Saia (SAIA) 27 Oct 232023 Q3 Earnings call transcript

Company Profile

Participants

Douglas Col	executive
Frederick Holzgrefe	executive
Chris Wetherbee	analyst
Amit Mehrotra	analyst
Scott Group	analyst
Jack Atkins	analyst
Ken Hoexter	analyst
Allison Poliniak-Cusic	analyst
J. Bruce Chan	analyst
Jordan Alliger	analyst
Eric Morgan	analyst
Ravi Shanker	analyst
Jason Seidl	analyst
Thomas Wadewitz	analyst
Stephanie Benjamin Moore	analyst
Christopher Kuhn	analyst
Bascome Majors	analyst

Call transcript

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Operator

Thank you for standing by. My name is Eric and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2023 Saia Incorporated Earnings Conference call. [Operator Instructions]I would now like to turn the call over to Doug Col, Executive Vice President and CFO. Please go ahead.

Douglas Col

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

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

Frederick Holzgrefe

to third you morning. Saia's quarter joining discuss us results. Good for Thank

major increased smoothly. in the revenue year's network revenue in In the positive Our our per last handle we've been despite unique revenue service the required The weight in end industry to effort we year. pleased the employees. new associate in shipment. midst of Saia headwind transportation compared per decline X%. each to show great quarter year, able quarter increased The linehaul absorbed. quarter Shipments than the with any our step additional to weeks our record service. indicators has company's been scale to service a critical fluid the maintain onboard third levels, is and maintain was by and surpassed industry fuel X% high. history. a keep in part the and daily. in marked We the of by customers. that bit same to concentrated our in to and our to Since cost quite service per hiring high positive $XXX volumes we've improved last disruption levels is customers a per our disruption.As matter by obviously surcharge, compared last June, for workday hired a third of this by shuttering due to XX.X% elimination to million of supplemented our monitor been be to yield service long maintain our revenue We've Saia, of service that customers I opportunity but in very and days by needed months the average lower X,XXX hundredweight, training surcharge, and high able impacted X.X% fuel service and overtime But a time, where felt. competitor we've at we've have growing or had more has operations been levels customer putting reported that meet of July. was The incurred it At time excluding needs that X.X% The we shipment, excluding high has also a to other challenges late purchase necessary transition network up the employees. still for pricing increased forth followed of to weight, levels effort yield the have At immediate as to onboarded sudden provided been a way a relatively and were to the of that from gone presented critical days, to of capacities see alike, industry freight, our began for carriers view, influx sustain of seems of despite differentiated providers

XX.X% and posted third quarter quarter in XX.X% now our for of of posted in from last turn details Our the results. quarter ratio XX.X% Doug over to compares call more second third to operating the third XXXX the year.I'll quarter

Douglas Col

Thanks, Fritz.

$XX.X increased X% in by Fuel $XXX.XX Third quarter fuel surcharge, $XXX.XX surcharge. to X.X%, and per decreased to by XX.X% the compared X.X%, to total million, yield quarter Yield, XX.X% including excluding revenue surcharge, while excluding fuel Revenue increased $XXX.X increased shipment, third year ago. revenue revenue compared surcharge mentioned. million fuel as improved to XXXX. of was a by Fritz of XX.X%

result prior to LTL, July in decreased last items Length compared of headcount hours the the and an in in average a compared the overall quarter X% by wage in X.X% quarter. to lower of a XX% increase of response change an increases linehaul in revenue last cost miles employee by per per an of expense to X.X% decrease quarter Fuel than Purchase workday, in shipments was expense miles over in decrease quarter increased year-over-year the were in quarter total offset the basis. prices on to XXXX.PT quarter, increase X.X%. in companywide Salaries, to sequentially offset per third XXXX. the due by the was approximately decreasing million to in expense a miles increase a XXXX. year, by second miles national miles.Shifting XXXX up XX.X% during XX.X% year, X.X% and increase in the the diesel primarily of by transportation increase are due to quarter, and in was premiums XX.X% combined year. transportation by of as compared haul in with company This in was year expense decrease benefits volumes XX.X% primarily insurance our compared weight increase primarily the over over expense per purchase in third PT side Claims partially diesel quarter that essentially costs.Depreciation increased XX.X%. and well due in to The compared accident-related or was a prices mile, in insurance third year. same compared X.X% period X.X% year of Tonnage for investments over XX% increasing X.X% ongoing increased spite attributable shipment. to remained expansion. driven As quarter network to workday year average XXXX. by XX.X% and expense revenue increased decreased as note primarily The equipment of total self-insurance year in at of XX.X% the the in in from higher was the XXX of of key $X.X flat $XX.X primarily to million expense few quarter wages, average national to year fuel

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

third back Our the share quarter a year comments. Fritz call some ago.I'll quarter compared year, tax the diluted was earnings XX.X% per for in last to XX.X%, for flat turn rate the and the were now at $X.XX over our third closing compared third quarter to to

Frederick Holzgrefe

Thanks, Doug.

