ArcBest (ARCB) 1 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to the ArcBest Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the call over to Amy Mendenhall, Vice President, Treasury and Investor Relations. Thank you. Please go ahead.

morning. Good with Beasley, and Chief today President; Seth McReynolds, Matt and Financial Judy here CEO; Chairman Runser, I'm Officer.

session. We our also Q&A executive of leadership team have available for other members the

outlined of we certain of the be Before statements. are which and statements call. filings. release to These provide meaningful note the are please that are discuss detailed forward-looking comments and make in These today begin, we'll will this will during SEC uncertainties release. risks, subject some forward-looking To described tables non-GAAP earnings the measures our we financial earnings in of and measures comparisons, our section

of additional Reconciliations this an information in section discussed of slides. non-GAAP measures GAAP the measures provide call are also presentation to

on X-K on in at You can our access website filed follow along this the our morning the or webcast. deck arcb.com, conference earlier slide call

the Judy. I over now And call turn will to

continue pillars those people, our Thank efficiency ArcBest as and you, commitment we and as on our Amy, to and cycle freight the to arise invest -- position and capitalize morning, today's growth, of and everyone. technologies to opportunities in that strategic good innovation improves. solutions our

at are them the we of enabled seen workforce year, This also savings, tools, training not our the success. in have with value support, to to By only have enhance our customers training providing and deliver significant ability we shareholders. and heart right their succeed, exceptional people our Our cost to savings. our but investments

XXXX. expand our with into savings saved $X year, us deployed efforts example, more For already the we as million experts largest ABF have to facilities operations anticipated this these

These we bench our investments Seth employees a to Last is announced of our Chief that with guarantee to team exceeded the proud and for most significant we Mastio that for am -- provider the organization standard a last trust ranked a we crucial Newcity's and receive or and has customers' ArcBest; the President of And listen our external benchmark Innovation speaking have rankings It's Recently, the President. for we website. talent and useful retirement, our how amending driving #X responsive in Dennis been as customers our #X the to to Mastio, surveyed. quarter, proud as ranking collaborate tools right our #X of me, people industry of instrumental that of across improvements excuse and in leadership of and him needs. I Matt upon He year results, Officer. to our the Strategy survey in future. promoted on. rely hard contributing ABF Anderson right and roles in in where the a customers will deep premium status challenges. Gorey succeed to digital Michael be half forward-thinking ABF we are for employees our categories Dennis service leader deep affirm recognition and XXXX work to

drive value sustainable we our every delivering and As and our a make remains day, decisions shareholder unwavering. enhance growth. to dynamic navigate commitment landscape, we capabilities to Each

the And to that now some discuss over propelling I'll are and turn forward. of key it will Seth Seth, us initiatives

Thanks, good everyone. Judy, morning, and

and and identify inspired from remain ongoing confident environment, by our innovation. the investments industry-leading role, priorities. facility customers committed I managing our improvements Despite into strong the service control service am My challenging progress I'm with and employees' efficiency. and dedication what's unlock company. of deliver across macro to had within in new business confidence expansions our our customer grow and ability strategic our our operating on drive As in ways and on efficiently. and pleasure delivering organization our the stems I to We value my step teams meeting additional to our I've engagement to to

Our the of high and of customers. relationships our our customer retention underscores effectiveness satisfaction

have strong for each returns opportunity growth. carefully that line value that top to expect. evaluate we ensure producing customers We our a substantial addition, for shareholders opportunity represents the the pipeline while In we create

transportation growth. optimize This shipment Our leading valued solution that helps chains, way the with it's driving supply is solutions their efficiency managed ever. double-digit customers than are and more clear solution

encouraged ago. securing average on X see this more that I'm the are from are Xx customer we to those years larger growing agreements and than now than

serve. onboarding revamped customer lowering attention process Our to and our is improving cost

we more line our lines. solutions, top grow opt As both customers for and managed bottom

before, service we've the on-time LTL in been As years. ABF's mentioned has X is best it

ETA with XX% significant shipment made our have customer approximately improvements inquiries on better reducing accuracy We calculations, visibility to XX%.

our As Judy recognition as serving a continuous future recent outcome drives on reflected and pricing. by service Mastio. Superior in customers on commented excellence the and focus improvement already, our growth on with win-win

I'm still. progress proud While made, the we've of are not we sitting

We have to more work do.

facility Bernardino, better to in with doors early California, growth handle more improved auction, These ABF our market. up door a and XXXX, opened road will additions service. from add yellow locations. We capacity. long-term facility map San current addition capacity X XX Chicago. we which a expansion and replaced productivity of facilities updated XX will are nearly complete in to We're stores facilities added And progressing freight in on us XX which doors enable the and strategically of plan and newly remodeled wrapping the adding another We in

expansion, improve are our further addition results. investing we our In in and equipment facility to to technology

year's quarter fleet in one industry. ownership cost the repairs our total A dedication our and New million the of costs operational most fleet $X our remains and were maintenance long-term quarter. of sustainability. underscores equipment and than and ensure to the youngest investments reduces third excellence In our of modern XXXX, efficient last third lower

visibility into Having management and our quicker service. in productivity. of consistency software our in tool managers employee provides level dock hands and provides action New the this enables frontline processes

the have right needs supporting drive in will growth people places us enable more planning times, which accurately, and forecast our the the advanced developed labor have we right at also objectives. We right to ensuring tools, productivity labor

