Saia (SAIA) 31 Oct 182018 Q3 Earnings call transcript

Company Profile

Participants

Douglas Col	Former Treasurer
Richard O'Dell	President and Chief Executive Officer
Frederick Holzgrefe	Executive Vice President of Finance, Chief Financial Officer and Secretary
Brad Delco	Stephens Inc.
David Ross	Stifel Nicolaus and Co.
Matthew Brooklier	Buckingham Research
Scott Group	Wolfe Research
Ravi Shanker	Morgan Stanley
Todd Fowler	KeyBanc Capital Markets
Tyler Brown	Raymond James
Willard Milby	Seaport Global

Call transcript

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Operator

Good day, and welcome to the Saia, Inc.

Third Quarter 2018 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Douglas Col. sir. ahead, go Please

Douglas Col

CFO. morning, Hosting to O'Dell, today's and EVP and Good XXXX Saia's third conference CEO; and our Holzgrefe, call. call Fritz everyone. Trevor. Saia's Welcome quarter President Thanks are Rick

are subject you we this are Before of our and we begin, press differ. Litigation facts factors for of some number historical to statements should differ not and could risk risks exact know filings Reform and meaning that might uncertainties to call Act statements a the made Private may more cause These that results may materially. forward-looking all release the within the statements results information that forward-looking the most SEC and to make actual recent We during on you that call refer our actual on Securities of be XXXX. other

Now, I Rick. to would like over to call the turn

Richard O'Dell

we the for quarterly were third the pleased and am joining XX.X% thank yield experienced I $XXX difficult quarter good increase U.S. XXXX. quarter grow quarter particularly third and The to to Well, the revenue a our for in and Tonnage grew with you morning the us. X.X% record earnings announce to record revenue by million. season, hurricane another Carolinas Southeastern third during in XX.X% able quarter. for

and to storms those facilities days were the very we flooding our in but employees fortunate safe that several sustain in impacted for business to extensive disrupted subsequent Our damage was region were and not areas. through our all

last the what demand per diluted the basis share XX.X% remained record $X.XX Customer seasonality. earnings per quarter I as diluted improved steady year ratio Our a by for XXX to normal describe with through to operating grew would quarter from $X.XX share. and points

expanded consecutive The into metrics annual improved quarter average yield. Contractual in shipment per year-over-year our bodes the X.X%, XXrd in shipments are the that operating an from I XXXX. per weight Other our well negotiated benefit the so financial marked quarter to actions in LTL per quarter Contractual necessary. the as at key results of where renewals our follows; of rose year-over-year by tonnage improvement specific drove expected mentioned as revenue selection X.X%, for continue the the workday and with LTL to workday well increase geographic on rose to XXX focus the pricing yield LTL quarter renewals results financial rose our per by LTL positive miles $XXX. increase XX.X% XX.X% reach X.X% XX.X% X.X%, average increased were increase increase quarter the our taking by shipment linehaul for similarly strong yield account freight in our benefiting pricing Our in be to record our XX.X% from quarter. tend increased in third a

a couple review turn other I from things quarter over of results. for to the before Fritz our Just financial items mention of I'd to like

Purchased up the results about miles the last sought continued PT year improved quarter training to in PT last miles over our ratio were XX.X% of of total from compared and detail. compared from second quarter. miles our the The of quarter maximized lower year. growing from turn ratio this used and review XX% year is to also to cost as the in quarter of associates. XX% in the from long total in third we of our down of experience segment Rail haul financial X.X% the transportation XX.X% a linehaul claims second cargo the initiatives increased were sequentially and claims ago year in Our and rail X.XX% in quarter a call to go with that, business. With I'm to ahead on more newest the third miles XX.X% benefiting X.XX% improved across going network Fritz the

