Saia (SAIA) 26 Jul 242024 Q2 Earnings call transcript

Company Profile

Participants

Matthew Batteh	executive
Frederick Holzgrefe	executive
Ken Hoexter	analyst
Daniel Imbro	analyst
Fadi Chamoun	analyst
Christian Wetherbee	analyst
Thomas Wadewitz	analyst
Jonathan Chappell	analyst
Jordan Alliger	analyst
Ravi Shanker	analyst
Eric Morgan	analyst
Brian Ossenbeck	analyst
Matthew Milask	analyst
Stephanie Benjamin Moore	analyst
Bascome Majors	analyst

Call transcript

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Saia, Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] And I would now like to turn the conference over to Mr. President Financial Vice Executive Batteh, and Officer. Chief Matt

may begin. You

Matthew Batteh

Saia's Good Thank me to is Executive morning, Saia's Abby. Fritz for and Holzgrefe. Officer, Second call With Welcome Call. everyone. you, Chief Conference Quarter today's President XXXX

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

Frederick Holzgrefe

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

macro trends remain second averaged our increase the XX,XXX we in reflect the day underlying continue per XX%. to approximately summer. In day our compared per last in shipments year, to last results growth quarter year-over-year the approximately view, quarter, XX,XXX of experienced tepid since While an

the long-term we X our our quarter, of strategy X proposition customer. execute new opened to improving to the and others, During terminals and continue relocated service value

of facility in build seen near strategically positioning our the better positioned terminals, customers. some market strategy impact long-term our experiencing our ourselves new the costs the capped network. Relocations are The value these relocated customers. The the new already Dallas opening part marked more terminals and unique XXXth important we position customers. and us building as opening our capacity allowed in and and serve new has us relocated we fourth provide existing an story While terminal, of see to Metroplex the which and a the to positive market in including was this to added density We've of helps the core impact multiple proximity of quarter to serve are Owatonna, of the of the to to these related Minnesota further the by strategic solutions. the opening continue the as better new our of in offer also key often in benefits, density customers facility our terminal

important results Texas our one our the maintained a During in the which pleased significant into openings, improved new the to our facility, country. was I service we key of quarter. the of quarter, freight relocated most in customer service have capacity and indicators with each Laredo, we corridors to in our upgrade on these see focus also

by $XXX million our revenue quarter in reflecting headwind a shipment, second quarter Yield Our of from of modestly. Operating mix is second last history. of hundredweight, company's Revenue the quarter was increased impact per a $XXX.X any income fuel backdrop the was X.X% X.X% increased despite down surcharge, shipment, XXXX. fuel of in of XX.X% changes length in record per excluding for and million increased which weight pricing constructive a revenue year's quarter second from surcharge, above our X% business. down also haul, per XX.X% was excluding which and or

the since The as peak following: the industry's and see and XX described the in the patterns impacted quarter deteriorated basis is XX.X% results year's last by post to from disruption, of strongest mix ratio operating events. quarter XX.X%. ongoing freight last we QX we've summer's industry quarter first were market disruption. points adjust absorb the changes last second this summer's Our typically

proportionally see our account our review network we've customers last freight X- period, with our we building These XX-month X-day growth focused levers. value network we successfully should in markets. of as and length and emerging a shorter national consistent haul the more and to retail-related on service Over date, high

However, of pricing focus basis seasonal We've historical the margin by quarter this created At characteristic a seasonally QX management last to our freight our year. have points larger not onboard this see in the headwinds which same of we further seen. did the of [indiscernible] mix. time, for early proportion renewals, high seen seen success margin industrial are of that mix pleased at in compared very Customer impact the initiatives our different the in openings. terminal increase from X.X%. We're The facilities. XXX freight. We XXX notably contractual our remained as acceptance our created our traditionally new profile compared mix seen than traditional freight roughly our we same of to business a to to and and all characteristics we've progress strong only increase estimate new been emphasize the headwind with the freight has

in However, investments success. we've new previously been require we've continued years business achieve collectively portfolio. The in the by the see impacted facilities X last OR new overall expect that and the of to performance. years in X at opened the onboarding ago, have a in we've and for discussed we've progress X operated overall training mix or we total. extensive XX opened that and to opened seen But trends recruiting, much quarter facilities that X terminals that terminals our The loss approximately operated like

quarter. headwind the facilities going onboarding these was in facilities for period, these training expectations and increased our in to our the at led to in investments neutral be While being a

expanding network terminal typical. However, X despite roughly openings the quarter years the costs that than XX.X is OR in the mix terminals unfavorable ahead incurring business. longer revenue second open can as of they have and of in the been value at operated generation the while seen really subsequent be of

coculture is for both the to each team market. In and our We in new proposition. down total, years investment We've new in our less headwind facilities, created point for old, this terminals, training the enhanced quarter efforts roughly XXX members which to compared have requirements doubled enhance building than X value to customer year. basis in last legacy the our critical

committed to accomplishing an always are eye the on with first. customer teams our strategy growth Our putting

First that Customer relocations we have several been years, details at about and results. the second the of forefront now during focus second and the saw success last for corner initiatives the the openings our Matt stone quarter our the turn to over Our of more quarter. I'll call over new

