Saia (SAIA) 1 Nov 222022 Q3 Earnings call transcript

Company Profile

Participants

Doug Col	Executive Vice President & Chief Financial Officer
Fritz Holzgrefe	President & Chief Executive Officer
Jon Chappell	Evercore ISI
Jack Atkins	Stephens
Ken Hoexter	Bank of America
Jason Seidl	Cowen
Scott Group	Wolfe Research
Chris Wetherbee	Citi
Amit Mehrotra	Deutsche Bank
Todd Fowler	KeyBanc Capital Markets
James Monigan	Wells Fargo
Ravi Shanker	Morgan Stanley
Tom Wadewitz	UBS
Jordan Alliger	Goldman Sachs
Bascome Majors	Susquehana
Chris Kuhn	Benchmark
Ariel Rosa	Credit Suisse
Bruce Chan	Stifel

Call transcript

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Operator

Good morning. My name is Sasha, and I will be your conference operator today. At this time, I would like to welcome everyone to the Saia, Inc.

Third Quarter Conference Call. Today's conference is being recorded. Instructions]. [Operator turn and to Chief now Executive Col, call President Vice Financial the will Doug over Saia’s I Officer. Please go ahead.

Doug Col

yesterday. Thank call to we work issues Saia's today. We With morning, had Fritz Holzgrefe. everyone. to XXXX Executive appreciate service joining and Good our call with call. us for President today's me you, conference technical for your Officer, through Saia's Chief sincerely provider some Thanks third earnings Sasha. quarter is Welcome patience as

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

Fritz Holzgrefe

about XX,XXX third to average to the pleased XX,XXX quarter quarter. flat Weight the year you last I'm second per thank day, we quarter. down shipments X.X%. the averaged revenue increased tonnage trends year in shipment were shipments below to last QX have quarter X.X% and results. report the moderated and seasonality. record were daily quarter, in to and fewer morning QX for normal Freight XXX quarter and Those down from results. morning, but in per last down discuss year's this essentially Good The than was Saia shipments trends of operating couple over day us joining per Saia's approximately shipments record at same achieved months, In third income, the topping that per last day

$XXX by last of revenue increased our quarter revenue by million third LTL third quarter year's and surpassed Our revenue per XX.X%. shipment XX.X%,

ex-fuel growth of effective result the mix and revenue surcharge to management. positive Our continues be pricing

surcharge, customers revenue backdrop constructive a in quarter. it coverage in per despite environment. hundredweight, increase the demand yield reflecting pricing We're heavily third expand in contractual excluding service of Further stable fuel of our or our our to to in rose renewal moderating the X.X%, to Our and XX.X% the committed pricing is as offering. seen average excellent are industry and providing service value to see business the that our gratifying customers see evidence investing

XX.X% of ratio ratio better Our third quarter XX.X% than was last operating third year. quarter our basis posted of points adjusted the in XXX operating

a recorded ratio the adjusted You'll real the -- quarter of XXXX estate in excludes operating gain remember that third million $X.X XXXX.

any results. additional of As terminal from XX to our reviews you've terminals outlook ongoing Doug financial successfully a new our our now after do And not open likely service next speak press We're more third I'll openings to more year in terminals year. of with XX more planning this XX another quarter five Lafayette, the existing releases, on a total and opening XXXX have opened markets. this effort customers to for numerous offer options. in rest we've few week, opened the year details and our and the terminals Indiana our seen new we We from planned. currently new

Doug Col

Fritz. Thanks,

of X.X% improved yield, yield surcharge. increased million. quarter attributable excluding Length revenue revenue to shipment. decreased third year per miles. to weight average X.X% to Tonnage fuel Shifting was compared our $XXX.X of of components in surcharge and ago. down XX.X%, mentioned, increased million shipment haul X% to fuel the items and including by a note few was XX.X% quarter. XX.X% X.X% Fuel the to follows: total As the by The quarter by XXX decline surcharge, XX.X%, at side a in as for were and key a revenue a revenue the growth increase increased X.X% by our $XXX.X expense in

wages combined rising and Claims million of year-over-year. basis. million year-over-year expense by X.X% increased by XX.X% in to million line and from approximately XX% and and our by salaries, increased total average of XX.X% third while the expense and Our quarter to by employee averaged grown the Truck quarter, from quarter a XX.X% miles wage the by count with third XX.X% miles up prices costs last quarter to and expense result Total primarily was X.X% the higher quarter in our combination benefits a of XX.X% sequentially of more year-over-year Fuel XX% July total Purchased across increased than PT The XX.X%. the fuel XX.X% of transportation our employee XX.X% XX% and quarter due in in a national the quarter. on operating quarter, the in increase which compared expenses the increase having of revenue X.X% diesel new second increased was $X.X compared onboarding miles and result in were our $X.X base XXXX. X% of company to increased year or increased revenue compared the year-over-year second over in trailers. of was increase, year-over-year. in quarter rail primarily haul XX.X% by the of in expense year-over-year and the insurance Depreciation tractors XXXX. were of the the $XX.X third quarter also

an ago. ratio a ratio compared of operating to adjusted improved Our XX.X%, year operating to XX.X%

third expenditures $X.XX full I rate for We for now third diluted effective ago. XX.X% will September Capital approximately share in call last year tax to the to some closing tax turn totaled to for Fritz XX%. $XXX back approach million will Our $X.XX of and compared through XX.X% third rate quarter the year. for the over comments. quarter million earnings the a and the an $XXX year per full our were was compared in quarter anticipate year the

