Saia (SAIA) 4 May 192019 Q1 Earnings call transcript

Company Profile

Participants

Douglas Col	Treasurer
Richard O'Dell	President and Chief Executive Officer
Frederick Holzgrefe	President and Chief Operating Officer
Amit Mehrotra	Deutsche Bank
Scott Group	Wolfe Research
Todd Fowler	KeyBanc Capital Markets
Albert Delco	Stephens
David Ross	Stifel
Matt Brooklier	Buckingham Research
Stephanie Benjamin	SunTrust
Jason Seidl	Cowen and Company
Ravi Shanker	Morgan Stanley

Call transcript

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Operator

Good day, and welcome to the Saia Inc.

First Quarter 2019 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Doug Col. sir. ahead, go Please

Douglas Col

and Good Call. Welcome Rick Hosting Officer; our Chief Simon. quarter O'Dell, Saia's XXXX Executive President Holzgrefe, Fritz Conference today's and Operating morning, you, Officer. to everyone. First Saia's Chief Thank call are

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

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

Richard O'Dell

to results. and first per and net us income pleased diluted joining morning, thank revenue, income, quarter I'm for good share. Well, you operating discuss report earnings to Saia's record

meet is quarter's and expectations, winter did experience difficult as not first the for our is the While opportunity the we believe horizon the in weather behind better results us. results quarter the on

in million. a $XX.X quarter LTL Revenue Operating ratio revenue flat growth income and highlighted First at our was record of with was revenue a XX%. quarter per first grew million $XXX.X our increase XX.X% record operating hundredweight. X.X% by to

We also rate on contractual renewals in had average the quarter. X.X% an increase of

LTL yield. achieved consecutive in we our year-over-year the a improvement XXth marked in quarter quarter first The which

rate income respectively, per of in less first the year. these The records. were included Both benefited lower $XX.X workday million previous first and quarter year. one year tax $X.XX, a Net share from this also comparisons of than quarter and versus earnings diluted of last

to per workday this by Some LTL decreased was follows: down shipment quarter tonnage X.X% XXXX, Purchased miles X.X% the the weight last compared total LTL workday LTL X.X%, network of shipments XXXX line in across improvement XX.X% decreased per $XXX.XX. comparisons coming balance X.X%, quarter first the were year's miles first to per transportation to compared quarter. with first when are revenue LTL from rose also year per haul from of more of as X.X%, the by shipment to

X.X% of ago Dock Our dock initiatives. as year, improved per year a more employees claims from also saw cargo experience benefit from despite by a a P&D ratio and by productivity X.XX% measured X.XX% stops measured our weather improvement by newer we showed And bills improvement the continuous gain our versus challenging nice faced X%. hour. in last training hour we productivity per

call the with our across go So review to the in I going results execution financial was our over network. and our pleased to turn group With that, to ahead more Holzgrefe Fritz in I'm operations detail.

Frederick Holzgrefe

day, per Thanks, first everyone. offset Fuel Rick, increase to in a XX.X% benefit Rick year. as of both surcharge X.X% to the and up from generated from $XXX.X a modest comparison tonnage of the million in revenue shipments total Revenue LTL yield was benefited quarter increase. compared declines and revenue X.X% in prior by We first a XXXX, $XXX.X the the million good quarter revenue morning in mentioned. the

the or increase key wages XX.X% last revenue As This a employee fell results of reflecting were quarter. in cost an expense to expense revenue XXXX. quarter The compares quarter. $XX.X year quarter, Purchased purchased to quarter $XX.X of the better of stable reduction market. million X benefits count of wages of basis in Fuel average mentioned, result the an and increase X.X% X% in of transportation rate Salary, versus prices July, Saia impact first of in expense quarter revenue. are X.X% of rose -- flat average year. follows: salaries, on which million the last the a higher is year-over-year. include with by throughout wage Key Rick of $XXX.X and benefit X.X% or the and flat higher X% X% truckload health last million and in transportation the care for approximate more national utilization environment our capacity benefits period expense prior in first the and versus essentially to X.X% workday transportation year-over-year impacted were less did first as average year items, diesel few a purchased quarter declined

cost newer by X.X% a state, Also more benefit and and real our year. down day investment primarily reflects the severity from $X.X due of amortization million, technology. Claims insurance fleet. continue continued and expense accident moderate roughly expense on prior our also quarter of prior per in per claims We rose and with in claim prior levels claims, essentially to XX.X% cargo equipment by flat and were more the the from X% versus Depreciation year. efficient year decreased were the and to million the quarter to $XX.X