Frederick Holzgrefe

good and everyone. Rick morning Thanks

prior XX.X% year record in and revenue the surcharge XX% fuel improvements in surcharge was over million grew third also $XXX grew XXXX. yield Operating the quarter Rick compared $XX.X earned quarter to from Third revenue. last shipments, million benefiting a to higher as Fuel mentioned the third year. income million tonnage higher XX% revenue to of from and than quarter positive $XX.X

increase mile year. Purchase year. the Rail was year. percentage of third versus cost mile was $XX.X million quarter miles PT insurance rose as forklifts. the and X.X% increased amortization ago. of expense XX.X% ratio down million. million like which the to $XX.X a to than $XXX.X we million usage, and mentioned rose in helping and income our third expense and The rose $XX.X XX% key quarter in increase last wages compared basis expense PT to investment lower the million Rick of third transportation workforce quarter Claims over by of larger prior and compared throughout Also rose by and expense XX.X% to now tractors, year frequency year. miles in per from the XX.X compared the X.X% to quarter accident which items. continued tax per wage the prior a third increased XXX change of operating our from did XX% the on last reflects approximately Fuel Net XX.X%. our implemented $XX.X versus the the comment quarter reflecting quarter X.X% versus in to points year rose I'd X.X% prior truck benefits year-over-year linehaul as offset PT XX.X% the quarter increase in few better in cost is Salaries, was revenue to impacted quarter. nearly year. rate year up X.X% in as Our were across last by year. a prices a X% average versus average in benefiting increase year year-over-year the in company. was prior diesel XX% July XX% in to trailers, the Depreciation in the last National a the in last was increase miles

rate was $XX.X Our of quarter the third third with compared of XXXX XX.X% in XXXX. effective the quarter tax for

period XXXX. We months to XX, capital net At the through debt million XXXX million year. capital to XX.X% of acquired approximately capital September inclusive of leases. September be expenditures $XXX.X the XXXX to through capital to $XXX September in Net $XXX XX%. to million $XXX.X debt This were year-to-date cash total million including $XX.X total expenditures full-year with total hand. total on debt was of expect equipment last compares at was compares This of debt tax XX, first nine of XX.X%. Net our and net to capital

including $XXX age fleet, approximately growth and full For the forklift year lower net of we improvements, technology, tractor fleets. capital investments investments expenditures terminal will as terminals, in expect our equipment, to well the as XXXX be million made continued

Now to the call I'd like to Rick. turn back

Richard O'Dell

Thanks been fourth a we us. busy quarter Fritz. of XXXX has constructive have ahead year and a

not our terminals other will earlier to As two May us conclude to prior Massachusetts release press terminals operating the be two XX opening in the in this in coverage opened Including we we in the operate had year served Pennsylvania to of state. will terminals we that mentioned in we direct year XXXX. markets December allowing

map in planning markets new XXXX across out the we're coverage England. For more as open we six New to locations four fill to

multiyear we some additional break allows. free we're capacity to as for for the growth openings also opening is legacy can and more the at Tacoma, new in Worth, market that These be This in a and opportunity While our Northeast where terminals us us year facilities closer geography to terminals up the customer. handle Washington larger in our additional we'll customer opened target the additional compelling market freight. also service density in enhanced haul Fort terminals the locations future and longer in Texas is

are this internally Our allowing resulting down and to term year-over-year. our performance us strong and much fund financial is of growth flows debt long cash

prospects Our fourth incremental us environment expanded into We the continue are and believe positive and coverage excited margins. about the business efforts and remains for mix enhanced the strategy meaningful our quarter producing this for are to and XXXX. management

these comments to now we questions. answer are With ready your

Operator

question Thank from you. Brad Instructions] Delco, We have a [Operator Stephens.

Brad Delco

Hey, good morning, guys.

Richard O'Dell

Brad. morning, Good

Frederick Holzgrefe

Brad. Hey

Brad Delco

Fritz this and October? impact guess And then quantify what for would the then September needed Rick, and through are you too, the helpful? to hurricane tonnage, you in first that in us where or margins give we you I maybe monthly can can question, tonnage is extent be

Richard O'Dell

is, shipments were tonnage right, well tonnage X.X%, tonnage positive the X.X%, All and September month then so positive X%. X.X% X.X% are date X.X% then October August, and July, and and X.X% and – shipments XX.X%, September to plus for and benefit