Fritz Holzgrefe

Thanks, stated I have also the markets. year. weaker we're business earlier, and securing some the that we're and obviously, over targeted we of continue progress the couple months Doug. entering And of said, months. levels be having with With seasonally past Well, of moderated new locations identifying the with pleased expansion to as

of a open XX XXXX the terminals to locations first as plan in expect We as and XX quarter many of open to XXXX. handful in to

plan operationally terminals we next -- XX another we’re a four to moving or either relocate in so year the done As have some as put will we terminals or outgrown strategically. as have that better we've with or we done year, -- in we position this cases, us to

of All important are openings, new strategy relocated both to our enhancing of and these our offering. terminals service

of into allows openings key go keep well suits that us. benefit pace strategy While our is terminal mind pipeline in organic us to XXXX, for a our expansion carries at the that

on Our accelerate subject we an cyclicality may cycle, and we the terminal in slow activity. depending business is are where cycle expansion our to or to see even opportunity

terminal changes value the of and as usual opening planning you Each opening strategy the We adding to new our supply supports on customer closer we'll all update XXXX, getting in business our of for and are to quarterly plans. any in currently chain.

needs on grows as our focused Saia. and handle a that their basis customer the are from see customers We up to KPIs pick the continue additional us new satisfaction customers market, brand who customer our in to existing are daily we asked track freight markets. to response new And we in Internally, on satisfaction. great

a Our to Net consecutive provided testament Scores strategy, quarters, by the seven customer-first growing exceptional service Promoter our members improved our team map. validating have our across for further

be an pricing part said, constructive environment the do will and part in the indications now in With and to to for that and ready So, Operator? we're question, Question-and-Answer view to questions. that customers service continue remains differentiated cost continue our -- on the that quality before our business. our Session providing environment just the moving improve line will to margins inflationary great cost say pricing. inflation critical I'll is Pricing are maintain justify and open of in of for to current

Operator

first you, comes [Operator go Please sir. Chappell Evercore. Our of question Instructions] ahead. today Jon Thank from

Jon Chappell

morning. good the said things you inflationary environment. was Fritz the of and you Thank last cost one

wanted two on there. just focus I parts to So,

down year-over-year, You XX which said sense headcount makes is your given the months. last XX% the over growth

if the shipment can slowing labor about and elevated today? which think which is layer them standards, you're kind seeing pulled backdrop of we in still to first? by you levers those or one As of you match tonnage PT, your historical that gets And

Fritz Holzgrefe

want our Yes, is do the possible. first to where internal workforce we thing leverage

over we continue time. work So, I through the contract PT PT rates. our over come see you'll and to us -- We're down time, that will think

didn't with the you spot you current result, see rates. a So, as what of impact see necessarily

it's So, a rate. contractual

upon build density. us to then to incumbent assets, our leverage internal can driver it's wherever our we So, network

we'll so network. an on And in will we and geography our and that next important that us that's be opportunity of needed to year, build QX across well for kind into something fill QX continue work as density the into

Jon Chappell

sense. follow-up. a That then And makes super quick

your any I we're even month you if be the price or on give the Q, or can, the Just now, commentary update the October? through but environment? either any know can on you shipment it will in in tonnage trends

Doug Col

sequential month really kind where October more of the while in Yes, -- first normal into Jon. a seen flow through October. September jump I'll sequential here, has been in we've a

shipments So, still our is our number about year-over-year about and X%. per that's down of down shipment We're improved. seeing October, a in are weight X.X%, tonnage kind

first it kind bucked we the normal seasonality again, So, us. at all -- to where this of month year, but was fell seasonality seasonally

Jon Chappell

Okay. That's super helpful.

Doug Col

of be we'll the that rest pans and how our going expectation out. will year, through That see the

Jon Chappell

guys. Great. Doug. Thanks Thanks

Doug Col

No problem.

Operator

Atkins now from with to We ahead. next Thank move you. go Jack our Please on question. Stephens

Jack Atkins

morning. Thank taking for Good great. you my questions. Okay,

quarter. Fritz, In XX.X% rate quarter, for maybe you discussion the cost believe guess, you're this you a said feel specific covering contractual of point? your could that back Any provide were color are And kind that has if seeing up, I in increases I that, think, rate moment. you the I pricing in sort So inflation Doug, October? go renewals do on to us that trended can and we metric at cost third the how of like

Doug Col

is Saia a mean doing continuing I'll what critical trend being Yes. we pricing The I for particular, good. favorable. which point But we're think I is see the for to at around environment is think what's in customer. I

are they've Our as as good ever been. service trends

paid continue support the you're proposition making in you situation, that allows when to get So around sure that to service. we for that longer-term

they So, go think I hand hand. in

I the are trends think positive. So

Our are service high. standards

is that kind pricing of think trend. foundational able service. to it's differentiated And based I be So on to that continue

that's Saia. at helps opportunity what's So us, our I think supporting the specifically to that thesis

Jack Atkins

Okay.

up that said to that the XX then you you growth has year And good we see new for usual, of growth sort plans start of the shipment market Understood. online, adding in it coming facilities. pulling expansion as put When guess last door already Fritz, bit and bit about adding sort what with kind the XX XXXX year. kind think next I really we're catch new you is to into The the At of capacity plans Okay. or so, what you've of terms growth think plan growth of a been the your doors business maybe, on on the maybe let about about sort or shipment up kind facilities, in before bringing picture adding, keeping to up of to here. you of back facilities. thinking upgrading point place? doors bigger new catch the do footprint I been thinking a been more need with of we've