million, XXXX. to to million in infrastructure of investments debt earned fleet quarter in of last and of for XXXX This net million net debt capital March percentage of Net last be of and to the capital compares are of Operating were continued improvement compares somewhere capital total net The to XX, quarter the and total At X.X% was XX% $XXX first XXXX. capital of million. terminal million at a $XXX our quarter first was rose depreciation of capital year. XX, compared acquired in XX% ratio $XX.X revenue, XXXX, was to leases. year. capital forecast $XXX.X the and As income XX.X%. of quarter investments between $XX.X X.X% from debt million expenditures first total first projects, in In expenditures with the to total $XXX.X record unchanged estate, technology. revenue amortization including real This million, $XX.X debt was March equipment expenditures in operating including quarter X.X% from Net $XX.X a XXXX. to million

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

Richard O'Dell

in the we Monday opened Thanks, second opening Northeast. the terminal New May coverage and XXXX. our a facility to to On strategy improve second additional expansion in break-bulk will to coverage as to plan this is marks attract service area. Hudson plans terminals the week, This This year. ultimately to at terminal initiative may enable our designed and to customer, another got four of since in we terminal customers We've least our in the end, will opportunity. new across our and Opening terminal XXth not us in opening one This full serve with is provide XXXX an us York. X, we the past. efficiently where our new of and closer Fritz. add locations customers Newburgh, And Valley provide Saia underway we new existing to ongoing reached on have Northeast six region this the already get Northeast markets direct in allow this service opening in to

we before of and for part ability the Friday. per so a up several and demand, to read up this Friday for April our X.X% Good the it were day And year. adjusted our to April, key comps encouraged tonnage shipping more was an is more few opportunity made X.X% comments to past months as freight to outlook of a per the important by remainder Difficult the customer us the increased our but difficult serve of by proposition we chain gives shipments spring have markets Our make underlying questions, Tonnage for our X.X% open for we're year. grow. X.X% become supply Good day and In regarding in for the down value I'd down adjusted the tenet even of to customers far season. shift like

XX% flat the to quarter with May we've XXXX a consistently forward have incremental solid over back margin allowed and XXXX being expansion couple with us Since quarter first expansion, disappointed X.X%, first which our past of margins. in of on into Northeast, and the posted spring. company, the the including incremental of track expanding clearly began look years. over are Investments to the quarters post our of geographic we our in past pleased gains operating margin I'm accomplishments this incremental several ratio While

and XXXX, in experiencing and we XX.X% uptick XXXX, margin of Adjusted XXXX good our in XXXX. QX QX Friday, quarter The first began; X.X%. through quarter after And incremental full each incremental in in expanded operation. again our QX for follows: XXXX of QX XX.X% of are the across in expansion shipments margin Good quarter nice XXXX as XQ quarter saw of of third XX.X% a execution XXXX, of productivity XX.X% we XX.X% fourth of posted the of in

incremental While in to expect in look be like margins mid-XX% open quarter, for margin on range. story XQ we're in currently go the up I'd the to questions. track back to We call I said, given volatility the ahead the to subject forward second that incremental self-insurance With a and quarter. giving

Operator

take Deutsche line Bank. ahead, [Operator from from you. your now Please Instructions] We'll Mehrotra Thank question first our go is Amit open.

Amit Mehrotra

just environment. obviously that? The kind the was and week bit taking little Thanks, a from say on XXX-pound Obviously weaker the be positive, gorilla last incrementally which last operator. comments is room Rick address obviously pricing for negative OD Just underlying Hi, release year, I were the the color guess, commentary would is but environment the I the Thanks expected. respect my in I'll new. everybody. to demand Any with question. than of to was, in

Or seeing to some overhead? more just Thanks. power? competitor’s some So natural chase is in it we of slight pricing actors, are cover moderation sort some of price kind

Richard O'Dell

some do come pressures think things procurement perspective. certainly think and Yes. But of conducive. market. a above I businesses and someone test they're wants solid from or mean, still environment having this I you generating we're environment the think out to that the But you still increases from going mean, to barely pricing something. lot we lanes to When are take I the I pricing, see corrective loosened, I wage is our have, when conducive is right. there's cost mean, action to sometimes I oriented the have certain think they particularly

Amit Mehrotra

a Are pursuing? some, strategy I early that expand kind market maybe pricing win little bit is lever you mean, of guys I guys as share the in Northeast. that the to are a you using, of you guess,