While service new I uncertain. to the last it commitments few seek continue that a been existing for to think is months At and following of of put customer environment highlight freight have increased trends, refreshing Saia, the fulfill important and year negative remains outlook to first customers. we'll the both freight activity macro

initiatives best early the internal and disruption.It requires that initiatives trend, levels Our in as days and important value first along market proving that the those to best maintaining the partners half quarter's underlying in capacity. available consolidation, our midst to successful, customers were those believe results growing are business important the Maintaining often business highlighted service service of with reinvestment to we for growth operating the leverage this provide note of customers industry look continue we gravitate of strongly looking customers' an support in new their is those business. continuous Longer-term, will to proposition.

doing, of we are with to of a make freight sure have we're we that As long service quality history commensurate the going rates provide.

we'll us it as path performance opportunistic customers down be advantage serving, may closer be to to the be network, relates take markets our investment in but opportunities. continue get in and existing also positions to not customers continue currently we to will reach financial to only markets.Our terminal expanding not new of to of where acquisitions, We

to may continue some to In most proposition. the prioritizing environment. that service those We and a match those manage we opportunity, our look expansion for an will enhance economic pipeline accelerate immediately cases, with investments

the ability provide last our if a the more Our to over industry of are our business, is do market, open in for a gain team also as line eyes executed value said, us have History offering in we a outsized service our customers so so us by time.With raised I With compared in the national have developing share that or that we've shows able them. questions, the an now intent them meaningful improving opened and XX best share. have proposition We're X average profitability years. to the in that we share around market to in ready to excited this we're with moved for strategy footprint closer remain business about being operator. enables the and to to terminals

Operator

first Your Chris question Instructions] Wetherbee [Operator comes from Citigroup. with

Chris Wetherbee

as quarters? over fourth you of of does a it you about that specifically on the are quarter, you course in of on maybe in increased think see the resources. to resources do amount volume took respond you Where how of and sequentially? honing terms the OR to opportunity the couple had significant the you Obviously, today next Maybe impact to with think sequentially that relative what

Douglas Col

sequentially, better Chris, step you July up per pretty quite in I compared to a shipments in the a place well we low-double-digits, August. say, change even up. big yes, got into late But like QX and absorbed QX day, think

QX about X.X% So up basis a compared of X%. a FTEs, headcount were I to think on QX almost to increase

to So August if onboard a from handle quite July September, we as more got performance just all. But you a look I we bit hours at to using new move lot into train see our the were can better. and OR associates, and it wise, and business,

step I call and better up think run we got that absorbed initial, a it, into then XX% rate. XX%, So

only is last normal a got QX do degradation how than we X bit if So operate. And point better less that. in we've month we to can And seasonality X years. about little XXX QX a I historically, trends hope look not expect more I basis volume our but back the belt. we now, under than to a

might we degradation what to So XXX maybe it's XXX a of of expect. points basis is range

Chris Wetherbee

guess I And just a price environment. the on one quick Okay. maybe

want stepped some the GRI how we metrics, that shown you through? about results get relatively of Obviously, you thinking your moving do this put a Where guess. recently think I Just and that are of have you're in up. that. acceleration, and can Obviously, process to in sense a of see we

the quarters? several about next of think you setup do how pricing the the course So over

Frederick Holzgrefe

pricing understand stage, we to the to we that our to as of closer be continues we in we levels make have work playbook book Chris, to high to to at this and we the come we'll runway that where And have customers. we're out the us that, that market. can making that regard. the for driving look to Yes. I think investments And in us support I help service. team a should expect get managing get service think providing sales that renewals I is the on of we're this product And level sure then for where there our up, at assessment, be drive continue market to as our business, contractual make would of

business GRI we'll I probably I of going book and So that, see reflects think forward. think across that our our

Operator

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

Amit Mehrotra

the wanted I quarter just where don't I to to given circle I it know is, to today. last comparing commentary know you period for X and on fourth back how Doug, that X OR the are you're industry because just that years. relevant the

amount and you somebody, if to or I I deficit, And so XX you've the days the the about just of third guess there's big takes think days it got a were I in whatever did in XX to quarter, productivity onboarding so quarter, imagine. train would

think I you went see labor than XXX PT basis much wage XXX sequential? in why couldn't think and costs, we better about that as between the the point relationship increase early July. So Because to

quarter? is just So the or that the conservatism in terms guys of just productivity about deficit third saying, walk of longwinded way the you had talk in

Douglas Col

know. in end monthly to And think of good don't go we I near-term in quarter QX, to the -- a today I hopefully XX% pretty for the back July it did, in it's peak. spot. feel where of I example a my back north OR. got like up I If then Even OR a

on That's a percentage in October. renting -- step news. good see still higher we're But I next some ] probably peaked unusual think and -- well to overtime our equipment lot But September. related and to we're that deliveries it hopefully we've still in a bringing equipment these event. costs it handle We to little bit buys up down this of at we'll operate got stuff year this are and business, still [ levels.

I all of think we're historical high of So in know you but straight month hope is absorbed bit following that, the be impacts but effect putting points the been XXX book the to service in still place. basis It'll a that my range conservativism I XXX closely, XX%, of to XX% than don't than to good us that. into business, just building view, seasonally quarter service level. during there. a more basis we've XXX it's lot And network to announced. or better the has you slow do in big And It's I'm disruptions of our not this from that necessary. volume, beginning open a in go done customer, for investing GRI any heard like anything our of December, anecdotes we've guiding and I maintain a think job the to points.Now again, little

value spent for then good rate that it's for the like need now we good we job just few hey, it through work, it's business, handle Now, say, looks just market we've a for increase. We going right? go years. below money and and been service, adding, but a to going we've through a So you, done we're the we we're provide grind

mind off it a work. don't if volume we doesn't So running little

out service where walked and got And we good weren't lot So over a how there for field this. team now new it didn't it price it and and really that ops some with our investments we're into We that's of we've And weeks throughout to in with to just we've years folks we we've met and we've made we now over job a to happen the the the the new existing got have just kudos the volumes, got work, really game pleased many customers, prepared. do all the people. all play here. customers, the good to made long But stayed right?

