Saia (SAIA) 28 Apr 232023 Q1 Earnings call transcript

Company Profile

Participants

Doug Col	EVP & CFO
Fritz Holzgrefe	President & CEO
Jack Atkins	Stephens
Jason Seidl	TD Cowen
Jonathan Chappell	Evercore ISI
Amit Mehrotra	Deutsche Bank
Chris Wetherbee	Citigroup
Scott Group	Wolfe Research
Thomas Wadewitz	UBS
Allison Poliniak	Wells Fargo
Bascome Majors	Susquehanna.
Ken Hoexter	Bank of America
Ravi Shanker	Morgan Stanley
Christopher Kuhn	The Benchmark Company
Ariel Rosa	Credit Suisse

Call transcript

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Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to Saia Inc.'s First Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions] [Operator

like Vice conference Officer. President ahead, now Col, to Please turn sir. Executive Saia's and to would over the Doug go I Chief Financial

Doug Col

for to Good Executive Chief Holzgrefe. call. everyone. Regina. Fritz is Welcome Thanks, With President morning, Officer, me today's and call Saia's the

Before you XXXX. Securities Private Litigation that Act of should during may call, we the we some meaning forward-looking of begin, make statements know this within the Reform

that actual to be These not forward-looking of other factors all are release on SEC for could to historical refer are statements differ actual and call subject statements that facts risk filings press that cause We more made risks this differ. might to and results and a on materially. information our exact results our you number uncertainties, may and the

now I'll Fritz the to over turn opening for comments. some call

Fritz Holzgrefe

us thank results. and for you morning, quarter Good discuss joining Saia's first to

robust about as exciting XXXX. it's team and in record more be volume view produced, challenging discuss always provided quarter first the margins. results more will environment -- shipment what While how through trends a I call and solid to managed of our Today's

falloff increase a million, and year shift along average in the heavier total X.X%. than quarter, drove $XXX revenue mix positive last in fewer shipments X.X% about per XX,XXX In shipments weight in The quarter with averaged per same average year. the essentially was a fell shipment, to the average volumes. per or only per tonnage day last we shipment, fuel first the weighted revenue despite We pricing flat by excluding approximately experienced increase day in quarter X.X% surcharge with an as shipment

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

X.X%, constructive very have (ph) were West the middle our the benefits entered or reflecting pleased the yield results revenue backdrop. in in increased significantly expansion saw that some the quarters. fuel year-over-year the some several we're geographic invested down as we Coast per hundredweight, pricing volumes of of We of a or in last surcharge Our excluding quarter with markets

evidence providing and our average Further to in customers in to in seen a contractual our excellent committed the see was expand renewal invested X.X% to offering. quarter. service the our pricing first -- We're investing value that coverage customers industry of is increases to our business and see our service heavily gratifying in stable

year. our XX our first to Our XX.X but by execution posted quarter. basis ratio details ratio will the operational specifics around Doug of to last in the some operating XX quarter operating compared the in I'd of of deteriorated provide quarter highlight like first points performance, the margin

of changing our of the saw We're times. some result operating quickly. major fact, all reduce cases, and in customer Most actually costs able significantly, network. changes transit And infrastructure these to linehaul our macro improvements quickly adjust net across changes to we impact environment the in across on experience. We productivity had us no The terminals. allowed our adapt manage these to

details more from first turn now our over for results. the Doug call quarter I'll to

Doug Col

Thanks, Fritz.

As surcharge. shipment. in fuel our mentioned, by X.X%, million. to Tonnage shipment a surcharge million decreased by attributable X.X% offset revenue Yield, slightly X.X% by $X.X increase X.X% $XXX.X fuel by a yield first improved decreased per increased average including and to X.X% quarter decline, excluding weight

reported $XXX.XX first Fuel to rose compared yield XXXX. XX.X% the X.X% shipment $XXX.XX XXX by and in well increased increase revenue quarter to improvement. per the haul in total as revenue ago. per of surcharge to of by to the compared of XX.X% was Revenue year a X.X% ex-fuel a haul decreased shipment in of the decrease by miles. X.X% surcharge were headwind Both weight Length to as length

of our quarter. XX July items base Shifting to X.X% over in of across Salaries, increased to averaged wage approximately from and of XXXX the benefits wages our months. the grown having by employee expansion which our the note year-over-year expense support employee X.X% X.X% combination network increase, a also key and side few headcount a our result for the last

increased Purchased compared average the and quarter basis. year-over-year. XXXX. combined and by of national transportation first X.X% first increased year X% first XX.X% miles the expense the the miles X.X% rising total revenue compared in was quarter were expense in result PT last over linehaul was decreased to while X.X% XXXX. our on quarter XX.X% primarily by miles of of of XX% company increase fuel diesel quarter, total expense the by prices to quarter in XX.X% year-over-year compared the Truck of to The in rail Fuel in a

primarily equipment expense new and was by onboarding XXXX. X.X% the as the the part growth. Depreciation in Claims insurance expense sequentially XX% our year-over-year of $X.X increased of quarter XX% of due million or and and to year-over-year, fourth down from continued of quarter the was in quarter higher network structures million $XX.X

