Saia (SAIA) 2 Feb 222021 Q4 Earnings call transcript

Company Profile

Participants

Fritz Holzgrefe	President & CEO
Doug Col	EVP & CFO
Jack Atkins	Stephens
Amit Mehrotra	Deutsche Bank
Scott Group	Wolfe Research
Jon Chappell	Evercore
Todd Fowler	KeyBanc Capital Markets
Bascome Majors	Susquehana
Jason Seidl	Cowen
Ken Hoexter	Bank of America
Tom Wadewitz	UBS
Stephanie Moore	Truist
James Monigan	Citi
Bruce Chan	Stifel
Tyler Brown	Raymond James

Call transcript

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Operator

Good day, ladies and gentlemen and welcome to the Saia Incorporated Fourth Quarter and Full-Year 2021 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Doug Col. Please go ahead.

Doug Col

Thanks, Steve. everyone. morning, Good fourth Saia's conference call. Welcome quarter to XXXX Saia's me Executive Chief today's is for call President Officer, and With Fritz Holzgrefe.

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

Fritz Holzgrefe

for quarter results today to of and us discuss these this thank morning dedicated want employees to fourth and release you to given acknowledge to the again Saia's by Good results make year efforts excited thousands joining record I'm past results. possible. XXXX

$XXX year. prevailing to handling chain each impressed quarter per in network. by grew Operating to year's XX. demand to team quarter sixth the of from workforce also workday the our was last operations the quarter Our revenue customers where compared OR our in XX.X%. ratio shipments they're XX.X% our stepped was I challenges million be sub and levels $XX.X how quarter. The fourth grew the revenue by by growth XX.X% our and consistent marked quarter fourth and income million continue marked shipments operating still of Total supply the surpassed our workday in last consecutive across by month quarter by and per X.X% up fourth

our industry. in to This among with It grew ratio XX% Our year. is and our levels high claims workforce cargo These fairly offset that best ensure high critical meeting levels support quarter service service in inflationary investment the attention and the that exceeding on-time dock that and is costs. continue quality the to our to require was by customers' was to our we the XX% in service were compensated we expectations. during to achieved of

Our LTL both measure of XX.X% specific This in the actions improvements per revenue and hundredweight increased pricing quarter. reflects pricing mix of in business.

in is offer charging a combination record seeking our pricing of to to and approach resulted simply are the we service revenue yield to level increase a XX.X% to Our set company. our for looking, line customers pricing of and our improving $XXX, We're service. with mix per shipment in competitors changes are they're of receiving The who levels in market-based. comparable

total across and Our XXXX. billion million throughout levels more XX% basis enhancing seven crossed revenue first the focus in organization. expenditures we new and full-year prior-year. for the XX.X% $XXX $X.X our for XXXX to in time level $X over and was of at Operating up than the rose in ratio XX.X% income operating and the billion $XXX capital better terminal the on We our efforts as XXX service XXXX our in network our was opened than expanding points deployed network facilities million on

for to supplemented to including alternative fuel this and safety said, With vehicles continue using and turn I'll technology over natural our fourth gas. of fuels with clean latest review efficient We call Doug in diesel programs quarter invest that in the and electric pilot technology financial a the compressed investment have results. and

Doug Col

increased On quarter year-ago. basis, and our shipments revenue of and a surcharge. were and fuel million. a Tonnage a compared to by surcharge grew improved $XXX.X the total workday growth surcharge in X.X% XX.X% per X.X% growth revenue the Fourth $XXX.X XX.X% revenue excluding increased Thanks, fuel by increased XX.X% The combination XX% XX.X%, and in Fuel shipment our shipment. grew revenue including increase Fritz. XX% X.X%. of quarter increased by follows. Yield to by as million was components tonnage average of X.X%, weight

Now a in referral hiring the few increased benefits as quarter. items wage employees. by Salaries, wages quarter expense paid and workforce driver new well increases and in attract as XX.X% across our to the and driven dock bonuses

to equipment a January the increased XX.X% miles wage basis. the and costs insurance to year-over-year the revenue increases X.X% Purchase total total our in year-over-year higher or driven nearly and increased XX.X% X.X% transportation in year was expense average up to Truck quarter quarter investments expense was $X.X by versus in this increased in to Claims expense was that and X.X% quarter. technology. quarter XX.X% the miles quarter. in primarily expense $XX.X and August reflecting haul by diesel by while severity contributed approximately frequency from in Fuel miles year-over-year the million quarter, and accident line were XXXX. compared fourth The and of PT fuel increased year-ago. real the rising of XX% premium prices million the on rail XX% Additionally, expense of line combined our of by X.X% Depreciation X.X% XX.X% in the third quarter compared and a expense the company last respectively quarter, insurance costs increase of fourth were increased year-over-year. Claims by the estate of compared national X.X% sequentially in result XX.X% in prior-year. increase in higher and

Our the our quarter points year-ago a XX.X%, improved ratio with from year-over-year XX% operating total and to the XXX of increased increase XX.X%. basis in operating revenue by expenses

year diluted fourth in year. rate to the tax compared Our $X.XX were was share $X.XX per XX.X% XX.X% last to quarter earnings compared and our last

full-year to on of our highlights financial results. Moving the XXXX

annual revenue a operating income $X.X was also million of record. mentioned, Fritz was As record and billion $XXX.X an

in XXX a points basis improved ratio XXXX XX.X%. record operating to Our

record earned by in $X.XX to our million. to XXXX, were XXXX, $X.XX $XX XXXX. per full-year we compared reduced For million In million. $XXX.X totaling capital the $XX.X investments our diluted share made long-term a earnings We debt

in strong Our at turn hand credit be $XXX with XXXX, $XXX more $XXX.X excess we over Fritz anticipate revolving closing million an will and sources. our million. XX% And capital some balance of expenditures remains of of call of for we rate the cash than additional to million also In comments. I'll anticipate on year-end facility outside availability and to through back XX% approximately sheet borrowing full-year. tax effective for the