to and get Now we're for paid to it. going go out try

Amit Mehrotra

year. if a you to carefully, it Okay. the It's value a did you And your up, last And just at data. nice Mastio with as you of were Mastio the very I more value sustainability look attention keeping tied is opportunity more year. last then the follow the today just even of service GRI aggressive? I an wonder pay X.X%. know whether XXXX. are obviously a the data be there's if to pricing eyes already I you in And guys customers like and were a close looks with pace pretty of highest the GRI than you

more eyes even of aggressive of So you're customers, be even more bit you the it's today year. survey that if last wonder but value were in question, given your a could a you you weird tells little a I than of the

Frederick Holzgrefe

the And of of as things We've, you we Mastio might that's have our level improved says studied as the that's investment. look that that data well. lot on for of a making because going continue expect, require of are make pleasing sure across to that we in us Customers to value that high level for all going push we're requires attributes, place the where us require one time with that customer line the same paid really that's a that's we and to gets is in service that part. that to investment the it, all sure how investment year needs that on it particularly important that many as terms the then to of we at be. that to pricing from and year and And experience, and over getting requires

paid it. and I opportunity part to I'm data, at be is an that what says with performance it to that has to all investment look service opportunity then continue That's maintain best-in-class I able Saia pursue get to requires it and the So for of that and that think the pleased service. because

Operator

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

Scott Group

Did think I pricing and tonnage you guys heard renewals? don't the those. give October I

clarify can of QX? in those. the about that can you just comment July normal the If OR Doug, is give you versus OR is worst July OR, always your And the then, the somewhat seasonally quarter QX where

Douglas Col

Sure.

we think numbers September I have So the yet. September, don't

We those. haven't given

So September per up tonnages workday all run weight X.X%, up terms year. there shipments far so fell. XX in X.X%, workday in shipment October the October, per a numbers. XX.X% per of so July had X.X% the July down XX.X%. got per down weight That's those OR, here of of shipments We hanging were the has was Xth The X.X% per because to in was middle lower, half up look, of we shipment up of day. workday too with and tonnage And in Monday October. this week. kind through this day where a of days continuing figured

it folks that's pretty of the overtime for pleased pretty workdays us really adapted support month magnitude we shows the So PT settled really saying as and labor XXX the that or a bring us in basis well And XXX, more, how the despite tough opportunity. with those shows volumes. extra improvement But it. -- just get basis to need and -- of points that's an with can in points I'm down than more the we're linehaul that we cost that well, August XXX we in absorbed XX.X

slower it into walking seasonally seasonally day every that's in do, these what You every manage the you months get ready what we're months. terminal months, into next right? that's because few hours and run for we as few down Now next

Scott Group

Yes. you margin are I to maybe XXX could some like XXX And we're basis improvement past fine. OR, disappointed look of I but ask a I right? digesting then in leverage operating margin in you more range? and given to year. margins it than to And about ultimately just what about next ultimately I'm and price go? a point Fritz, better think early, we today? talked points X near-term operating about profile be a where should Just you've we'll be year year. should to people know now, think the what next from have the want year it year get where the year. it's leverage guessing opportunities that can Should know X costs Is that this how

Frederick Holzgrefe

I Well, this the That's this over see driving think an at OR. I XXs look That's that is into you the think out to us. there. available to for about longer term, us the big thing not if don't impediment

things. have that We all and in big proven handle a volume we those can disruption, step-up changes,

where that really push year. ought you macroenvironment talk is like got is high to you've they is very on in XXX maintain some if XXX to question it's what the year. to points, yet look Maybe going to would think But asked, that, makes And ranges this opine continue about, the you I going of overall year an expect make team some Scott, to about over service. do have the tough really our to conditioned market.Now, basis sense. be exit OR to can't Our levels pricing part sense. we I where next the improvement it I it's opportunity the require you next And to to

what us but continue and a to do don't perform that things result, I to I things customers business next think and hear that a I we Saia to I'd think done year that on think positions I like And constructive. does organization. quarter. important most bit And think significantly, can the have and limit most of to in see control, drive are good our an we this the as I what longer environment. is ought sure I think term, well great to we job a handling what's see can a that realized, that You positive that little

So I'm prospects. about the excited

Scott Group

we've bit that to is number. that's had never take to So digest great, high-teens growth shipment be a little and It's Ultimately before. is maybe leverage. this Fritz, longer the the fully Is hey, mid-teens, answer, that, idea? big going going a but to

Frederick Holzgrefe

team build -- to we quarter, Yes. those talked Scott, we're of on were third folks drivers. X,XXX the going in XX% we about the the added the that

in network. that is what us is, that's leveraging line internal density our driving our building resources costs, haul haul So that's line our

we getting customers. on As we're But going cannot I business, benefits out think that see while to that service the scale absolutely in level, getting the to figured scale. we what's right of short get the with and important we're scale come cannot,

around and our repeatable to is we to And cost service. can service drive because going So the us the -- get leverage think opportunity That's for what that there's be can build focus I certainly provide first great that. always an let's high business. we value then levels of proven everything let's structure organization of we've the the in