Matthew Batteh

Fritz. Thanks,

in an X%, mentioned, shipment was to per surcharge ago. X.X% surcharge the increase, As improved haul XX.X% a of by $XXX.XX to a in to Length facilities in July by XX.X% [indiscernible] increased the offset in X employee by months. increase, a in year is and Revenue our compared X.X%. well prior by the head past Salaries, increased the quarter X.X%, volume decreased $XXX.X average revenue surcharge. fuel excluding $XXX.X key increased partially to XX.X% increased second Yield, increase of expense as by as of XXXX shipment which quarter surcharge, total the increased XXX million year increased ex-fuel a items and to yield our weight the million. shipment. revenue XX of year-over-year for head side compared growth second in including note Fuel by X.X% wages quarter. and result XX.X% new the XX.X% combination fuel primarily approximately our count and The X% $XXX.XX compared Tonnage to decrease approximately attributable to opening is to to per related growth XXXX. which to X.X% few of driven of count miles. Shifting benefits XX.X%, averaged of

including fuel of additional to increased, sequentially expense. quarter, truckload by miles and offset year X% was fuel $X.X miles compared company cost LTL line million and pleased from for increased second the quarter and year. new our by expense to XXXX. other to mix last increased claims miles ratio In estate business primarily with XX.X% XXXX of in environment. expense, in The per quarter highlighting the training and down the was the by rail decreased team in X.X% transportation a compared efficiency and execute insurance see second was from quarter the deteriorated openings, training revenue was the were of miles XX% of and and of year due cost diesel or XX.X%. first open X.X% the of quarter, investments to XX.X% I quarter. was XX.X%, expense of of [indiscernible] cases. Depreciation of purchased challenging revenue and the shipments, technology. quarter the hard members both in by Fuel our year-over-year perspective. revenue QX, increase year-over-year operating and total ongoing which equipment, operating non-asset a combined with up costs and addition, in by ago. Despite Purchased up compared prior workers' primarily PT increase of increased the X.X% was XX.X% transportation increased to a expense employee-related the increased from Cost compensation increased compared linehaul onboarded compared to the sequentially including teams year-over-year volume XXXX. Truck total XX.X% real XX% and while headwinds increased XX.X% was year-over-year second quarter the our X.X% associated Claims to million our and in $XX.X haul partially shipment The team was in to work expenses development result to due a expense increased of costs of higher shifts, activity Total XX.X%

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

Frederick Holzgrefe

Matt. Thanks,

our year continue terminals customer-first we was Every our to to with network. As our is customers to opening new further across approach our and ourselves value position customers. At our celebrate existing opened to customers core provide maintain that business, we to recently an existing pleased focus better important on demonstrate in new the XXXth ability Saia's and and it I this opportunity both is objectives. relationships develop point, with new critically to of

core on industry-leading that we facility not investment years and to provide Our footprint This our and come. we're team The which focus value will frankly, adding service. and strategy. that customers expect long-term shareholders create is are the to focused an value for or a the These for investments an and investment to an in expanding is our customer XXXX. in in is people, QX opportunity requires

are long-term these for service to terminals critical shareholders. term, value new margins creating near are the in both and While capacity the dragging investments and customers in

to closer in to footprint value in our having comparable customer While smaller provides peers the less opportunity business. and new better value are a our opening critical their moves proposition. Every the openings us markets, to success our of some support the pronounced is long-term associated while the overall new with more costs to and an us dense creating core

backdrop operating offerings. Stockton, remains long-term uncertain, opened this Iowa, our our our continued While and facilities the Davenport, in of the service support trends execution week, believe macro coverage expanding in growth further we we strategy. Earlier California

calendar the organic opening shareholders another remains and X date added X have customers the open value QX to our new up we'll XXXX XX while facilities terminal began for our and facilities in potentially creating Our our in to robust alike. for additional an of expansion remainder journey and and year, in We QX.

We and to billion. ready XXXX remain our anticipate great our as strategy. We're our capital to As performance our in operator. on serve for growth reinforce customers the members for customers line questions, now expand measuring to to continue team to that invest and we expenditures open our network better continue focused culture our approximately be footprint we $X onboarding for execute we

Operator

question from with Instructions] [Operator first the Hoexter America. of comes of your Bank And Ken line

Ken Hoexter

good XQ, declined think play to how given your guess, the the you which Just thoughts kind progresses, sequential mix always there, from as tougher shifts? ratio per targets can how the on I that environment, of comps, face operating out, mix you given how going given how revenue about hundredweight, shifts you're you kind post Yellow talking now about, you the see you've into particularly XQ seeing of talk you're

Matthew Batteh

mean Ken. QX at I'll you I if deteriorates or start, typically XXX QX, basis Sure. to historically, look points it so.

go those to XXX the think deterioration on with of plus the X uncertain fits a probably to opened facilities in we another basis all that with in going relocation I for quarter, a points this backdrop. the pieces year, range X XXX

going let on, We wider I'll but But bit Chris that's think everything of a given fair from standpoint. range. I probably view that, little a about it mix range just on a hope the ends the our in OR talk feels it end lower the range. appropriate.

Frederick Holzgrefe

Yes.

