transactional then, bit I was you How you you remind wanted us much impacted? we a us. And lapping to that talk guys sent trends also it think when of little can start declines? weather guys do the business about January

you do weather the want talk Seth, Yes. to about impact?

Yes.

seen. us, winter that new we've weather January year. to Januaries more the extreme side, but nothing than On a weather obviously, so comes was little bit It's traditional every

January, service trailing due it's weather. had our XX-year closures in average, center about in we January. to about you if look And center XX at So XXX closures service

for average. So, XXX we generally average first about quarter, closures XX-year the on full a

at that, So about we're getting and we're of just into already February. XX%

was So from on a extreme recovered, we the well. team proud back perspective. we're January that of But good that network weather positioned feel is we cycle, pretty and fully

guys you last were year? where And

closures? of On amount On weather saying? you're the

center closures, service on Yes, yes.

kind year, You a But give remember, winter. it last the XX-year of if was average. I light

average, around was It Yes. XX-year that XX.

around -- Perfect. was okay. It

Christopher also. I'm going to in jump ask to here

pretty step-up, heavily transactional then, swap the to business transactional half, for about the we've disruptions the meaningful half is took were we you as on core a really where second relied business, business where And able in where our market out XXXX that. business. core that that's more first more The of think

transactional. XXXX So we I were that would of say, more is when first half reliant on

right. All

Our next with Goldman Sachs. question comes Jordan from Alliger

worse XXX was conditions. or X-K, basis that I about or think, in mentioned points XQ, on, to guess, economic wondering, XQ I is the I the depending the you higher, seasonality, traditional typical

soft assume shipments, a LTL So core the about way you're to for You shifting and into I this the mix. which year? really is profitability hard there economy, have plus/minus favorable think is but still

So that we interplay? think about how do

this Matt. Jordan, is Yes,

So you're right.

you last periods, mentioned, quarter. impacts XXX XX substantial that the in a to we've year. last already certainly ratio has that excluding some fuel we're some a are years, quarter. a few of one, about year. We about or the quarter over come we Obviously, operating that affected increases Certainly, basis the business the it's There's we've down carrying that month point so. factors over this that Over fourth the as disruption there's, seen saw seen from the fourth play market increase months pandemic talked the little our first into I'd say, of other in the on impact. bit few the core this weather in last just

of And kind basis items so, just highlight on addition had to would historical are I those seen sequentially. a what I a think few maybe in we that

I'll controls thing frame in the Jordan, carried we cost time into back did have August that that is quarter mention, forward the first say, other some The as put well. in, really

the we So contract have increase. union

be fourth that I was think It there in quarter. there will that was in first the the -- I mean, quarter.

union all Another in of incentive will item that just XXXX. is apply the

you of cartage take factor. But pretty that in all that's a the in rented good cost fourth decreases and still place. controls. you'll then, is transportation purchased we a So, put look have And and in if note quarter, at equipment,

guess, a so, to consistent I relatively that's comment, quarter. And the fourth

opportunities something to lot earlier. at. here, maybe Seth of hopefully, be that forward and mentioned and win February, terms that's the pleased XXXX. look of month I'm the think we able having fewer to core we're that or weather about the our a of there's strength helpful our seeing with including on of rate, We're the as in to really business, looking So the But with storms rest bids going

and the but think XQ did better than lot a Okay. Certainly, I of takes, puts seasonality.

weather in you I So are still guess, the it know, controls I makes But a the said, as cost little don't place. tricky.

a better So than bit knows? little maybe could it look normal. Who

No, a quarter what was those improvement third expected quarters. that you're ahead for have seasonally of to Yes, absolutely great the would from saw quarter Jordan. right, fourth we we definitely the

right. All

Our with Morgan Stanley. next question comes Ravi from Shanker

ask a wanted to I on CapEx. your question

and seen pretty kind from consider is you CapEx peers some Your we've your into ramp others up more capacity somewhat up this but risk of that that a 'XX, XXXX. you that about CapEx up growth? and year? 'XX something may spend Is of is stepping more to there their are significantly How end of next kind -- opportunity with for more year thinking for for