Richard O'Dell

No, we in management to our do use the to Northeast. property pricing model

yet, little because our in we cases, some not newest think that do have adjust on in openings. to bit there have capacity, -- our and I routes we're particularly productive some of kind a our terminal do up and we some excess

an opposed You optimal coverage run route. tend as to to for building

increasing consideration, been kind market pricing we in well. but So the our of that Northeast we've take into as

Amit Mehrotra

Okay.

me. as a for follow-up Just

particular And opportunity. kind billion You supply is think opened up $X market that regional that $X market. $X bit that thought a obviously the I frame last after some always disruptions little Northeast of market intra-Northeast the the the going billion I is kind opportunity, of of was market dollar segment within now the of that the that piece that you're with last. that was the that billion in moves

can has just billion how changed of you still to Northeast environment disruption? following that $X to the thinking, able guys maybe about kind you the talk kind that If market share be you pie? for of demand X% in you're are achieve going of And

Richard O'Dell

Yes.

to less year years expect X go particular our little market. I X% a to we would X% into than get target over is then We bit when our years X% to time per a X right. to think

were look March was So kind year. you running annualized $XXX on a we revenue revenue of basis, a in million where if at about

in we've think successful that. I So been

don't coverage we think that don't There in that intra-Northeast market that -- was play you much. disruptive would the with I you the to us that on benefit, would I think impact be probably from because by Northeast would materially our think tell like about But due I a events we was part said, April people still would tell more. I of other carrier. modest uptick in would you developing, I talking the the

over as through of probably of some for people take we time. facilities from fact sales there. mature, and a organization gain kind to I in some And so. wasn't Those some benefit of, opportunity were anyway disruptions couple we our and that across our got that's April really mature up network from occurred a us. of but the -- lot And weather I terminals a some a late terminals behind that, then think up volume expect think good March obviously, operations, part share we saw we factor it's bigger couple opened a it absent the that provided December the, from improvement probably than there tend of Northeast resources. We've kind that as that comes to was Our and and terminals of opportunity just event to the in their

Amit Mehrotra

Yes. were makes That you Rick, Go saying? Okay. sense. ahead, what

Richard O'Dell

were That benefiting.

Amit Mehrotra

Okay. Thanks a lot Appreciate it. guys.

Operator

Scott from question Group Research. go Wolfe comes from next Our ahead. Please

open. is line Your

Scott Group

good Hey, morning thanks guys.

So up. getting the guess, macro declines just the Northeast that think would with going per you haul the thought or April expansion something. length the of suggest if of some weight be And thoughts are And down length the in in that's comments maybe quarter. have and haul then that worse shipment was I first I would there

So X maybe just addressing those things?

Richard O'Dell

Yes.

much, be company -- haul revenue be shipment that probably business does offset. not Overall, that of length we is so weight a up just I that think go And the I flattish. intra-region, factor. of but so in our mean our higher correct. on some partial that Northeast, part the than I of picked there's haul per into kind April to, incremental of more reflect it's would guess, Northeast very our more would the length Northeast average, we that is then

as truckload to move heavier I truckload our softened the shipments truckload environment. less truckload loosens, stop-off-type of as market some And that there's think spillover. weighted a capacity

more an across sophisticated impact. the perspective optimize your see of are Some we that's able modes probably what customers to biggest and analytical from

Scott Group

then your margin XXX last think anymore. XQ number just guessing XQ in margin That basis you And quarter, Okay. about XQ? thoughts to sense. that's XXX the, you points makes on I'm give you to from guidance I Can seasonality or thought not on us gave the the after improvement.

updated some there? just maybe So thoughts

Richard O'Dell

Sure. Yes.

Okay.

XQ average X-year to is points the XQ So better. XXX basis historical

Given that's And other currently and risk factors. the the and sequentially. would some as to first to our execution, always XXX shipments points uptick we XXX things, in self-insurance basis points quarter, weather basis subject and expect volatility impact

right little the puts with XXX-basis in I that operating think range, environment probably Instead XXX softer in we're that you're of to year-over-year. bit more mean XXX a the in. I point increase XQ right?

Scott Group

of that would that right. back Right, you right, think now or half the full the Is closer the year how year about to...