route to and demand our discuss ABF in at begin months are optimize city will for routes. X our plans and us the optimization pickup into daily been project expanding next we to the the in predict pilot before, use These X with fourth heard have phases, which quarter. You've rollout AI

a carrier resonating For have solution, lane features truckload offer portal with is carriers. truck matching we our self-serve developed with which like our and auto negotiation,

pleased for grow We in a are is asset added. facilities, are technology, experience implementation These and targets, fraud, and rate, auditing. and for investments we tests This a third-party a adoption up scalable carrier growth. the original more light that are we manual of which payments invoice already innovation of features seeing as TriumphPay, XX% technology I'm ahead carrier for wrapping solution reduce our will allow improvement and partner contributing productivity and equipment to for based. improve XX% are X% asset of our and year-over-year should

the as are evolved you we can past the has investing over customers several see, company our tremendously years. future for intelligently benefit shareholders. to And Our and

I'll to Matt financials now detail. turn through greater to go over it in the

Seth, you, and everyone. good Thank morning,

disruptions. levels to quarter to presented another period as third of demand face segment, comparing market which higher customers business XXXX third quarter market saw The in Asset-Based we The softer are for we help our navigate continues and industry. strong for challenges, a our truckload

prior $XX $X.X last year's million income X% million in Consolidated to the operating revenue Non-GAAP year. $XX to third operations by compared from quarter decreased from was billion. continuing

Asset-Based non-GAAP loss XXXX. income, segment's Adjusted was of share non-GAAP the third saw $X.XX of $XX quarter down from million were decrease Our operating earnings in $X million while unchanged. segment per Asset-Light a the $X.XX, operating in

detail. Starting in more Now our let's with segments X discuss asset-based business. our

operating non-GAAP year-over-year quarter X%. Second was of XX%, and revenue basis increase points a per million, $XXX ABS XXX ratio basis sequentially. decrease day an XXX of points

point weight and XX shipment the operating lower per Our sequential to expected September than was highlighted of August flat contributor increase. ratio largest X-K ratio. the performance expected operating to was higher-than-expected a basis

the basis operating shipments insurance quarter, than In the decline sequentially. X% year-over-year a costs a ratio third XX basis. saw addition, daily added less In higher of to slight on points

However, weakness day year. are as in the XX% decrease primarily per economic in compared current less customers is due tons decline XX%, producing to resulting in an weight decreased shipment industrial broad environment. to per previous This the by

to shipments. involve Additionally, interest inventory fewer and goods housing which higher have heavier led typically household rates low moves,

with past X.X% general quarter. our over other shipments also quarter capacity. Some our in also continued we third the and contract that higher were per the worth during some we increase, It's year. to of yellow's average noting have XXXX weight in third agreements truckload pricing secured rate low providers renewals its excess while of related, and shifted rates on increase shifted quarter. a X% an market the and of increased to bankruptcy shipments LTL September project by deferred the related On the X.X% to implemented Revenue X, others hundredweight

decline partially were fuel improvements Price offset by costs. in

pricing single pricing Excluding and are rising surcharges, enhance to operational the our environment remains increased costs fuel on outpace hundredweight The in per high using efficiency and year-over-year. and rapid, improvements revenue margins. we digits focused

Changes on X in of million costs a to the stable, declines. effect $X increase costs of Despite combined equates meant contract under took and to August which X.X%. tonnage increased in didn't shipments remained wage approximately rate scale benefits July for approximately lower relatively volume X, for our union quarter. labor the additional the that This proportionately third

insurance all ratio for through productivity lower costs standards. transportation a operating our while purchase maintaining mitigate basis, year-over-year. increased fuel, $X to but high training contract XXX adding costs increased improved million, basis by Cost help technology However, were service year-over-year on and and points

exceptionally a you'll highlighting of initiatives. ratio experienced XXXX, our This XXXX, marks ArcBest's stands segment see levels Asset-Based that improvement that October October attributed non-GAAP period capacity. lower higher XXX at success was of strong the On XX-month trailing deck, basis following driven point in This our additional XX.X%. business Page strategic at operating since compared slide tighten In the to same to XX our cyberattack the year. competitor on decrease a by is and tonnage last primarily prices which performance the XXXX, shipment

market October, strike. disruptions hurricanes revenue influenced industrial serve these challenges, rational. disruption, our lower results hundredweight achieved we and this prices. an revenue customers year, The per billed is weak This fuel were in in in hundredweight. remains increase As per we year-over-year by Despite pricing impacted during October of X.X% also our last production, from decrease by

flat revenue surcharges, Excluding per hundredweight remained year-over-year. fuel

day October, per flat. to September tonnage From remained

the year-over-year quarter, We in total in the in to that revenue expect the in resulting quarter a rest October for day expected the the of we revenue mid-single decrease moderate decrease per in throughout saw digits. year-over-year

the in point sequential high to average end change the from the basis point of asset-based to basis environment the in ranged from the third markets, currently With expect XXX in ratio to increase. the the operating continued softness quarter historical fourth truckload quarter manufacturing we a has on Historically, XXX be a range.