Total compared operating operating year of the XX.X and ratio expenses to our revenue with decrease year-over-year a deteriorated ago. in increased by to quarter X.X%, X.X% an XX.X

for compared first year and ago. a Our tax last was XX.X% first the $X.XX XX.X% were rate year, our the to diluted to per $X.XX earnings quarter share quarter compared in

to back for now some comments. I'll the Fritz turn closing call

Fritz Holzgrefe

us. first the all weather quarter nice the get behind challenges to always It's at

typically of lower seeing to to April off day March, in tepid and Moving per the seasonally season. up spring March shipments. our of to what but the start entered months underperformed seasonality, would I base daily compared April are Shipments a a stronger we're normal call, we year,

gratifying manage This are critical we're see our from survey work is on track a focus our It across metrics our and service on indicate in track, our is Net customer the to we to track basis. drive right value network. that Scores seeing provide. and Promoter continued daily increasing absolutely monitor the growth We customers

past the vibrant opening one efficiently corridors freight of this a including opening state. week the four immediate customer opportunity. to still in opened see well the as to of new adding This It's as for a freight is new outstanding facility. We've Atlanta have excellent the operational our have is most presence of XXXX, enthusiasm exciting Northeast terminals but more opening share impact a great in This example we service. the as provide time, long market, location a where prime able we're a positive in

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

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

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

We getting around new and two second develop strategy open facilities of Each closer in the terminal other have the We'll May and in additional same we've three value chain. one our we opening in update the in to supply additional expect continue opened adding to to our continue all the terminal supports markets. changes you to plans. to established terminals half to their years. opening quarterly over the of last XX any markets customer opening time, coming on two At the

runway by excited success we to early of Although markets. considerable the continue see locations, penetrating these we're these

we handle are brand new our the us as from pick to needs We our response are asking who customers, And to see customers in to existing great up market, grows that freight new in their continue additional Saia. markets. these

by moving business. and cost before environment pricing inflationary current to an say Pricing in on to differentiated critical constructive inflation just maintain our is great the So questions, the our view providing do service are that -- be and to justify our margins customers environment that improve the cost for I'll of to and remains continue indications pricing. continue and to will quality we'll part

to now ready we're for open said, line operator. that the With questions,

Operator

first Stephens. go from Jack question the line Our Instructions] Atkins of [Operator comes ahead. Please with

Jack Atkins

and Okay. taking you Great. morning, questions. Good for thank my

maybe helpful. go March? about relative so to your just start, the talk if Fritz to you was February you've then kind provide far we I seasonality, in normal what seen some versus as maybe can think be to change tonnage, year-over-year March guess I if in well. of of whether and Could April on versus it clarity would on comments So April then you March April And back, could that and terms

Doug Col

morning. Sure, Good Jack. Yeah.

normal, from better, month-to-month, the about a pretty January. terms In in QX lower of from day in like shipments December. I general, that percentage felt talked probably an range. to was pretty kind said, late just the in April, January seasonally March, February normal. we've of early far little here benefited to we just February then I And the then March mean, per historical seasonality, massive digit uptick it's was off in of moves a we in kind like like bit That's of And so seen say consistent. March little a would base. low-single April, terms January the underperformed move

April, the I through we uptick mean continue are weight in per to can about you And give But X% see down the shipment. months. months. year-over-year. to running date, an April shipments go we I'll

little less than tonnage So is X% down the here. to bit day our April date to a with go

get per build, into driving of maintaining So that's appropriate weighted been level more lot LTL results the to that a and revenue for driver the That heavier performance effort and of really us. just of shipment to a network favorable brings key the that's profitability.

with I the comp, were mean mean, bit tonnage for pickup in are of and January March, can go side. than out on was down year-over-year X.X%. go tonnage first down again, can I And a But shipment And shipment through and there. X%. tonnage mean ahead X.X% February I weight but more X.X%. shipment was per here down down month down nice for less exact already side, then quarter. I first tonnage down shipments April But the X% the only know X.X% an on X.X%, was was and March, I down little -- March. was a down were is I the numbers in two the March months the and shipments March easier

Jack Atkins

That's Okay. great.

follow-up really, April for well. outcome really good a in that, I Doug. guess as just think I my on

for to some of others over moving percentage has some kind bit some through know -- have with market. challenges stand that targeted with a one allowing increases. XPLs? better? around slice kind of some that the to that network of I terms maybe what today? of this Where last of to working some of weather XPL-related Saia roughly is that the their And of traffic out been that's years think that your of does price share business guys of close I business talked I of think areas you in couple Like, the is the you about related particular

Fritz Holzgrefe

Yeah.

is XPL of relatively smaller business part So today. our a pie the

those kind on if outstanding that. that you focused be XPL, is on to want you But to that think will X%, can it want a there you segment opportunities grow, important that our So are it's I We're growing service, in transactional to I profitably. works be are to position X% efficiently. of terms. And what do in mean in operate able ballpark. -- provide we definitely there our

Jack Atkins

that Thanks, Doug the makes Thanks, No, Fritz. sense. for lot Okay. of time.