Richard O'Dell

rate depends, just persists, per what than bit right? bill if we've mean, challenge I this think it I different little get you seen. weight a shipment revenue per run

see what initiatives internal there. on some have that work We to and opportunities we

with what saw really we're So in delving into April. that particularly we

across question, I to mean, have guess, I can just the environment, So part is lever then that that that, that's we is deal or a of right? pull the -- that's with we'll happening

Scott Group

just, Right. And point then to that thing. maybe, last quick

the XQ. renewals tracking XQ Is we've So got differently? much for pricing

Richard O'Dell

looked I answer. really April, don't at closed where having the we hadn't trending. out We know we're

you operating to I think and is I still needed. function is to of of and pricing lanes in what comes tell conducive corrected for kinds range need within the we corrective action increases market just what So looking the where up quarter key the across and markets that's for. renewal would getting we're an really that account get the

Scott Group

think in be And you pricing the should still do better doing market? you

Richard O'Dell

you're this discussed do the before as being with generally. data that today. shows you the so they players, we're I a that mean trail X the have mean think and right? not is all yet, data for that quite coverage of that to compared business I them a you which show reason the being our and challenge all national from perspective, think is, opportunity yield I you into offering the that that you our we've key there. players perceive them I we But national run out customers pricing value

move mean, is maybe else a they of we compensated So be somebody to as right? and correct to try have player, price more mean, our coverage pricing, for we I expand proposition, And we that. increase value I to when our

that amongst maybe you customer. right, lanes or customers, So requires change to the

and to to make should some So it's say, continue the educated able think for than would I we do us to -- probably better I guess market. guess be the mean, is not would guess, conducive headway, still I a environment

Scott Group

it. guys. thought Okay. Appreciate Thanks for the

Operator

comes KeyBanc Markets. Fowler Todd question ahead. Our next Please go from from Capital

Your open. line is

Todd Fowler

get Thanks. the in quarters? something Or in expectation the there? on margin a morning. else really to function the environment Great. mostly several incremental is which would be to weather think XQ and about is level mid-XX% that Rick, to the Good the quarter, of the margins last second impact there on incremental the operating improvement in highest

Richard O'Dell

headwinds that of instance is execution quarter I was operations group doing. Correct. loss right mean things I the have it that couldn't just favorable. mean, some some cost items for and first the in. of overcome core part of We of in very execution you we're volume our the

we an As set even we said, bit expectations us. was results, try commented, when of I quarter a quarter around for investment it to think, first

So positive. I have. we matures efficiencies results And to guess we're of reflection, the base we grow a And incremental again, we be should gain of just the and that margins up off that's as guess, of kind there, and date. share April that I Northeast core lining execution

unless in changes it right, still then derailed something first track, it's bit is I just on the just So -- quarter. story the got a think

Todd Fowler

or also on on the stronger? had when facilities little freights maybe what maybe than in opened the seen the opening maybe on, then guess in fuzzy XQ estimate impact incremental if quarter. some commenting know up quarter bit the you I were that year a later sounds what we've quarters have you just math. I you results some know that of first then in what to like of I of of an to weather don't square the the that seasonally maybe it timing the Rick, But things kind kind cost So a be greater in just

Richard O'Dell

training weather as that obviously that's significantly. drive just it the I benefit was we commented, invested from opening execution. was from as would not year-over-year pretty as those marketing things over the to And some biggest some had that Those the have quite well the in we're key on are frankly revenue It operations our we continues then would disruption, And up to think some be costs. been saw incremental what we loss seeing would expect of time. factors. we thing Actually, expenses part

Frederick Holzgrefe

the going about ones removal were that then you're The first to in expensive. Todd, situation. an around I Yes. line made running routing that got would up gets to network, when it of and in multiple costs equipment I haul we versus investments of snow We going just you -- $XXX,XXX was last costs because QX up certainly quarter what it's in give add run talked And the freight look knew can like. that sub-zero there. can't your impact, weather bottled year. we've extent I investments more maintenance just that the quarter we you're we that then And the you spent first quarter. mean, kind the were you that in one, those a into and but you weather kind knew was run

would the So it But could in that And line. pleased in quarter, the that expense the crept the But operation continue more year Rick the core out, weather -- productivity be were of can parts we everywhere disruption. certainly that into was that strong a probably that positive. pointed quite seasonally up kind of the with.

Todd Fowler

Okay. Good.

Richard O'Dell

because intuitive increases. been you had costs your you of said, you weather. really difficult to like have cost know you would And a thing what line it's not if more don't It top have and both any quantify loss will when revenue add be

none, never You get right?