Fritz Holzgrefe

Doug. Thanks,

pandemic August last added impacted that and more and Hurricane Gulf to challenges and in their most supply ongoing COVID-related Our company has Monster posted our storm as the record disruptions lockdown follow families XXXX, the Ida that The as ravaged Texas XXXX the year, well months the area winter and chain brought we quarters even February of which in results last in challenges. in which Coast the dramatically face. were employees

XXX well and customers Our support across employees our We're terminals. ended with take also growth new professionally addition the only responded but valued work seven able care to of to our all to the to these exceptionally execute terminals and network and existing recruit disruptions, of our year managed they hire not ongoing to strategy.

our and us efforts get position to Our increasingly to putting customers direct our differentiated to more a to coverage buildout closer in service. network provide offer

our to also on our build growth of we openings, several terminal XXXX, lease purchases as in to closed land part development pipeline strategy. multi-year addition In

look positioned relocating we and to into to facilities or forward be terminals planning well. As XXXX, terminals, XX XX or so as we'll add better existing we're new also larger XX into

business see managed openings, our relocations XXXX as team to includes year of company still expansions, of Knowing our additions, and terminals is our year. is invested this future driver to in and and schools in expanding To for we we'll some enter Human technology equipment turning and can than required onboarding partner with our our -- beyond. total, what candidate colleges $X.X talent more markets continuously and Doug be adversity open that on expect course. pipeline. years program XXXX to continue facilities. not and and pace year growth horizon operate and of planning and great our In academy recruiting these technical how coming provide past excited Our the we gives XXXX Group but holds of We're strategy. I'm all Resources increase only real the estate in handled we're that to billion our driver for stay the confidence grow the me organic support two as service our successful six we mentioned, to

talent our continue of elements people have investments as efforts our these also strategy. and development in been in foundational critical We XXXX,

performance operating to growth while service of Our line and our for the on we're continuing for now company focus to continues over ready drive said, focus our time. excellent will providing company, our the operator. improve differentiated to With questions, that customers. our Ultimately, this open heighten

Operator

Jack Instructions]. Stephens. with ahead. [Operator We'll first you. Thank take go question Atkins from our Please

Jack Atkins

Okay, great. guys. congrats Good on and the great morning results,

Fritz Holzgrefe

Thanks, Jack.

Jack Atkins

So give shipment maybe And if update on in trended update first basis? maybe us would maybe, tonnage an well? just could so you you could love as us January to on how trends year-over-year fill for an I on get question, December Doug, guess far? the then, if on and trends a also

Doug Col

workday grew Sure. actually Thanks, And our Jack. grew In per X.X%. shipments December, tonnage XX.X%. our

a couple of the quarter. acceleration of first months bit of from the So

January. we after day of per a full took of some day day partial But Year's a And that's around that to the into shipments our lot a a in bit Moving New off. January, of didn't how historically, little holiday the there's took that much Year's, see New step-up fell or weekend, as customers in related day.

a on tonnage We was basis, But little norm. X.X% were that finished different basis. pretty X.X% So shipment a and on up up the than good. a January

it two, of was good happen going hit shut that everyone it or week lot a two. got a for map or sometime. -- as partially first and always with And the day either to we weather it's across knows, closed the or pretty was were So facilities --

ongoing there's markets, weather like kind or some on rolling things challenges, either embargoes that. And of COVID depending

mean, within positive. we're month, pleased with any I we levels start to in winter kind month the all, January, were and end the and the can pleased With be first that to business of of happen in all quarter. So pretty

see we Let's hope in how February January. goes. it of way We'll got out the

Jack Atkins

you service sense. your -- year, No, yearend you versus then XX Doug. you you to door in plan relocating, helps? makes comments, for we'll expect for perspective, talked it online of my that Fritz if to Thanks network? year-end for I question. terminals will just about about follow-up number just you in think talk bring prepared I centers count the would I I XXXX maybe from that XX into talk of believe you said if that, or guess that XX, to makes your you this And know that be more? additional terms you curious maybe a about XXXX do want trend what Could that that capacity like said how

Fritz Holzgrefe

is that you the will key addressable expanded touch. facilities obviously, -- Sure. market, that we that incremental I facilities the the sort there, mean, if give of focus us will,

the in in the help So effectively this facilities the for that Chicagoland more first the example, pipeline happen half us of area. will will we've got that year, cover three

two sort comes for that'll kind facilities along same of do it right. have, to that, existing of our that that at So that time, the then level One, that differentiated in gets us. but capacity things we with it'll service create

first going our better In in We're it facility, there time, we what to look expand the business Northeast, that you to and there, needs markets, simply the can now moved meet we So place at grown over replaced we because gone as operation facility we've be that expectations. to expand there Harrisburg, if where remember, the into opened break the that's we we've major the support growth. when ongoing have, at other customer's well. to got we the we're

us new give the So addressable market. new of that is some it openings obviously

others, Chicago us capacity examples capacity. Harrisburg give more some and give The give flexibility. us us

kind of that's the So of strategy. it's kind more of sort of context our continuing

Operator

go Mehrotra ahead. question Please from Amit We'll take Deutsche with Bank. our next

Amit Mehrotra

help talk and Doug, appreciate evolved movements top about be Fritz last the operator. Doug. I year. Thanks, the opportunity, It's And tough end question. at opportunity you on a talked need that. don't this about comments know I top wise. the margin get the XXX of and to points operating quarter, margin of Hi, end to I January. to us guess, the if whether wanted even potentially XXX you labor Hoping all basis environment, ratio that's or Fritz. to operating or then, changed just follow-up the I think on maybe you'd Hi, above kind manner? contextual in to that about sequential

Fritz Holzgrefe

So feel question. with And two of points other range developed range. a to have if that's able that, own in long I where off said it I'd And execution, think our or think that time, to there's think that we up. things is we there that time, very tools out and capabilities will, XXX is start you as up range. environments and or understand of off is that we've we beat We've top to end like can we'll over margin we've sort backdrop. that, economic that thing I'll strong divide basis around of the start is overall show over I bottom XXX important ought also favorable, the showed the I be the meet achievable. that We to shown the