Operator

next question from Jason the TD Please Seidl of Your Cowen. line with comes ahead. go

Jason Seidl

gentlemen. a Good move that OR peers. Thank XQ faring, your about I sequentially? move lot sort tonnage bit than typical morning, Talking that from you, the think should of we Since sequential think, How to about a is little better XQ. operator.

Doug Col

I years. kind And of quarters historically for QX several been muted in May Jason. OR points average morning, how much basis uptick mean, volume about in with June. basis or think seasonal QX strong across historically, last I crystal board. have in drives a the it's what a just industrial Typically probably on points activity XXX get XXX a ball seems and on and we the Everything couple over Good better don't we've QX. you talked happens of from that

we revenue expect from in see QX to QX. still But up

bit. little try sequentially, of So a I bit to get help positive little to that we're think we should improvement. quarter-over-quarter OR I mean, But going a drive growth, if revenue

as norm. not as maybe good basis could OR XXX get So the points it's if we seasonal improvement,

these think soft especially opened of open terminals last carrying the terminals in through two the we've of here. term, I in years terminals a XX we're But weren't open opportunity we plus long the this for this the of patch bunch that current carrying but because environment, cycle,

-- for to So a little XXX points improvement, our pleased think going little with as so one sequentially, try we're better be revenue basis if month belt, to be I with under I sit here could that. a maybe think drive we would we'd do bit us, we

Jason Seidl

talk on I Also, evenly Was you mentioned or you March. things a side to was the weak bit more it wanted up that on that more for -- weakness? side it that's obviously considering it industrial terminals more off Yeah, the think Can I these open retail talk sure. coming about or things split? a you was of of of little

Fritz Holzgrefe

I Jason, I that would out think But point -- that kind West of split. bit And a say. I would saw it that were was is related, I out It's we call say volumes what port what was a of think year-over-year. for pretty I evenly typically down us. would Coast

So business. that have been of would change. focused to those But sort be our able part emerging is to that really we markets. grow of middle excited across And help the I'm what on that about we've offset

bit that's think maturity network a I and And maturity. business of

I -- wouldn't say, would least of part have that to, So have of it, at absorb historically, our offset business. but maybe book able where there it don't were been been times we across

with But see we in has soft markets that, country. say the I the West year-over-year. been the pleased Coast results would that across that So

Jason Seidl

did see ports, the or Now New you of New like, Savannah. Jersey York, Coast East in an say, around -- uptick the some

Fritz Holzgrefe

a in maybe terminals I have there, bit years last developing smaller. bit really did. the we've service us, opened opportunity bit you little just I just network that for around build density, or, for markets that we that to that is frankly, our either I'd But tell drive a performance as has the the you you growing you're think in what little two but a around think saw We been Yeah. broad-based markets more sure,

opportunity. success So the I in been efforts kind our has think continue the board, that we that's been of develop. to -- that, speaks across markets It to

Jason Seidl

appreciate really always, great I time I listen, the be as I that's well. won't color.

Operator

Your Please next Chappell line of question go ahead. ISI. with Jon Evercore comes from the

Jonathan Chappell

of what April I both that the from gaining of couple last over can absorption just the you last over don't that opened and morning. it's year-over-year Thank months? trends are than are terminals apples-to-apples From you. you basis on the the Fritz, and store much tell, an that lost kind better years is your on you've sequentially anybody Good think market or to two March industry. relative industry mostly share

Fritz Holzgrefe

execution any time share to the for really think is customer. going get profitable I gain Well, you're a is what share gain, that is reflection of successful

on win that I think you basis.

doing have is job is that, you think that great and with So win for seen the what think what we the pleased we've I seen performance-wise on can performance customer I'm basis. our are I network. we have teams across a And that's why the

Jonathan Chappell

where you to fully my probably to Okay. Doug it insinuated want that get P&L to a However is of for how and the result. operating? Do returns? basis, want relative terminals, to kind margin much have on productive And where terminal for those sense those is of stand get portfolio then still existing kind XX a left on improvement good a with basis OR measure to you you runway to those XX ramping any XX terminals a follow-up, for those I think see

Doug Col

it I in I'd mid-XXs. in but operating your mean, Yeah. operated out don't we by mean terminals So total say the you've got little in I QX break the base in those a right? over mid-XXs, XX% terminal of bucket, XX

I years that, Northeast a mean over profitability we we wasn't example even took It in mid-XXs. But that there years goes was found So years a the that go? company opened to the of up to the Northeast. And mean, get once it three few ago. always Northeast the of operating average an I time. I region. later, our out to where company can call couple

part we're the here of more through drag, general cycle a a they're have bit like soft XX opportunity. the of about market where carrying we're average but service the yeah, share presence, good we get share. peers, and excited our got and than so representative We a we've we And know our

it's market, X.X% in representative share industry we the and revenue, of presence that. than markets more something. at we terminals in look get penetration terms a of But have Saia's you maybe If where or in

out, to been so it takes the it got it but with just years some to far. and progress build fill we've it -- pleased up, So we've

Fritz Holzgrefe

better just long-term environment. XXs add operate think obviously, get anything year into strategy. going is would to says It this I we've this -- that But region OR. I that the we because seen should continue won't the be every the overall, on because business don't there's think we that can't that

Jonathan Chappell

Fritz. Yeah. Thanks, you, Doug. Very Thank helpful.