Ken, QX mix I an really from QX, business important impact the saw from we it's that to perspective. of a think emphasize, -- to

headwind not handling of of We it the that on provides pricing focused this, We're per QX. freight. into it being se that very to the customers. that business don't And certainly that right? profile in very, and it we're a We're types is of and recover profitability So to QX. freight mix in in a chase out was kind of margin. the to volume, business we're but doing The reality value build of in to that way the expect

with we we've to in don't us. I facilities And be economy, we saw new trend improve. that If So position pickup in industrial expect to that the certainly the great when that would think online a It could. a happens. benefit been

Ken Hoexter

full of guess, year, full [indiscernible] range? that million, your changes $XXX And year? the year the for does shape of that put that improvement $XXX I

Frederick Holzgrefe

see. mean, quarter I execution, facilities the does. for positioned see see we're and think guide unfolds. year kind get for think impact And the operating of this what I has It gave through how I improve QX the think number, QX. be to better focused Matt income mix full the year-over-year, we'll open, I we'll and on

Ken Hoexter

how sequential mix this on discussion yield the the right? of on shift. about side, I and side, Just permanent a And same guess, change

Matthew Batteh

continue a of little I mean can see this. we volatility to in Yes. bit

a find view disruption more bid You and year with you heard freight home, the us a beginning from it bid a that maybe more go all season of these. through took full of very this the permanent cycle our to for or was

we our that So we customers when moving see remains little bit rate increases. that view around is of a give

challenging thing. an customers options, different there some standpoint are more a a be try carrier. an are focused X.X% that are on We have renewal we're where from pleased contractual in our environment and But that with seeing same mix above that number increase those But you may may average. the

felt in a we of a mix, that this the bit little we work any but movement and that than continue just before of see different where view may home. through You permanent just that's longer-term not to finds where as

Operator

next question of Stephens. from Imbro your line with Daniel comes And the

Daniel Imbro

that maybe to follow want last on I up comment.

and what guys you I would start-up from the said ago OR half the think we here that most the to back implied materially half? and lower just costs. out back previous side changed I ramping XX on seasonality days due play guess changed better-than-normal XQ outlook how has terminals thought

Frederick Holzgrefe

Yes.

So think X things. there I are

considered. we So of of QX, like end from mix at when was we we view deteriorated points roughly, mix had had that that an to conversation hadn't from XX XX that QX. QX a the the what will what, That basis look of the was to impact first QX business quarter, that of to and

the loss openings so sort quarter, I keep operated -- actually, that think that when were at could QX. we the online we QX. in they impact. coming looked a that had impacted And thought of in we We X we that

X the into on Now and dispersion build it's this training in around what into based we're opening quarter I wide we're appropriate QX facilities, these think got ones and guide. that this and our that the doing to of experience we've

things those that start at had we not contemplated are -- those things the contemplated So are year. of differently had or the

Daniel Imbro

the into comment from to And that, sure I expectation I mix. Is [indiscernible]? on understood back worsen your to that stabilizes or the continues make want half

Frederick Holzgrefe

a we is And the can into a think -- in business, with we right know, Yes. stays difference this right? had quarter that all it deteriorated now. fluid the that is X bit X. mean is it dealt of does business quarter -- We [indiscernible]? This change so where mix it right? -- as So is

a profile different. So of was freight little that bit the

We sort don't tomorrow. a volume weight again. that mix So We that necessarily different if comes in goes network, our we these same economy of being per know could today's if So change can't improvement the a be shipment that on the and our business. know up exact in a -- fluid see is that would likely industrial this right? direction, back, we -- count volume we that are

Operator

line next from your of Markets. BMO with Chamoun comes question And Fadi Capital the

Fadi Chamoun

different long-term Fritz, the in appreciate we bit question kind on ask the I you kind a weight to capacity of Is to similar after? freight mix if kind the that I forward? load of a the versus be little characteristics can profit we And and of network. per term. wanted over focus on framework area it the entering optimized potentially the is carries where a lighter medium think, the is of the this the But market investments reflect volume a network. in belief this therefore, is go Or there growth way growth a it can constructive going the

Frederick Holzgrefe

it's Yes, a Fadi, good question.

it this. think I in optimized can absolutely be

think revenue right? like characteristics the history very pricing freight continues we certainly that is opportunity I the think I on date, us. think we in is reflects the investment And an I of And making are have a for making. appropriate place different, profile to that the be to much there sure we're that focused we the that have done that --

think than of that's the I of lower sort at more of revenue retail-ish of what that of profile look more and profile the X-day national we X- freight accounts or traditionally you service, if sort weighted have it's sort different dealt the is that with.

we nature an value any the erode of our is deal business. from had part It way with doesn't the proposition. I it our that it's in second quarter. longer-term What on here of So think impact

a service that we great appropriately it compensated if national I all provide. thesis here service at build we the that have that we for over provides look is time, we're that -- the has that we network think a can

And work less. the I that's opportunity think any something we is I So continue don't think at. to

some got work we've do. to more here, from Just

Fadi Chamoun

I Okay. And just quick if may, follow-up. a

suggest that points capacity a bit. mentioned seemed seeing more and kind think quarter-over-quarter kind the renewal of of yield environment noticed market soft. seen we're percent that rational seeing suggests of We've market a that? Obviously, of Are pricing the than or explains peers with the a I a any we've bit in but is pricing sequential been few and data lot to historically. of coming Everybody in little you muted is pricing X-plus kind your pricing. we stalling of the continues, been? there's kind we're little repricing intensity How contract yourself, competitive of sequentially that