Fritz Holzgrefe

at adding big look the for it, good business operates adding capacity. service and that, a right? XX-year after a that, provide of that. And that quarter map you're or thing, the the can the expanded add when It's providing kind way horizon, the customer out I we're doors Yes, I network year we that's beneficial. for, this question. that really when you're into year, of or and this provide for find to of thinking next new I great you a legacy about doing doors, So opportunity have coverage new you you a sort frankly, can we think you're your mean service longer-term not think a this year is what

across So the is growing mix at a look you business portfolio. and larger of that view

we see expansion at right geographic And with we it's see said, -- has to our say, accelerate, a us. some that we the really three that, an initiative Now, see our months that, year, what's to I ability of year, environment. where as let's we we look underscore, into impact at we say delay least the material maybe not with next is now that continue And a couple quarters slow for or that, really, full even have that, don't that to is in That's depending what pause. important opportunity the business. think on on cases might

that have could We opening. sheet we the balance delay

if I So way think, think our for If down will. us we opportunities a What slow -- or do back we that, pressured opportunity we're long-term to market And off it's necessarily continue map. service isn't we a are by to to us one see not there the delayed. we accepting that, of for we not or other. or improve the that is

like think, here. I optionality I So the

Jack Atkins

Okay. Thank for the you again time.

Operator

ahead. America our of go Hoexter Bank Thank question. next you. have Ken We Please of now with

Ken Hoexter

with Doug, the Maybe ratio about, here. the about the the talk how think good morning, and you Fritz putting thanks on questions of progression for just moving Hi, up all and call. operating

a start down about you're volumes, fourth jumping seasonality should about next is shipments looks back how tonnage X.X%. How and should So, working we if X% about thinking we think down and thinking we into in deterioration it hold about year? to that if just Maybe quarter you're the talk pretty like well. start it, where price to

Fritz Holzgrefe

the morning. it finally this good October we're say I'd expected something fourth for of I was we or just I mean, Ken, kind like pretty Hey, with year. pleased occurred quarter, said, that

that, normal we line. that in expect in the And expect historical to degradation our much margin would of would going year. come through we're with end the So pretty seasonality

volume, maybe it's under today month our product and based historically, seen is There's really because of next yet, but points it. we've October, a fall year, saw from QX I our what the into we've And about you move as we've months kind sit our moving still we service always think we of on XXX end basis think pickup hit in or a and little improved I valuable in degradation of month XXX said, one the the pricing So to get don't around felt worse target like, could And we in would we a as customers, had mean, points but we than the our basis QX belt. to had off remaining deterioration OR. in normal one that, with then a of or we gap.

into a providing that, walking price, we seen. we've service margin lot expect a be to So the improve improvement we a as able that's And to year, is fair margins good by and charging generated do market. then of which

we be as XXXX, into move goal. would our So that

more economic everybody's or to Now, retail when to of going margins, different we for and be were we'll look, environment and industrial negative to economy. service, charge see if all challenging raise got we've kind a then be I to tonnage borrower our a to opportunity and But as positive that's dealt it macro going are what across shipments XXXX. continue is know, just view don't do. move stabilize things model into to year, got that the an do improve and turn

Ken Hoexter

move And I'm into for peers? how catch said, I talk you too environment, flow to -- discussions that but earlier, for that, might kind you sorry to a or this as got did up we on pricing your of and about freight timing pricing is as missed if think it decelerating you relative GRI knowing early you've early

Fritz Holzgrefe

our fall I be certainly would behind. mean, can't we Yes, view that,

already things. increase year, kind in any made pack plans come their of industry announcement of of But out lead We of in kind an we largest our and So the includes don't typically we has carrier for laid which out announce next yet. terms haven't when January. the Xst

we of So sit But hands, market. we'll and our watch everyone we if fall kind the on behind. else does

for us the that's in to certainly to been better doesn't about. won't allow price flat we're us talking position going So put seeing not that a inflation environment and cost we've --

Doug Col

Yes.

the -- I'd throughout contracts think the renewing that, add we're national year I you're accounts. for

of came third quarter in reflected that that the that So up mix quarter the contracts renewals, -- quarter.

rate, would would we to we I the are with underlying if don't our expect offering continue customers know to So and it's but that expect negotiate out the inflationary. pointing costs maintain going to service --

to the going to in pricing to So we're contractual have keep as on focus well. continuing negotiations

Ken Hoexter

Thanks, Fritz. Appreciate Doug. Thanks, the time.

Operator

Thank Please you. Jason to with We our now on of move Seidl Cowen question. ahead. go next

Jason Seidl

of how and little gentlemen. a we about view was Thank seasonality wanted How return operator. of year. I people the Doug, here degradation of seasonality XQ Fritz, seen pull shipping you've in to quarter. morning, should much normal the bit forward think seasonality degradation saw do this talk good Obviously, you, a you in October. in a that you audits just to then,

Doug Col

morning, mean QX X%. It's I QX day say. And QX normal Good down QX have like to would hard seasonality about per down to the Jason. to to something X%. been were shipments for us, X.X%

supports landscape. out the kind seasonality, those of play we was shipments there's our And we we our network. industrial a in and a our in seeing health the of of weight the down, our some extent across shipment customers were weren't inventory per of have strength If big same the issues To the is view, per some it break shipment retail volume to probably of -- the retail customers. the saw higher view, saw. that So that but weight in industrial combination also

you Because given side. trends on with been and But of we some shipment to pleased be self-inflicted on, kind the customers know shipment all-in-all, the and it. us the okay selecting that and and good saw certainly with were of the see we're path we that. works of for our has I are the the that intend evidenced So quarter, for on doing mix the mean, with we trends us the service to stay value freight a in business and we

again, with if pleased And see saw that in QX. we'll October we we're So the continued. seasonality

Jason Seidl

Okay. one and which you more Fair about XXXX enough. And a have pull should sort directionally, of back we into not CapEx think stabilized environment, to how anything.