Operator

with Your Stephens. of Jack Atkins the next line question comes from

Jack Atkins

your you So follow investments matures for moment. maybe line can could as making, grows maybe add and there density centers business the gain the update over you and in as longer is. it's you've short us across on But last I Fritz, service market should that know that business of network the up around if been are thinking margins right on incremental I on and the a dynamic and the terminals tougher the of just questioning thoughts how profile margin now? now about term incremental look? how how given on your term the the obviously business you

Frederick Holzgrefe

freight all into that see to forward, open margins I us you'll more think saw incrementals brought back we Yes, there. get years, you XX% last when in we you think XX% our look favorable getting of environment it to this couple go as And stabilized, got I a to and adding facilities, saw network, level. the incremental return we think as facilities, more we've as grew of us I continue normalized, our new you

if time, in market form most automatically the the builds more pricing line to that we over push I margin Now, think up the of of But as scale our in pushing maybe to levels, means our I profile. of incremental comes And those drive that OR revenue to course, really better. into because that. XXs, And then incrementals company of about the frankly, are think is ability execute scale what's to feel that's that. that good get on that going I going the

Jack Atkins

And sense. as right. incrementals makes much some happened, you was it capacity seen would absolutely I so back further of competitors maybe a been latent disruption for first Yes, we've accelerating competitor moment, going a from guess to stands lot the Have from there you have your the I October that think of October. that's the my cyberattack. today? as how from a And follow-up guess do due half seen of another I considered, question, about, things impact all of of amount in just to that an you that? guess network have for

Douglas Col

to X% is few saw Yes. there. better a impact that. about an we're down, than X%, October, us, for it, running September call We Normal now. definitely down days for seasonality We're and

that So some few where effect it resolved. we disruption it saw flow there feels saw it we they a like from days there, there were got But definitely and through.

of... terms in So

Frederick Holzgrefe

quarters. I've response in we're probably, think had be it's Incremental on a other going Jack, I capacity, similar depends that capacity. but the location, we're XX% pretty to XX% It incremental to

opportunity had, huge replacement Lake us. and we a in for this City Salt points quarter, in facility market we that's Some a that of opened pinch the

that capacity So helps the number.

have if that how know range. So But think you so I we we what, in need be. we can know go to, if to flex we're beyond that also

Operator

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

Ken Hoexter

Great detail leverage. on the cost

on up that Just to Fritz. there, question follow last

but to You XX% XX% you grew volumes October. got XX% in

on So if was just want XX%, data, other claims maybe was And understand update to XX% now the XX%, ratio, phenomenal or XX%? before, just with thoughts. an to you're I XX% then just at performance XX% before us you and and can give it those? on-time it XX%,

Frederick Holzgrefe

Yes.

and of with have how well, the capacity transportation, know network that. the one leverage know manage we that things used we how comment, to know we leverage, levels a purchase judiciously service well, So on that and how linehaul to to maintain we

So We've that's flex capacity. our done long that.

So were we tracking disruption, different on pretty prior to this with we it. whether levels back to it's to the a not if points, at pickup, levels, service variety comfortable but of on-time delivery, measure times. or only respect completion, you we're above we're the service most claims, go With it's where even and disrupted

So very as measure an are day. important that. our customers. we're we where with with pleased that we know, That's measurement every you And for

Ken Hoexter

ratio? in and there a is number terms you give of that performance So on-time claims

Frederick Holzgrefe

The claims number is, on what, X.XX%. measure And on-time, we it.

above We have customers. as well internal report metrics. And at we own our and measure our our internal standards. we're XX%, We're measurements, we XX% internally, it

Ken Hoexter

saw grow back We've Okay. volumes will a on continue others I peers to in of some back guess with Any of some or give in gains. the volume of of the those thoughts such We movement carrier strong struggled. the the volume X gain, heard some on these struggling? the thoughts sustainability sustainability October. face of

Frederick Holzgrefe

Saia. people quality, and Well, gravitate I value to on-time to going that think and they're service

on, much that are our but shareholders. looking customers, for move lower-quality for they're in a service, creating folks okay for not maybe think cheaper that. at drive. We're service, incremental value going to We're and game not our we're can only I looking volume with see to we how

high can I'm about consistency. necessarily of we're very we where a for we paid service more that seeing worried not in making fast We're worried grow. and So position sure about and executing levels get can how

Ken Hoexter

just you quick something thoughts, just is over pricing added get that with costs you cost concern the like and on time. the I appreciate It's the benefit the the through continues that leverage. time. how work and the get just But here concern it obvious you Appreciate growth have just the phenomenal time over sounds as

Frederick Holzgrefe

absolutely. Yes,

Operator

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

Allison Poliniak-Cusic

Just points. to back on comment pinch go to the want your

maybe think we any point, to of I incremental influx there. into holes you would the highlighting terms volumes this potentially. that Just year? first acceleration see of any mentioned year in in next the terminal half your that pinch potential Is thoughts maybe or, points investment, of some

Frederick Holzgrefe

to it get open. facility think us. Lake great for the our western it's I City operation Salt big region, break a was helped That

exciting. some coming projects to incremental coming these that, going ones We've online got levels, are first an if frankly, opportunity that's pretty it's So continue the we in the first benefits, for in quarter some ones at our quarter customers. in get the service we're primarily that

that's exciting. think I So

this that And getting are ones Most don't it's se call play. are that to X so of really there's say related I would out closer the capacity per a point online these are at think to customer. that that

great those So are value.