January we or -- continue to of execution through better only and in service. they as month think the feel while about, one emphasize, period that good quality momentum Feel that I base, it the the fourth the still quarter. just can we saw year, to Certainly, I with And of And it. that key kind do of of meet we've to idea we that this it. and there's could beat that's about quarter. -- customer we The happen. or quarter. execute sort And the I lot feel But we our where through is our we differentiated range. of build end and a understand think first -- pretty think good are. the top of thing We've let's weather is got of about

quite investment, opportunity and bit because be has that. the have business requires that's high a get of it's a sort to And We structure. paid for cost business important, that of inflationary a that

teams sales -- delivering that's operations communicating and that our teams So working, that our and we're message. it

that's sustainable end something think in economic positive of year that's I So a the environment.

the we'd it I think of the meet end it. that and top range, or to leads us beat to like

Doug Col

Amit. Good Yes. morning,

finish as On a second big into to got like said, a your Southwest, perspective that the January last the positive easier is, moving I part February. encouraging. pretty February, of a comp X.X% in the is result shipment storm I the We've on much side, on question, workday impacted mean, Texas for shipment of

QX us. point basis the But we've worst like of our winter So a into got I seen QX. say, our hopefully, about we winter, historically, XX behind erosion in

a that that I points. basis I well. makes XXX we're by easy sense mean, probably making XXX as think it this ourselves, year not I on right. record mean, QX or was

So probably bit our to that's good is XX challenges, little confident last I point basis we're again. But magnitude similar there deterioration. a makes points quarter is the is sense. the XX timing historical us GRI it to probably for each the the guide a think pretty records, the The of of larger. basis But that we year; on thing against stick

Amit Mehrotra

the where look company, at growth of discrepancy, growth guess the tonnage I maybe just on seems the consensus really market tonnage, when take biggest be then expectations to capacity. expectations and or kind our tonnage my new look all understanding add you follow-up, this can to and what like, share, were, And Yes. if my is, for I

look but the not on Saia. maybe out, the We've then later of expected, just this I some would just, XXXX. ratio. double-digit you the to tonnage it. to in but or come that that as can seen out some extent, claims about which level want so say, important, the given haven't territory to be you well? the talk have perception or we on do doing ratio, guys came think to would Saia made great growth And could to certain that you just that And improvement, Mastio the and I really if is whether kind criteria scores, job it's seen in that guys the you data customers are claims progress of in of of net promoter Wanted ask, that, have

Doug Col

two-part Not All Amit. bad [indiscernible] question, follow-up right.

count the the tonnage about of we more In I Like we're if mean, we year, grow issues. the expectations, a at can network right do we're grow either to mid-single-digit our growth. the range. volume out revenue Fritz strain look, probably of or strain and the a chain on some going per to door said, love rate openings, it. maybe cover you're labor challenges when this terms building for your supply of us that grow new earn all and But in day, just and a But invest think in business. grow, end is the us all want parts existing the to I network, when other of the we at in and revenue, thing to business, know handle growing meet these the in costs network I The inflationary shipment, side, go to allows

like than making as grow would we've handle line, think higher expectation love that, a holds price. of So pace I environment network a think we tonnage building And to our growth margin but take a tonnage it rate of down shipment potentially shipment the we're the we're growth I kind way be gotten we'd measured but at right mid-single-digit out up. and we'll if the to comes us And when more there. it at and the improvement to the

going So keep I to on that think path. we're

Fritz Holzgrefe

I the several as national the years were we are all comment where that, coverage on this about carriers we And and generally that, ago, map. against the piece, measured is then, Mastio at just national well reflecting point that's Amit, to compared

of with have at others the So or more when year, been are opportunities, been couple brands. to that include And six that into and work see markets established, that's good maybe this results have Mastio more new we grown are there. actually look us familiar the us. brands a more We're pretty that going the those then out we've we are there there five or nationally, resource, when feel more above players outstanding below more we where

moving -- conclude, look the result and actually good direction. we we're in at that's So a right hey, the

more dataset tell time. taking a But great getting expectations, feedback, over where when better I that what there, you're has those providing disappointed service maybe -- and that. a one that's care their We things is And meeting of a out things of the are in the significant. doing of of been we're customers high customer, job the it you meeting that's appearing there arguably a think and getting all freight to we a I in get more you, in paid for are And that doing differentiator. got are claims expectations, those top you're and point that's to customer ratio have providing levels you the your industry,

are the all over So at as think difficult if look starting these making of that it. sure a I for they're around will, and communicating the We've business that we've you accessorials, fix focused result those Mastio the value customer do what us in having service, to Listen, things I are momentum we're you what with service. our time. recall this that frankly, and are more says it's our and of expensive. for to very on means time. do think maintain continuing that pointed we them as all see understand Saia, And People invest we to we to that is right. providing that out this now high pricing a teams up changing. I for because best scored think I sustainable, that when of you the got do year, before at bill viewed data we're those not And over to you services that's we that provide. that, to structure and sort levels where that, maybe we value build been in looks that business delivering And show great to

Operator

Please We'll take Wolfe Research. from ahead. Group go our next Scott with question

Scott Group

quarter an Hey, morning, you renewals can well? just guys just on on industry that you pretty an the then thanks. the pricing to history, update relative give you the Good the and update give some was Can us thoughts GRI took us guys. and as on outsized the in your --

Doug Col

I In renewals, still in think terms mean, of clip it's the the at double-digit XX.X%, running contractual quarter. I

good good chain of and of So, more again of there the capacity. what expect, to indication supply same kind a secure pretty our shippers around desire the struggles and

years. In pricing terms we've of the gap GRI, mean talked about it, I and the years for

a the saw has So, to right and work you the on, the it's use of part been it's very early only doing in of think But us, of we think X.X% or and so into the kind a out entire adjustments the X.XXX, the setting competitors help put that. way whole come across out a thing but some the tariff, in and right we the week big acceptance, works case it's increase on we're for I not general, the your it, of more prior-year mix. not GRIs than I we targeted GRIs finding targeted the may I own it's haul, break, than small to we're it higher whether going earlier. at mix some saw that times market tariff, our went mean story, us weight in be, a freight length whatever that

a was than prior-year. maybe right the the week even about week, later Ours same

nothing than So more that.