Well, specifically I we to had we're that doing think relative that just place. is in purposeful Ravi, we very -- plan what a

I we put that there presentation think plan our XXXX. of have out in there that in have the the how a there's we outline doors increased since network today, facility

of Page it's I think on XX that.

so, great But facility facilities we of we have, add knew embarking areas that had growth. the to be the could where improve were some happened is we And opportunities that interesting a for really and instructive on we plan facilities existing facilities, because also all efficient that more make it you. to for that's then some of in

very it. think it's as So purposeful through we

what guess ultimately were at were we looking you when considering and So properties won. would then available I auction we see bid, and the we can that what

proud pretty some we our fit knew of values we for was, gain the we should looked really as that that were them. was I from be at team would could other And And how we of about together -- All the benefit informed really we that those, well. paid. thing

a of well what I'll pricing and what is. think as we've there's let a the us see going that efficiency really with over I growth Christopher a that just from longer the for your like that's done really I so, is win-win comment view as on that's an ultimate competitors. feel concern, a term.I opportunity, lot And gain, standpoint, other about,

Sure.

into for. cost carriers' terms So have other really, up a the as that's that they me, all the basis that's in you that -- of to think going about networks cover to level investment

them relationships expect I are that pricing. We investing have collaborate other a in we that really trends carriers. managed from really some And to positive is perspective. could those with So networks, other thing strong with lead LTL carriers as some other in -- the work their

we mutual collaborate see stronger market, And we as us an win-win so, stronger to opportunity to just the see find become with for them they even opportunities. in

All right.

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

job Great on the margin.

Because you dip guess, than to yields up I X%. higher left that, on at down talk about mix Judy up you're still So your little versus up [ like ] transactional Can the just core X.X%, your service guess, big order talking over up, about back adds to levels, core? I a in just looking core new best-in-class, was bit Matt, that, or what's on convert looked while the it a transactional. your

of So so that walk maybe us we kind to occur. through just understand still transition the

the only head-to-head there. Cargo for proud our of winner time. Yes. we've I the levels. in some external -- Judy And our for our ATA. returned to recognitions, all with place the the in service go XX-time of would a Prevention Excellence I'm quite good levels, of mentioned We've competitors we being Claim historical and on the been the now Award say, team

in values, -- to shift when excellence. one anniversary. we of think that's and focus about the XX-year you in And our we've talked had excellence process, core culture on our that ingrained it. in that we as So, It's XXXX, really quality our place about

now. of of Judy visibility have tools you, right digital to with small of lot customers. group our shipment tomorrow with new take be tool, testing That So pre-pickup our in we service customers a level, in which a a XXXX. place mentioned. to rolling tactical to includes to all We're another out lot We're of initiatives some offering statuses honest execution,

on to compliance quarter. the our functionality We expand of really And across our focus going installed be all that's to expect last those mid-XXXX. service lines.And digital mentioned we

that an of field. operational them how it's to better experts We are get It's up newer some And that's translate going with folks have run service. our the out team a getting with efficient to team better you trained to to efficiency operation. the and of have, the a going

So I'm is process that high-level our we and excellence with on just about already only excited and to we going move history the this our quality offer, as accelerate service focus forward.

on-time to cargo numbers is kind peers? that you relative Do levels Or claims not or of performance given? provide

Well, a to Ken, do I think there's lot you that. consider when

to And so, is our do preference about but not we're it. that, it's shy not because

Our customers lots them. service lot are that managed a see for and levels with or been and offering, that business winning cargo side, are carriers issues competitors a of But there carriers, do of the and the But aware are comparison fully you we've as when value indicates. our best-in-class long differences. claims of award on those, good XX-time we regional look across, have those time, we're and because we especially we

between is Got do available it. core still or I to talk, to what you And and don't side? this switch just excess clarify, the then know, -- point, you still capacity transactional at the do