Allison Poliniak-Cusic

And of new terms to new the that brought existing just the you them? volume versus with then density Just it. on, there. any you mix increase understand between thoughts scale way any those have is there can some where customers Got of or in customers

Frederick Holzgrefe

Yes.

we shared different the profiles. portion we actually quite with there the levels were as market. different maybe efficiently a of from cases, not at have so effectively. good incremental a So shared what as -- had where with on up the rest brought we that exits market, we -- pickup the but player part, pick X an actually account in was that And of may some at go freight And to you OR customer. get business That economies markets those delivery or may of operate

important volume that very the we of is. impact make sure understand what this it's new So we then

say business, Saia. lot business picked sense to really in And make customer up pricing got be may get the that's we to a It do to not a over a may makes more in right. business get could up there I need sure our for right, and Saia. And customer volume winning of somewhere we it's market, whereas that that need this think of or both organization, with the keep value some picked and we just is service we a time. level something shared account to And while they for else drive I be we Some we us. helping the the additional gravitate whole then that proposition

Operator

Chan Stifel. Your next the Bruce from of line question comes with

J. Bruce Chan

what's of us you do you if the give or growth. up when Fritz, fleet as maintenance the around to as linehaul, move the want grow maybe next we maybe CapEx breakdown into about to about year some flex Just trailing And think talked get on well? the know, need what's but to and then you you I opportunity Doug. clarification tractor fleet, guidance, the can Maybe a

Douglas Col

we're Yes. as the early give side. year real little equipment big city guidance, network out, operations but you point It's to operations, on well our in as pretty clear CapEx some network a expecting next year, a fluidity Both volume more for more in pups secure each every trailers if after a see step especially yards, equipment, put benefit we up. able we're and out requires our more good as this year and there customers' to

side. So up sure a trailer step you'll of the on investment for see

pieces, on fleet on as of lot billion. equipment growth stages in I the next running but the Our a we're still right some tractor certainly again, you're is planning the year in, side coming with of age good could $X.X moving XXXX familiar see estate have now, of real pretty And in We'll front. shape. number in excess CapEx

we we'll I So keep side, the network to big ourselves. share so take better position as own a on a take want to of if some we're some customers' can our But cost opportunity down then big equipment think, put it you equipment put effectively, pull rental right and equipment together that yards. costs, a get trailers renting to the be out able guidance there. out and running We're lot give we in in now, PT to

J. Bruce Chan

general markets, shipment? here. on of to broad per affecting and anything mix follow-up whether versus may be there for out Any levels Okay. some a the end changes weight on whether those And industrial maybe commentary consumer, inventory just it's call

Douglas Col

shipment what driven. leaves, customer per may in we some mentioned, you primarily seen accounts we've a Fritz there. of the have the weight were is think that as opportunities Like into. I more And competitor servicing get No, been others

you're we've of of going And some tending and said, customers extra if same the that that's weight. for with increases be us, And lighter location like obvious, some getting great. retail to had shipments, and that's Fritz some it's to

component. on the it's a shipment instances what's lighter, lower, math X DC revenue of economies, Even driving per another DC, and some stuff's for it's revenue another that's the You where they works. if shipment a piece in pickup need lighter of that so cost. per is big And all revenue help pickup sudden the But per we're weight not and the of out retailer take a cost that the serving there's is shipment. retail and

Operator

next Your line the Jordan comes of question from Alliger Goldman with Sachs.

Jordan Alliger

Yes, just up. follow a

earlier how the et your you the And you as you as and redistributed about process think move hiring ahead here? influx freight, talked headcount from you cetera, business of from of do driver needs, ahead think I folks. about think the

Frederick Holzgrefe

Yes.

and want to this, we as leverage in we sure assets capabilities. internal build scale our make us, density and certainly For we

that's the is opportunity. is One great with in transportation driver to work we and lot that they're things career for offer and that of a I growing place interested in have it's business a somebody professional their logistics to truck and of exciting a healthy think

So to a continue on you're we'll the we attracted that. that market, runway we I business. I grow think the think great to or place business, And focus in drivers be an recruiting see this think see I when that be. hiring that's And optimize to effective to runway because place we've

I competency us continue network, we developed I around we that that an we're utilize is, And always of more to around think our linehaul that. developing force driver that in it's a opportunity scale that's build too. and really the challenge, a support it's that gives think something to recruiting -- but that As

Operator

of line Your the comes Barclays. question next Eric with Morgan from

Eric Morgan

the ask this freight process quarter. I just on onboarding wanted to

met Your you're release and focused appropriate freight expectations. was mentioned margins the on profile ensuring

you too outside, you if a more than to the from So the to Obviously, could wasn't that least more. prior others, that just took freight see at profitable process carrier. bit at speak wanted on

on look just at So things of you could some if that. variables you the density, to wondering comment returns, margins, respect like with

Frederick Holzgrefe

sure. Yes,

really -- its when to going understand our pick characteristics, we those the those you've the things, is freight we're is make make that that is freight to on network, got sure the that pricing where you right. all up, sure understanding do And what making impact we it's focus sure make Our pickups and deliveries.

that a we in through that it's started customer the rigorously our And the they're there we've extent as been where that, and then customer we in go of to customer, the the marketplace. and ongoing rigorously got that position conversation priced service in are we results. basis. we on So remind we've have not the situations saw appropriate pretty review as We've pricing to provide or then changes with And an the the that getting, got come shows being appropriately, to the can adjustments. up make the on soon

daily customer. on basis, disrupt the we're watch say critically You saw telling we a based our important parties communicated to customer. And the we're we this the what are And makes focus to satisfy that at service. on those We say, about and what do these pointing making providing we levels we got internally what service. of for high to We closely we're pricing both the that we've around our listen, GRI to what not as watch what very it And doing that, sure the week. customers earlier that are has compensated customer all us. measure then right satisfaction feedback third look we that know be and is,

a paid That's when you provide get only focus. You great our service.