Moving on segment. Asset-Light the to

day per Shipments soft growth was million, down in shipment X% Third $XXX X%, shipment smaller were and by sizes per lower and shipment market business, decrease has -- the which revenue of year-over-year. decreased day per to revenue our due quarter revenue less managed a lots. than XX% and freight

Our in managed accounts. volumes new We maintain and record productivity. as customers employee solutions and on and September for grew onboarded with expenses our improved existing operating focus set we both reducing a margins

operating business conditions. However, be the continues million to market non-GAAP our impacted loss that shows $X of by current

by an in reflected our targets based $XX This operating October, to we per and X% to the reduced has contained earnout we for decrease expense year-over-year implemented a market to results In is September million a better the through XX% consideration shipment. XXXX. acquisition income day operations. adjustments. to excluded current decreased GAAP revenue in MoLo Our results, non-GAAP by contingent been from decline in a estimated Due day X% October, Sequentially, quarter. per earnout but in conditions, per represent EBITDA revenue shipments on from was and reduction liability saw per normal rose as shipments third the as feature pricing strategic shipment by X%

conditions, we quarter. $X and operating anticipate million between for loss market non-GAAP $X current fourth the a the Given million

their Our needs. overall played logistics Asset-Light customers as our partners strategy transportation offerings all in for seek long-term

align resources to business reduce better continue and We levels. to match costs

initiatives as These pricing a we strategically are to are reducing our focus less when Asset-Light profitability. on the We segment maintaining top freight discipline returning profitable appropriate. priority and

on with Turning shareholders downward September, to The share through million, expenditure primarily million to buybacks lower quarter to position $XXX through spending revised liquidity. net been capital third for year in million estimate allocation. the we returned cash and capital due and estate. approximately Year-to-date has dividends. roughly $XX available We to the a ended expected $XXX real

sustained financial technology position growth. strategic on to significantly strong has for and this as to innovate and operational enhanced we our Our We investments build ourselves success efficiencies. continue in position plan

Judy. hand back now I'll to it

Thank Matt. you,

incredible want and continued thanks significant show shareholders and extend to my adaptability. employees dedication resilience support Our our to for been pivotal Their to and I team trust. have driving customers, heartfelt continues hard work improvement. and in their

committed to in turn our the and even over operator value remarks, on this questions. are delivering We greater I'll momentum to concludes and for building it the future. That prepared

Instructions] Jason [Operator TD Cowen. Seidl comes from Our first from question

Question, throughout seems some sort doing It trended Has you it the rational like that talked it lower about you're stayed of environment. X.X%. higher? about that? sort a getting . give pretty that Can X.X%? pricing well trended Has just Has of it that quarter? same us on you perspective still

general really increase Jason, Had retention of pretty we say It consistent the I rate talked our month a -- by trend good around would September X.X% there customer up know that already revenue. I this down. impacts took that was Chris of is X. And necessarily on base Warner. about wasn't a throughout we quarter. or XX%

results good the third that result. in X.X% quarter, there. pleased with So really The

I rate, the costs at at outpacing think that year-to-date, inflationary about X%, we're the we're which business. right experiencing that in just we're

that, a place good really our we're for So that the continue price on providing making to customers. just that -- our is good sure a in value work

you That describe you really makes said had Is retention normal? you it as would good retention. And sense. -- the

we've with retention some think our seen trends customers. in I positive

that challenged in. they're the customers environment Our with are

not there to our So as supply them well customer their other just to business, able ourselves -- able logistics and help solution, our serve we're as see efficiency. improve we through but to their to With them through but we're company a serve optimize also them asset-based really retention managed strong solutions to as position chains.

question next Morgan Ravi from Stanley. comes Our from Shanker

is, recognition improvement, service of to service it long improvement form Great kind price the is how higher both to your see share? the of at traction some in get coming the too cost? does question probably Mastio. the of But and for Or in take

out our this execution by the serve to we've is teams a we it Yes, the Matt employees our think our Ravi, the around Godfrey. the comers teams speaks our reduce here And level initiatives the listen understand and tools in leaders customer success DSY that on also success, you of when investments excellence. field our are customers right field costs. about needs, of customers our we high I give it calling to the to And time to the our speaks our level seen right appreciate really Mastio. our and as with spending and high and to to serve in well

our we have in efficiency, continued our only not increased So we've seen improvements productivity.

when our increase our think that that it where keeping line, customers line. value I think it to fell So that speaks falling we do service we've and able the the so to on Mastio we're level fair that been to efficiently costs really in you and about on

our me lot aimed to at and service what So out I initiatives while excites continue -- because most levels. move those expect a trends is rolled we've forward to of we the as productivity

additional as And lot of route do. initiatives several will XXXX what the optimization Seth into we to results we city a continue to positively. out our have we're rolling fourth mentioned here have phases impact that quarter. still get We our in

Our from comes Goldman from next question Alliger Jordan Sachs.

it down I move you through it more indicated volume move balance yield of think will negative we what quarter driven? does a the settling per as Is perspective? the is And So volume and less Well, quarter digits. imply this revenue the we it as from mid-single get through day driven?