Scott Group

shipment truckload And weight of year? mind more in up about so just this you are improving and on shipment a, point to of Okay. or How this our your how this per of goal is mix, mix that for weight sustainable. much focused to that's thoughts this we Any is X% more sort per much changing on coming year-over-year. is

Doug Col

breaks about and like profile. right? different heavier thinking business. and don't our much above as think a I'm or example, spillover we got there's different chance I That's higher if it's load in profit little increases, where those Yes, what's XX,XXX they maybe we And today of a at moves tariffs network weight higher. a the a truckload of bit for of good pounds stays some think mean,

we're don't I line. rates So, -- need in shunning the get but to all necessarily that not business, we

of we I the like So, don't view environment the businesses disruptive we spillover, summer right supposed it's where now. to our mode not a truckload freights found had of that kind XXXX. be mean as It's the of lot

Operator

question with Jon go Chappell ahead. from Evercore. next our Please take We'll

Jon Chappell

you. morning. Thank Good

look we wages if at I First, from aggregate, salaries, transportation to and XXXX see go benefits and XQ, in if to think over XQ you that. back improvement purchase an

the just or is So important still that favorable, corporate bit you staff away type is, the plus you pricing growth could pushing weren't the were to business purchase maybe momentum because question there? capacity get have pricing a meet all through demand the you didn't to inflationary and necessarily turning that plus were or was over the transportation you, little

Fritz Holzgrefe

we're answer of managing the think fair always right. mix there's that I business,

goal essentially tracking is level, at keep So right. the and to our our pricing sort market of

all had market is. of market with process. And adjust it's about; But or may changes it's challenges accretive say, the So can sort I And kind we I certainly I fluid around what something as business, or this that. it's already point really at But in around focus a a it this, cost which the is do you got of that is given to be deal plus a can embargoes, -- include the less model and changed, we take there's thing. implementing coverage markets, in certainly that disruptions versus because that of have. to

profile needed extent I change the to have, we to think we that would adjust our the we as market So condition. what to

of that short have, kind the we that's in timeframes these of kind that we So when of like sort MO that. manage

Jon Chappell

some perception any Okay. I you can the either associated associated see the And XX year network you point, et President, that and where and the terminal hiring cetera. eight this equipment, you onboard National costs upfront think you terminals the expansion? with drag size really your or of to or kind with at there's upfront type theme, then or your of growth think of this with not costs there's accelerate land sticking that that as Are

Fritz Holzgrefe

competency developed where this, comment think Well, are ways. a two I around we organic think we've on core We openings. open this

how when can people, into leadership So we that cadence a have you know the recruiting, when do this, put make you do we sure of a when onboard region. feel of like start you to you pipeline you

we feel developed So like we've competency. that

certainly a of efficiency an comes scale at to bit open it's we with think up challenging that facility. there's the that are, I So that,

to doing don't I things want earlier, in the we're where beneficial we're that many are at open scale add ones that. that cases; Chicago the to to are, the going But to underestimate So or market. facilities we incrementally be that are gave example I going

efficiency you within network, to So create some your legacy legacy your terminal.

service So maybe structure, there, a Illinois and the certainly we're in terminals things. that Rockford, level times have if trying from Well, your the changes to Chicago. two cover you stem facility cost those your all

savings along that. with comes that cost kind So there's of a

of to opening of initiatives, And structures continue sort some will we've as focus kind all offset on in I investment. and cost our relocation that the that the So we we that helps absorb on. of margin guess cost commented

model our that that. good here pretty to feel we do allows So us

Operator

go our ahead. KeyBanc Please Markets. Todd take question from next Fowler Capital with We'll

Todd Fowler

and Thanks great. Hey, morning. good

talk with equipment and availability you and growth your Fritz, how a into the basically rolling stock about you purchase XXXX, about get going shorter-term think can basis. As transportation that to interplays on

Fritz Holzgrefe

the to we like like think going plan. now make got the plans staff good to feel time, We rolling able got and it year At to right the we get support recruit to to drivers we've and dock business visibility team our to same what that. feel stock and we're the necessary will ability be this we've pretty and leadership

days, idea anything now now. represented area, OEMs We what the to right terms Right much from them, stock of like -- inflationary. they of a timelines. of in we see struggled get kind don't not around we'll certainly We the would our necessarily have what we had the So -- us see plan think meet timing. the constraint they often that we've built that provide is rolling XXXX, it see inflationary in saw you these

cushion going to a don't that, But So right be bit we've will. of built if in hindrance a it's now. a I little to think you

But things all about right good we feel know, As now, pretty change. we can it.

Todd Fowler

And this Or that does low then as that context, lower? kind percent does does well? PT work of double-digit range? into trend that stay the of factors in so How kind little is bit in higher growth or a

Fritz Holzgrefe

that tough we one right do is build drivers, sorts we and the is Todd, what out to maybe fill in in us right That one, of equipment because those now, the recruit things. place, opportunity density, gives

going or can't we on haul a it's comes you think or costs, be I for to where this going us, our going look I growth because you give how play. the to we'll seek into this, as to kind line I it So optimize upon at that's internal -- of a go be works of where use it's PT. either to a clear little dependent bit year, assets, where sort tell our and total resources of continue can with it to applicable, that focus we'll

all it that cost has be or justified. So of justified margin to

we'd we That over pass a bunch on. that erodes add to just our That time. we be would doesn't improvements sense where business position a be So volume in certainly us. of wouldn't OR make

Todd Fowler

and we on a of there why remember be Okay, seasonality where new should several bringing or right level are the when kind think margins other incremental, is would on of as as to that a I I and that incremental makes very Yes, XX% incrementals. that those about, vary you're be thinking hitting you about know sorts of quarter-to-quarter baseline why a of safe celebrated incremental And kind can business or just ad, that based you But can margin? investment, things. to be not that and things years now sense. were XX% the And follow-up, ago, doing consistently.