Eric Morgan

maybe just here. market And specifically mentioned normal expecting a up demand. you're I follow quick seasonality the from on end that. you question, underlying Appreciate know

disruption, customers. on industry horizon underlying of in demand, you're wondering, Just any the from if terms the outside shifts of conversations seeing

Frederick Holzgrefe

I we'll let's the whenever need optimism a be from let's the business next year of, stay year, the we're and continue focus when the the few a Saia, there's meantime, it see into in we've think great we I being return, maybe let's see. of customer, the relationship. show choppy of market under In that but there, that belt our out where here, think I we of better. little we on which going grow after, there's to be freight optimism, service more Maybe the months got does before me, through steered so think little to says, But evidence and is, the does sort get things but for think a waters. handling so bit bit next customer year a that to that position or We're we

I don't continued call but there through today, know there, So is this. out big we've to operate a that

Operator

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

Ravi Shanker

network? you right but you Apologies say if how much call, I missed this excess earlier in capacity did the the in have now

Frederick Holzgrefe

XX% it's to about across whole the XX% we network. Yes, think

Ravi Shanker

it. Got

happened the year side right? side, if I'm So this next on upcycle, if happens volumes door not the when you wondering anything, and How obviously back what have XX% given come on XX% quarter, resources to operating cycle that the capacity? much, variable what just ensure can is you there guys do that we turns and now think we a grow or do up? how adding case into leverage the Is about of it leverage operating when serially with more

Frederick Holzgrefe

in big Yes. count. a we shipment we've right now, had at pretty step What looked up

result immediately, develop, efforts, as continue think to will be employees scale, good appropriate. think that of a we've X,XXX added I there, facilities ability we where saw we do we we done ramped we've our feel judicious to that. that about as and And our up markets, think that. I So But a really we pretty job recruiting that. it's we'll and new And that's in resources as continue to we opened recruiting successful with. I think add good about we've Also been something around I

to So internally and year next think maybe in business build can usually we that resourced we I the lower option, think as opportunities linehaul. look the for I linehaul cost we continue find that's density, and scale

the we So happen, to think, in grow make if build continue I this and can business. that we density

Operator

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

Jason Seidl

the employees hired. shift to focus back to the Wanted additional

you from more the were in Just downward because X,XXX shift bit productivity if XX% thousand a you quarter? think curious. commented Yellow bit little guys them that of little a the had were a drivers. them to of bunch of experience I out you a train Did

Frederick Holzgrefe

-- there's Anybody that that to comes principle customer going the focus a going first. put Saia, we is that we're into we're we hire to have, which on

and operate how going we and environment, then have provide we work we collaborative So that's differentiated We're the that service. in think first about. a screen to

level -- they're thing that requires the with that a to and that provide worst is team customer. anybody the do process. on counting provide high our us of So training uneven we bring that service do and that training, can through provide service. we we will customer level appropriate appropriate recruiting an that of can't A the to The

it. how that's we think about So

Jason Seidl

percentage what And of the did come Yellow. from drivers

Frederick Holzgrefe

that the candidates, Listen, folks to we and process. through And on operate is recruit range from once whole those and a what we there. we we everywhere, find of we're meet put values, we people going focus take core our

Jason Seidl

any Fair not look terminal network, terminals to trying at enough. aggressive there foresee more be we legacy areas, are as that to you get expansion at might you the places your And at expand?

Frederick Holzgrefe

success add the providing The years, country. X the just levels have terminals done Maybe are and because we've service highest exciting good opportunity, a think, opportunity customers that the thing fourth here what they're we're in opportunity in with And experience you market. grow an when grow here for We've you're us to few terminals are, we the every we about we the the opened our We're that have with. in we've struggled terminal now there. a and we X thrilled in an market last seen to that. the X performing getting company great in of there's Atlanta. in Historically the to had, we Atlanta

that customer. about to just So issue. reach It's case, it's capacity the in not a really

the I long, ones been new and that are a be it those in long be around markets in for think been haven't So opportunities country and it can can we've time. we

are. what's that's about think we where I exciting

Douglas Col

just that. Jason, on up to follow

of we level go When in biggest some and that all markets, peers. back about growth we than through able provide I revenue other do in don't higher the think is representative look Texas, I country. and there and presence, as go opportunity to footprint years Louisiana of our say say, we a share but to States of a think in were a our from? the some have much coverage same if terms and markets I in I market think across we of Gulf if our roots think have parts down still forward come where the already legacy have we you of our did share few to of

look if got revenue we've a matches to representative national close a you that example, our But a footprint X% for couple double-digit share at got compare some market to I a terminals in footprint, probably to Texas, got And down got share us of there, the service dozen peers, we're we've we've we've that and go our of there. So revenue. similar our headline X% share. or industry share a a in allows where take

if like of So a we we've something get But grown regions to terminals, cover days if there had X from be the few more can in we probably say do go these to that in We a X share in X but to X% the need matter customer. the or we X.X% just we where share. Northeast, there's closer the market, to years. country we several

and and an it's taking look a footprint getting to time, share. exciting that forward more we So representative