Frederick Holzgrefe

exactly. Exactly,

Richard O'Dell

And X.XX a say I I clearly park if that but a guess, of was it had ball to of I X.X impact. point. mean an

Scott Group

there mean, [ph] than talked impact makes like came sense. Okay. think were you that sounds Yes. and kind different bit a I you when originally weather so you OR fourth said the XQ, squares the higher little than the basically about the quarter of That that where you that. I and that in XQ higher

enough freight Northeast was freight we how a market see the a couple So If if into you got obviously adjusting than a out, well kind across just slower timed up, in you're board. to for seen what cadence continuing markets where with then you've do growth of freight the of the Northeast big the possibly the the think very pretty market, toehold to we've you into get costs? startup build past follow feel strong about the slower do growth incremental are years? wouldn't of you And that the

Richard O'Dell

say the because go would region, state, go the down say organic thing coverage some proposal What is, maybe always here expansion it I to about bring to. slow another That's carrier RFQ you want and/or you Or why or if and doesn't that there. you there great in broader benefit across otherwise right? having is the can and a to people

balance what say but been two -- opened I the the just you go when have really would stay density that from well you we a their terminals incremental be to because So while have this of margin So it smaller as the the ahead Well, terminals, I point in down. slow perspective. at where for and and the gaining always the margins, to which to maturity, in guess, also you factors expansion could execution is right? we their working. strategic what some a is, opportunity versus I improving newer tend question opportunity then to is want of are have we continue One at kind guess as are look

another to we and from that executing to what we look up the -- some step sense way necessarily seeing faster have And and wouldn't carrier, makes see with down. it really So up may be that -- we opportunities if I maybe some there, an today wouldn't I the with actually anything environment currently slow we're event actually too. kind of

want facility to So availability kind that comment Fritz, little that through do more? on a of opportunity working we're and you bit as that well.

Frederick Holzgrefe

investments several our terminal such And gives or us real challenge regional bankruptcy terminal situation, a in that -- be typically more complex. that certainly are and once is can more -- play. be their be challenge certainly it are go they bankruptcy can is available locations the a proceedings estate mean obviously some And I restructuring and to network network those, then complicated. the -- seen I little those consider. as through bit of we've The Sure. in assets or may think

So but think the of does us is it potentially I more estate sort target, initiatives. our Rick give and all described, own accelerate of to growth net potentially it as real

Richard O'Dell

Yes. And again, conducive I which not working it's would we just say, right? if to the it's is working done. can and/or proceed then If because already environment we then will accelerate, continue we've not stop,

Frederick Holzgrefe

Yes.

Todd Fowler

Yes. Good. it that process And I know so. into the thought was going

to much Okay, talk the for you We’ll this thanks time soon. so morning.

Frederick Holzgrefe

right. All Thanks.

Operator

Our next ahead. Delco comes from go Brad from Please Stephens. question

Your open. line is

Albert Delco

Hey good morning guys.

Richard O'Dell

Brad. morning, Good

Albert Delco

this But on you PT Clearly talk truckload little for been can rates I bit your apologize expectations addressed. has the coming if year. under a about are pressure.

on of sort basis you what think will in a this even change cost PT curious look any absent apples-to-apples maybe your year? volume of sort Just like

Richard O'Dell

we'll general -- a general, in that seeing we around market you'll what I it's pay. think, I translates into the see -- truckload in see Well, rates, mean, Brad, we're

look characterizes think haul in-sourcing as optimize to to asset assets, continue our investments utilization. own we'll over I we as we our own our line hiring time, in made

in but percentage? some ready to simply own But a little of the Am on But I with give the the -- we I use it expect see we bit saw see last you'll own look inflation your our of balance the So you a optimize reliance think reduce we I that, what No. have assets. our won't is because first expense think further year. of we'll over that I utilize benefit kind unwinds, as you we would would same will time our in to that assets can and rate quarter.

Albert Delco

tonnage much what differently. just and how if X% that ask I of your maybe the could TL question maybe being PT Yes, of that the in price because it think first absolute versus down spurred the you of kind being... of quarter,

Richard O'Dell

that is is contributor. own smaller of there. battle situation a our internal Most of That's a utilization resources more

Albert Delco

would Okay. is established this it broader be -- the one And sort price? your with Do then to would a would unique of just a about being is like geographies transport geographic because what's names growth feel tonnage think sort it story, of prudent in of share Saia the to categorize expansion I too focusing as some you maybe industry sort expect sort down. happening you're the much growth Absent Northeast, outpacing in question. unique in but of tonnage your sort of maybe up given opportunity. on I be less giving of your of

be thoughts would high Just that helpful. on level

Richard O'Dell

Yes, pretty modes. that the Yes. I impact at the some I committed that's network weather the was the optimizing volumes we at. mean larger so I I think customers there for in have to we're those across discipline. if pricing are look mean much do of you quarter, across look first things mean, kind hard to

top is mean, So the as as -- in at some year we I look the in XXX to I points. outlook of still the line XXX in first basis provides earnings basis late that get the XQ, it if for you that our get growth revisions kind if But range, last can not good XXX and through growth. point quarter. saw points well guess of I basis our

we So I volume, balance pricing and always know. but the the to try don't

of costs growth to being got list. else, compensated. I It I and this at the for properly the the you sure top you're I in cost environment and everything make the comes think recruiting think mean, with

Albert Delco

sense. makes that No

that. your get thoughts wanted to Just on

I hoping back queue. appreciate And guys the in time. So

Richard O'Dell

Thanks, Brad.