Fritz Holzgrefe

I be I around it's mean, range. reasonable think or that, that's a minus to going right. plus

newer in facility, better So adding time. a over those we're in business you'd quickly, incremental moving incrementals expect be

pricing, to push I time, in sense. the at you're that get think, going of overall, mix to of business, averages more can kind up. if those range you then the you're that range push some same and But that make up going

over where we kind sake. at we on improvement would look were of for take income So we're the is, or this of margin land operating improvement probably, we our -- if -- growth to growth we'll kind focus

So an characteristic it's, are, how of those this. important manage that's we

Operator

next Bascome go question Susquehana. Majors our Please take with from ahead. We'll

Bascome Majors

for like your Can what be, you filled or have that might competency? organic Thank five thanks how history those on quickly up your the my utilization developed kind time to The You and so or thoughts to some you. terminals you've back they your how comment normal go compares feel on since an track Fritz give September. versus of taking question. openings. of core capacity in that? to where end opened Yes, wanted you us

Fritz Holzgrefe

cumbersome. Northwest area Calhoun, No it pretty at we've That's around is that problem. but have here Atlanta is good, Northwest, and to Atlanta. That's an from These from pretty been good or best resaw They Because give market. time that of Southeast product We'd have think we've added great our that that are can the team. and added. forum Georgia. the was ones a example ones Atlanta all sales in Southwest get I

So we the the meet of expectations customer. didn't

now becomes winning great have pretty sometime -- in they gate, year And the we And that the ones you meaning, over the that are time be of of Chicago profiles add going where this a economic or similar it. gate. it its we we're position that those are like on out around out to at a can jump we but incrementally I offering can now positioning. in and of beneficial we already, terminal don't have turned cover kind we So a will into that quickly Northeast we market terminal as Atlanta see simply the because as markets which think that's -- of do

the a facility point opened it that to Northeast is map a that we It kind into in facility was of spot light us in for a -- the it's so us, was Ohio an handoff and for Pennsylvania important little October Youngstown, of such. that -- was in point into of bit part is Ohio. also important a

about -- and the are classic, in on the is just that being a it's network, positioning the So location that really addressing local one economics market.

in we're addressable cost is that, being almost and the about or market. that think a the is is So that this have, And Because exciting so -- what why ones when you opportunity service you able and to you this create do and better market, about important more provide meet do you to incremental it. I have we savings, we you When expectations. quickly. immediately, think costs a can the those you cover that, customer's charge for what's

to maybe there OR may But costs of profile when may for that facilities. getting drag is bit pretty into markets of were to those these like a quickly. of small the that to company everything entirely more while. these most So going be are that, here add a little be, There we sorts we be of startup from get a new our average that

Bascome Majors

not be feed more OR, what looking just but what to to the to us, rough it company you it's a average that used did or sense ask to you And have recently? of like spoon timeline

Fritz Holzgrefe

mean, northeast mean, a were in sure. I all company OR we terminals, kind I like, right. of year, below year-and-a-half, if back a get talking Well, not XXX% average I'm them I'm the go I XX.X%, to now about to is right? XXX% OR right, So, excited

folks I new because disappointed say, business little still a got we at XX%. Our well, get

of rest not Okay, as as good the that's business. the

focus it's new different. And thinking and about rather you're years. it's, ones, all months, So than they're the

it don't months, I on I to it, don't tough seven just So months, be get know. mean months, eight say evasive to six is

Bascome Majors

you. Thank

Doug Col

core I when can improvement. it. add have don't. do I it, on about this, the asked don't, could this competency to And just piece But get seamlessly OR Jonathan I question of probably still mentioned and Bascome we it

we year, be seven point this we a terminals to XXX opened clear, improve. and record had OR basis Just

confidence we and competency So I think part issue. gain of the where that's

Operator

Seidl next We'll ahead. Cowen. from Please question take go our Jason with

Jason Seidl

this the where for we longer-term, look Saia going labor think then to help competition forward. to to operator. larger the lot a I is that's LTL what you XXXX terminals, as Hey, do Wanted longer-term their through of wanted already expanding Hey, which beyond. morning. and of you sort ones. to on do focus do new OR going there's guys of in is and companies going both see And for a a good sort tight think also thanks, to a bit market, look little

the your upon based of think sort of the to about in improved you XXs your where longer-term competitors pricing One Saia environment? talked opinion a in get network could Would OR love an go?

Fritz Holzgrefe

So on the -- in I pieces. that can two break

labor, looking front, in competitors well. Just But competing that real I the you're mean, for know with about. be we labor on they with labor we're certainly also competing a large LTL got we're and warehouse warehouse industrial on for as cases pieces would The of -- dockworkers typical who's all could right. for, competing anybody front. the businesses of that I sort many estate operation same the couple

thing the is it's industry. labor our discrete So to just it

to So on what company's part benefits differentiate culture basis paying And are as those quality to of that our expanding got pretty the the other critical companies a you place around and drive compete have good, around items on that. helps But work. certainly profile respect we and values to obviously we've feel pretty of well. kind good are With the company growth about that that. you

of there be are estate terminals real estate creates we LTL And quarter would that estate, are saw potentially it's estate changed it's keep also some that I competing that because that real we could that for and to the folks other in attractive outside also property. in And also exiting. could that some real they're are of others. real pursue that mind be industrial available just to and think potentially that that

don't a shouldn't how there's marker why OR, reason the to pursue the that there, when I With is, in sure. few dynamics see longer-term we for and listen, do whatever So kind a similar, out number same -- or we there's respect I our of near don't a to something stick at opportunity to the I long in providing get an cadence there as the But future? have looks what service that as quality we it's our control, gap. goes there's mid-XXs product, know that that they the sets great like. we time we is where does, limit that we think into got sometimes to and time but the kind marker our I take think got XXs, don't I things, a sky lower. great that and dependent a we've like the set timing, then marker are does think lower we've on And out that from our that if close a a impediment, others see just that feel business great that that team, nothing that of said, it the of that customers;