-- we Seth, that you if So core to on variable business XX shipment we to to the total can over total shipment speak handle of want we've We that of months last that. before, give upside can in us make that opportunity business. still we talked about that don't have update, have room upside more our transactional. have grow know, bring expense growth any could that well.So grow, of there as we plenty just I with and mix in we've also and to count runway But to demonstrated do more

the long-term the efficiency doors the also Yes. it's on would side view doors there. growth in network I or of the say capacity, you're talked not things, And we're that gains have. just about we the It's I physical adding adding we people. really

over was opened Carlisle as So example, Camp is, that's our about transferred look combined good opened we facility of X when to freight what of and improved And points to a we over question, facility facilities a in since the the those where ratio operating talking Hill, Judy earlier we we Hill. in locations, at XXX we XXXX when an Camp basis that some had that facility. saw, you

for plan, view we've that we're dollars. and estate that's efficiency growth. a seen I So where our And as real lever investing in our

say I'd have about we overall, latent XX% XX%, right capacity So now. probably

feel from pretty perspective, good at a estate standpoint, and efficiencies. we're So people well as where real we about as equipment

Great.

Chris Our Wetherbee next from question with Citi. comes

an Chris. you're Yellow you in update acquire network your relative It's terms given about XX,XXX the were able about guys terminals -- the of in auction, today Rob quarter? were on you the the total an give us thoughts you give from to day update could per the for Could targeting to on you last shipments talking us guys

Yes. I be it's with would say really you. honest fluid, to

So growth honestly, much as we as can we're targeting, get.

say, the open around the of growth and our But So real based XX% I wide doors achieve we're on -- around would would estate side what term, obviously. is say things. in in plan I is longer really what growth, that's really the we're to trying

might into your you of bought, we then, the detail get And what locations... of --

Yes.

properties lease purchased On of things, X side the buy estate a actual and X. out we of Yellow did real then

of So that is a had. longer-term Columbus, that part Des Springdale we we've and Moines, plan estate really Ohio. But real purchased

XXX we already we the those we XXXX, already the those upgrade, whatever case whether XXX to about yard network; added in because to be in, business doors for an capacity And about plan those So the then, it's opportunities in, doors accounted that XX we about XXXX, in door and Yellow network; XXX. to property The adds. XXXX, of add were growth but in or opportunity may do markets. see we're to saw markets doors or we

we the lot shipments just far a a lot first day, then, day. a There's little doing. of that per of fourth kind December on the piece just speak guys there's in tonnage were my sequential from bit clarification quarter, noise about you per level you you're business trend -- set And transactional so Can expectations the seeing for noise, the a so in just perspective? from from the of quarter volume given

Yes.

per going day. then, of shipments our is on clears And if we shipment like about, down, count January a managing shipments from And basis. a third XX,XXX day, talking right around Seth some I weather we for as talked think fourth. there's weather we're December, upside averaging think think around the per effect in into XX,XXX think that we're January, was earlier, that about that handle similar you overall, is -- day-to-day to I more. right Like up to

but Our teams growth. sales, connected also and there a getting short-term are standpoint, ourselves long-term right that to we're yield make the positioning from result operations closely sure preparing for

did see this we we moved X-K tonnage sorry, up X% higher we shipments shipments, Core core we are tonnage But year-over-year. continuing was were transactional January -- X%, in were in as morning, prices moved transactional volumes. into into January, as I'm share result lower year-over-year, the core X%. core up Rob, up which And yes, to

right. All

next with comes Our Jack Atkins question Stephens. from

if some talk growth term? thinking of LTL kind if how talking were growth core over Seth, about go what which market over I Do you was idea Just kind So, of I you about levels. the plus? the the drivers shipment about something you that? GDP could GDP, of sort XX% long guess, back for positioning you're maybe of earlier, of there, that to this you it's could are are long think kind network term the

a we throughout way integrated partners. But and coming to I view lot assets is shippers Yes. the a mix I customers the to look way to are that would are with there's are of that it's long-term XXXX. and us logistics is working opportunities logistics think it like respond as things pipeline, conditions, of macroeconomic of looking our that about at obvious indicators, weight a being our our the how try it's turbulence because Obviously, robust, say did in like per I everything. an allows shipment. And strategy company PMI, for