Frederick Holzgrefe

Brad. Thanks,

Operator

question next Ross from Please Stifel. from comes Our David go ahead.

Your line is open.

Richard O'Dell

Good Did lose morning, him? David. we

David Ross

the market market it'd driver or dockworkers maybe recruiting in costs, around comments I or labor current mute. increased some On drivers? general with Sorry. guess the whether commentary in

Richard O'Dell

markets, I would to mean, people don't and we tend getting a people we just worked other terms truckload more then in tell the getting year, to highly continuing I we're LTL qualified -- you, company but from that [Indiscernible] evaluate in to in had we're dedicated get it's alternatives. industry. in that challenging Yes, like past of be it's certain it or recruiting or still something think last I people,

kind as the it So it opportunity, it's still as market, on think speak you think company a that's look market, can at so tell And start to the going to right? that's got would it's challenging. not brand come people having of I good actually like there. equipment, but for that You for as kind Northeast to get makes for and board a company that get employees to to was, run markets, get We're well. decide to but it's that of sometimes, the beginning a facilities going sense, the for it's started. new a to up some while they're a us depends time. benefit you that of of selection and tight new luck I selection I going you getting and you of challenge new period lot time We're to the like in generally of of that top and nice there be a grow, the up

for some hasn't the drivers opening we're been have markets other new been us but So to in huge when get that a gate challenge terminals difficult.

David Ross

looking it'd all fall. to metrics good track, else. the to continuing What the about something time side, your see on whether And that on that performance service cargo service it's or CSIs, How's claims the you other then side? from

Richard O'Dell

very Yes. It's good. been

before returns delivery. of operations our call, metrics think look quality primarily our whether productivity, but talk in you of this our exceptions or I execution kind all at

those things the seeing improvements we're really metrics of Some board. across good

David Ross

rid it And Guarantee? Extreme renamed to did of Or been just the Saia is get Saia Guarantee? you

Richard O'Dell

in the for Guarantee pricing. offering product it a was Extreme of kind the had and We included

without product for which but still offer program, charge. then you away do offerings a -- If guaranteed had kind pricing we gone certain that we of

David Ross

then up X.X% shipments It And tonnage per can't on real numbers, were like raw down What in looks just was for housekeeping a X.X% I Friday. Friday are per write Rich because quick the I Good day that. April adjusted non-adjusted? for guess, Good day adjusted and

Richard O'Dell

All right.

shipments and is X.X% for the numbers that's non-adjusted April are X.X% the tonnage plus So minus number only. and

David Ross

thought? What's the shipments

Richard O'Dell

X.X%. Plus

David Ross

X Good shipments was What excluding something? Friday, or

Frederick Holzgrefe

X.X%.

Richard O'Dell

X.X%, I believe, X.X%. It's it's not X.X%, David.

David Ross

Thank you. Okay.

Operator

question from Research. from Brooklier our go We'll next take ahead. Matt Please now Buckingham

Your line open. is

Matthew Brooklier

Hey, thanks and good morning.

the in plus back like is directional much getting on quarter. I commentary XX% your tonnage of second guess, How margins improvement. about that thinking just contingent to on, incremental So

about side? feeling trying get some you're sense the had baking some for margin that is that season, but tonnage if this directional improvement -- spring commentary improvement You a in bit just I'm a shipping on little positive also better to

Richard O'Dell

we've Good Now, April normal of for obviously, then expansion. share from from in our have our what geographic taken seasonality the adjusted market see we kind expectations and Friday, we

modified in we're those trend So two key another we're step forecasters. -- have kind line And of are the not hey, kind saying, going big efforts though. we’re up things. We're of particularly quarter-to-quarter, marketing to

here in always true. productivity So get we're improvements that you the expectations. from tonnage of have kind doesn't everything come bag, to when to baking of those a and that to increases But April make in lot get not --

Matthew Brooklier

I was what That's okay. thought Okay.

you Saia? kind to wanted XQ in of just for Is sure. So guys GRI? make Have announced GRI it the for a cards

Frederick Holzgrefe

We one February, through February X.X%. it actually XXXX; in think put I was

Matthew Brooklier

okay…. X.X%,

Frederick Holzgrefe

release tend or press of amplify of don't we We actually it's kind -- I to that. not a think practice. we historic We our clarify that anything part and for issue to process that. actually for, just

Richard O'Dell

to. the applies process a with that it's that customers Maybe

Frederick Holzgrefe

Yes.