Sure. Yes.

for Jordan, This question. thanks Matt. So the is

that but highlighted as the it was increase in in through is a impact, last little year, October and the attack in an year. cyber did customers of happened somewhat volumes an increase it we just bit, we that October pricing and last serve certainly, really in contained see a we competitor So on

categories I that would say mentioned. it's so And in those of all you

So say And on looking I and certainly, get board. moderate, the per December. comps as expect we're November year-over-year that would of when other, at least we do a overall, we the into across really day, some the at basis, to move easier improve in revenue

to perspective, we those as both of on we and a December. stats volume both expect through move November a and pricing So improve

Daniel question comes next from from Imbro Stephens. Our

the great. bit be more we unpack maybe would Judy, ABF can a little results

I of it to prepared in mid-quarter, in but you XXX basis you OR basis up think talked your came expected the kind remarks, XX sequentially. points, flat points

You mentioned September I driver. shipment, wafer guess, the biggest

do So there? I maybe more you you think per weight was stabilize? that move What expect you driving impact stabilize, shipment? are guess, could on forward setdown? when Obviously, of look expected. that it out per start we And lower? big hearing When to see to it weight shipment What we would is you as you than that

Daniel, this is Christopher.

So a on. year-over-year One standpoint, was difference to that per things couple the commented truckload it's weigh we're just environment. shipment that of we that related seeing a from

in Just just see that some be as continues is LTL to on truckload. that low do it's that LTL prices moving historically and are business area, you

to thing in that business seeing that managed our customer we're bundling help truckload. able our by just into shipments other LTL chain supply some optimize we're The

some the in going so network or in on the optimization there's in mode And really industry.

area. as think see some turns, commented that market the business script, truckload we moving of just to back business. earlier you the on I That's that I transition the in household from And know goods LTL. one could

it as historically Just that's the given not has interest as higher been just strong rates.

seen. as mobility as isn't we've to And as business that shipment heavier be per So well. historically tends strong homeowner weight

are our there. would lower X areas are per kind see weight shipment those that So we pushing historically key of what than

when update. we would this particularly Daniel, also of were I our difference a kind calibrating just just September Matt. just say And mid-quarter it that was is for Yes. expectations, versus

improvement I just come just think, backdrop at a looking we're to the given just now. weight in macro And that were likely didn't per so little through, see just shipment, we bit of expecting that --

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

if network on pounds. of historically it kind I or done, is of then core Seth didn't versus rate stand? something there peers level Can X,XXX that Judy, per just describe hear seems the I changing the Is but Is now? you that about around much you've really that mix? lower this a quarter. going at guess weight like is sticking economic? mix above I or don't know run you run on than within versus kind for larger of And in used now the decline -- And just transactional there much shipment. this a think does where what's we to

Yes.

So this is Seth.

So per both when of focused in our we those revenue making weight for going seen what We rest think so to our side, comp we unusually the we've and on weight is X-K specifically shipment, as but a and we what's right the pipeline really, going trying look the in on, sure per to across question, quarter. highlight through decently, shipment are really is growth, increase at our opportunities on that's is But as October front were move pipeline profitable normalize standpoint. business, business. we're from the with where revenue but LTL that to focused on we're what now your pretty the

survive we been happy to really there the retention spot, in side. a were comes good And really and results that on rates growth see Our have to your Mastio the customers. down

a claims spot. to good numbers be in continue Our

to our So customers. we're value bringing we think

that the price the the more are, more also we can to to we we our feel impacts reduce is piece deliver second cost serve. The customers, And customers, the our like better we our efficient obviously.

changing. we're pipeline on is we and focused that not strange and as on, good that's And the as in to forward, we feel we impact we're control. to the There the of going I our So that things macro things there's in growth see period. the going are feel coming move comp like kind pretty about structurally something move but

down. But retention in said, we're when managed see Yes. we across I and we're be the logistics just retent looking stopping picking particularly and instead business And of Ken, weight mean, like can entirety to up make X some our and We're now spend. just highlight managing hiccups the our asset our it's levels pallets. we Matt. I pallets X might I'd this remains customers' be of we're business. high, really seeing

on little side, shipment retention up. high customer bit to it's when again, them a the sizes coming just so we're pick And smaller

Ken, also again. And Seth Yes. you is this -- mentioned

our the You really us the business business mix or capacity. core. network, dynamic consistency mentioned transactional the of And in dynamic, just is of maintain helps fill majority empty

in that's Our core to business increase. where growth continues the our and pipeline. we're seeing

move October. that you'll to see unusual this we as continue So in comp normalize past

Our from next question from UBS. Wadewitz Tom comes

I bit appreciate this a the little guess dynamic of is follow-up I Ken's on on -- pricing. that a

you So dynamic like? is maybe we on ballpark give that us XX% looks LTL? I stable, see think of but -- versus you have of the kind any further could mix It it just so you if of don't that pricing LTL. But like of can Or dynamic and been what a comments what to give Is core us looks. sense a how of that's precisely to give what like XX% that. kind sounds wanted I

during this And we in and we've said, is to improve. disclose Yes, network, maintain these Really, to majority the of was business seen what mix the consistency like specific us the that especially core. transactional -- Tom, slower position We our does, I between continue times. core. core again, that don't is

what dynamic you per on transactional we're growth we're capacity. available to mix some basis, results. the look of you and that's excellent we understand based contributes exercise the seen seen a management on changes and When daily profitable optimize per delivering important customers. our our and heavier and shipments, focused profit see. we've improved weight to service the market that they're weight making daily on But on And that generally you've is a our shipment, What's really, prices it's maximization based is at the that and to or mix shipment sure

had some us you that before. If the term, look over the have longer flexibility network tools haven't in we these given that

you a of how like the give of magnitude of be a that? to Is how little mix perspective shift Or might move is to sounded is affecting. like -- volume is big to well. a like can of that that, shift what's truck? on on truckload couple having that? And the effect guess much It that an Okay. as Like I of it points seems related the more