Frederick Holzgrefe

think I environment is No, rational. the pricing that very

I maybe see customers got you think what if lane, one lower happened -- you cost option see was what the different different density is pursue they market, somebody there a and offer in Saia they very maybe could cost still does. margins say, They very offer can happen. at structure, network rate achieve attractive better structure that. a could doing than their -- a their has That

a You as tightens sustained can the could to flight service. see that there's up, customers who time over and provide levels industry of

see that's place time. mix . think business we where a I of over our change

Operator

Your comes of Wells next with from Wetherbee question Fargo. the Chris line

Christian Wetherbee

I I the Also, wanted maybe back guess you think dynamic the to, year. I half of facilities into I the mix guess, third in the in dig mentioned X quarter.

-- something close the OR you're is. I of So seasonality range what normal think guiding but within

are the have of get these different see a a in why a think little this into do maybe So the incrementally customer is or third new profile? coming continue Or you there reason facilities dynamic that different online bit quarter? wouldn't third quarter mix you

Matthew Batteh

mean, the QX. ago, facilities it opened X now additional similar, there, a We Fritz' that think, for third second of a XX remains point It X is total point I to into to I building already about. mix, talked line, right? so assumption quarter. our this with now relatively location you Just good week, lot out at But already in and like If that you're additional density you customer's an I there's change mean, a customer. goes economies going a location, up right? pick you're driving could that that clarity

you're a different ways mix shipment going up maybe of of out that. you're and different a picking brand lot on one in new that's where can So in go terms than

Everything with at So into our we customer-by-customer that customers. when facility-by-facility talking goes look on we're basis. about basis, pricing a a it on

little So remains could bit nothing see weight like Fritz change a Maybe changes. that similar, when now, now, said, industrial an really look you it it backdrop we right doing assuming at gets the inflection material in that we're and the little that bit more change a relatively with not we're any per on shipment. the better. But

Christian Wetherbee

That's Okay. helpful clarity.

of from, dynamic. that. -- shipment July trending And how then I we guess, talk your I as get guess -- both -- I appreciate are sense revenue So maybe the guess well could as per volume I things a in

the kind playing of you you we seeing Are that based changed of that -- shipment in seeing are July? business? a Has sequentially just mentioned of that So the per in how revenue profile comment to on about of out? that's stability get the -- month sense

Matthew Batteh

I'll asked ahead May give and April, by and Yes. just yet. been [indiscernible] June month, go hasn't

shipments around or last volume June with days the we So large Keep XX.X%, day, X%. X.X%. and up day mind, X.X%. the tonnage started few over XX% up July, when some about up year. In day, last up few have per post April shipments to in comps a disruption ramp up July really of pretty XX%, per so XX.X%, day, tonnage May tonnage left, XX.X%. up up per days up still shipments tonnage shipments per

And don't they of but So and give much revenue days we where shipments in it's our that's had guide, some stand. trending but today. of tougher ahead, are comp as terms where we tonnage

Christian Wetherbee

could that? we about Weight think just So per is shipment it?

Matthew Batteh

It little of moves kind it's going. in numbers, an think gives I shipments but and you around of tonnage indicator a the of bit, terms that where

Operator

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

Thomas Wadewitz

Yes.

and view. sure do saying mix of understand. can clarify you to on of are Just OR. no So you how wondering just Are Or still wanted challenges the improvement longer kind given year little make I realistic? Fritz, year? think to XXX OR points full that's basis commented full think annual about for you the you I XXX think a bit I the to the

Frederick Holzgrefe

I I the where think the don't guide think XXX not that it's points. I'm full guide QX and trend QX, basis to this in where us -- of year around for that maintain we that at mix business can is said interpretation takes the OR we We're XXX from stage. appropriate QX Yes. sure

highlight good I ready not I'm think full pretty know that's year We so the near that. feel at But is right full se year year-over-year. about we I going And keep that. this to per to can don't income year, see I last we'll whether But operating think OR stage. if around it improvement land probably pretty good.

Thomas Wadewitz

the kind best be place full maybe year So to is of OR? flattish

Frederick Holzgrefe

I from a think I is. And certainly don't got I minus Yes, because lot go, think where know still on that of That's think openings on point, fair mix of amount it is or some But that. operating way. -- value year-over-year. got and at plus going we've we income the there we a the driving are to focus the to creating we

Thomas Wadewitz

way. so thing, just like lot price But think sounds you're capacity? this is I about you're price, of you're really price is is versus offering sound a about mix go it's and bring that doesn't mean want price you adding what kind do doing capacity are element recognizing of to competition how to you the and an to volume in? it of I And there the backdrop the Okay. of that that back mix. the we impact adding It guess, with all reflects

Frederick Holzgrefe

Yes.