leverage So we both and networks, networks, of Asset-Light Asset-Based demand. meet our customer our to the

at it allowed look to see when recent with strategic our more core labor. years, business, we you more So shift when the most And challenging was be resources. find to it's us to pandemic

in and trying to these our term for the we short long pipeline. growth term position we're So that the ourselves opportunities see for

for yours. demand network of a high sure like service I'm Yes, lot absolutely. there's a

increase Or number acceleration the rates, yield a forward? Okay. as the to renewals quarter. kind I my quarter. pull the seeing about Are of for that I customers year-over-year of guess that. of renewals kind renewal contract in wanting carrier Would Are year-over-year back the just another in We're you renewal rates in commentary. you continued just seeing seeing terms fourth think curious the significant talked fourth question, follow-up well? in about of be to seeing just

base making sure we're getting as don't seeing to carrier in not am constantly I relates compensated among their that interest it bids I relying renewal that that we're that those community in diversifying trend any an and renewals trends change and on necessarily Yes. the of providing. renewals, the carrier. we're that rates. shipping is know for We're there's evaluating One service one seeing just

carrier want that base, So I not our into think to stable logistics saying, overly that of managed if be to introduce really plays where we them to into to we're their really to integrated That approach. chain, de-risk X well, diversify was carriers X supply reliant plays carriers. they able a or on solution, their have well our Seth like

right. All

next Our call from with Group Wolfe Research. comes Scott

this go core So core what tonnage just X%, a to is shipments, want At this of business to down the pretty total tonnage That's back this transactional? XX%. massive spread. I point, up percentage

serve We from sure -- certainly that year, think on emphasis Well, year it lot to And we where brought have very I have core transactional in to We the consistency fill on very lower. was we important need. were back capacity to last to but challenging where a period had we a make had in we have well, of to you use our in customers that Last a also environment. network. what's we think It when is we us them about were, Scott, an serve well. gaps changed hiring wanting it's been people.

deal into done. As quarter, our to labor we we into were got later first second quarter, get working

place. really keeping the latter to us the working, the entered it third a And and so, into the part and as early of to second of wrapping out noise us. we July, was important about staying labor deals. keep people started We see we were started network Customers but in there, our lot the the situation. opportunity quarter working, up consistent in hear we also, quarter, to a were to to our Yellow And reaching

And were an we opportunities emphasize so, saw core really that we to the opportunity business seeing.

a core equation January, are XXXX really people opportunity growth be we where emphasize We weather network our also much core that's to we're of the would customers, profitability want to also in from the and rather our as labor of it most odd and sure has to In the place improvement. we those plays tell effective we the the profitability, part resources What stay right-size you of And that in also to opportunity do well. an this, put of the some as does comparisons. that I be we improvement saw we The but that a too. resource our role third-party trends standpoint to of January where enter use in wanted proven own And some them. latter on optimizing saw than stronger create a of We And customers. statistics. terms resources. resources. in growth, use is

a So as like for you're good when for is instructive of at play you're X-K, rest doing. lot update as we like our just month X really do there's what not sometimes But in there. you'd think we the a to be that it giving

you into thinking doing and all your looking that it you're can that you're I affects that hope take just so, and how what consideration And as at of in modeling.

view, today? yield. want pivoted I -- mix happy -- It's you helping what figure are guess, trying helping we've we transactional transactional do how want we in here? actually take transactional What Or we tonnage transactional? to your our lower? maybe are little have this we and you much try increase do to on think from this margin. Are too with away clearly, from -- push we even stuff. even out go trying Do to the the we ultimately, a It's I'm to pressure is, overshot

it's pretty to we of a I in lot business. feel transactional have We feel good place. access -- like a

that's that last year. do. So like we the if it's But it a evaluating We we constantly that level do one we're at access we'd optimal day. it more certainly the at opportunity that that's see that, was running how set are there. do to have we But more what it, We We than to in, it. every Scott. lanes look shipment look at the could affect

so, very And just let's driven, say. it's analytically

than the And working in was it's January I that that already. more we feel a in place but I it we for have year, last today like environment Last some optimal -- today. toward, had probably and so those objectives were different we outlined

Okay.