Matthew Brooklier

And much your cover? that roughly freight how does typically

Frederick Holzgrefe

more And Roughly say, or range. acceptance range. XX% some should XX-plus percent in the XX% get to should I that usually we realization, in get

Richard O'Dell

wise, our out looking again and current when on kind And run that contract carrying then at rate talk I we're yield that just our we of about renewals. expectations XQ, mean, taken

on execution those change of a yield taken a to again, So not incremental is quite -- there get we've or there's big frankly It's or big from speculation a to really here. core somewhere kind a not margins. speculation

Matthew Brooklier

more further away then the think like Yes. three about tax should the the quarters question, final how disruption sounds And the weather. remaining of the year? the rate from on for side/moving we from execution It it's

Frederick Holzgrefe

for So you the you and with that What the would year -- as the expectations way analyze the full I as the for XX% by full you numbers I maybe be analyze to would of characterize kind as are in you'll in full my you quarter -- XXXX would And see helpful variation if year. year, XXXX. and tax XX.X%. the rate numbers that year

Richard O'Dell

something have. similar last use best probably just we it's year, the estimate would Yes but for core the

Matthew Brooklier

I’ll Okay, Appreciate what the time. that’s think do. I

Operator

Benjamin go Please from comes next ahead. Our Stephanie from SunTrust. question

line Your open. is

Stephanie Benjamin

and monthly if I tonnage quarter? And apologize this, you first the but missed morning. provide the good shipments Hi, can I from

Frederick Holzgrefe

if it's if X.X%. And for if so X.X%, X.X% Friday. And Good year X.X%, the minus And Sure. February, been March, minus you do Yes, minus March then year's then for adjust so prior would March minus shipments, January, in X.X%, minus X.X%, the in March. last X.X% X.X% good tonnage have adjust March. plus minus you Friday, in was by holiday you month it's the minus that

Richard O'Dell

In March.

Stephanie Benjamin

before the you seeing you what on just you're Just little a standpoint? in being maybe And or bit not color what talked a from just perspective, a a density provide sub-XXX then I bit you're margin of Great. or just production would little a seeing be about it there quite Could from follow-up. color helpful. Northeast? think

Richard O'Dell

the you was by improvements the a Generally, on Obviously significantly if over the earnings, our tell Northeast, not that. the absent pretty there. our contributor and up it's a areas, weather not isolate see just XQ, generally, -- we I one incremental the time. generally on actually mean, we're thing, you seeing would that's drag margins, some That of it's Northeast impacted it that, on Midwest just I in didn't But were weather.

So and first quarter would improving Northeast XQ improving if be was outlook, you where quarter fourth out, it our the over growing margins. and historically, take

Stephanie Benjamin

Thank really much. helpful. That’s Great. you so

Richard O'Dell

Thanks.

Operator

Please go Jason from ahead. Company. and comes Cowen from question next Seidl Our

open. is line Your

Jason Seidl

Thanks operator. Good morning guys.

comparison. in the some that terms using Just for you're numbers clarification of

then using XQ, and you're using you're XXXX OR an XX% So as XQ XX.X%. for

Frederick Holzgrefe

QX XXXX? For of

Jason Seidl

Yes.

Frederick Holzgrefe

Yes.

Jason Seidl

from to from So the guys to XXX an a XXX. XXX range of versus one sequential you the -- guys XXX you improvement range gave while

those So I in there's differential think numbers.

sequential than the -- comes up your it lower improvement So [Indiscernible]? year-over-year

Frederick Holzgrefe

kind a to over the Hey QX historical past said showed from little QX. of bit. the basis Jason, you're sequentially XXX QX comparisons to trend mixing We QX improvement point a the three about years

Jason Seidl

Right.