Frederick Holzgrefe

transactional continue to year standpoint, a that's, adjustments volumes late from to because we just talk XPLs about kind some made we think our our impacted what's XQ is actions of that be in last one mix mix our business let's period to some into I efforts a sure meaningful our diligent and profitable. price going some our think and of I management XQ make Yes, thing of time in for on of

it's to look you So tonnage, at I important when look our at think segments.

management kind going will how some mix So give is here you working the to some think indication our you within I'm of organization. give of numbers I that

we quarter. from grow, field business for October down XX% actually So account X.X% our comp down up was up it's XX.X%, field XPL XX.X%, was business business continues And for is to and into quarter business up the account national our national X%. now the up XX.X%. a our our was perspective year-over-year is business XPL business our as go our And

producing results mix as and through meaningful you the contribute to that's invested can continue work growth to there's changes would our I in value customers kind expect mix of business as business some that with and recognize ranges and to financial see business return good operating we the we in in So management on our management our it think obviously that proposition. prospects will capital get

Brad Delco

Could be had impact in margins that. for storms the you or on what tonnage QX? quantify may either though Thanks

Richard O'Dell

in in the meaningfully but mind area Brad, Gulf for although necessarily mean I significant of Not either. that's significant States that's the not mentioned created keep it to bit little and it quarter, Carolinas, a not inefficiency a the then us we've break out.

Brad Delco

on Rich you inflationary do good then your over PT next those, expectation you what a detailed when I would said XX.X%, gave per your be the you mile up renegotiate assuming and XX I'm months? pressure think cost and on contracts Okay, comment and truckload cost

Richard O'Dell

of through I on Yes, that. of specifically We kind we're I ongoing. think mean PT, kind worked

what's what our truckload market see the watch kind we'll think as on in we what project. you expectation of I see and would going that's

view is on what mid right on yes. yes that pricing depending digits, So prime single your now,

Brad Delco

QX Are these budget. purchased? then CapEx or your new the and these last full-year two I maybe leased terminals Okay, noticed being in one, didn't facilities change you are

Richard O'Dell

We've got that – facilities. two projects won't those number right leased. we'll that those that in facilities are There open invest other though. we'll That's will some year next now. in Yes, are actually – in improvements our other until

Brad Delco

the would Could cash the us CapEx expect it you for to you QX? what or you be year for give

Frederick Holzgrefe

So additional capital to any of I in the We cash. leases. capital will be balance use date we think will won't what spend

you look of So million if way. $XX to the balance on that's roughly $XX

going all So be that's to outlay. cash

Richard O'Dell

There is real there estate just that in a closed. project actually major

Brad Delco

get results Great, in I'll [Indiscernible] and thanks good queue. for the time, back

Richard O'Dell

Thanks.

Frederick Holzgrefe

Thanks.

Operator

question Our David Stifel. comes next from Ross,

David Ross

morning, good Yes, gentlemen.

Richard O'Dell

David. morning, Good

Frederick Holzgrefe

Hi David.

David Ross

the A your in of Saia within expansion business the point the lot describe, more you the serving do feel a legacy average like haul. evolution that in where enough of northeastern is and Northeast, already much Could initially have and at XX, the coverage you lot going guess density is from customer are territory. terminals, what comes business then intraregional and So from it increased you get of Northeast I the you then to how do there to XX, much is freight? legacy region you staying terminals is the the XX, how

Richard O'Dell

okay. Yes,

and XXXX So XXX to bills going the XXXX the Of of bills northeast. from those wise those only in intra about and doing terminals northeast. today, ballpark we're of day about out are a

and northeast be and intraregional mean there until some I expect, network carriers that very but some up that you think in some I get competitive. there coverage right, I up think into So rates as leveraging comment of were of our those and I you there penetrate full opportunity are would are some to also business, there'll the would good

handling and to the meaningful that also in business there our for interest extent for are it's network. in and probably customers Saia's it but some is play too sense So to from makes for us, more that returns best