I our thought there. mix see clear it's of that we've we're know say in number the our through I'll Christopher. how it, business, help prepared through that our not I'd line have it's we specific impact. in managed just just much impact don't know plans but impact large we don't that of just a we really I And having our have a is. any exactly that to We through manage a that is don't of of Tom, we're that our that on much much have business daily how how see pricing through is. environment, again, is. management an prepared we an just And the that, say I and the clear business and regardless but do to actually pipeline because it, discussed, shift customers

from from Our Brian question comes next JPMorgan. Ossenbeck

just know an mentioned other that. disruptions. you impact some then as maybe I yields to strikes just you per X%. skinning little a and of bit around quick see is just little but from bit follow-up. shipment I context wanted that Can ex see thought have fuel about more more to weight wouldn't it could the October. quarter the I little comp. you It's So hurricanes is in the tougher a And bit, a put in there and flat dynamics down the still shipment if port and a weight with talk per yield

can you more go that give to going normalize And that well. context around forward? little as is maybe So a you as

Sure.

So We just beyond impact and just thinking of about strikes. weakened see then in from we and would quarter September started late stronger hurricane normally what port those off events. in September, being the comment to end September month. on it saw some

impact you we'd from then saw So to in as October it hurricanes strong see. as wasn't well. some And like as

a perspective demand than but would more Just to would And some then we recovered to at from I of see. know from shipment just October to some rather year-over-year. weight trends There's then they encourage just service sequential it discussed level year. And areas just closed. we in October, saw back, we've that look that already abnormalities the that per in of you reopened, I when some that last don't being pull like

So trends. year look if And some normalization more November October. at to to October we've but get to see we you think cyber last and you're month a as as going normal an It's last we event September, I relates it just December, odd had into there, that discussed.

that Right. then sequentially. And X% fuel? is perspective Is from guess, fuel down excluding it's an perspective, of still a or I though, on deal that inclusive

fuel, it October, -- Yes. think And Yes, I with said we to was X%, September it commented without was think I then fuel. I think that we was that it was flat. minus

it profile also was commented we But related. that

That's right.

that mix across fourth when October. -- seeing the dramatic we quarter in into mean quarter, But and just I month third see think I in just a looking yield that and I a what not there's of as we different the it's we're enter like change Yes. -- feel environment. we're

still a good we in fact, rational. like feel place In and it's

I the And good think really publicly. we've competition of and we're seen to some as all announce as that's concerned. far continue rates raise that

I with minus fuel -- Sorry, X, I and was correct the that me, think sequential. without say

Yes.

Chris comes from from Wells next Our Fargo. question Wetherbee

to forth significant on back? previous will in some back as the to pricing follow-up. need truckload curious, through to and about a in this you volume that time see I What some that do you I'm of cycles, Maybe of hold if and up of environment we've kind differences seen on squeeze those have sort LTL, then And particular? guess able think of I of comments. I both unrelated if want truckload be truckload normal in pick the to in could the side come sort

to Just a we on maybe and get what operating obviously, loss. like at guess, the of it fourth I needs quarter I is asset-light another sense get the looks can kind guess, looking to side, of right cycle? cost improve just particularly in that simply other business Or side can it you improvement levers an the direction? in there? Is that on moving point this are the pull, can there profitability at the that

probably this and XX,XXX kind we're I'll of goes truckload still driven that's has that some migrating truckload. shift on works really truckload maybe cycles under back the 'XX and think of previous Chris, aware. it the that's as That's rates your market going freight in and market kind the did the down throughout channels. because seen And this and LTL is better between to environment, normalizes. the capacity just caused shift that market to the is of more too much fringe pronounced as X,XXX Seth. The in capacity, truckload shipments level forth I question the how and to we versus shift we've 'XX on in when pandemic. time That back first of to an never all answer range

So truckload carriers do really don't loads. multi-stop like to

market that going LTL So the ultimately I turn. back shift market when freight to does to the think is

handle the their they those positivity gives to LTL fleet time can during this a So we've loads as continued as of into can make our heavier and way what back lot market. me that confidence we invest in

and profitability, to the moved also we we we the the we is of macro, allows need the really to know, account is on into our And we deep I focused that us We've we've level. Asset-Light into part that, some take last been improve recently new evaluating do you of confidence as first level role, we've dive feel ways by profitability but like tools profitability base. as Asset-Light started can closely. -- I've developed this can account the get the On different side, and lane to to it really within quarter my -- challenged

So runway we of started the And have work in lot to we prepared talk there. we got actions, we but and to comments take about those pricing do, heard you a think Matt more actions. his

it's that and our that amount seeing within focused in about of We've much The more second is spot. truckload because and to market of get enterprise, kind get on we're signs growing mix the to heavily middle simply market mix as the is in XX profitable. mix and of there business people increased are towards better success more to invested on SMB, early team more of focus a business middle we're trying weighted a to SMB our of

we to The constantly want revenue that cost mid- to We given some around way we third going and mid but opportunities. the to late to we're don't impact can in is we're expect control. based the actions themselves looking future in, see cost because control to additional off took really growth third quarter, we that third and level take --

feel So focused like delicate we're really balance, area. it's a I but in that

growth. The is fourth is has around really positive That contributing customers. results. operating resonated with service double-digit managed seen It to We've our solutions. income our

is grow continue And We we're feel like there. productivity saw Asset-Light. to going improve we really to the So efficiency. last around XX%

on people. execute on to need going feel future efficiency the and focus like they to be We We to working that spot. have tools have loadbard getting map people better forward light training the carry road feel continued them And a good we of to really business automation, really, spot. the tool will on, best like a and is good really asset all AI get the we're in we improvements we've our a