Jason Seidl

Appreciate always. Okay, fair enough. the as time,

Operator

Hoexter from Bank next our of Ken with Please question America. go take ahead. We'll

Ken Hoexter

Hey, Doug. good morning, and Fritz

what margin the think you seeing the because demand. growth fade the obviously beneficiary you that is kind second, and growth COVID underlying going tightness this a capacity talked to any just if potential? you that that forward, in demand, So look demand for being understand about away market, just And the see the market expecting is then of is on about want any pause e-commerce do from just COVID a to in in sit from that do at I seems of know, growth like a or just sector, and of back in see growth there pullback you're rollover continued near-term and we or despite I the the adding

Fritz Holzgrefe

right one other last chain, are disrupted in the supply can I I shown our those now, situation think positioned. the have of the the I years couple And thing a macro is So think flex that us that certainly assets meet of similarly to requirements. sort think LTLs in

pointed and job those I the great a adjust going be or chains are down? slow they to disruptive retrenchment But But a customer. a for could. I is have people as Absolutely, how purchased they're think and don't And we're things assets we're think unique that supply continue positioning And this warehouses how how maybe think think consumed have So things goods how forward, -- I our see are I the goods that, in I time And others is where those to works, that good they that the forward; that will to don't think they've as a our I I out, doing they place but is sense, now. as get where Mastio maybe that. fluid. are, industries going think like, -- match I delivered, looks I to that's be. chain supply could all think back important. not what that

differentiation. a point that's of So

we're to So some benefits on it inexpensive of one the continue doing plan. doing, market at I in for opportunity really slower you're is if some that We what there continue that be execute relatively we're more to we to if particularly regard competition, need the a market, inexpensive, is and remain. to guess we our compared well.

So slower don't it rate. I I continues, stops. a But that it think think go at may

Ken Hoexter

on and for same looks like fourth So a for up full-year that, doubled XX% claims gain yet to revenues. way do at line any the job efficiency it about customer, as the cargo claims great there? quarter in nearly that you you insurance level? on there your think up being forward going metric or that just I a What doing on solid Is talked know

Doug Col

around auto only not expense, in would insurance covers hey but that Yes, cargo claims That Ken. be number expense too. line our accidents

more premiums is of highly that there paying years. inflationary made in fleet, we've willing So our line ourselves the auto technology some where on that we're years, the out over we've the the extent risk a investments that's of We've the in bet the kind little few of inflation of and and last ourselves the to of to you some on some some side bit volatility. taken the see versus most are of

technology but line, them. going side, there of severity to itself make safety. we've over So are last there'll be the that is expecting usually and our I've and adoption headway in think in improvements with And frequency next to few out the been premium XX% be volatility the in again to few invested that heavily the inflationary on what all we're the But years. in I XX%, going years,

Ken Hoexter

what's of tractor talk maybe I growth? catch-up, about carryover not, kind what's a is Great. is quick the talk that about it estate last one the And carryover, real bit my centers of from real and you're service what's maybe million doubling just kind XX know CapEx, but to mostly what's $XXX seven on

Doug Col

number trailers the last short that the deliveries fell it's Yes, mean, wanted all I still both. a we of in a year there's getting good trailer in of mix pretty we number. side and

but be it'll fleet, good side, we another tractors always estate but do we'll of line, card the line. able buying have tractor together. the the wild not we the than is more in in to could if there, on spend pretty real growth we're only because age number, I mean, do for could we real spend; put that estate twice On what did we this year deals some

two that this or side, it trailers step-up of But piece it equipment And in we was a the think some deals, could I last was some of couple real in we've three that's if weeks, of mainly last small estate three year. line, plan. closed into times two small were on the out. or the number what on deals, the mainly spending that estate bigger real be ones pushed fall

Fritz Holzgrefe

We've that projects year. last year, in into this a started year couple the got of big late that process in are

Operator

take next Wadewitz from ahead. UBS. Tom our Please with We'll go question

Tom Wadewitz

you renewals morning. good if revenue to Yes, ex-fuel. think to talk ask of bit you or how kind about hundredweight and just a Wanted pricing per broader you want

XX% quarter, fourth third the talked you like something in were renewals XX% in and your about think I the quarter.

you maybe a area of level are kind or high you obviously to couple of XX% those So think both you the down more kind with next normal mid-single-digits? of do it in some comes renewals LTL numbers very quarters, think deceleration? strong think about of How you single-digits stay do

Doug Col

high-single-digit Well, some each running business, mean, it different. looks so we running double-digit quarters really pretty that shared before number for comps, into we're good mean, quarter's the been and probably, I've now I that. in row I a three book of I guess

into the that than And we I renewed think it we the XX% that probably more third in quarter in factor quarter. fourth well. did contracts can as

so you're coming If been environment still exposed the to with what opportunities there that and the to of they And us you far. mean recently recently year about out pricing seen talking have top pretty the indication don't GRIs a have especially double-digit for much. from same think around pressures, of intermodal some year. cost the I following companies, is those, maybe pricing we're seen as I reports get some good is seeing going to that on they're be and the another -- But I we're truckload have mean I've them. opportunity increases, this labor.

an kind forward-look let the contractual So, of you we achievable there. of I rates, sensing their primarily the what double-digit out are all again, so be still shippers is of renewal our think the think give you the in year. That's fourth is the GRI know, quarter. what indication environment going to And for just we

Tom Wadewitz

got growth strong Right, second question ship, then a the footprint capacity okay. pretty you've story, And is, idiosyncratic story.

just a you probably you than a I so kind this headwind that's of cycle about So, or kind and growth. in or the meaningful kind swing LTL cyclical perspective? think specific? later think the think year you other of way maybe market, that maybe But had a how truckload that have Saia of I think of do in lot thinking think than and more some the in terms about you better this from you that's is of LTL that more strength very is the market in, factor, dynamic be impact do not shipments do just -- move will a