Ben Mohr question Bank. from Deutsche comes with Our next

perception service terms the made discussion, been customers' at it's in on most to look you've up we the Mastio need recent in pricing more if with ArcBest's that's areas pretty sure or Not service. deficiencies on the if we some that Following of data, adjustments volatile some when to highlights of focus. that do

ahead, Go Dennis. Yes.

we're we're and to that we place I this striving from think we perspective Seth want on and Ben, at that Mastio since was have the have really, study when in working look improved, that some to service we're coming. I is things market, that a even Dennis. study, think a highlighted be, of And we And be. the in not certainly, more

look it's service, with when customers. also communicate our how about So at we we

the some we're pre-pickup providing, in And side. rolling things out, that of about fact, talked those side tomorrow, visibility so, we some tools, especially the on on

customers, in more with better So experience discussing, more mentioned perspective, I as core that customers. type a helpful here, a definitely, And we've also, certainly, from as think to migrated with to changes listen to mix their And consistent. us. we've make it conversation is price to you helps that continue to make been be consistency

costs follow-up, team and about inflationary great to wage structure as step lower a on the did trend And a Can maybe down Asset-Based a talk job also you inflation? the a quarter. expect year, in throughout this just cost in you just how given the environment

Yes.

then few increases a quarter year that basis maybe we have Certainly, carrying that. those moderate saw into in the on go-forward a the obviously So of do last comments third significantly and this we on just on contract. year, contract the

asset that's side this we've on that and service the continuing year work continue the that work and, highlighted, optimization of we as done ways, efforts. of on accelerating to a in All lot we

throughout done, XXXX. year well So the again, done, just and work that and in cartage costs we've the all as continue transportation the to as all and to maintenance expect that impacts that all we've we the work purchased efficiency have

All right.

question comes Our Stifel. Chan Bruce next from with

the movement just pretty A you here of big your maybe question lot high-growth ago, market Obviously, on or business. young, with then. of picture strategy a the of some significantly changed a A of couple Steven, Asset-Light. company. years big competitors bought the has Judy in since

and If to kind Asset-Light this into in you could be just or maybe ultimately more thinking would how other the in business like you'd that of maybe out really model synergies? share normalized get you're margin of how growth profile helpful. then, long-term environment, what a about terms And cross-selling fits of long-term

Yes.

we're customer-led. perspective, strategy a from So

customers So perspective. we effectiveness supply want from an and their to have say our improve every help opportunity and chains to efficiency yes

to services. order you that, these so, in have And do to have

to in want an services we so, provide And those integrated way.

of feel to we're like long-term And part we of people And what strong are doing our and where build improve. about that, on top our a we're doing business out is and we feel in with we great what so, Asset-Light our that plan. continuously technology,

we the acquisition You about team the of that that of mentioned on And the one MoLo. the has focus is like that, customers. that things really

to -- recognition for great We customers perspective, from perspective. Also continue to them employee an a from continuously having service we're hear we're getting a leader that work. place for being from our a

talent, great fourth into deals throughout in be truckload, opportunities, it our number to and us that seen see attract and this the which you we allows or for right at of our quarter, year. a leads managed when whether The customer of the pipeline that grow. look the pipeline, experience. overall, we've But month-over-month, to in first So increased number even the deals continues move part we to as of pipeline our --

those So services resonating are very well.

we've range margin to we targeting. talked market but that a that And mentioned, As are X% perspective, improve. that about X% then, challenging from to we're we a you expect environment, in

So that's how long in it we're thinking term. the about

quick kind right overall that If Okay. mix ABF to? just roughly, the to that. of And it, I you're Is follow-up. business business? today, manage I really appreciate to trying of look something the a you're at call XX-XX that maybe Is Asset-Light.