Doug Col

Yeah.

see I It in you be open things. a And on act wouldn't we've thing -- bad activities, up Fritz necessarily have CapEx. stockpiling a think comments, of few you'll estate got end see some And estate pretty real mean, pipeline levels real a land similar like might mentioned of terminals. his them. nice be us opportunities. still I or not it if we to probably

ahead a has to good So know don't in you'll few going investments and about open will think don't good them. to find than make properties market, what put the good continue that's think balance have a us I of we're I better if sheet it, position been us be ever sheet. And we do spin that XX ago because out cyclical even -- don't positioned act it a shy in a us investments kind over in new I of better I industry making is or is on If we to don't think Saia's we today. -- the cyclicality next quarters, but balance thrive years probably since see

Jason Seidl

plans in in to environment your to for pullback as to one I see look That's would be you lines? What for XXXX, expansion could of flexible about If out you that that. sure. there more would here, open you more into you said we that's type need terminals you sneak but mentioned Fritz,

Fritz Holzgrefe

the of would things. to you in I situation, in significant be a that, the see you're market two be sort maybe appropriate in which that, facilities, -- didn't a of think it would in it. simply and for an activity a not environment maybe case, discretely you And like opening. particular situation you're it economic also then be saw we where contraction, would support that an a us ongoing doing delaying an or business, in One levels opening, something

sort particular it's a see of conditions in macro overall and think of the you discrete kind I conditions market. So may

Jason Seidl

Fair Okay. as always. the time appreciate I enough. Gentlemen,

Fritz Holzgrefe

Jason. Thanks,

Operator

Thank you.

Next Please Research. go from up is Scott ahead. Group Wolfe

Scott Group

guys. morning Good Hey thanks.

September can think So the give much you impacting got I and here? that. that's of if tonnage impact don't a there October and think September, think September you in seasonality the us do And I to hurricane shipments, do was you

Doug Col

out good and Hey, numbers. that them. mid-quarter run the morning put monthly I'll ahead I know we them I run Scott. go always through through

in mentioned, is September, shipments October down July, down were So In they in shipments trend down on I down were the in per shipments X.X%. workday about here August, X.X% per the shipment And X.X% X.X%. day. side, running were for and work, as

Moving about again, tonnage workday September, in per was out per of tonnage In X.X%. down in per per in workday tonnage And up down up tonnage was was July, tonnage workday October, day X.X%. was August, X.X%. And X%.

I driver way the I'd think For the given shipment say, remember towards I pretty for well I prepared results. it impacted trends September that markets us, month, were the of of the think them, was and were established was we so. the it or end a don't in at mean, down X% the I

impact don't volumes, most, on of to our in a think big had all when their So things happen, but think I the those don't area. families and the that I employees it It's impactful we thing certainly think. about the that's that And wasn't disruptive to business. it

Scott Group

fourth operating about quarter basis XXX points. then talked And the of in Doug, you ratio, terms Okay.

You think been where one basis XX better so, only I points more, look back there's years over it's the or year been or that. than last typically it's eight

on just LTL any focus the and So additional impact there's of so much then color maybe And fuel. separately, there?

but go people Just know do not the focused…? maybe if just of we a third the you fuel of lower are prices? I quarter, about period the how think happening right would you into impact think how impact that's now, in fuel and be

Doug Col

look and accident adjust to we try volatility. sequential I adjusted give moves, number. guide these an use on our for back quarterly We When

can retention You'll quarters. that or remember of level some deductible that with our swing

think current outlook, things work out costs to taking like today ability is number that, the PT I around on I adjusted terms volumes optimization and we're we to and seeing of and think major pretty the speak number. all about So our an it. good we But feel the given in

Scott Group

fuel piece? On the

Fritz Holzgrefe

know, mean, and that's it's Yeah. make of structure part Listen, Scott, something we that we it's in to ongoing as cost business price the to I for sure the sure, you And a the got for. of that cost continue business.

fuel a down. it, Now, -- levels, bit it's can headwind. the really the It's price entire a comes pricing upon of end surcharge be bit comes obviously, us incumbent levels, get to what to right. lower a at of the at of down But

So in all-in know as element one are that's on of the measure at there assess associated really that, cost swings it. profitability. business, price. And the different that's and We with some all-in our we focus. in that's focus we volatility times the But the business,

So got that with as through deal -- we've the cycles. we go it just to

Scott Group

Okay. Thank you, guys.

Operator

of Chris go Thank Citi have next. We now Please you. ahead. Wetherbee

Chris Wetherbee

morning, Good thanks. Hey, guys.

sort of to of, potential level get little general likely kind your, close contract do a kind that cost One cost think that, next cost running, of, or I bit are to the maybe as X% of price year, year, about that what as think beginning And your about inflation on certain What network? dynamic? right you're this of maybe into wanted we on your talked your end in the guess to about competitors sounds, get kind you you I that shipments of, when And inflation, carry thoughts think about next seeing X%. year, sense, to of sort resets above? we of below of be that

Doug Col

Yes.

on lot their we're sense we're heard. cost challenges. high and these message of, days. to to like not the bringing ex-fuel us about They as numbers feeling to the good our at haven't with those single-digit We seek well. like to good service, provide the They're overcome of inflation side a partner is, we them to feels across them. where It customer, demonstrate think feel -- make I and a value, ability kind it's business and cost go

a obviously, all about good enters of can I that that. Not surcharge to pretty these not out national is said, a A a is in them fuel That you negotiations. there fuel see mean, of that all all into websites. pay you our pay tables than lower feel our similar of that. all -- contractual it. the we of on like lot So Fritz know, component what's customers lot

looks to So the the which have a at in and you offer compared to just the at total price really negotiation, customer looks everything have to market. we total

try price be above to think to we'll that And I inflation. successful. we'll So continue

Chris Wetherbee

Okay. Its helpful.