Doug Col

Jon. Thanks,

Operator

from comes of Amit Mehrotra with go the Deutsche Your next question Bank. line Please ahead.

Amit Mehrotra

Thanks, strong Fritz, of and I bill perspective. the line revenue or you peers consistent per off very you the a a on this talked bill everyone. think it improve And per know hold maybe Hi, a against year even operator. lot revenue team then, we've can -- service OR, do from Saia's XXXX. discount about very,

I in seems improving it is from never the obviously but less quarter, think XXX a what we've reporting. that the I first than best-in-class was it think mix with higher being weight what per so always approached shipment, still but your pricing or like the is than pounds standpoint,

you just it's seems, about coming and important can because where there's puzzle of weight shipment the such So a from talk per like it runway. of that lot an piece overall is

talk you you. some dial further that to if can of Thank about the weight initiatives up So per just shipment.

Fritz Holzgrefe

customers, what identifying then fundamental targeting us that the we makes charge you the it's we're efficiently Thanks, that of Doug a elements tell But the can in for answer. around off we we tag good. few of do That's lot the what would in and business facing of look our environment, the that will a handle now the spent and years. sort of over the a And Amit. customer at Yeah. thesis in it. seeing driving this, mean, on I Yeah. challenging well sense bit quarter that here been A service is efficiently. and sense I if I are part kind that's for that what of work handle with been and what time you're you we last provide paying market this of the to freight lot little understanding of and right sort team set great -- were

a the be we us the And on over I think we to this of about you couple say, it's to something got And can continue it, I the for as across runway think focused on, particularly years. facilities build add something think continues, we've as network. is

As Doug of doing value these and a quite work around of highest of that diligence not need lot making that's in pointed same I out, they're service we've most the be added legacy we're efficient, kind where the sure think okay. that providing we're and they They're They handling need that. start-up mode. in making operating and the portfolio get that the customers paid level we that for sure to because

will we about profitability. just of on full the those for bit today more of that's serve a take focused you We're we'll the you year kind It's to view care expected of what But I when we think thoughts. Doug think is the over focus. second available gave And bit great it's some simply of give year stuff, because a when indication do customer, us it's And looks have those of full -- maturity kind macro just half when the that around what's and kind get are. don't that's in about us, customer, the think to challenging we of what about we time, going little on you challenge Doug QX. pretty the of freight and facilities, a a And of sort like. yeah, where to and in full profitability that's year environment. can be

Doug Col

clarity bit we there, Yeah. say the or thing. we're modeling going XX But can I it to don't not this, out improve little into mean basis, year-over-year good this quite a a in the as very bps. on mean, trying much to up just I as QX, -- think. be of give OR that were terms of we're to If QX I But year-over-year. terms helpful, mean, I lack would at year-over-year able kind year-over-year of a be we very we're still help up in with QX bit of on would by in we'd

up mean terms I flat So quite talked it it, we year-over-year. for, bit QX a first we of had in like just about that would half improving or good holding be shooting a if still

So get. some estate invest to it's I this an environment. realistic continue the we're to because don't to gets, in looks improvement this tougher to Again, if capital going sense, model thing. flat see they more going for going or in We're we're to to think this real we're the make work. putting thing And

Amit Mehrotra

totally Yeah. That’s fair. That’s fair.

it. Thank you Appreciate much. Okay. very

Operator

next Your with of Please comes ahead. go from the Chris Wetherbee line question Citi.

Chris Wetherbee

wanted playing Hey. touch Thanks. just to of see on sort of Good we morning, pricing and it guys. kind Maybe on thoughts how out maybe from big picture here.

we've sort are their continue guys market ability seen contracts. we've that -- a to on to a bit of And your dynamic. competitors renew a the appear impact the of perspective. heard from about And talk doesn't little having materially it a outperforming to clearly it's approaches negative tonnage more couple being You

perspective strength. are things us seeing But that healthy. you pretty on make was number you edges out? that how continue think playing nervous the give some with can will see or give anything you you that on confidence can just I do that And you

Fritz Holzgrefe

Yeah.

pretty market the is think I disciplined.

wouldn't in (ph) I to the for of anybody You dealing fear Cheaper freight else. that kind look continue need environment kind doesn't to much sense with, everybody of around, the to sure, and drive to this costs to inflationary would mean, us it is make points pricing.

it high. to you The can is on service right very now be really focus though, to what that things says got have levels you control. think really I the

ask that we've for I things And if And that's opportunity. Those If a more be our position the we relative think an you're kind working you versus can think our market, to I are others increase. look control. -- that's customer are got longer-term in our going keep we've to that focus. going that and of go And got at maybe pricing the at. of there part -- in to runway we're you to it's

Chris Wetherbee

I the obviously, quite that. terms I about things a bit pretty helpful. tonnage, as truckload. obviously, just decline line, ask talk we basis coming appreciate That's that a are from forward. to relative we the PT of that move in number. Okay. down think And Can miles your a bit can I And you you or good control, in of wanted getting about rail think to out sort negative just plays how little tonnage on a year-over-year obviously, less

to quarters? of maybe of next how just about we think So get couple PT want a sense