Fritz Holzgrefe

things earlier, their think are historic kind that, generally Doug business book our to commentary from mean, we around and our I to is back think modes. I think more that alluded I it of of

right now, a if of, midst portfolio, business, So in as will was see bit in providing we little it's we year COVID if what look kind spillover pretty I'm terms there, yes, you comfortable back of that but with the mix service there sort of go you now, it. as typical at of we're of our back for of right a

to time. think I change LTL that lot position slow things with turmoil is chain over a a bit, the the macro a supply deal think if if I and will that of in mean I were to you

think things through those that. all So I are sustained we

we But of we to and where things Now, it environment opportunities terms you in our look as one could temper about horizon. certainly on thinking of of some facilities investments, could not thinking XXXX of kind we're our we're -- that on the make go, the growth depending think XX-year about opportunity. at macro a it that

something generates a think implies cycle. that cycle, the is value that because these that's we important network So through great that that through and facilities

Tom Wadewitz

or good Do bad you think LTL kind chain supply loosening or in shipments? chain supply of improvements for

Fritz Holzgrefe

think or I supply to Listen, commercial right. as chains LTL well demands, adjust do consumer that shipments

situation. maybe that, do sort So as through, of more think I people go are, JIT of of we're back qualified industry Any the a that to those is. uniquely to and

think I that from over we that So time. benefit

Operator

Moore with Stephanie Truist. from question ahead. next our go take We'll Please

Stephanie Moore

I year? busy to meaning chain some kind this just and your still you just wanted you was the on follow-up lot of there's still weather, question just called general customers' early just due I a demand comments out a clearly on are of January, when know that volumes disruption seeing asked from opportunities to previous just to disruption side. in that demand seeing wanted but with comes in it simply supply recovery is congestions, that some

Fritz Holzgrefe

week the disruption, I Delta what's probably watch as it. depths My the Omicron activity. maybe are is that around the we've happened but this sort comment first normal last still in that But December that bad yet. a people handling on COVID, what's every the that round is the a of, disrupted, in as and gotten to that think Saia tempering time I around there's of bit think or in at early January so. and if the not things maybe of or port bit here And it's going That's better that's little back was even

gotten that over I change So, that to think of time. have people sort or anything, adjusted challenge

So farther think get to to from back as of the end might normal. maybe away I'd like I what think defined that at to year, yes, be

Stephanie Moore

of over announcements then size or And trucks. several EV just last there's switching expansion with so gears Understood. the month been

think more maybe to any are you cetera how place. the might of forward that some on LOI's kind work well So spending costs done, about fuel these maybe as ongoing little about or normal talk as et by you've bit spend of in CapEx those EVs? those some of maintenance, as compare agreements you And a potential if

Fritz Holzgrefe

We're the still early on data. collecting

out like? our like, to range sorts the this, or sort you purchased So profile is way this things. that what leased look figure have -- like? think if of utilization the need to-date. we will, of R&D, looks what is about our the we those look equipment around All that what either What is We of the

on some good at way the If from the feel -- to open with works. of first that are. sort pretty that be more the we think going probably to be, this. technology. So so as from part over environment what early in on well, range, of I EVs fleet. OEMs; emissions are a stone what ongoing is. still And wants to -- a an want some a that things requirements looks they probably some We parts part assuming some permanent that we now see operational equipment, at this pretty early where go a you We first time, profile the introduced adding We're country, the adopter, that's kind emissions year, about are performance where the we're we that the parts ultimately We of the think of Volvo of the long this. be being that still in like that's look compelling and and focus us away with are these want that there on, we we're costs shot stepping to CNG how that the to perform. give a of The everybody of we

EV. middle -- ultimately of of in the diesel sort maybe and So or

hands more it, that key get a some recently, collect of And that to understand an get characteristics you and what is we of how that in the drive -- where see we make product part that's But need there's the we could about And one had release operation, case, works Nikola need really look at probably We it that need interesting. the operating that are talking to then data. our we it. like test to on that. so, run looks around be the sure it,

early the it's we're But so very And idea. open to on.

Operator

We'll our go ahead. Monigan Citi. next with question take from Please James

James Monigan

to Wanted talked additions, on any that's door mid-single capacity the touching second first maybe and versus touch that? the the details more Hey it half. timing immediately about provide guys, about about half thanks on is that broadly, should we for you growth in shipments. can just we you there taking Should capacity question. the How ads relatively than and ramp the there. actually think something growing capacity about the is adds think faster But

Fritz Holzgrefe

them But or to that the going going of the in year. to upgrade, those going open planning, sort be things. all an not don't us going and dealing we've are good all, be sort market opening question that around first of year. issue those balance five half all sorts We're them get those sorts really XX at the of is, with and to range. to of first going be We're got because Chicagoland sort timing sight it, improvements to of expect drag end six through any, months you ones up ones, notice But you related, are three those of a that necessarily. The of all along XX improvement. immediate of the the none probably got I because be And of particular, for those will won't the first So those line ones, in are with There any service that. of actually. are hiring from things to maybe I or those the are zoning second we're then XX or the of the six to the think

to we So to there's likely And couldn't offer out the we for get before. to a to going there's going because service of business, savings that a come out incremental that. be the right be it's of some cost gate,

into built of sort what is kind plan growth it's So, of overall the for year. our

things couple sort of moving call I as terminals, described have benefit, a of is, what But, of that for when out we'll in key I've questions the they you're with in So you're really pretty these don't the other closely saturation the those individually. a breakout gate. all right

So I don't expect lag. a

it's going the anything, For of our growth to for be year. part

James Monigan

back or use XXXX? some it is expansion leverage as first flexibility. set years a then And to basically of about inorganic beyond it. about think think a we latter, leverage blunt should the if you maybe accelerate you're that we -- Got the could sort opportunity growth sensor, holding organic the button ethnic And for as or could you

Fritz Holzgrefe

investment, that as Yes, in so and thinking repeats about the this, XX require we're year, XXXX. to XX fleet going ongoing to in said a this That's we well. terminals again next I way year think

in might to need market think, those the So capital that of very this advantage quite I sustained able you'll also, others we that manage of interest are idea assets conservative next fourth levels December, be us, the could road. opportunities and to quarter, think come frankly, of We're couple we certainly that us manage this be unexpected. are are of exited take to down there the the one what and for mean, spending. I that years see the player to and business, in or I around through anyway,

have advantage take to So opportunities. to we're always those of going powder

we're of shareholders but custodians also capital. So, the

we'll do to what to utilize time, we flow. the and other, cash need have So we'll cash explore to use over best

Operator

Please question next Chan from go with take ahead. Bruce We'll our Stifel.