Our length up is about haul miles. of there XXXX

David Ross

what there's about less And as the drag do when been Northeast of linehaul you on has you've network impact into you that expanded think on density certainly kind those the the as think growing Northeast. been runs, operating in you've the business of ratio the the

be XX the right worked would you now? at you in if Northeast example For sub

Richard O'Dell

this to by business Probably. some at network then that. the is legs When do run not regions reasons across the we you point of a difficult flows density while flow profitability time, let's that good because and in density those you Northeast just Obviously the the particularly or of the through Carolinas Cincinnati it know might business kind Valley and the improved of there. Ohio regions has final have say profitability have

models, change So market profitability move the ratios. balance because it's regional again, profitability into have obviously situation a that and if we dynamic you new models laying a

commented I think I've before.

operate in to the a themselves besides better density benefit as the as of of within well One the the those obvious flows ends is country regions because that partially customer than the of P&T terminals expanding the your tend the of middle the perspective from linehaul to benefits right? of coverage

Frederick Holzgrefe

regions the driven breakeven and now. basis it by Like the the about the Northeast shows points operating from our basis model is Cincinnati improved that on business allocated profitability fully a XXX a business

what about XX allocated fully X a and to opened out it's improved basis. points on gay So operating

David Ross

day And it with or line you the up or have you gets is you rest then in mind is the system, to bills number of in day simple? a that a think do getting bills XXXX not a there back XXXX

Richard O'Dell

it how terminal how mean shoulder on I operate. business end we based that have should some that we and improve progress think and

fixed the Northeast a we there be XX routes terminal. to network, perspective, to I another terminals points the going us margins cost have you're from forbidding high incremental in coverage work meaningful from the regions so to excess Terminal as [ph] opposed IRR terminals shipment there. to in could XX% pretty cost for as going which going better drive is and – the In us the before way from things which fixed would that way them fixed have from a think to is expect going as I be the cost perspective right? just the are coverage for run from to to many capacity So mature the of having Northeast get those be we

David Ross

Absolutely, thank much. very you

Operator

next [indiscernible]. is Our question from

Unidentified Analyst

pricing a Thanks, name. guys, good with on bit the backdrop. wanted expand job little Hey good I morning. the to

very the You are strong contract XX%. renewals know obviously at

of repriced you of of and could if wondering Just sense business? is more of there much the give to been business us in has if a how go terms book re-rating the

Richard O'Dell

now may XXs, as that industry. have a data for would XXX% I I on our and account I the down the X%, positive yield most mean book not have look pretty you with performers is account now the is in been be at retain gap so, performance actually right think our mix benchmark of of between is revenue if account from the contributing, that business about at bill lanes you but don't get based October can as again obviously XX.X% renewals all in basically we – that's that shipments see our analytics business priced some and of of Yes, we direction the being may in us shown national and per national always there call is or low in the that us of is in but and so to business right but our we'd our a look operating for business trending those would well comps that contract type who management

Unidentified Analyst

last here terms see incremental translates to respectively ask do the from an confident you think is how Yes, happened XX% eclipsed basis ORs, from the should a it uptake is respectively above it any in mean to sounded plus about may it this of to kind last perspective? just mean that nice it and be rather some margins? is I we the out at seasonality was then XQ underlying of typically a to incremental pretty right of see you think or is environment I color of way on I that, guess XX% kind in sequential I to you kind about you just question way how move the factors when adjust better year now operating XQ look quarter

Richard O'Dell

of would investments balanced terms we the of and with this by our some be and of history current margin think to that's to what expect associated line that would kind training then that's be clearly would I about kind openings some XXX And terminal deterioration continue Yes, that of and in incremental expectation. with kind point modest are of I the of mean basis kind targeting and again see XQ, some improvement. of that. we're in

comps. So isn't bit of a little if mix as of you our kind spite looking it in our comps strong getting difficult of in at business some prior look tonnage management, still a as which of have But again yield the revenue kind sequential improvement similar would we double and be year. with growth meaningful digit prior over would expect margins improvements, to

Unidentified Analyst

kind very one that's people obviously for is some the book topical been seeing sneak or macro a think to economy. I having and either industrial view it really deceleration still around talk firing credibility in all do that that's look just or reflection cylinders? concern is It here, around perspective. And your unfounded but like today doing a maybe changes in of of things what customers from more of kind activity you maybe pronounced one something helpful. could just bit are slowing last a concern you as then any the lot these maybe and deceleration of seems if you think of in your or customers more more around there's high of you at trends business nuanced some gives are But some little discussions are of pricing Yes, to will level, I kind your changes in are the tonnage a rerating concerns if when

Richard O'Dell

any that would way things we're identify. still good. would or think seeing any in I segment pretty off we that could particularly in are anything that mean I alarms set not be concerning something

Unidentified Analyst

a on thanks. Okay, I Appreciate it. Congrats good quarter.