Frederick Holzgrefe

this the be to that's the against comparing like year that QX neutral more the the he of year, actuals of was this trend metric said when because in Rick XXX. difficulties But XXX to

Jason Seidl

imply XX% a sub-XX% you typically an would that would basis to And XXX said OR, but imply or and XX.X% to... on XXX that then Right. year-over-year

Frederick Holzgrefe

used into pick the operation in yield year, like our points given walk XXX up the get number We grow the XXX we into had to XXX feel if given tonnage when what's leverage, like basis the that's say. we the or think an we've environment that to Northeast. Now felt as and We XXX walking dealt we we going of in is we strong to we're to year the able basis go we set this and year. expectation activity in revenue a points a like can say with reasonable opportunity

Jason Seidl

Okay.

indicative because those really sequential So that's focus sitting current that, the on more market of in. that we're commentaries more the of than

Richard O'Dell

we and kind what of of backed a our a little But frankly, at revenue our more XXX our said. little be. revenue, outlook our you XXX And look outlook. on our some total you it's an that's total off the of number, current have XXX instead shipment per think the what weight I of per impact bit, it bill in having to XQ we the quite is is bit revenue for would when if kind

than was back revenue of bit a So going thought we're from -- expected. in by be where plan encouraged where I it's was I in have step-up were mean looking probably in at December putting April it what while to lines we back I March. would were we little kind nice in if and my we the lower January,

right? of margins, weight shipment and the are -- things bit burden on So a per

Jason Seidl

Right.

going Now impact you portion bigger that you of about forward? does a grabbing coming through general, in I what's sense. And that a getting just that was see your how And questions business? the makes lot do e-commerce Where in LTL? market, foresee do of that

Richard O'Dell

seeing and We're being about our see weigh for shipments to tend XXX increase in those in We're we residential accessories. an pounds. diligent more. mean, I Yes, very deliveries pricing

So paid the some mile lower of that the also technology at perhaps, optimize you're that be the cost residential person specialized for liftgate or final customer equipment We're so to that's with getting exploring gets with that have those basis, experience. some a types same the and that required outsourcing further whether opportunities deliveries. to

for we're out to at only do to that's something to the a have think, It's pay that I people it, this get you pros So with free to way of grow. right? bit and to business I things. mean, and figure as cons oppose thing. we're efficient of going be us good willing it's then are shipping what to piloting is it, -- some going to do of those a need Because there's

of the this stuff about it's shipment. mixed it is I feelings our has all weight has residential per lower. out best the the final with carrier So have margins that there because And experience highest mile

it's per While we okay, per bill, so… lower lower still at revenue operating, weight shipment

Jason Seidl

start my guys you bit. have LTL a offering if change Well, shipments, free I'm going model to

Richard O'Dell

then the for. is yes. not vendor offering know, customer right but free, I I if he us mean, even the is charging

right. you're make then price right? to So he's You got more getting sure, sensitive it

and over that's of mean, over I time mean an point to about I going it's it's it time, I think, know. don't opportunity. kind be think, grow my so. it's So I -- I going to

But data neighborhood-ish is that X.X% of almost on shipments, we So of grow our segment it's today part frankly quite residential. that we're better seeing now. X% have

some So technology we've work. done

regularly those too. more identifying we're shipments so And

those very shipments but of there's in comparisons, moving huge So not our small. some parts not small portion but isn't kind right, business it's a X% your of either, it's of

Jason Seidl

makes the Right, time sense. Listen for right. I color. the appreciate as always. That Thanks guys,

Richard O'Dell

Jason. Thanks,

Operator

Stanley. Shanker Our question from next from Ravi go ahead. comes Morgan Please

is open. Your line

Ravi Shanker

Thanks. Good morning.

Just one from me.

in country. that the already of using customers Saia XX% business coming your release and said are is other in parts of from You nearly in Northeast North your the who

on when you to expect us that grow us as you how of that you kind that Northeast expected? to got more very your to down just similar by mix. expect I tell customer will? Can early now new in think Is had you expected in base, I statistic and come you a you would customers have to rollout. that trend if what that number that's you gave very

Richard O'Dell

Yes.

I what can get, LTL mean, as to with ways. that book think they consider with they business Saia our couple I that, would that head interpret experience is continue The from. is will I think statistic a will the One, sort that you look I that and of I expand time with over of have positive in kind is representative the more long us. way market understand it of customers to think and goes their the it of it, National

It customer a it's story acquisition that's new the is. -- similar wraps growing. to positive and our the Northeast rate what acquisition think I in

opportunity we access continued job So give growth continue think an says it we just, that to the regional a of that a invest continue kind resources done that for we've I to in to folks, didn't affirmation it's of of have. some us have good our identified in but We've accounts part then and it's that sales market. also

Ravi Shanker

good. you. Very Thank

Operator

are for there It at I further additional to to would you O'Dell, remarks. no Mr. any appears questions this back time. the or closing like conference hand

Richard O'Dell

look All right. Saia. We up your in interest to with you later. forward for you guys Thank catching

Operator

gentlemen, and participation. concludes Ladies this Thank today’s for call. your you

disconnect. now may You

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