Bruce Chan

or Hey, here. I Morning afternoon Fritz, hey guess Doug.

that? around freight kinds to of mix that a recovery dynamics little than or market bit any rig longer around consumer count expecting or comments selection. being tailwinds you go recovery, I you know from some you are you versus lot the a as and to want some back is Are recovery. Just think maybe the mentioned of of seeing [ph] self-directed. But through your for that the of industrial two

Doug Col

I if activity mean, I positive. them call wonder to I manufacturing month-after-month but mean, rollout tailwinds, I remains continues data, strong.

with I The industrial what XX very still tonnage past are numbers the low. ISM to Inventory months. tied think showing volumes levels for the goes and on LTL closely growth are manufacturers.

so you how really about renewals, contractual Fritz then they our congestion, to the far. And remain. As and strong better doesn't mentioned, get think port seem

least tells the the on half environment. of first positive mean, of pretty I that half for we at think second and I us we've the the remain that, into year, the year --

activity Houston strong Dallas, real know the quarter, You fourth was in obviously LA.

the in and that could of energy. be Some markets the to tied Dallas Houston

the on going hurricane after Houston by a could little the repair of through be activity helped bit came Louisiana. Some work

activity remains data primarily now track. manufacturing what that's good we So in so the

Bruce Chan

then fairly That's us where disclosure your a your energy? of stands know, Okay, that sound legacy I just And can you business? great. be of sizable helpful. used remind to to chunk

Doug Col

it's, yes, you're Now, right.

percentage. of; roots our But heavy it's grew more kind we out energy a our As were up of Coast Gulf we it's than mid-single-digit probably competitors. certainly

think Now, shipments of bigger, if energy, the grown the network, out energy markets. of you and we've some a about across lot of the footprint our some

Operator

with Tyler We'll to Raymond ahead. go James. next Please Brown go

Tyler Brown

Hey, still XX the that what's lease reloads market? product in so XX the of facilities new owned and is And between leased? there to the good XX breakdown out and

Fritz Holzgrefe

are leases real an breakout to good It's think either going there there. lease. typical have have -- -- don't to I be what I some So of going them deal There are impediment. facilities it's that's just estate products, those to of to the to the or with. don't most facilities are you be challenges owned, in purchase

if while. it's, open facility going been a we're to buying, But a that a be for it's maybe on like have it's issue, Sometimes position. zoning it's an idle planning we

you go when that So to have redo happens. zoning,

But the there's So there. market challenges we're lot those real a This are investments. in profile industrial idea changed interest of we haven't owning strategic the -- our assets. estate around now, right of

assets So are to what in have them, you'd buy you to but necessarily many like can't available. buy, lease the you cases,

Tyler Brown

then the as network to that's in that you the terminal those and more you've getting something accelerating on that or your it's on Rockford times come are actually to reduced But with example. investments I show helpful. been it XX years. see you productivity, starting And if it the Are Okay, P&D touched matures? of assume couple saturates is up kind now last the over of

Doug Col

longer-term, as You them, magnitude them. the think the become fill know, given I've we've about in map. seen them them, over in examples, will the of we when greater time, But we

the the in So in early on we're the map part, fill part. saturation still so

is because the company think on. instances Yes, is I time. not it's the other it Tyler, and in going the a larger out where that played good for things an over sure thing opportunity, port has that's -- all visible necessarily

Tyler Brown

right. Right,

more brake then expanding you're in I right alleviate one are capacity. new does mean, true market are think you that then entrances your it optimized needing about isn't in bigger terminals, assuming so the that two as is capacity, and is the largely if And if metros? haul some Okay your pressure? and PT I'm these brakes, line call to are saturations new reloads those it big

Fritz Holzgrefe

all bit a of little It's the above.

we'd So assets. own there going to, are, rather we're always

simply some that where might we've something in of the got leasing an smaller we So where these in pipeline purchase. have be markets, we are available

So those swap we'll out.

markets, and other it's position play, In a it capacity is reload. a that's market play. -- certainly So a a

a So that facility the can from. better we maybe market positioned grow it's in

And a combination of a with along a them. all maturity comes about that bit And with it's kind of comments that. really absolutely. of to PT, it's of the So respect

own line So to there. internal position we're call around it in to haul. I'll more of density always use assets this as a where making our a the that's build over network, going outside own be we're But of our we and decision out for certainly opportunity or sort inside build time, cost

Tyler Brown

Okay.

And Okay. my that's Doug, Yes, day couple count just XXXX? have of last a ones, do for helpful. you

Doug Col

Yes, quarters. you want buy to

Tyler Brown

Sure.

Doug Col

XX and XX, it's XX, quarter. fourth in then So the XX

Tyler Brown

-- And quick that's Okay, then real helpful.

Doug Col

[Indiscernible].

Tyler Brown

what your Okay, versus foreign then okay, good. tariff is And mix tariff on today?

Doug Col

so, Of it's the LION's or tariff majority it our business share tariff that on tariff. of XX% business, is when the say is of we

Operator

remarks, concludes and Ladies -- go Frederick. to for like session. conference turn At I closing to this Please question-and-answer today's ahead. the time, would Fritz over this gentlemen,

Fritz Holzgrefe

thank breaking earnings along Saia and excited XXXX day. we're you and record hopefully results participating more some forward to and great a you and you call. Thank the everybody records Thank looking and for about in XXXX way. the the We're updates have providing the of

Operator

conference. today's and this We participation. Ladies concludes appreciate gentlemen, your

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