solutions in whenever have. some What continue market Asset-Based of that. -- our We'll that have a we maturity growth, we mentioned feel -- continue is I in markets see managed, take and the of growth to that. expedite Steven we the that's the relatively but that the we we look like would and markets, to Asset-Light which just will to add those I'll outpace presence truckload there really small, level that opportunities at those

the be would I to We time, Asset-Light the still side. about have a own could particularly, you national network. service that network. have the a a would customer. gives good where allows compelled but We're enact It our about total about optimize And place in the we well. or mature to better a we chain. be Customers guess, growth It with, there, on us potential of them the little that there offering a are have what the closest Asset-Based business greater just the a us math as see bit just we whether us capacity over take I by truckload That really relationship that part a it's thing, have. the to allows carriers, excited or And is help percentage, I'm that that talked relationship a supply managed. we their runs LTL the or really it's with that

So what solutions. Asset-Light growth we the for a is see with opportunity great

right. All

comes from question UBS. with next Our Wadewitz Tom

This for Mike Triano is Tom. on

reduction post transportation optimized are opportunity been it's business. purchased from beneficial has LTL down you Do you business? Or efficiency LTL bring Asset-Based on in cost more given in the allowed you of shipments standpoint, and core in PT, costs to there's an 'XX? current increase the for think mix your PT So Yellow

for I look rollout to city of But city in going resource would -- want external which market the operation, to up and turns. a levels, looking and we'll always actions mentioned daily to management cartage in Judy positioned say optimize it's business reduces to our they're fourth be That of those we're we're continue pretty took third where almost city scale throughout close optimized, but the to to we at we when the continue us these and of reductions costs. quarter, optimization. allows year, some possible. to turn that

a and So we road side, usage. the in our The some feel look over-the-road of pretty good we're map, looking PT pretty XXXX. at that at type optimization about constantly level to online coming projects down we're when are PT optimal you

spot, that's efficient. we through still and costs So looking -- spot, for but pretty we reduce pretty always opportunities as a we network move think good but the to more be we're

that thing hired other we've the The done is, we've some of drivers. Yellow

beneficial we resource be board, well And forward. continue That as beneficial our added and been to and line haul. helps should to us road in go the so, that's with that as

Yes. And the I fleet, too. think in the about investments

as 'XX, So we OEM had moved XXXX, 'XX. through delays we

move normalize we've that's more going those the we that as timely, we rental getting equipment expense help seen new by us year. to the ordered that reduce Now through more more

Right.

do think lean volume in? you'll do comes forward, company Or scale on So moving volume this your you up and that that to more you growth think as assets? growth scale PT to we about the as ability think have you'll

the That's experience up. the want one I our most that much you really show possible. our our for have best think and assets drivers own we when to as of customers lean on as cost-efficient

lean to on going that more we're side. So

also feel a we online to in the when but we transactional our some business in new can And fourth talked equipment business We've that. when spot cost removing keep we're so older we good well. we in trying keep doing of turns. this is of earlier, headcount have fleet been, quarter, the in with some there coming capacity what that city as units, for consistency So about good our about some 'XX,

turn positioned to when positioned core I does we're to think a we're service our strategy well be customers. market So the deploying with

next Moore comes Our Jefferies. Stephanie with from question

the of macro environment. little X-part bit a a here, a of question Kind focus underlying on maybe

Asset-Light the if touch could on just what side. seeing maybe first, on you're So you

quarter. You this in or saw some pretty the fourth -- strong volume growth

more your might green conversations And I'd the you're And similarly, possible you shoots? and question on thought seeing out I get you're a in seeing Asset-Based question, based kind the on same what today freight then, then, you're your just how shakes So guess, on of freight business, be that maybe any underlying your maybe XXXX, to if having? in side environment of love on in on medium-term what LTL thoughts there. seeing the environment

on We ball the kind XXXX. interesting. to were X it about the back about and it's need talking interesting pretty we time have about been call that as when for sector years, of the manufacturing And has going think for you unusual. this of category. that sit were length and really the we is in gathering Stephanie, recessionary It's you that's crystal almost

line in not You've also for been speak top of seen to expedite, reduction the of. that impact guess, particular, really this, the truckload fact I a spot market and there's ground the