don't [indiscernible] price mean to we we're I with not nothing way. don't operate that is -- anywhere, right? in price lead that -- that's going fiber just our says So -- there's the we

the accounts revenue had traditionally. I of field So of part weight the what you of we've I sort larger per some the that described segments like to weighting way That would lower XPL business. think interpret other of of than business national per and is the this bill earlier, -- our we as the shipment is, -- some than have is comparatively are of that portfolio our segment a

-- facilities, that, don't think results We open we now. service kind I reimbursed. requires and things in isn't drive for volume. as to there impacting to But these we open of that open these what's right -- certainly, So things the were service that's provide

Thomas Wadewitz

Okay.

approach your So -- there's to price? your no in on really change market

Frederick Holzgrefe

not. absolutely No,

Operator

the question line ISI. And from Jon comes your of next with Chappell Evercore

Jonathan Chappell

labor on all aggregate, to if there's at the up a vast rarity, PT understand cost legacy any to XQ, But and evolving how start-up begin? percentage a majority versus the as is waiting just your freight revenue, network? of the any opening. way industrial Matt, are while XQ their pursued And costs that that's detail for in at from there other initiatives recovery be can efficiency the of network the you're wondering

Frederick Holzgrefe

challenges the and before to XX the Just the the start in in mentioned which with we business that well notes operated we jump the to through were saw. we legacy at pleased go [indiscernible], pretty that that dealt we in OR, at of of beginning facilities with bulk the mix

steady of side? operate good. around XX, had would would mix, Matt, on had that which is sort have we we at state So pretty cost suggested right the

Matthew Batteh

look Yes. and linehaul it's we talking PT our We use feel cost like years. part mean Jon, you're to us at we we structure. our how the of how And run I network over effectively. pretty

to So it density, how building and an there's there's it facilities where to about it feel that moments outsource in where environment PT. we own of and good we and use with drivers, your your part then you're you you opportunities opening in-source run

once and new provide bit a flow So speed. current offering open about that fully and with little would customer a while day and to you run share a than and up routes right? So value may base you to you're and don't you one, fully your is opening not talk market terminals opportunity seasonally, on it customers. to you've new those These always go it dense got don't have to always you're differently of part an footprint more

of So use cost it. we it's be We always structure. our how about good part going a to feel

cost mean, per material no [indiscernible] it. terms just PT I about probably the mile that change in So how seeing inflation we Jon, segment, inflation type And would us normal of we on what an with on line -- so from X% X% we're in expect. standpoint, a total from to think about from

Jonathan Chappell

at follow-up, we helpful, a trying the about just retail to Matt. And understand That's just doing macro Okay. my is function tend think ideal at in headwinds. focus I'm density specifically in a volume. the this mix some not it for function as Is fill the mix on Or you're mentioned kind the chasing then the Fritz, some this some more And than of of terminals these and just of industrial? of be new better have of than do heavy future? you just regions duration of entering you you'll retail industrial? the just Is point to to point and

Frederick Holzgrefe

No.

I is portfolio we're year. the to of it sort compared right, business last what has -- think overall seeing changed, of mix

as go go trend freight that new we out that the reflects the we're we of and that in into facility So facilities, lower seeing.

we but that's things, and it's facilities, customer all So you are, and customer, pricing not to to we focus I if characteristics freight across add of think over and up thing about learn optimize time, we'll continue sure time, price. there with [indiscernible] that that seek the we mean, in sense get that to pretty longer-term of that continue of it's that longer-term mean value will, in have these a a record, is our the as think requirements profile think of to what those kind seeking, make track we're we the there facilities. I stacks company do our the necessarily is at to we general look I then freight the portfolio opportunity we commensurate that the of important this. sort something our all is capital profile on there. well around over We about around deploy freight to these terminals these strategy. can get you as the best And I in

Operator

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

Jordan Alliger

does it in terminal typically fully the Follow-up know you help much when in be, But of maybe then Can more of to volume there's And terms you take want factors. sense season a openings. get just we wise? color before terminal needs, the a like in? front to in maybe of margins, to other where bit the so of little terminal back on on openings, seasonality give long I could we volume/margin normal how terms how some it sort a process start-up comes on

Frederick Holzgrefe

So it Jordan. kind of depends,

examples. couple me let give you a So of

and opened second X those to quarter, full in company. OR the the its Garland, the which whole facilities of operated the in new April. of in So it Texas, we relocated X was And for we facilities, opened comparable to -- quarter, the quarter, month

that say thing that all that So think idea. was a we I -- in cases, good would

in Dallas say in metro also the we'd OR. operating even facility think market, that you higher the as we XX the look market OR one market, facility year-over-year, fourth points, basis at a by added that in I if with about grew

facility you Texas, a was So the the network. that we had Then which have immediately facility one at a that to substantially an like in than -- add facility. relocation, it's Laredo, was the is larger legacy what

to X of that did So train moving the up or course staff. that over that. we to up from had weeks X leading We

So we staffed it. we fully when had opened a

So this OR that those a into on a facilities to provide expect our not year, quarter markets. provide some will but be them it Plains, we the that will cover in I take that really service interesting opened for the some one Great drag in really opportunities that next will take time. The the company, would time, for little customers will but

terminal freight will operate up will next Dallas couldn't going picking Now It's But up at freight those not the that pick Dallas. probably that year. that in take which or not before. do company to deliver terminals in quarter what the we Montana, the and they probably is frankly, to is in

side Now rest That's scale on to going network. of whole goes the way. the can of the it it, we do

a benefit there's that So happens there. network

want would those So the we in kinds to, aggregate, make investments. of

made. But to like these I think will seem going they or I investment, that because would takes it experience like frankly, And a linear that long-term any if has to know, incremental So there -- unfortunately, the seen we you're not do investment everywhere to can't to is free. be do time vary else customer cost all that key anything that. has there's all be thing would be identical substantial regrettably, what be and to is we've but it make there the for that. a costs

win time. of time that can take an take to immediate we're There some part all So total winners proposition like we've It there get will [indiscernible] developed. value that. [indiscernible] in that's But done and some those some it's be the [indiscernible].