Fritz Holzgrefe

Yeah. think So right? going to going to is, make think cost, The of it what way our is, do cost we you're line we optimization decisions. is part about haul you're

If first that, a it do happen. we customers' level able will or driver meet is to always that. times, requirements. tree to expectations more The decision more most the our more to decision and that their make pool what's lot driver be way need passes and what own of optimal team cost then of been And do use we've do recently, service the to to

over Over this or you'd maturity purchase internally, we time, density you'd we less business, more use probably as would of expect outsourced and build the in transportation. time, build

the certainly, down. have in rates that think come environment truckload the even we're right opportunity I PT, now, the in

relationships our We PT long-term providers. with have

the it's us, the really to rate built going it's more about hit for -- continue service. -- And But that's first. can, effective. to we're we've really to the because it's where level declines, try got that cost in. we've rail most to that got use But So -- try we'll we to service seen

Chris Wetherbee

helpful. the you. time. Appreciate That’s Thank Okay.

Fritz Holzgrefe

Thanks, Chris.

Operator

Your Wolfe next go with ahead. of Scott Group the question comes line from Research. Please

Scott Group

Any than tonnage. that fuel. color Thanks. parts like I typically or just the down Hey. just trends us. we've directional some to tonnage commentary can right know feels Good on of on guys. normal with focus got extent Maybe It and relative more the help just tend to one? yield it you sort morning, to now revenue moving

Doug Col

year-over-year I that's basis, to the our revenue for important April mix a heavier or on running revenue of freight -- X% per tried down kind driving is X% On in I the but But just just weighted a Yeah. out mean, I change it script, is call really basis. bill.

of with shipment the us, yield what's on trends right, mix, going depending So to haul, look all and length -- per of going on are all. for weight it's different

So we've years talked higher. our really is it for revenue about now, that and of this a on number driving couple bill focus per keep but

So is know, yield one I thing. don't reported

the been key the And network. breaks, QX But working per sequentially, of change our of really for and opportunity a right increase right because all to our see (ph) mix then QX to continue bill to and be is, the revenue going different we have freight and us. is try the adjustments the there classes to, really an to again, understand type think I to blanket goal from where not we're up GRI into of the drive in hard freight make weight across put can in, When drive we to it's network. we we into

So up pounds heavier-weighted to freight, and been has LTL that X,XXX us. really beneficial

Scott Group

relative just on color forward? Okay. Helpful. going any that's tonnage plan for head And and count to slightly and then how headcount trending down then the

Doug Col

things Yeah. as really last to manage have few hours months over come I mean down. tried the we

headcount is then line, So day. it's many getting every how are And wage one hours the you on thing.

we've in terminals XX QX past last I think And the to about up employees in QX mind, year. keep we're year. XXX opened year-over-year,

seen So backfilled employee or replaced We attrition. every some okay. attrition, we've not every we -- and that's lost kind definitely and due of manage it through to

been I a couple mean, it in May. employees we're of But our going That's open where up for in volumes year. see. huge go. the but We from in-house. that. drivers here, going more get facility, the half able to our coming ready to back we've goes professional I see we're of other than got terminal, We've line haul terms not in I in get seasonally, brought where So got good of some got just line we've mean, nice we as year-over-year. haul mean openings a of probably miles It's were to drivers quality another attract to that, these to

So we're opened hanging on think. control, It's only XX good to I to year-over-year But additional and those terminals valuable pretty resources. have new employees. XXX all-in-all,

Scott Group

start. you, Good Okay. Thank guys,

Doug Col

Scott. Thanks,

Operator

next of line Wadewitz the Your Please Tom ahead. comes UBS. with question go from

Thomas Wadewitz

I side cost see ask -- morning. the bit little if as could on I the guess, you Good Yeah. well. wanted a I more to on

just would your I utilization? to you haul OR support think efficiency. I kind something that those achieved room don't OR about kind the you've and to or that things with freight you can if on efficiency. have of of as line that cost -- the pickup level manage match did the delivery support through talked side, where you And quarter, with already up you've So the those know that at also is headcount and kind been further talk and of about Are the are you well you local you just extent somewhat. Are already that. Where dock --

Fritz Holzgrefe

quarter to of we now maybe key the out and here for productivity I thing what's gains I with a think through even and maintain because that is the improve Tom. question, mean second amount there's there. in the around QX from Thanks Yeah. you've got saw that improvements the fair uncertainty that

linehaul can on miles. manage focusing that's to critical. pretty those you We'll in continue the So what that's category control, of

mean, mean, first XX.X% compared we ago, part linehaul pointed to of I out quarter -- the XX% year. miles PT to of down is in total the as roughly XX I last the linehaul, minute a

there, is, our think be investment. increase might across us if we but there's reality optimal some that's actually opportunities it investment may if there So whole the of for that a linehaul way margin cost the we on

-- are those it's So that of to those most continue are it's fluid to us in things dock kind because to and maintain drive productivity productivity operations. important

which that take a investment beneficial. And opportunities that, the outbound we we were think selling to historically I averages things an benefits maybe outbound, an the in of are linehaul you of case cheap and and had our load the about the to been drive have are historically, utilize look I underdeveloped one opportunity that activities if job mean we haul, market of driving for inbound better continue some Well, of middle market, those like (ph) our of line there. think we if good markets. to market infrastructure do

So that we're some those that the on drive and are focused efficiencies of helps that things seen. we've

Thomas Wadewitz

Okay.

it you improving? like can efficiencies sounds keep those So be think there can --

Fritz Holzgrefe

Yeah.