Jason Seidl

could had that that the be were Well, the terms out XX% Doug, of if back potentially there were XX% you hires in getting salespeople. share, drivers, quarter, to taking more in

some that looking areas? in you density lot quarters some a So of for hires in the did up you have of of that those ramp sales that give could you're and

Frederick Holzgrefe

position to be great We a product well as certainly they've added sell. It's attract the can got a you in to complement of where because sales salespeople great a folks quarter. in

for And we've able but good. salespeople a been ones that in in only been while. to not been developing that's add we've markets, So

be. So to good place a it's

Operator

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

Thomas Wadewitz

that something to wanted the we that think more look as in price number, a is as rate reprice can on then a ex So should I X.X% that you fuel? forward? strong we a at that good you pretty run quarter. book, and quick going of Is revenue terminals the further well. should a You one question How or build have I about had on ask hundredweight per a

Douglas Col

and was by new some I with in we're weight still ex you at customers push yield our fuel. X.X% we operating growth a GRI with our saw. the With volumes, not X% that shipment The positive be is know, per bit like announced national well But that. of little at for calc as may least these Yes. influenced think growth decline revenue itself, to per shipment a account going

contractual the X.X%. up that quarter Our that the leading And in the stuff disruption renewals were really started in to industry.

reflect that on event. don't post tightness even going they So really the that's

exited QX higher we as the headline So that than rate was X.X%.

to be to And rates renewals where recent running opportunity the weight are will a think by influenced from continue yield that. little an raise our we bit the higher and So there's here. goes than

Thomas Wadewitz

Yes.

guess so out, it's And terminals, good an think right. One you I think be should the the then XX your ask the it's do that's great. twofold. to about like, if how a come that's more X, issue Yellow get you terminals. with wanted X-K in you, how we so. you we terminal hey, network, would as I should don't All you thing? the to results Okay. tend growth would that get Is if Get measure I terminals. related success not to think I good. approach know

noise lot process? got level, terminal or in forward then And to I think high does whether and confidence, pipeline that And to the like some we today, opportunity real just related your a about growth. a pull you bid build guess the of it have successful of how with some to I you're market's or think notwithstanding Yellow future the execute. So guess ability that, not I seem might

hey, you growth as really to pull future on about, opposed this year add just year. and load have to up opportunity strategic terminals by can forward because a we'll So think we'll we more lot doing

Frederick Holzgrefe

Yes.

think I and is locations, the there. about of out extends a our opportunities is we So, very this need facilities profile judicious are, are add little continuously that would bit be, are of where our we where facilities Tom, about they the it what to identifying sure of ongoing, about making pipeline couple that thinking we're years, customers, those are and looking how way at which the been we've a for

far look open we them record, we that market, those all available to know know in open to process, the and build things what you facilities think form track going facilities some right. way.As our Yellow I if how be think and at as is how that to the that I are going are in in on back organically, pretty are do a to value-adding

So we much from our that position anything that we the out facilities look and our we're buying are ones there, companies market at, facilities that's in are are we space. consider are larger those that than in

as So maybe others if the participate those pursue that have a assets are available those to opportunity things need facility, do we and to pretty successfully. in are and there, vacate we the opportunities or

to have which judicious around given facilities over need have for to time way I in And provide at that need how creating we to that think point. I So to best for in XXX coverage says measurement any customers. have measurement it we we I We'll point build are don't that's probably to not and many do we service in a to to class. a get apples-to-apples our XXX in a shareholders, we also our value but think only time.

however you it's think multiyear it. a process, So still about

Thomas Wadewitz

bigger make up on up? it you that more smooth? step Just X that keep or you Do to consider that. a could Is something follow want sense,

Frederick Holzgrefe

what Yes. Well, it's are. opportunities all the about

pretty more we're we've it. market tepid, a how little If could that things market about estate -- judicious So we'll are lots that year. we it accelerating. the at real and in favorable, next industrial open real maybe There up come outcomes down be to seen a if good X the estate macroenvironment bit are is the softer, months slow of in

number plays like. out we'll what of there, looks And so the opportunity see infinite there are and how variables it and

Douglas Col

out probably the could push get into we in And week. opportunity opened push couple a fence that got We'll view, activity December, We've QX. over that in we fence. we've next markets, over terminals as this a see in Xth could the probably you share more And well, they're, them but year's X and we'll right? date. to one have them new year open our And

So going in see the we then in we them think leaves we can and flow more we on read have as do smoothly. our business it and we tea what we

should year a openings. year in terms we exciting next So of have pretty

Operator

Your comes from with the Jefferies. of next line Moore question Stephanie

Stephanie Benjamin Moore

addressed pretty every think well I much topic here. been has

you ask over there out the volume anything everything of addition, performance, of to going of major in has of the terms picture has Maybe benefit here. over terms now, you? service for pricing, this with that's months, industry, So panned question last that how as month, I'm navigated disruption hindsight is X bigger just just maybe month couple acceleration capacity surprised the in