Matthew Batteh

If done challenging we facilities ever year, new in a macro look us this customers. XX in do at we've if XX to macro it, gets of opened XX our most relocate is it advantage a backdrop. great another by for excites far year, Jordan, that facilities a we're opened and when expanded everything that it and happens, the all and locations the job we better, gets about take that's XX new What ready

not Fritz get customers talked in if about, don't just are new you're you like or that customers. markets Those opportunities. with opportunity missed existing these So just

with the cost but market. a not associated there's them, in costs there's also of So being

Jordan Alliger

near-term but if little bit give hint even and Got there there? in guys look mean tough could sometimes could around way tonnage about coming year-over-year those comps quick with July. thanks a sequentially Is July follow-up, a you to I it. up? revenue-wise X% ask a that sorry, question, how just more tonnage from a directionally And of data the perhaps for things or a I think

Matthew Batteh

detail more Not that. much than

You year last it, the ramped alluded to volume pretty substantially but throughout quarter.

execution markets. and while us. great doing the terms in really new on the tougher more ones get X the comps quarter for for this not on, additional So to these but in in was a We're openings, customers the going new much of and focused disruption job legacy our add

Frederick Holzgrefe

the focused place. continue in right we're getting to on rates And

of contract and We the kind -- some over those the to to rates several expect You in saw that rates quarters. the of those would continue start last we'll renewals over quarters. continue, that realizing coming -- the numbers

Operator

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

Ravi Shanker

you imply a and guidance this in kind the and of fair regions to a mix seem same a new go Is obviously, it higher like. thanks so surprise to for just are details to say to what of is Maybe fairly that all bit such. [indiscernible] little time, of kind that at level. it wasn't this of kind customers far. But the And drag the reflective as came because the

just not get have I'm it that the to what just until mix like trying So of kind actually sense looks visibility a on comes do of we through facilities? the

trying of terms the I'm be characteristics mix what given a forward, the like reason And in much confidence industry because it how will of ask of these just to an of kind we price I kind going kind of have as get sense trends?

Frederick Holzgrefe

events for. saw the appropriate general. service time, predating we've think ago, on would said year At offering pretty all same the bounces what look I per our that just for transpire. for it we Yellow change what seen as in So carriers soft. customers they see that or as to industry, the was what look business that, of weight Yellow shipment, been in saw industrial the that around And exited about is should remember as over we we that mix the economy Generally, we in year we a And have that's right? going time expect between

a not So industrial help was backdrop -- us. as kind for the they're big of

see second assumed up. a best strongest the that, there pickup in this focus. are was we So did of weren't customers trend industrial what consistent with see that it the the that a mix we which expecting quarter a have QX, in of didn't with saw would the seasonally market of you national as available sort we that year, go quarters the We accounts that necessarily, developed our into see information to economy the quarter, to we pick business but we prior retail

So really quality service. we and value -- that

mix quarter. QX experienced might we and we in what got than was before stronger was that, than And that. would a you it expected, of have QX out period that in the seen first seasonal have in we different So was more business what than that or

after think exited. I looks -- we're what the frankly, learning about So it's it, like some market still has of Yellow

kind just over know continue change back mix is I of industrial our a that I developed. catalyst it's know how our the focus or that So today do mix coming don't that time, And of number. business for says economy we'll and would on that optimal there's to it's finding the

Ravi Shanker

Understood. some When your helpful. revenue you kind shipment is think And And That's we that? kind function really of kind facility to materially do that these or can to a that when new seasonality beating on you growth of half you of start a will will a that start back are expect Or comments lapping growth openings? tonnage per of think macro OR -- very Is really benchmark follow-up until the the of wait drive maybe like we either and certain helpful. here? need on happen?

Frederick Holzgrefe

at points time, the able value of of important those that to think expect time. strategic start-up these think the terminals can all all the those -- XXX and costs I necessarily Jersey, last past that. to grow to it over could great far to improve. some XXX We've this ex-OR. We all about are continue to of I in big lot over so we part provides back have pretty in think get we're not Laredo. probably basis And in the sorts OR opening to mature. continue of Trenton, I we've us there would are are a for to for that time, about I that and factors opened an of this we be are get New generating mean we're customers growth. years terminals place be those when we we terms opened need to this not improvement midst we facilities ones sort think expect time, point Texas, to our over the influence where Garland, facilities to some pretty XX things. of think businesses X These of expect going the in the to

creation we're us open on probably is takes open. I that facilities So on important long-term focused mean the next we're facilities. that then And thing year. -- you've into point, the value got be to these that will at

the focus we footprint So focus can comes And in thing think place, in the that we're advantage online more it robust don't the that of We in facilities strictly more right? scales that a point, is we on get business. of. long-term a that fact mix when is that's back I QX. when these know back We we're a develops on be helping in take of sight at making business lose what, that, a the This hey, this we place, economy to you mature something investment get as us.