Richard O'Dell

Thanks.

Frederick Holzgrefe

Thanks.

Operator

comes next Buckingham Our question Brooklier, Matthew Research. from

Matthew Brooklier

morning. Thanks good and Yes.

if just there's that spot to over my heavyweight as we understand of that the So back to maybe curious around hear market? question heavyweight business moderation market, in some some your migrated terms of business, been truckload your maybe

Richard O'Dell

Yes, truckload fair. some our increased. impact. don't probably whole of revenue it's X% right, maybe can when That's play seeing It's of business mean we're lot about of that we things has a that a a probably compared our were by us as capacity certainly stronger, probably perspective from in an I but revenue. that have impacted segment to

Matthew Brooklier

does Okay, remind look pretty look And us into for shipping peak minimal. telling then the expectations peak? can volume as like fourth also season the what what are your we about like quarter, Saia customers and into you you

Frederick Holzgrefe

really year change noticed on holiday weeks. - mean, customers, comments in related holiday efficiently the the quarter of in busier a pretty we of it is there. challenge weeks change tough around Rick's go winds is then kind commentary – the holiday lot little quarter from and similar where - our first bit run to business, time way up. usually of the calendar if other haven't December works can any a weeks depending to the November couple typically you the and our it's yes, think first There's or October real year October the what the we weeks haven't from of I of back I in to of couple

impacted I by think us. of than holiday transport probably modes necessarily more other are

change don't from or difference real I there's know the So past. that

Matthew Brooklier

of guys then did terminal the as end provide of Okay and count you XQ?

Richard O'Dell

we're Yes, XXX the is it think in I at press release.

Matthew Brooklier

time. appreciate Okay. the Thank I you.

Richard O'Dell

Thanks.

Operator

Our comes from Wolfe question Scott Group, next Research.

Scott Group

Hey, thanks good guys. morning

Richard O'Dell

morning, Good Scott.

Frederick Holzgrefe

morning. Good

Scott Group

first need maybe you looks mix the by out changes want pricing we to do change? are or the okay because tonnage feel a look and like maybe the negative or are off tonnage If mix with okay at all or you this little to given with quarter turn comps, grow get mix you ease totally like have flatten the could I maybe you that changes of the here. like end quarter, XXXX, of just you the it bit

Richard O'Dell

new We're intensive I growing and obviously there mean, there's recruiting et with we're and them, a that, and cost share lot taking benefiting driver capital cetera. committed this very of associated challenges training on business, people, our field from is business with coverage. and enhanced bringing

that just would, national terminal and need we pull the for levers wouldn't make not that we're should we standpoint So but start. the get said, you trending you being prolonged bad low know that's operating we're in might account compensated where account business so we that particularly margins over will the time. some growing at that with again And Northeast, could of once without types that doesn't desire year-over-year out coverage I segment happen, we being that that we density. sure a time. for your if in in to that, period expect with would standpoint. have we have not XXs running something a There's a city happen adequate I and but have service routes major disappointed of It markets into a those then target we we that mean shipping Northeast of we openings that to negative some month And be particularly near-term over have, would we from the like or obviously, right,

good balance So, there's margin opportunities to headway a from perspective. to grow making some and continue for by us that

Scott Group

the local not accounts guess a national I XXs makes aggregate on low better you times thought basis? running couple follow. that just better at said now That Okay. ran much at accounts I'm come of we low isn’t is the OR the national. XXs, I low national our I sense. And how an operating than If sure margins in always guess the XXs. And than