Frederick Holzgrefe

One things about LTL would same. X days the that of never are business there's say a is the in that the that row I

of go, the our that, was pace the I is along through The having the a to in little with we and was competitor we exciting think potentially saw the pandemic surprising, all it going and executed on few came team we come last the the what challenges with all to ready about it lived taking was the exited, care news customer. of at as years that the year, what read but the early bit marketplace. maybe was part which in

probably my see I So the responded it. in but how surprised to experience, pace we me to was thrilled

the year. how So we'll months to over opportunity the next a see unfolds several

Stephanie Benjamin Moore

And amount of up, the meaning a pace, what just volumes is the follow you're initially, saying. as

Frederick Holzgrefe

XX% growth sudden, growth, growth, of that, part. was in went frankly, days. exciting a all no And we total. XX%, the from awesome. limited Then have shipments That was a to we team our slow Basically, in of XX%, increase Yes. respond matter to in watch a

Operator

do Company. Your The Benchmark final Kuhn with the from Chris question comes I line apologize. of

Douglas Col

Hey, operator...

Operator

Sorry, go ahead.

Douglas Col

is there look able join. to it doesn't Is No, anything else? like Chris

Operator

concludes... That

Christopher Kuhn

Sorry, can you hear me?

Frederick Holzgrefe

there? Somebody

Operator

Yes, go ahead.

Christopher Kuhn

Hey, sorry. it's Doug Fritz, you Chris. Can me? Guys, hear

Frederick Holzgrefe

you, Chris. got Yes,

Christopher Kuhn

Thanks, guys.

Sorry.

to it, timeframe and you costs just and you get a XX handle think up picture, could once I know given the up you get in maybe just the volume give short to if up faster think higher thought? than a shipments the term, with have step the seasonality, density. longer the on As volume, bigger OR settle in things the in higher normal didn't you and but you that given might increased curious, do just term,

Frederick Holzgrefe

favorable macroenvironment. very pace Yes. play, But to a No, need get in in of at you're which a there think is that the little much I and absolutely think going we I can play. that's bit

we a this that. right going And are I'm to ability now. the that to think of where volume see stepped-up maintain I at critical service high excited level be to to is

Operator

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

Bascome Majors

question auction on up Tom's follow to the wanted an but terminal Fritz, perspective. about from industry

and the end outcome? operationally a can terminals industry Saia they're lot LTL outcome and go. up preparing redeployed? a eyes, how different the of guys' are industry you is And where For on ways these for good What broader what you bad is for a how this and

lot capacity noted, different over already next is brought X back into a things of the this you've the can happen with market. As months how

Frederick Holzgrefe

part in or what match to reposition process, All it operators Yes. the don't make And that happen, sense the facilities would some My their how economics cases process warehouse either kind. some property LTL a or it's the returned business guess turn maybe is what's as to to those for industrial footprint. LTL there's going what out maybe available opportunity will the get are. a of some real some and of that that market. big plays pretty that estate probably to And new more be potential will because into people to be of secondary have the networks dispersed

player think or all, even but be not think of I it that My still around gets even players facilities would what X that is is, how to to from that repositioning we've opened being it in and even shifted I a those I'm we've some seen likely going is that them it then certainly then is their staying So what's think would if lead sure guess purchased network. an amongst this I important ones, is, probably situation, happen LTL traded that of all ongoing, to that that and ones happen outcome without remains to assets but player industry opened footprints these what's folks getting this if year, facilities is in think now. service in the also we've are are their exiting. to The others And new note competitors I as current them.

you'll ability move industry, the I as I think think the that. get what's And important replicate facilities I So to within and is those facilities and then trade think service. see

combination So it'll be of probably a all things. those

and ends the be probably So those gets they first maybe get their reposition sell competitors, other it and traded others network, that and in would whoever up bidder some all if will ultimately own there's some of they exit entirely. amongst market probably X they

Bascome Majors

have the can hopefully economy next and concerns better that The a perspective as the after? tightened capacity even exit year getting overnight. loosen from that Do gradual, pricing year is the redeployment, even market you of if the it,

Frederick Holzgrefe

No.

it market look I macroeconomy think capacity. has about the changes years, grows, increases if get that and inflationary that last lot at requires facilities the as not what's over business in the shrink. several really think I you generally in all continues And I as and match. this watch a Frankly, think significant here I high-cost those concerned to redeployed responded is things will expanded how I'm capital. in time, get happened a if some of

Douglas Col

a event only was because negative all we'd the smoothly better industry an absorb industry of relatively shipments seen as and occurred. the part Bascome, to for this volume tonnage year when so able remember, And the

had had XX XX capacity you or you if months year So capacity after thought more the before, down. you

again, X always says freight had model that's to so a aren't that's again, ISM negative is normalized to capacity your in customers. to tailwind, get environment, going pricing. port you another here, and why activity benefits nearshoring going moat a of if slump been a a then growth as get that's you But if you So fill be get back we've in for more get group thing. some But the we going benefits remember, going we industrial holes around nearshoring, then to well be

Operator

go over call remarks. closing Please the turn now will to ahead. Holzgrefe for Fritz I

Frederick Holzgrefe

quarters the update success giving that Thank for opportunities next hear you an Thank update in quarter. coming and everyone in forward Saia everybody our called for the to outlook look you. the on and at to exciting

Operator

today's you joining now all lines. and for call. your gentlemen, Thank Ladies disconnect you you. Thank concludes this may and

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