Our next from comes Wolfe from Scott question Research. Group

growth not maybe per to a understanding high from yield. which to fully I a to because want be I'm sure November, October. shipments -- and tougher go tougher comp in yield I'm should but totally little But down, the up a of back backdrop. I get bit helping just weight So a to flat come single-digit December there's bit, yield

the ex are You've just why the sure fuel not slowing talked GRI, so just yield renewals. reported much? are guess I trends the about I'm

is about this impacts. I are mean Matt. talked certainly, of from October. to some September on just profile dynamics we've sequential some Scott, the There year-over-year dynamics the

not October. weight so and on that to of up was freight then think we decrease really of any September little broader And a a shipment And mix in indicative the that's pricing, saw And saw some more from haul. length of pricing. of just we again, actually it's bit per to I related its trends in impact

flattening just right? down So got we've tonnage yield margins. maybe out picture, And bigger maybe

to Or time again this in just Do to being? tighten we're the irrespective seeing stuck in sort like 'XX turning to basis market guidance something for need I better? implies we truckload like start year-over-year. ISM improvement down or is XXX the with cycle there for can points think wait your the and stuff margin we do of of

obviously, Scott, asset to gives on. areas great. becomes in is with business focused been our seen Revenue the it our when down growth comes would lot levels few service this And will growth, side, is tailwind, and that help. be We've continue of a a what that ROR that pipeline. on a the me core a we're our That's really improving. encouragement Seth. But We believe headwind. improve we can to improve base

retention rates a in good are place. Our

get past the spot, historically Our where that, But they're a well. provide, instead weight that customers as why to of growth X that and to you're what to our shipment comes feeling giving And down and customers been, we've that's to hear seeing they're we've that that really and us shipping over made really us giving service to year are from less back strides grow. is X, you per get we great just continue piece. us helps some better

have go basis. gains We've That's is The our a software next of ready visibility have. only efficiency started. opening city talked efficiency. really in team The us have mentioned map whole deployed a we getting experts comments, done and We've that next few that a they're doc of X we roll network we well given those facilities. we very road We're going detailed new We we getting That's well. large just The can as the make. cost to still is to about phases. that optimization. out rollout

So think of there. on a feel we've we got we runway efficiency, high like we can -- a although multiyear lot hit we

and around seen efficiency or digits, where a facility opportunities those Real we've we or for estate centered investing double they're growth, added be capacity. wouldn't case investments, We've areas. also growth efficiency each opportunities seeing we where service opened in see in really gains in the

XXX invest in can aren't are type turn that's X-year be for These these why added we decisions, been these cycles, win things us. great multiyear is So so doors around. we positioned of year, We've but when decisions. a this which about

impacted was made really the is helping to And us in The fourth a mentioned earlier, people new our uptime keep We We about really, million I fleet, from is fleet our in equipment. when a maintain it spent sure have efficiency but the enormous time them get perspective. have with in around we'll why bringing a good cost. are saw and better reduction $X.X directly speaking spot service I cost up a also to spot, our training and that's them amount asset-based numbers, we headquarters, an of those and like I into people numbers, results our field, our in seen as corporate our feel we've still well.

comes Our from next Stifel. question Chan from Bruce

want commentary. some on Just up of to the follow Asset-Light

you can to we know I the results granularity reporting same If don't help parse maybe that used have service. us the by we to.

don't see also positively? imply the a Does that I of repricing some are the of actions those quick segment? to businesses Or any to for contract we on maybe nonbrokerage some brokerage. loss positive if about pricing And here. contributing from talked but then in some So know it, I missed just are whether color that that cycle that wait need follow-up you think I contribution making?

Bruce, it's Matt.

details. you're contributing operating pricing But which environment say provide seeing the line, on truckload server service contributions biggest talked that the to contributors. about. strong positively Asset-Light side, X certainly we level side, certainly, the the right, don't But the is positive I we've managed brokerage result. on One would we So just income our is line from are overall

want if just like. Steven, or might expect all what we of relates might at to comment pricing. to see as it then on that kind And to maybe timing I don't you look what know,

Yes.

prior I at level, level, want obviously I market we're we But for improve. -- conditions customer opportunities to compensated service we're looking prices for mean We improve, as are think the mentioned, that see to you'll we sure as that, make to provide. lane pricing. Seth

on a we're So basis. regular that doing

macro so an we'll revenue improved of improved focus to continue area work And towards as any on of kind environment. we net

Okay.

on So a be just much, to lotto sounds that later it there? harp Is time that in it of for that fair? not would frame probably too kind profitability but XXXX like

segments, the Seth think Well, of and other are the that about area. is of business, mentioned seeing we contract we maybe outside mix the thing growth

that ahead well, cycle. improve we So the to have of opportunities there can as do and we

our we're areas. we as but outside and to we're there, focused just cycle got helps opportunities those gets a improvement. us, of the the people again, So macro have that And on helps progress. focus macro We've better, making improve

Citi. comes from Rosa question from next Our Ariel

Ari is Ben for Citi. here This More at on

on looking your on looking those your you down up in is And historical basis XXX what us city seasonality average better to points, ranges? to margin down your XQ are Following to sequential QX mentioned Scott's reasonable? changed QX, at on to sense, XXX LTL, pricing, 'XX your just points, optimization. XXX outlook, based XXX for years, basis up to initiative wanted space-based business your QX XXX I beating get estimate your route service give up and for thoughts your wanted points, points. on on Can basis basis average, XX this what your takes what's we OR, XXX culture has your with over time get XXXX? your Or you last

Yes.