Thomas Wadewitz

that to does I number do to along think pr think you hundredweight one in going stabilize level continues or the guess, it it would modeling had stabilize perspective. on ex-fuel the at digits? is to and to think that, revenue just appreciate discussion from would something per you. digits a How as perspective, pricing you decelerate, then of out some go Thank more And good about -- next you've you mid-single going that you Is the year-over-year? low-single look Okay.

Doug Col

mean, just the we on -- Yeah. that you've Good mid-single I. what what to in can we number here. that that not per yes, say I and low I if morning, working drive hard from I been -- Tom. mix we're I think just job digit to mean mean a to mean, good things. that revenue number. focused to bill on we continue Fritz is. growth, But with headline I It's in continue do

I bit down, goes where drove a that's think a if of that's of be getting my I'd and that weight okay But mix. the with little higher headwind and bit that. opportunity, little a and reported you're yield price

a without picture cost weighted the weight freight just up, more But really additional We've up. up as your otherwise, changing the heavier not mean add goes handling handling had units. you're of some good fractionally weight's revenue and picking if success I bringing lot you units. in adding

us, know, of on I that look shipment is the again, handling really yield at. But for number. revenue focuses street that bill and that revenue we cost the justifying what and covering So per is that

Thomas Wadewitz

Great.

sense. Okay. the Thanks Yeah. That for time. makes

Doug Col

Thanks, Tom.

Operator

from ahead. Poliniak next Your comes question of Wells the Allison with line Please Fargo. go

Allison Polinia

morning. Good Hi.

a the know trends to better. Just bit Again, seem the want little about environment. I talk demand

environment One industrial that about terms talked the some of demand our early of yesterday they're cracks seeing. companies seeing did in

noticed Just Just I you're red you that know bit geographies may more freezing conversations be there? you pretty flags. color any terms have diversified. in that thoughts, that of dislocation a any Any little are some

Fritz Holzgrefe

down sort probably of Southern of Allison, a Yeah. that pointed Port And kind my parts levels. think to would the other an business. I us is of outlier us of L.A. California, bit the out earlier year-over-year, remarks versus I I in the for broadly for the region our of that attribute sort import

year-over-year. see volumes As port you down are

an business good like have that come call So would a that a just out. space. across across of don't the out regional say generally, call pretty or with that vertical of kind something consistent or that. for the would industry really book I it's I

been service the has I seen providing. And amount acceptance that pleased I've we've there's around see think -- is the that that of been to thing a fair been we've customer been

doing helped damaged. they So is And us, I people think, the may be get opportunity. focused mean, cost. I Those environment where you're helping win the I time on differentiate in customer arrives in a think and maybe that's -- challenged, on delivering us value job if freight are an an for maybe more matter. environment where not that's good we things

Now certainly but they've we rates pressed on to concede don't that. too,

Allison Polinia

outsized it. a Is any sort just sort then there? you to And of incremental existing it said I to that this opportunity Just both? or starting color you of where think in terminals the a or they of you're markets. were market, see of demand plan is more Got open, mix longer-term

Fritz Holzgrefe

opportunity open is when sort this and forefront are to freight think us customer. about and quickly, to it year the this -- expectations a is. and that us customer need because XX-year more us more have going for provides we're we're you opportunity meet ones really important, the that's just really environment the that outlook we of are, already are terminal so what sort of of still regardless that the Every sort open, of happens in that to is the markets we It the efficiently significant it. allows they closely it important up the pick if operate for And because that's

think is I it facility, added facility market on service region probably or already itself five that Atlanta we we mean customer very terminal the and days. position a matter about facilities that or the we're in an in -- that that see Monday, Northeast simply can few we the Atlanta one just I the well sorry, it's and we've -- before. four a if a top improvement in days That our because opened Atlanta of that's of couldn't do we just in are

with it's -- and it the that customer. this, of know we important starts but the, So value the doing

Allison Polinia

color. the for Thanks Great.