Richard O'Dell

our the field portion the low which and of on is another period that's a of mid business then now constant improved right. in to a has smaller it's of It's that clearly Yes, XPL backhaul margins but businesses business a got well. technology of a some as working adjusted, being that XXs They're us company repriced margin there of and business for been is goes you around XXXish. over well pressure XX%, kind there. that's of operates XX% kind at it used you're with, But that so to on that your optimization then be time a

be would is that from kind in of mix the so count Field business national a and to XX% it's not So either. negative. business a XX% the our of revenue XX, our in is perspective XX-XX

Scott Group

then understood. just Okay, And lastly…

Richard O'Dell

And our our there good overall, margins negative of operating is up breakeven, fixed impact network bit making over comment time strategically it obviously and as a leveraging around business broader incremental income to having Northeast the but I as so a have going well. a I to mean cost of that's investments over we're also on the while commented us business, base

Scott Group

sense. renewals. do low makes of you question, growth? how revenue just XXXX last know we there you the XXX net pretty fuel to should single, of digit high year but per is weight think mean any tell think that, can And pricing renewals I about? that do another yield I would and offset double Yes, obviously in And fantastic model then so we

Richard O'Dell

mid increase. national the a renewal appropriate got probably of it's it's think with probably and account and to more a business operating of general are an I we we've the single level adjusted digit then where, at much where repriced the rate company standpoint, you obviously of better given range a on more how position

from as to high single probably you from So the perspective a digits. renewal single X% high, of model probably the as X% more if here opposed a mid digit to mid

Scott Group

Thank for time okay. the it. appreciate you guys. sense, Makes I

Richard O'Dell

Sure.

Frederick Holzgrefe

Scott. Thanks

Operator

comes Our Ravi next Stanley. Morgan Shanker, from question

Ravi Shanker

Thanks. Good morning guys.

of bled Just before and is has think now of coming coming of going LTL peers a freight of any TL into of any the your you you here, maybe said that some losing LTL market there? to strategy into the have the before follow the starting freight are the, but some ups given market kind TLs in LTL couple see the I back, that

Richard O'Dell

it's that. going £XXXX, for don't two truckload pallets that of to I see do No, I mean that I a to you don't think think carrier I I if able average to shipment work. very mean how difficult look our are to and at just the way economics be

Ravi Shanker

resort market something when desperate the to really and weak? is they So really get that's of only kind that they

Richard O'Dell

I don't for them mean, right. but works maybe. how that well, I see very potentially

Ravi Shanker

Right, just freight do to going back shifts, of much to it guys long meaningfully clearly of that mean macro? how or to I guys prioritizing your sense aside mean again, before I makes are mix grow tonnage. guys I kind again with you yield how kind have shed you you from mean start

Richard O'Dell

on continued the be XX of shape record and expansion expectation. enhanced mean think and our reasonable could I I fringe in tonnage going have would pretty Look, sub our and our think from proposition. come of growth, sub a a to we're good we're we're pricing ratio I a operating fourth it quarter, XXish value ratio current geographic operating balance around type

shed So don't we a tonnage. need of think lot I to

us. right of kind lanes those look XXX are point certain that for at right are and this at to that do and XXX in contribution over very attractive XXX have accounts you operate then around that backhaul say, let's are few that We have adjusted customers to to margin

a you'll think to balanced perspective yield we're that to I we at do we more can us, position So go approach. I just with a from think company see don't have a

Ravi Shanker

that there the that's little out or of if opened, the or when guys mean that the slice if still albeit I But just base not with Northeast bit the opening, coming national of is early business how terminals a as and is fast of normalized talk rest faster, the part at some much as of, growing the of look and to kind will. the if kind just terminals you new lastly, you is grow runway figure from you guys I of of there's Northeast still trying consistent kind it there? your Got growth you're can about kind you business that versus finer try and the business but

Richard O'Dell

yes, - history market rest our open Oh the market situation. our that cross-sell a when new would the and terminals no of penetration say, I mean we is it a multi-year geography,

expansion And and and does around the the instance both a we perspective we've our an of terminal Jersey to our points and over running somewhere geographic share a continue done basis in percent for a take history of tenth about be it basis X when that's the we're market to a to basis rate taking and from somewhere grow benefit or past New share per XXX to average share a calculation at Newark, X.X% expect of at would in could X%. from by been So we market points tend to a in annual our take on on kind between that XX that market that growth in the five-year bolt-on share take marketplace place kind acquisitions period. of

you some New into open do as Massachusetts a become additional Not but Jersey instance today then multiyear selecting again, better a option carrier you only you get they're to region. we've from a again you and business business geography because And up you a So might for customers. also it's move for open more as Pennsylvania opportunity. they there for for

Ravi Shanker

Right, so much. got you Thank That's it. helpful.