Ben, I So question. appreciate the

what developing next think job perspective, a about great on a mean, key themes, productivity focus that's spot done I we think the great I we on our a feel feel perspective, from for like service We're the focusing the in perspective, we've hit of has ABF in and year. just on-time pipeline we're good lot can control. how highlighting business. a and Seth I

certainly, achieving talk But can certainly, really pricing can to cost it we talk year on of and helpful. that we're experienced of that continuing we've the Mastio and the reflected just this history years. of a great in increases we to customers. being our to continue the And great reflective and be results basis, seeing XX where items just you're through over available, we that from that some some that's we if lot have about Certainly, later are, one, achieve value good in more quarter-to-quarter what it's providing improvement we're outcomes that that's on feel we last the again, historically focused detail and in over And seeing that's those headed. year-over-year a

from from question next comes Moore Stephanie Jefferies. Our

Maybe front. sticking on the margin

have could puts could you kind initiatives you the whether little inflation, what of it's takes line top we're underway that to better productivity what step maybe talk in bit guide, If pressure. weaker of of of kind maybe the but than if to further talk -- to about see. and leading clearly a a out the then insurance, margin But XQ just environment. also wage you called taking XQ come to through And offset some

So thanks, Stephanie.

the So we certainly, had and not quarter, wage the for third our there's in the union benefits. items an increase had like we quarter, in annual

strong that focus And so and side, highlighting there. a done and think going good just job the finish I the cost today on continue to year we've we're how focused we're out

developing terms couple backdrop just of where just we And think over months. the so that the do the next expectation the see I That's quarter. where macro of here in based on for is

paid as the ends on place in that we're as the talking we what up on the improvement. we XXXX. dividends that side, productivity could been into we've But I see all And extent than see seeing projects right that, again, and year continue exit about some to the both we we're to now, think efficiency a so stronger going to head

sure that And Stephanie, weaker thinking initiatives efficiencies. with both constructive have, have of lot ability to and pipeline, pedal our our the market I economy. we're guess, in we to gas our to the because the we macro ground be and you also for try growth us have it's today I we've engage in important the level think really even -- the We talked foot customers just relate that to to just and various going that we we're to about to that gain the about able talked a environment. off set ways, confidence want take the and in opportunity in a steepness that in don't we've about I to way be

our navigate the to things. fact, customers positioning helps us and In these we have through especially that really

the all about the in we're around all So with we're our different I But it's our in else love into offering are is customers have. because we what ways, whether the navigate business. in doing It's somewhere talking ability that business or to solutions to insights in managed environment. going for The customers LTL lot best late have this managed lot a have momentum. of of of seeing in And and really in we we And a are that kind and are work success there. truckload and that growing pipeline stage. we strong in

year, business. into close we year really to and as have help to out I and this like positioned next can strongly feel So to help they solutions best customers say possibly we're to yes, our their navigate the

from next TD Seidl comes Our from Jason question Cowen.

you your horse, a here. squeezing guys in back because little decrease I'm per pushed mentioned your getting me Look, break here. the length you crop have then your bit dead you're X.X%, sort behind just GRI of haul? set where those at details weight to nice and of help in beat shipment level a you the increase me your with sequentially through the hate of business. Because I trying to that Can out you going and but on contractual to at to I'm you're X.X% Appreciate

a would better a shift on I ex hear assumed have sequential numbers. the basis? to freight like what those a in that would I with love see on your have So move sequential been you And would big lot sort fuel of yield was you even

this is again. Jason, Yes. Christopher

ship they've -- October, to a center pallet effect some to happened talked haven't days lot have something thing -- that they customers freight that they we've X and were that reopened service So And about one observed if there's the few a X ship for that that trends is once that in you had may we some the they about September. is sequential underlying now close pallets. reopen weather it, now it's having of just it's just you those down

impacted areas, that So just sequentially, dynamics had higher shipment. profile September on external weight you those think those about October, on the influence to per areas a factors some

of some September our that's all -- would October, changes business that the results of and of looking are business. we're regardless best say revenue again, our were per the profile to abnormal end And one is getting make So mix And hundredweight that the we sequentially obviously, have you we're at really have. not profitability stat. stat. just influencing I day-to-day hundredweight to yield really is core we But the of all that be the revenue sure business the managing profitability just that per

you have understand shipment that. sequential was can of for of some guys I and to bad of so any trying increase the hole decline. length just how put -- us weight sort numbers sense around Do per I we you No, the mix to numbers get for a your was?

relates Again, as we contributed I about and no those to we pricing these in we're can there's it I Chris to that September mean really shipment and think the single-digit sequential talk weight of Lithopaul. talked But in move. I Yes. low big I in that. single-digit trend I with significant. think a about it mean, in numbers about per little that to decrease talking the probably just some increase more are low detail. mean not the or dynamics -- think October a

from Ossenbeck Brian Morgan. from comes question next JP Our

then auction. a sort bit of well different that, of of spend, the normal the if of changes up as that of through Maybe back the sort real little still you for the Is a just just end I think taking Are Yelp estate year? you guess rest as on went in walk are approach the through sort of the there? true-up the can And equipment. obviously, CapEx facilities down I