Fritz Holzgrefe

highlight you're recover think certainly important our line through gains. in I efficiently going it's -- it, our drive to through run operation. at the be to to that, to you end opportunities level inflation more at that of to able productivity is looking aren't city probably business the But productivity haul, those that of

underlying which So cost customer, executing remain can much down critical. business the deal There's it because is to the comes inflationary. And really so providing pricing -- then and that to to only service sure you're the then internally. that value in thesis, do able your making and supports being really you with to push the

Chris Wetherbee

about I as for your what guess, And helpful. That's maybe those are along availability maybe then and your thinking thoughts you're Okay. thoughts following labor, just lines, hiring up around labor those head of How are potentially next count the what And we does online in year? as first terms the look? quarter. pipeline thoughts terminals of in think some about coming your

Doug Col

Yes.

know, maybe bit environment professionals. XX been mean and over doc easier it's time in it if little I the a I talked years. you the find last seven, it's last has hire really at to always that a little skilled any to us than You bit, is we've talk But think years, drivers it's the challenging -- recruiting eight, couple of

facilities commute offer and it new it's get of new dynamic a you're to you pick out player as a benefits something say things around overall. maybe a of or in I town shorter time And a to the or one start differences. opportunity of you sort that. benefits new bringing like business, and driver the you qualitative that in growing qualitative So can Those maybe you're helps add markets, the the would is in are

easier and bit -- to often add that drivers. It find new So little actually in a helps. new markets we it's

think facilities as pretty that able feel be So We I to. about need staff good we the that. to we'll

Operator

to move now We Amit go Bank. ahead. Deutsche Mehrotra Please of

Amit Mehrotra

everyone. Hi, operator. Thanks

First, per my XX.X%. it shipment so up if fuel, ex revenue at I first quarter. at And look cost if look up shipment, ex were like like then per question, was in I the they fuel XX.X%

So fuel, happened between is negative a time first ex shipment per and costs in was there time. a rev fuel that's ex long the per shipment like spread which

in we bit high of the the obviously are And is is point cost the unabated. so just a base I where off have guess just harder, this at the question is, inflation I cycle still pricing little

So move next kind the because as to a dynamic quarter in get on expectation this thoughts take cost that. is, the in pricing margin relative of expansion, Just right to your over fourth is pause where with XXXX, we inflation? we of

Doug Col

of margin analysis, all it Well, fuels, give Amit. you've terms we thank costs don't the Sure, go out don't to know We break you you, we pin a you. done fuel fuel but exact discretely. the I very discussion, in expense wouldn't inflationary. some exact numbers, but fuel I for

more the and line other our fine point increase. if So fuel of OpEx on in per But that in I shipment was it's explained expenses hard to it. put the than a XX% quarter, think about

depreciation things cost don't of So But the of compounding you like got if another expect and it. for of a the to already discussion we've work a of you've running that, all. us continue underneath benefit probably component, transportation think the into time is about some where that see that as that We labor pricing was And business because purchase up there's kind the quarter we investments done. fuel well. enters in over inflation

Amit Mehrotra

fuel. not I'm discussion. talking talking trying I'm excluding I'm fuel. I'm about fuel to fuel. from about the exclude not

Doug Col

Yes.

to single, running ex So per the have cost that our inflation ex to up your Where high from And double-digit in range. we continue revenue that low the XX% But fuel. fuel is price up intent shipment underlying expense we'll keep with covering to to here, see. to is point, is that. go cost

Amit Mehrotra

Yes.

sense. makes That Okay. go ahead. Yes,

Fritz Holzgrefe

that what charge just so that we're have. of our much thesis out be. level anything, for it's service. we're that doing to you then understand we've double that's got the we listen, going right, of And now, drives the pressures on where to sort the a take we to only And be underlying focus to got the If of, have has Yes. able that makes -- Listen, customer. know we that cost there's for productivity. We down understand

Amit Mehrotra

perfect per a the mix That's improve a because Yes. I for to revenue second business segue question, shipment. of proxy opportunity understand as to further my the to want

I your revenue still as of macro? shipment that feel So shipment, the the cycle, is should more you're speaks longer kind I opportunity seems look higher length And do somewhat idiosyncratic not I it And be is haul, in immune not per on turning, the want obviously, where today then you to peers, the the to still it's mix your see but the with and outside like offset or X% acyclical. to to XX% but across than that get some lower. this to mind. just to where but sector, mix just opportunity me, thoughts is of Saia mean like the gap there's to kind certain to be than of be per weight opportunities. when my your prospective of of there I macro between that is ability

Fritz Holzgrefe

maybe per of bill, matter the revenue our that you straightforward of certainly Listen, gets fact to more we heated it's stack able the business to be when see addressable help I our relatively is, need national of sort to we to gap, Amit, to we how pay is in the trends stack the to rate. service the level regardless going of competitors, more our of But mix -- that competitors. more national can environment, market and in guess. We environment, up fill close and a service find that a us in that the up geography our market-based the to

end able give we the quite But the it's where as can't is on So don't fast. the continue that. get we I think to of opportunity then I tempered, get for our we've things to charge productivity, costs, a us. remains doesn't day, I even and I anything got that it. maybe think do got the we be service remains we the service go see for through able But important at up to around it think levels to be period. because level And right do says slower maintain that that can to that slows, opportunity to

Amit Mehrotra

Last question for -- go ahead.

Doug Col

Keep too, I in you mind the same our get it's been part of of mind, but bunch all with pricing too, path have high-quality in thing. people on, to and got a keep to our follow-up additional ones. of doing mean, then story, a have we've competitors in queue. been But the we've want We'll

data about an So in if improvement if increase of And oil. just was in think our that close below access example, bill XX% you the so an or the quarter, And to still per per and quarter, feel that revenue we're see there's access like I again, in mean, oils, the there. or shipment market for we the opportunity from still gap.

to to continue be opportunity push paid we'll So that fairly.