those of unusual. just Some really things are

long to the for at that's set event a things market their discussion discussed customer I term.And opportunities this to bit bottom, part capacity solution thing exit, importance at the long capacity But add would have we the that core to at And is again, ourselves for have pace little think have we the seems for the really for. particular, responsive look about going we've having has we're we're some ago, a Yellow be just to just good that needs. in truckload whenever most so, are I all and although would there looking these we're the exit, see. a waiting time. asked we beginning what that like they the there for to signs lot seen a said And we're helped really to a with to the LTL And we some business. not we And like it of we've but the like other has that only feel I over team, think go

that works we also but our for well well a want that it's us sure that to be for some with customer, works network, be of and business have and We our in because careful takes to time. those

in I that's macro, we and in winning thing. what's going stats about on running We're going But mentioned kind are regardless bids macro because set like up well think they're with ultimately by decision where can that stop we on as event It's I'm see the far the conversations that and we I if a the what's how in LTL and put you to those, do what and is sort business -- to going all company encouraged counter a well give positioning one. together the really customer of happening that. don't pleased there. And as is that an But And good our of running And thing. prediction makes. for we I really that that positioned have of Yellow some we is even not we're what's ultimate the lands. the such because approach. as those strategic and But positioned. our that's I'll be of like bids sort of really of not we're network

got of repeats. we've a couple Danica,

maybe these a them in. let's So we We lot of can if but X. squeeze quick kind time, go see can of don't we on have pretty last

Absolutely.

Ravi Stanley have again. once Morgan We Shanker with

are that the just does mean the picture percentage over shifts e-commerce supply in regionalization and What for We seeing length business time? structural some question now haul. e-commerce? of from for of bigger chain with the increasing What LTL a Judy, comes you. business falling

think is business Yes. through retail. real just quickly, Well, about that, I whenever XX% of our

I that of we of do that e-commerce a be large that XXX% with and online it but presence an have of think well. not that can would. Now, do would we really don't business examples percentage

whenever think to being, perspective some you of XX% again, I that. gives want the think And I XX% or about then I on it say, XX% So mile. ends our shipments, up last retail, that

one we've think, got I more Danica. And question,

Yes.

Our Group Research. final is question with Wolfe Scott from

them? we a any, where getting at these point, technology the Can of update thinking about with you number? into And are OpEx if we us from need quick core innovative start just moving costs to sort and what on maybe then we're those do what give

this right it it's Yes. ], [ more the stands, Well, a it's going what as ultimately revenue we've opportunity got we'll main than from -- on. But going that gain go the at point, with applications Fortune pilot creating some we're how different now, we next of the pilot from one software that. along But and Vaux the experiencing with new really thing this and retail, more software are transferring is really to that of pretty toward. it's freight are doing we that. the and and is companies of that. that it with on There's rapid trailer. And manufacturing from is freight, of we're a to work applications loading, hours the software system working In coming Vaux that introducing some the exciting the then, have also amazing And both hardware work. system. takes XXX and involves pilot weeks, the hardware pace focused be unloading out minutes it's -- in and But opportunities coming there's combinations the automotive, offerings the few that the in we're and

more things or focus do damage. technology, customers reducing and claims that in software find we're that are trying this They is are labor. warehouses are advancing. to all And shippers they that are And so, the managing are safety what that both efficient, workflows of need and the are and that those interested we the also access is hardware

associated what these we the obviously, further weeks, to are And that seeing next can that. also looking that. few to unfolds from And there. costs going revenue XXXX there's get with -- stream in more are but forward come so, the be we're And into you're the as that

the But mean, ]. stuff? does Or [ there's to some start picks out coming the as I'm to change I any up, figure we revenue I -- expensing accounting in if do trying of guess, need

Yes.

think once yes, operationalized, Scott, would. I it's you

doing that it becomes so we're that doing get -- reason that we're now -- pilot the it is that speak, we it then the operationalized, be. right totally is Once with work this pilots. handling to that way advanced think I agree you. But it are would or we're to doesn't I the work into

ArcBest. Well, call. think this in concludes morning I joining interest and our appreciate appreciate We you Okay. us that your

our call. concludes that so, very you And much. Thank

you, Thank everyone.

now may disconnect. You