So up expect to at look anything next round? that here you potentially there pick or we should the in

Brian. Yes,

laid we would the been expect side, for equipment CapEx, So relates it as consistent say to had on out we the I with what year.

that estate might thought On were the that side, come to opportunistic some were market. there real we purchases we considering and

some delayed relates it let in might purchases process, little we markets that I'll makes opportunistically the to been maybe making and at it looking have sense. what where those We're then there. be just Matt to hoping bit. yellow And so a Godfrey comment some bit see And as still little a on

Thanks, Matt. Yes.

our facilities We've previous those in contributors to what the of facilities the those in we those So yellow one as not already, last Seth mentioned, have bring really the acquired and opened have transition done to X X And people online quarter. And have facilities positive markets. we'll and in we auction. any and our efficiency, service for appreciate been capacity our disruptions customers. fourth

the second mentioned, on due kick locations forward. the of how in in in to last are just a you that previously, waiting few interest auction and of that we steps really we're And phase so interested We've were and month. indications these process next our auction off. locations will is submitted the were about interest move as the

comes question from Rosa Our Citi. next from Ari

is for Yes, again Ben this Ari.

survey, much your about asked your out phase ask a on of phases. to Mastio what Just all going you're wanted for I runway You others? city to peers, of how quarters. the which X than on where first your is deliveries route your touching and pickups improvement LTL of on-time, building for especially Ravi these volume culture a upcoming really you're tremendous, in importantly, And the do much on back important mentioned your with service, very there showing You're these attribute margin done initiatives? and board. you're Damage, of accuracy to pricing better is how you left? these optimization, fantastic across various more then lot and number shortage, training

Does or improvement, So phases. for more service roughly margin? get there's you XX% X volume, more these of runway which initiatives could more more all most mean this for about

Godfrey Seth. is then I'll I'll chime have start, this in as Matt and Ben, Yes, well.

In look, XXXX, service, we So the have our got we the improved things to runway a a industry the of do that like of XX efficiency, of always years. people. went lot around of mentioned of benchmarks Mastio. We we back lot when new XX we think a process. We've hired there. quite we you all historical for ultimately last feel bit exceeded on new We but position

happened. lot of a Just things

into So and we track and listen responded back back been. to we've we get to historically the our position move where very customers, on quickly

So the say, would we on that improved side. initiatives I service tactical did the

into that. holistically of focused which like improve is supply visibility chain, the on of efficiency, we're website, will customer to a Matt kind lot going work ETAs, mention, around Now also

because a is So ultimately go to that quite great runway I we though even have #X better from like translates still the feel we of our we're be growth position, -- goal better and in Mastio to bit to think because price in a our we customers.

Yes. follow your on City I the to percentage trying of And question up to optimization runway. there. route appreciate and understand

for X of first -- to Phase impact. the relates about when will important think think the and runway Survey around -- you a on I an have are pickup think route on really our to excited thing think efficiency process. as to the Phase positive the the is impact We pickups and it going way really city largest about had impact Phase list. the most X pickup of we only But phase there the the optimization and bulk is Mastio that about have Not customers is optimization. that high it being But when there. X

pretty that. about So we're excited

later lot kind And our project something on this optimization, time really in and piloting around service customers appointments that another people that some process. We've and and around on we It's then year rely come want for on things the line that, for. find we're our value this again, our customers. to that on of make that something excited here well. early we're we're other spend that in year are thing begin on stages on about offering, efficiency. to and it, what's people, another that as really our That's on process a gains our service of working made Some easier focused they going and we a optimizing working us to I

significant pretty but to only have we runway, think at time. increase we not So to service, a efficiency the improve our our same

come will Research. today from from question Wolfe Scott last Our Group

think liability, how that how they liabilities, have in pay way? that? about long-term of contributions do that I the -- and -- outcome how any final a yellow had still determined. the bigger on do withdrawal to But to still side. does does you the pension -- just immediate question pension that no your pension ruling know longer-term it's the think you withdrawal impact, help? be I impacts Or If does

for our pay and is the them Scott, hours we've watched the monitor worked. And we to what obligation hourly based these rate on issues decades. is, negotiate in just that

Obviously, lot And funds. have and XXXX, put pension that so distressed here through impact really that place funding larger American but Rescue a multi-employer the of impacted Plan we negotiated. the was in a most positively has also

this think I settlement. -- today. dollars I other what know feeling the be significant the going overall are won't is But don't So to be we're that to my to related those in situation that

that's it and to the we continue continued XXXX. just And that we're funds the large a we that the haven't puts American about more I funded Rescue we've And things place that because increases it's done, way than in like to plan better law the negotiate was were seen same that fact anything put and better distressed in us X before feel place. do enacted. in think years, always most that here, to I the pension, every rates think planning so to the that's us like reasonable we since And a

we've situation. rates So more where to more are than position hourly been address pay a the a adequate than in decade, we our

it. as think close for and but see not to negative It's it's about we way have we us obviously stay I it. that so that's And just to monitor, the a something

the for further Amy to no have back Mendenhall We would I to questions. closing like over remarks. call turn

appreciate us in interest great for today. day. everyone Hope have you your ArcBest. joining a Thank We

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