Amit Mehrotra

Thanks a lot. I appreciate it.

Doug Col

Thanks.

Operator

of you. Thank Fowler go Markets. have we ahead. Capital Please Instructions] up And KeyBanc [Operator next, Todd

Todd Fowler

and and to Great. sticking questions extra the today. Thanks here good for guess the pricing time I the about think morning, with thanks conversation.

comp to of maybe two much think there changes guess, but you is how as Thanks. renewals it's quarter. that is surprised ratably, been and the up with large doing some been challenging third in service quarter I how you've levels, you've kind acceleration when levels? second pretty these up But the little bit the into think contract accounts then see that a think about probably from related changes to now still It's on you've some that of much give actually much making contract been comes reprice. look is to that the more got XX.X% of needs know First, moving versus you a renewals, sustainability I at how some buckets? internally to of of it of third tease the can much contract to I'm is comps, sense book your structure. first about to that difficult those service and you out way kind the that I national the at how quarter, quarter to the And

Fritz Holzgrefe

to think go and our that. that team can great so And to doing And with that. Todd. to to that mean proposition. have job I I a get in Thanks, a a and increase to focused make compelling sales the kind is be able service competitive close foremost, any pitch customer, sort well-positioned of backdrop first have order think, creates that of you the I force

bill more important haul a versus of than don't get and the So, service the national But other and like, shipment customer feel on a normalize trade feel competitors, the sort kind inning of runway. in differentiation peer right? place don't So And is job that see doesn't I is it like hand commitment sort able to what means position optimized quarters to something able and those be listen, know the But we you the in with contractual better side, where benchmark really a to getting still once simply it's I -- those some land per for I to of when that our good for of is to that have what's got that, of wafer for see customer doing rates a continue to that contracts perform arm customer right? option we're that a come. you says, acclaim that, The to you've you the to I out or great in. to national I of to service that get with we've level deliver in -- got in they've go you sales that force So you're another are customer, our well a to continue – competitors. our service. these if revenue doesn't to we're hand be renewal number. sort And thing market that and got a be know volume get so benchmark, provide for look

So, so innings, think thing But to in benchmarking just ourselves is think of versus the is I innings, we're the all critical service by median key early I still trend kind that, the simply others. this.

Todd Fowler

is sounds it's I Fritz, want And in compensate feeling service put but changes the internally than to like you're don't sales done it the some more words Okay. of force? your to mouth, you've

Fritz Holzgrefe

its sales and think sure. great for things has well. incentive product a then that service pretty I to those a successful work got professional I properly think sell And

Todd Fowler

Yes.

lot got Thanks. All I'll you've people to turn of Okay. it right. get over. a to. know I

Operator

go Fargo. Well we Thank you. And Please up next, ahead. have Poliniak Allison of

James Monigan

about puts – out, items should costs weaker or in items, And of question we James the cost trying sort sort that outperforming fall you're slow the peers sort but In close pricing that that to of CapEx the some down should down follow? essentially of to out on of expect think follow-up cost the how just Just environment and there discrete understand a to on come the a in pricing, less you get a the It's sort to side, discrete guys. pricing like would sort to takes your are any I Hey, of on. around of weaker pricing expansion, and cost environment, wanted environment? Obviously, terminal in then ability weaker or will essentially we probably sort gap? environment? on gap.

Doug Col

Yeah.

it but pretty there into and we'll out, I a entering pricing option be negotiation see – opportunity. the an think how plays mean, might have our them. would even we with price be a side, think for customer, On If to a with to you service lower attractive you start

we they So the though you for enough they us we're we're volume used hadn't and priced, that lower out because a they quality a raising see And provide. we whatever customer bit trends less us think option right, we're perhaps, maybe there, that maybe before are little worse, little use do maybe even and a prices. an

that we'll So out. see have plays to how

cost of wait not But I terminals, we half not days. dollars shelf that Fritz mentioned think maybe smaller saw we in even commentary, or better to down could get opportunity. there's ready wise, quickly these year, the on if slow unstable really trends. people-wise, of the into we open, There out. a huge them. for to breakeven get them But And pull could workload lot volume put OpEx activity-wise, but to into and terminals back put On kind some choose pretty – the a the they these to they're though the his are of and deterioration in like openings, we trends

James Monigan

Got it. earlier the call. point And you just to follow-up in on a made

by overall book end you some called it market business of continuing is end specific – all, of the gone market weakness retail had seasonality? out sort of or those even among at is moderated think though sort have I trends

Doug Col

you no and for what specific There the any out But specific a saw retail been that way. it's general, few we of end kind no, markets. there just just But in months of read, wasn't customers. call some

seen further anything that. deterioration any haven't like or We

James Monigan

much. very you Thank

Doug Col

James. Thanks,

Operator

Shanker Thank Morgan we you. of to Ravi over Stanley. now move ahead. And Please go

Ravi Shanker

Good Thanks. morning, everyone. Great.

like because service. have a a of saying just on Kind do for So industry your kind reach only not level. been better can perfect all that get quick like the and so mean service mean cap mean question there? you can hey, on you're getting going I price max the better good? get does that pricing about because the How that, over price peers pricing we everyone think be of you can you that versus get there's can because than long-term that or we're trajectory does better to service time

kind keeps getting or So better. a accelerate can of as of just whether your trying power to service get a little better bit off sense here that and tapers pricing

Doug Col

Yes.