Operator

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

Eric Morgan

on one ask to service. wanted I

the driving in some is your you mentioned on think release, quality I training which of this costs. doubling down focus,

at past, into than locations been trending, of you these than with of can your incremental some So growing per if locations? challenges just on be in a be comments the kind has how may service in the give especially past curious any seeing Just you're curious some new the little costs there. insight us just would higher faster if

Frederick Holzgrefe

Yes.

greater probably get we and have what that on appropriate So more -- place. keep that we've really facilities think these make training is service consistent I such. I making is think important the we're these on sure We're than -- to the focused so opened emphasis -- in as

a a details? than higher rate maybe Matt, you that's So that's been got before. some step have we been

Matthew Batteh

of mean, investment new believe and when XX we people that onboard I to extremely attention and days training and that's in for the in for important quality these that -- the we them. is investment our doing and us value. for And our long-term legacy facilities, drives drivers, facilities Yes. both because with important, we when detail we're

opening, well, and culture facilities when in facility of an new legacy opening to our that's -- there's it's cost certainly, important well So also a ahead investment extremely us. is a you're headwind, because

we're it exactly to XXX before unless a looks came that came open like other all that the going the facility before that talk and one that. us heard it before You've not

able with workers, the value to drivers, that associated we have that sure make everything do to brand the we customers, we to members, dock we're on about conversations long-term job that's we've great provide know because team do. and expense our good our when all and our So our we investment the it, that feel customers where doubled know about can that There's really down a and footprint quality is. but trading for we going else with them opening to in we're people,

Eric Morgan

Appreciate your closer quick be half. from we XQ the single-digit the follow-up into per forward high relative weight much to just back on a declines shipment on that. yields. should to half, first in carry If back the And flat it half the

in when it is XQ the in think should about improve from that per revenue range? growth it in we going number Or more So of shipment, that is mix and see we kind think the to headwinds X% to can't X% fair are XQ? impact that the keep or

Matthew Batteh

I think is that of said, relatively like Fritz it our assumption mix similar. remains

way one for we change the could disruption. this post not have before on through that where So or depending handled volume may a other backdrop. macro customers quarter We're going

we reported that and handle So that. our the on if quarter, if But customers. that total. focused freight the never continuously in to pricing we've needs we're what the we're about expected shy if We're are for getting at on volume in not be going everything that are making not sure accurate or look is handling to you this for extremely we our characteristics the mid-cycle a past meeting going in and back getting

continuously So we're those having conversations.

assumptions same the what in instances, and did may that have what not may a mix conversations our Now raise price you we're we're and get that expected. going go to elsewhere go because customer not that may you always renew or you and sure some freight to that the were about make decide to what we handling customer and expected contract, go have or getting optimize But we we before. with and be that back

remains that hasn't our So changed. intently focus that, on and

Operator

with Our line Kanaparker from Uday comes next the of question TD Cowen.

Unknown Analyst

on mean becoming will much the for the have on is Jason capacity, the like, second the back Seidl. clear I Uday industry question on This is when more capacity we just capacity it be in the guess half. how [indiscernible] guess market more is coming reduction to Yellow be to constrained I needs environment drive and pre I might the said things the guess, notwithstanding does support it expect? those in half, be mix think for to to second growth I [indiscernible] volume settle? and like that of baseline a what compared XX% pricing how

Frederick Holzgrefe

Yes.

have of think right, a there assets number of I the yet, some including that in so transacted facilities. keep -- largest are fair the that Yellow mind,

I So I online. that would know that is say it coming don't back all of

facilities such. around think growth key Saia and strategic are there respective -- and networks facilitate making of I made some their and some are think others have investments I

coming I'm conclude there's think the I back not I would that -- sure of capacity a lot online. that So

are important I remains deliver pricing I mean, we if customers. think I I us and and just very service that a these doing, mean, constructive. high very, the fundamentally, think very facility it's continue Saia's backdrop facilities, about that though to for levels what

I under fundamentally about speaking underlying and that's inflationary things people to that an happen. And cost across structure, make -- So pricing I those that and in terms. similar that I think, requires is revenue generally think think industry, think the

I around don't issues issues for think see of or I potential So sort pricing half. in you second any see any don't the

Unknown Analyst

past catalyst for we pickup cetera. persisting weaker we you in guess though, expectation more on Right. you view initiatives, sort industrial to few the volumes? the years why Even have That's haven't could economy, ISM see translate -- on future? see that And customers Do end. from maybe industrial to we on seen some have of over government a or industrial my that and manufacturing on the been I see from nearshoring, near heard et that a helpful. if development And some the the has I we guess, follow-up, infrastructure