Richard O'Dell

Sure.

Operator

KeyBanc Our Instructions] Markets. next Capital Todd from question comes Fowler, [Operator

Todd Fowler

XXXX. morning good out I looking thanks guess everyone. Great, Rick, to

about, a in of environment points annually. the you to positive pricing get XXX think basis you've past talked improvement margin that I XXX in

ones are do been past XXXX some from what in if of on think of see some have the opening thoughts margin stays steady? improvement the the sort are with couple the could there's environment headwinds you current going Northeast I expansion probably terminals that maturing, the into you that years, versus

Richard O'Dell

continue again to we Yes, mean, XXX basis I points. to target XXX

Todd Fowler

Okay, that with about it with that's moving the so can something think we right around for terminal growth parts and the where environment XXXX now? the is

Richard O'Dell

we target. there's I've in there's could cost we cetera. I the and changes. fixed mean that’s I obviously been continue et to some change some with is then Correct, if fleet unless there headwinds pull meaningful mean our also levers expansion product, investments - but environment the something make our other quality

So is and I outlook conditions. market reasonable current given our think range the

Todd Fowler

of just the to some Okay, good. other the some helps put on questions together of and That pieces call.

so some the that, environment and a and holder Should some focus Northeast? underlying of on single of could we couple from think top the good yields years growth If that mid it that's I on down a place back years be of in standpoint a price were then is or more that increase single top of high in like and was yields. it of on a yield off where we growth pricing and sounds than it coming there function it's revenue the digit, think that the of there strength. been very was line for go XXXX, revenue two a digits and the You're about based stronger tonnage

Richard O'Dell

I be double growth. I'd revenue digit we Yes, think disappointed achieve if couldn't

Todd Fowler

the more towards other? Okay weighted the would would that one just it yield or be blend of and between and balanced or be tonnage

Richard O'Dell

the this increase just Probably rate throughout on that because run and run in the it's side we a heavier material of given yield point comps yield at we've rate current where our had are this probably in year the standpoint.

Todd Fowler

now a point to a on CapEx comments, XXXX number any the have you're kind from sure That's earlier in it sounded of of be I'm XXXX of me, finalizing a the thoughts where you out? some then Yes, plans, was some expect but one would preliminary of it it helpful? we what shape that just where like so you or from to be could Fritz should kind at last similar sense. if makes do and okay that have this

Frederick Holzgrefe

real them total Right orders is. The purchase we've Yes, the that is that we depending as or through we think add where a I But estate or them and so look kind that whether for variable XXX got if add put or whether upon pipeline in number equipment lease. real terminals of identify we so of estate place. our a to estate working still in or us as on not XXX you're real at real number. we're not a we've depending looking as that, we kind probably a

Todd Fowler

makes okay that Yes, sense.

time. had. for I that's what Okay, Thanks the

Richard O'Dell

Great, thanks.

Operator

comes James. Brown, next question Raymond Tyler Our from

Tyler Brown

morning guys. good Hey,

Richard O'Dell

Good morning.

Tyler Brown

bit. that what a X-K sure weeks ago talk was an operation you personnel. changes do anything on not with operations couple to it of share, themselves? I'm Did little Rick. some a but about Hey There out have in can can you

Richard O'Dell

over and experienced just the We're have we - standpoint put opportunities frankly would are kind of have execution quite has the our we've an more having had with mean for I liked operations an a There's as portion mean honest on think mix a of of as perspective as up. call would is I to into deck experienced, points the kind much I from mean. the XXX a but been while company have business in of our both improvement yield kind long was big shuffled be basis longtime basics our a have to with back we I from leader service well from as you. change it's with expansion Northeast a the than his that's the position. that to successful. there I cost career some He obviously