peer think I we have service and an look pretty relative that gap. at at how see we we close and to our the assess if measure Saia, opportunity look group then well up – and group, I – that I and our to versus same stack to that pricing specifically that compare I peer

is think increase we there, repeatable some just we to there runway have to continue and continue to thesis. first be sure, discreetly, we as can addressable expectation that in going market think that continue I pricing right? I Saia for be our the as on for to position think I service, execute to a customer So, we push

is what's Now service. that I you're to think on total, differentiate happen think that going in the overtime, I industry to going

to over think provide levels I I can to think happening I that already customer, differentiate And today. high the continue time. and of those will think share it's those gain that value and service

the that chains to adjust differentiation supply position then generally continue where the the to who good I there and is job think for to that's be best in be. etcetera, our and do a the think change, I I going going growth to can the So is think grow is e-commerce, that LTL market probably onshore as to customer,

Ravi Shanker

Got markets the you're out differences kind industrial which of a unpack it. And in seeing consumer end you maybe the potentially just going kind at kind energy of it want more you're Can briefly seeing into you in you risk what out there macro 'XX. as of obviously, the a also comment markets where some now? right follow-up, ones can on there or of

Doug Col

Yes.

even I particular for we a for think out that or have end Ravi, call matter. tell you a would don't generally, market that I energy

result that think book sort uniform the what business. of that is a across would been have our say posted we really of and I I highlighted

really isn't call region per market out even a a an for or there end se. So,

seen way. I it trend that of think kind we've in

provide we any So, insight I that you have don't can there. for

Ravi Shanker

Very good. you. Thank

Operator

up Tom at UBS. And go Wadewitz have ahead. we next, Please

Tom Wadewitz

morning. good Yeah,

like saying October that tonnage? don't the know, the or of mid-single-digit year-over-year. I that seasonality about you guess, but trend? you're pattern we better the better down, was what for pattern Is on I you're do that, commentary, think little bit in quarter? XQ little full X.X% seasonal think some How September Is a to than kind relative should provided think about -- decline You I the a was

Fritz Holzgrefe

would as comparison, But little in a the weaker go, the terms bit you here year-over-year of a be get comps months Normal right? seasonality get of kind from tougher.

So, of out, trends to maybe on I the expect based in plays look just similar seasonality down normal and analysis potentially comps. workday if per terms

Tom Wadewitz

Okay.

consistent with of kind mid-single-digits providing. the down something be So tonnage-wise would you're comments

Fritz Holzgrefe

mid-single-digit Yes, low probably. to

Tom Wadewitz

a kind on of the something cost of number would help expect said How up headcount price. that don't think versus tonnage is X% know talked cost much I your really Okay. about have Doug, asked you terminals, increase that new in up Would flexibility even recognizing obviously I to expect you like would XX%. be XX% more -- do headcount think so do been terms if a you in headcount. you're quarter. headcount And you've was questions quite you've XXXX, I few in to moderate of in you're that instead up flat environment more structure? and you on going

Doug Col

Yes.

be I moderate year. it into think it will -- will next

sort that really We the to kind network. continue like thing look productivity build might an hours on of ours line little the of that simply this I driver tick density environment around as you uniform and of around us. in managed kind leverage and a think we up reducing of one haul things of do their side, to kind driver to bit our your for is

more moderate it of from the headcount year. think we But you'll that would in-sourcing I -- growth, that more So have into a been would be where PT. from next see of it would kind

Fritz Holzgrefe

Thanks, Tom.

Tom Wadewitz

Right.

Okay. Thanks for the time.

Operator

Thank you. go And Jordan we Goldman of Please ahead. now move to Alliger Sachs.

Jordan Alliger

Yes. Hi.

as couple talked then, a now, Just And talked have do you right we've -- how about you sense October? looking but costs, be a update you -- of costs? sort revenue tonnage, where moved about we a quick for are through questions on of Thank fixed day you you. variable versus might per bunch but costs

Fritz Holzgrefe

then, that mean, our but move the it after there where depending we have revenue any a on fixed. of bit you're I pricing little don't change network and some got a don't at Yes. are hasn't And fixed guidance month with view, we in our costs And doesn't of have XX% costs that positive the we've in changed or I and mean cost your still quarter-to-quarter. blended all, October. really much. conversation, so around

Jordan Alliger

leave I’ll there. Thanks. right. it All

Operator

Bascome to Susquehana move of our we'll next And Majors ahead. question. you. Thank go Please with

Bascome Majors

more go Tom's back other or clarify still, to report the at below headcount the shipment, this with is historically. it's just you it about was is, that employees numbers per growth XX% there year-end metrics, XXXX? for as is the I'm to -- it needs start to per in expand is a Thank naturally some looking XX% XX%, levels, that network number a than And just follow-up for can to and cyclical little up with you here on grow day you year? XXXX, other To can was approximation number just Yes. that markets just question that you. call decent be and it, fluff lower where

Doug Col

But I here. other in In the this only probably think this we're we the that's them right somewhat in at probably growth terminals have relocations, number, year, new infrastructure doing terms planned what pace next I like trend don't of from new the with terms trend. some we even some said, Fritz of planned got the think it year. Like for as invest year-end the We've longer-term any support moderate terminal into the have terminals, to not will year. we we've about of to least the but back said, seen trend,

Fritz Holzgrefe

line-haul. – looking And at still, it I build think opportunities could of where we're part to it is adjust density around could

headcount be adding would that there. in-sourcing So that's

the essentially stream mix replacing in cost internal when stream you one that. So that's and cost you do an with

our of that be So part would sort medium-term view. of

Bascome Majors

like few last tonnage up as even But expansions next sounds just probably much in it with be and as moderate decline additions will the a not year, nearly the years. headcount with

Fritz Holzgrefe

it Yes, could be.

Bascome Majors

Thank you.