Operator

Your ahead. of next go the comes Bascome from with question Majors line Susquehanna. Please

Bascome Majors

you're how down sequentially, to while think high. end? and were PT that considerably down to it Doug, bit if with is few square you you. play And talked count hundred headcount, little a it seasonally be you I looks head the head about you've do keeping like a adding that on able you service a but up at about able relatively people here, from count do out roughly, bit. to Can if if might talk reducing been so year-over-year, things Thank the ease year year-end or

Fritz Holzgrefe

built think been use I time, our existing be Yeah. do think I able that linehaul network, the able optimized of to in network one. that is that to as about I'll force. jump would I to we over we've on our we've able thing sort this mean driver key if better

allowed us a on we've back go QX working of been And for of more way while. at I all that to if say, the was of PT. So take what that last kind outsourced year, to as

We've allowed successful So that. us. with that's been

think And allows line actually our we've throughout even had extent to to haul to them maybe across to are all underutilized that done something there, side, then the on managing we've take been that city on in and drivers ours. freight we're us similar, this board, city, the -- the which the we've I we've keeping more if able reallocated we've network,

-- there So it's if opportunity. as have some we'll added that Northeast, new the look facilities. balance we this add of into heads We'll see. we a year, the heads Atlanta we to open for

intact that positive. we're that's importantly, judicious driver we cautious turns more to So make the most But environment we sure need that. want very keep key the when we and because about force flex that

Bascome Majors

you. Thank

Operator

from Hoexter comes question Ken with of ahead. Please of line Your America. next Bank go the

Ken Hoexter

and going Maybe comp elimination in driving that mention the Hey. we February, a Fritz. you're at Is going maybe on in and flattish just on happens could the almost we is should with shift Was bill important weight. and weights March. and Great. the of a X.X you kind into that just on into revenue what of Doug, Good freight, bit in January more. jump how per that that look seem and morning, third-party down being up to delve how quickly X% X.X, to March. and Doug what's weight seemed a delve issue? there so After

Doug Col

example. renewal. for our Just customer, in active GRI a guess where our analyze business end of been weighted a shipping on, I quarters, book some up when few our but more year, driven -- doing by seasonally got mean, of think But our largely Earlier I a lighter not customer's retail you've seasonally, promotional and shippers little targeted some shippers I more for maybe a -- going business for get was promotional think, we I generally, up March. you the for some core the adjustments, contracts a in it's around good only by, pretty been trend of way the

really by freight the little a the to has in We efforts. few over that of time volatility a seen of the quarters, But general, going on lot the just the through sure think, our and but itself, pricing we in trend been, give we we've of spend want. driven making right I month-to-month, data terms kind attract March

Ken Hoexter

thing I clarify could mentioned to renewal if up your the on just, contract were think then X%, rates you And or GRI. up -- I one last just rates start

market flow continued as this you forward? the on in through thoughts Your move

Fritz Holzgrefe

right, are there's how up that goes the well we much customer the ultimately freight ends commitment -- that ship, -- with agreements, directional know, it. get this of as lanes pretty we pricing not you it's what think does volume a actually the realization following these none what contracts a I indication, Yeah. I the think from all to environment But of I as -- mean it's think is. closely,

market we So that. got market kind I to continue be. how to -- to through we an where it's pursue ought the just mean as we we've I receptive that think, and is just about indication, the to of think pricing, that's

Doug Col

easier. comps Yeah. year-over-year, comparisons those I mean out just I into our get weight looking mean, QX,

is So I March rate mean March the exit high, shipment per the some coming. weight leaving I've easier got comps is and

a paid And that's shipment up weight So like in coming if it. months. but headwind for getting the yield, theoretically could we're it to per we be the more

Ken Hoexter

But that blends to what, your was, down April year-over-year. X% just

Doug Col

down little [indiscernible]. bit X% a less Tonnage the with than is

Ken Hoexter

But you gave revenue... a

Doug Col

almost X%. Weight is up per shipment

Ken Hoexter

Yeah.

ex-fuel Som -- I'm to before? give revenue should was so that April date your sorry,

Doug Col

bit revenue or is a X% total running X%. little down The

Ken Hoexter

right. That’s

Okay. All Thanks, Thanks, Fritz. right. Doug.

Operator

comes Stanley. with the question from next ahead. line Your Morgan of go Shanker Ravi Please

Ravi Shanker

Thank you. Good morning, everyone.

(ph) So call with of maybe question bit here. a this done of conceptual kind helps it to a

the going cycle little answer to right better indicator both a and be strategy able of to but be your I Because tonnage? approach where or cycle opposite not seems to of bit. of it how the your direction deferring be are kind slightly weird in this, should customers kind now, a know and the given think I has What maybe in been. we is shipments

Fritz Holzgrefe

Doug in it. where is the little getting yield is can Listen, is out a for that the service, position deliver, a bit we I for That's how got know a as I best softer. pointed I to different, Saia us bit call. But what There's you call obviously great little -- maybe in the makes for charge paid it's driving what Mix if generate return. for which profitable business tonnage right? about best scenario is, freight. you're don't think know earlier, provide freight, you're a be a of

the yield of there. up ultimately a So a day, little But possibly profitable focused in on of the end mean, goes bit probably I mix we're at your business.

that sense us. for identify the freight be to need makes with we most to So able deal and

Ravi Shanker

it. Got

think you was, I better getting the tailwind are guys to you catch the the getting outperforming? massively of so able but better. Is worse, cycle And and cycle like question guys gist the are that is just

environment well market bit get I within both to the little macro a on the that. as of think as started color performance own your