Tyler Brown

that helpful. And one? Fritz, you $XX you one it mentioned Rick That's you closed. mentioned deal to sure Does you I'm not getting real but that said million finished or a mean Okay. or which I up start think then ready you're estate it,

Richard O'Dell

the be it, means get That in we've for investment made probably quarter. opening now words and have ready we need will an other in to that we it operationalize first

Frederick Holzgrefe

moving releasing it's be Yes, for we're there. in strike the major Northeast facility, ball so where our we'll a

Tyler Brown

will that be large? so owned Okay, facility an one that is particularly

Richard O'Dell

operation the for be it will Northeast. Yes break our

Tyler Brown

today mix of on do door added terminals a kind have facilities. you mix your high ownership with is this a all then we've what lease of based Okay year and the

Richard O'Dell

have but in I I'll update well, don't K number current as we our that. the that but through look

Tyler Brown

Okay, now guys. that's Thanks helpful.

Richard O'Dell

Great, thanks.

Operator

comes Global. question next Our Milby, from Willard Seaport

Willard Milby

or mix guys. North in you there as something I move move as on or business than as change wanted a quick moves is Hey be on Wanted just the morning. a inter Is we worried account march ask intraregional coming to a need quick to regional material ask to to freight continue and you north there national morning I to is [ph]. Road there good merge mix all Hey, as you account material about change north. anything continue business moves you'll northward continue to national to a to there one going out? more freight freight to continue

Richard O'Dell

market incremental know we today. some and as our just add and terminals what when there there I an you new do, results and as bit is you a business you're projecting take actual too have be And imbalance don't open your the I obviously and you'll inexact and ratios know we are the you and we what data business of there. wouldn't it what up some I - obviously know, know cost we are ratios about project overly and are lane that But up and add kind - in and of mean not have get region we data what market incremental we that the and because also out of you there. a to up have based I is in it's tell imbalance We do there. what you mean need our you I'm concerned what experience you balances costs that market would you science I accordingly. better and we repriced the do up the on what available then

open what go know not So if is miles costs and you we the terminal another and our market we another know are. what it's XXX

will can some would think risk it price of a of I probably goes point it sort call I a, mispricing down, at scenario. in accordingly. this actually time we So the from

Willard Milby

been pretty were last maximum No, the you'll if I any that on opened terminals opened we capacity up against of recently if that maybe think on at good you're on wave of see capacity and others reached any initial we of thanks. was That's year of and facilities if up that utilization soon? curious color. two should Also look time terminals I kind have quickly expansions bumping more already

Richard O'Dell

mean was inadequate to going It’s XXX I is the were in purchase so bulk doors, million be a there. a major facility $XX over up operation break knew time. a we Yes, that we

was a was good already availability used this So the type situation immediate in marketplace. a strategic facility of that

not it's in doors incremental marketplace So either. the

breaking be inbound available how potentially average a outbound probably of us we're line by So the obviously construction an you and kind which opportunity coming that more last a outbound addressed in for about couple And know and you on to very on a there's or and either that a takes of long. can that larger an lose have market the line the got Northeast that synergies, opened market part major we we on would terminal where enhancements the us won't project potentially terminals works get side some do spinoff the haul coverage haul could like would us. synergies excited into market a by And better facility, that up. it load it

have a I you, our opening from really and I there's think we Northeast options for would facilities tell So perspective. and good us the some pipeline in of

two a implementation on down to far going at already that pretty into have road and this have December open are the that from identified next actually four been a six terminals more to five the we So point in perspective. year

at we point So additional about kind and markets we in time, of spent struggle lot coverage pipeline find underway. feel that in pipeline a our a we on where those time have effort good nice of expanded and to terminals of and

Willard Milby

Alright, sounds time. the for good. Thanks

Richard O'Dell

Sure.

Operator

this go At call I'd like to Please Rick. the back time ahead to turn sir. over

Richard O'Dell

for you dialogue. to your forward look continued Saia thank and Great, interest in

Operator

today's ladies gentlemen. Thank concludes teleconference. This you and

disconnect. now may You

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