Operator

Chris is Please And Thank you. next up of ahead. Kuhn Benchmark. go

Fritz Holzgrefe

morning. good Hey,

Chris Kuhn

Good question morning, Thanks me Doug. the pricing. for the on end at first, quick Good squeezing Hey, morning, just a Fritz. in here.

forward? the You those get go the base the gap supply mean accessorial down accessorials. in and do pricing some less that go fees we fees between I chain maybe talked peers. both some about of is of solution in Thanks. And as

Doug Col

other customer, focused or national that's sure -- reflect of a has the service the accessorial biggest the hard in around areas as the high-cost pricing real along fees Saia are supply service, those we areas. specifically differences structure, and providing we're costs think relative peers, versus the are or you're Other delivery met pricing for service to our part if the that competitors making pass the of inside No, or cost chain on right? we pricing in anything, position, built one all accessorial. we the have in them. liftgate mean -- to of of into if those And I

change those those pace And continue as a move to a they're we I an to as of think that market So -- we place, the well. have closer to real. even looser environment, get but opportunity in to in slows, in maybe

with so there's that's I comes And that think a stickiness that. something that, that

Chris Kuhn

okay. Okay, guys. Thanks, Great.

Operator

is Thank go you. Suisse. And Please ahead. next Credit Ariel Rosa of

Ariel Rosa

morning, good Fritz. Hey, Doug,

you've back earlier. added I go context the the So questions flat. to wanted centers system-wide from shipments year, of -- this tonnage of to XX and but In one service are

You saw OR improvement.

year, with or is think an way terminals incremental environment and think to the that the OR quarter, dynamics flat. kind a So be where those this there about about about of might think looking way of in terminals if the additional costs carrying might the hadn't terms the of to added additional to for we're have more if as especially it, are what next adding continue wrong where costs is volumes we been at associated kind terminals of incremental you

Fritz Holzgrefe

would of add or just of part it's terminal in the the never a the there's We think to not quarter terminal specific to understand you quarter, this seven equation. Adding important opportunity of So XX-year a I context means additions. that's terminal next a right? a Well, market. with think idea

roles in you're right adding that different for they do have us context. now are. thinking depending not The about we're So it terminals they -- where are they on that

we able were year. a able service. took You provide opening December service. actually to Northwest be last added time the of that that provide market. to actually recall was because And important a was critical incremental stem that And Atlanta out we that to Atlanta terminal in to cost We

company's actually history. market quick it a frankly, -- ever And than payback. operates Atlanta in pretty got So the has as company the or that better

to Indianapolis. important. that's And It's an difficult which And just to that Indianapolis. terminal the from market, think from service Lafayette, beautiful in a terminal, opened facility were if then the about do. that that up, Indiana, that's So you And a XXth. we that like market hour we trying

Now industrial customer And of things. although you for de an some scheme incremental in job coming do we investment do the to shipments can it's whole get its to and in market the there. minimis that, out provides it potentially of it's a that better also

drag, a to if neutral been have had haven't had they we've that well openings positive. the So anything,

at why continuing a of for opportunities that's potential period, sense. because term, they even not only benefit make cases, look So us slower to these but in a in longer some we're as ton there's short-term many

Ariel Rosa

it. Got

long-term course, costs yourself of additions associated you terminal but I to and terminal carrying investment, just clarify, understand, the necessarily don't with are see So as a those additional openings.

Fritz Holzgrefe

XX average Listen, the described, we terminals one particularly new. not operating opened I at brand right? just It's by company stretch, ago, days it's the any a

we we realize not financials. that's a that meaningful on But So short -- there's that impact a think of over the even drag in period there. time, a

So opened thus, it, thus, we we with continue it.

Ariel Rosa

so Thanks much. Okay. That’s very helpful.

Operator

Thank our question comes Bruce Please last And today Chan go from Stifel. you. of ahead.

Bruce Chan

something comments or I tracks that Fritz the chunks? in the about that How evenly of due Hi. quarter Is be just your Thanks. around any pretty contractual those timing? in up thinking market we PT Morning, should and that Doug, on want as commitments. come terms to follow normalizes, do here big by

Fritz Holzgrefe

think No, so year. ratable on wrong our probably XX% PT or with partners pretty a contract the We're it's is through I of basis.

So that of should as forward. reduction, a inflation rate the PT moderate but going and we're we'll kind will taking cost them certainly we they around necessarily seen not come see of we've

Bruce Chan

factor then And you clarification. lot the do openings talked expansions maybe do point just the here, about of but remainder your plans? super of year? it. for We've terminal And discrete Got last on what have a how That's going terminal into helpful. one

Fritz Holzgrefe

Yes.

we improved locations. all and think year, relocated and/or into said I new have when will think done, this we I have total -- in four facilities will it's

in a year. got well we want next done, XX expansions, get it year, terms -- be busy relocations, of so Next relos or we've everything to as probably calendar if pretty we up probably

sometimes part is of this And just a town. better

buy a just it's replacement, doors. versus needed a sometimes Sometimes you lease it's more

change that's needs your of ongoing in grows, drive a us business But for the all as network time, the business. grow, over something your things of this across So and just it. volumes number

Bruce Chan

Okay. it. Got

total we that have about and ballpark you number what if year, think were of doors do year to So this of next be? a might

Fritz Holzgrefe

that. count. X% to think said probably This all I of would the X% year, next add And similar none, door once to be year could

Bruce Chan

Got it.

Okay. Q&A of Appreciate it End

Fritz Holzgrefe

Thank you All right.

issues in but Thanks in the questions. technical what's able Thank call. I were reschedule think you Saia describe on Saia glad the for yesterday, is. outstanding the apologize I on and long-term all your what and for covered to compelling to due everyone today we've going interest again, participation that And tell to having to and opportunity reconvene time. your we the with the the

Operator

call. concludes That today's you. Thank

may You disconnect. now

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