Fritz Holzgrefe

challenging. the environment pretty is Listen, macro

think see the out there. I you data all that's

the is And successful. doing job to maybe be to we delivering customer team the the think a great value macro We we are me I that's that is we're environment. things that where that can't that. Those on can of differentiating control need to and control. our

are, there. I our we anybody control and know and are results This lighter, challenges we think that and on was they reported all past the are lighter they this can things out the GDP what -- call was the are the executing. knows GDP focused that week, on

we taking the are -- Yeah. advantage we do So of environment? know. I don't

taking job the customer. I doing great advantage for think a of we're

Doug Col

little I The the mean it's go us. last over an game also We're said a bit out maybe good than mean, we're improved customers somebody. customers opportunity service But few also our we days. as through we've some as said tell case. we probably I cheaper value for feel we've a that we've the be. that, these cycle, And for stands the years. that's We us closer should like to

an chain looking for supply environment this. Saia maybe shot this, some of like costs, at with So they we somebody their give say,

macro is up, that than know maybe strong enough but that little we're don't to the a going the less we're So I be of peers. down some bit

Fritz shot because like think that when -- value we us a said, we're And if cheap. us look so I job, for to probably little mean, out to that that of a some different. it keep to we've customers, I And a some try. do years too on step frustrating coming business bit maybe that's execute, as willing are making and little across getting that's good said we this, and numbers a down a come give means customers we're we at surveys a our that's go but

that's why so far a maybe this So year. our little different trends look

Ravi Shanker

that that maybe That's just drawdown you cost on as well. purchase quick improved actually cases, the really mean, Thanks follow-up helpful. your And said The some customers' in I information. for outcomes. transportation, one in the

just thing tactical given the be that a think may given that do can you the we structural of this as a customer? thing do think drawdown So kind a or for better this be it of the cycle

Fritz Holzgrefe

Yeah.

clarify if about confusion this. me Let there's any

don't, PT customer it expectation, meets if We internally. use use If right? we will we the

So use experience. PT we don't a agnostic needs to see think the not we be whether improve or way We to to customer this PT. reducing as customer

that's So critical. most

structurally, the across I build network, density use opportunity to there's think PT. the less you as I think

PT. to the I there and But use think markets are it most there makes where are that periods sense

to an efficient It's think important I around have we to customer make about part to those we decision of our is a important to to -- cost haul So think think and I that. service great value we understand providing expectations. our it's the how meet way line most

Ravi Shanker

Very helpful. Thank you.

Operator

from comes of the Benchmark Christopher with Please question ahead. line The go next Your Kuhn Company.

Christopher Kuhn

for Thanks letting end in here. guys. at morning, Good the Hey. me Yeah.

haul the on road? length West curious If little would haul. that potentially we see bit, of Just a help length up Coast down imports of picking the the

Fritz Holzgrefe

Provided Yeah. year-over-year having have, probably it's down and an West on us, statistics the we freight That influenced Coast like for that that makes haul reported reflects sense we volume. opportunity the sure. that

So that us. certainly could be for a positive

Christopher Kuhn

follow-up, volume a a and Okay. a weaker that sort plentiful? as down the little [indiscernible] they now little has on come And just more been have capacity of is the

Fritz Holzgrefe

perspective. our Not from

Christopher Kuhn

Okay.

Fritz Holzgrefe

to provide That's that. equipment we paid additional service get asset we for to cost And make when a get sure there. us services to investment. that. And a service got to valuable providing customer, happens, the employee require need We're paid the to and an we or that make for

Christopher Kuhn

guys. very much Thanks Great.

Operator

from Your ahead. line of comes Suisse. final Please Ari Credit Rosa question with the go

Ariel Rosa

want just morning sure I clarifying make on difficult managing one question. Good I correctly. heard had environment. through to and Great. a congrats I

basis So OR you said quarter first second to XXX quarter. aspirationally, have you would improve to look from points

heard to of improvement. point if XXX like make I I it years, sure wanted the closer right kind two a Just to it because looks was last basis look at that

your Obviously, I is that and but understand be of you variable Thanks. of and or that you split about fixed on up how kind very of salaries then address step helpful. between kind where or sequential if And costs could think the be in what mostly understand, I kind want to would taking mix? would that expressed guess, item would a your is different really environment, that benefits of kind line response,

Doug Col

I terminals. additional a nice a bunch improvement is of the volume driven at levels running new Yeah. OR usually carrying mean step-up step-up and in by really or and we're the lower

a cycle than years. in much we're couple the So the of part different last of

mean, at I of we a yeah, So if good achieved growth if QX we bit base the point we XXX OR QX, work this to in little improvement, revenue pretty that's sequential think cycle. see

of the bucket night. terms fixed said In moving got for keep has of completely then a general, variable because -- it is probably out costs shipments that's shipment. network business, a if don't each directly in which And versus variable, fewer to others quickly you've we've like of it's probably variable lot our come in looks every fixed. even The not there's and XX%

Ariel Rosa

Got it.

Thanks. Okay. Understood.

Operator

conference for further have We remarks. at turn back questions no concluding I'll this over time. any the

Fritz Holzgrefe

forward Saia growth story. Look continued about with everyone up the Thank catching in. to Thank calling participation for appreciate your you, and you. you quarter. I learning next

Operator

That for will conclude joining. all today's Thank meeting. you

may disconnect. You now

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