Frederick Holzgrefe

been of economy. a Yes. kind it's -- of on -- I the industrial we kind don't mixed bag

maybe Some customers aren't. well, advantage they're taking of that and are opportunities. but going others that infrastructure are -- things have

have it's I likely potentially interest rate that driven an influence think there. could that

I we control. that The is focus focus size, on can know its things we we the that important thing on

XXX it to will know just when happen, happen it that is ball about That's whatever of opportunity. think whenever that crystal so is, ready and the what So because does we catalyst I back, advantage have or predict it take think when to come happen. terminals we're be going that already I we'll it will does when I for can't but it or a in how of

Operator

And JPMorgan. your of Ossenbeck from line Brian next question with the comes

Brian Ossenbeck

price trended Just quarter, half, pricing second if more going? an trends handle you you maybe but of a are sounds that's you're things fair leaving. customers about it Fritz. the expecting just especially the in as interpretation, the specifically one some in mix better pushing and I that renewals coming don't so, how implication. Can like maybe to throughout it know back these are got what where you're like time, for sounded If second they was a on talk

Frederick Holzgrefe

the we certain our developed for closely. a you contracting we pricing customer a in right? sense very comes volume comes customer, as expect And and When that and made right? intently is, things that the there we're we customer. proposal get of volume So get. monitor I we a agreement mind with with volumes that. we is would know, of put agreements that we we that focused thought you and monitor think customer Well, we a -- in we with the new the renewal included in were what board not place have the things So get as keep to of that that, one we this there's can have And the and to contractual on pleased lanes opportunity business, couple to that that committed on with if that we're we that in see go the customer, such

the what customer just can is that. and they we certainly their on somebody that, chain. At their optimize with with for respective us, find best pricing the them to time, will sort short same they in So falls continue up business, supply is agreeing to because follow of

in lane, around economies their or business we'll customer but lane, a that cost may Maybe get have So maybe we the of densities sort the divert competitor related way to has they that have -- do, that particular freight we between other go specific can customer, that different get don't opportunity. got but that That's somebody's they will a will of different than it's the volumes move a price, same kind a always lower see and advantageous carriers. AOR in more that's gone. structure and a

we a we kind and to that little weighted a and orientation. more saw if account got it's -- pricing the we of more work saw at have there, shift the bit continue national that seen before maybe retail business So of the just we we earlier, business said what just -- mix you in had like we look And lighter quarter, shipment than to with associated to and of on it. which

Brian Ossenbeck

this is I Because ultimately, much and So that problem. the impact earlier was said capacity There's trying primarily that to terminals fill? with you're what think too you [indiscernible]? legacy is the mix

Frederick Holzgrefe

just about a when open And for part we've a got don't a the do manage is with lead have ever X facility, we we volumes that's mix focused that customer. investment year. fact And up this a in horizon. what move this. the When That's a price thinking the deal business X- we're around we and that's up proposition facilities be now. in opened we facility, got changes, think thinking about, the to in, value we about is when and about that just of XXX% how of clear, sort We're and we open to capital horizon. business it it. And with hey, on We're we it. were how we're that's And This second right? long-term that this the long a not this filling to of as the quarter not thinking the XX-year we quarter,

Brian Ossenbeck

Okay.

So no sort renewals half, in of ultimately, change you're the for pushing still same there? the back

Frederick Holzgrefe

If get absolutely. higher. can Yes, going higher, we're get we to

Operator

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

Matthew Milask

teams of truckload much just of economy? at Bruce. into freight weight? it a is some underlying heavier the there some a secondarily, around is bleed drive Matt the to get point? for was on improvement the And getting I With This you anything wanted help sense shift. are to simply to industrial this function Or if how the market mix seeing incentivizing shipment just Milask respect sales then in currently

Frederick Holzgrefe

growth we're the structure and our So sales we pleased with improvement. around performance place in because with to it's that tied have really force incentive individual OR

So that we are appropriately that, think incentives aligned. Matt,

of own teams you that continue to our how from think P&L, to for they and if do will, focus improve they'll -- they'll kind think -- their and know what result. look that -- at look around do here to say their how need their drive and I sort And results QX what they to influence I for to will they that. they're can of do team look they do compensated their OR

the good alignment there. is So we think

maybe of of were I what seeing from because -- calling their think focus their they that you're reenergize go it's after impact available as didn't to customers industrial the and what on the perform kind economy, well and that folks they is. the primarily they'll will them freight

are as to those our opportunities. There I -- about So were because covered that place looking successful sure of those I think I think we what as come in I that to chase feel you part another incentives, opportunities be they is question, it's make for. want those something teams was good

Matthew Milask

was part color last job on degree the just The [indiscernible]? being bled freight your or thoughts into the broader Yes. of

Frederick Holzgrefe

Exactly.

I one market final is think of be. that what makes freight, manager we're to have the how team network they it distribute of and of to freight in and now, how But it's supply pool and such truckload through probably the there we this sophisticated supply the supply they maybe take sort chain, that think, -- I of terminals are sort the or business their chain of their a opportunities is changing route changing they smart, of some, a delivery freight a in get delivery. right is they and pickup advantage on more our somewhere, take fundamentally, our might chains structure

-- huge and sort So into the And it. the But we've what happens as lost somebody to that not like lost it's end on the other LTL to they'll you could and look be consolidates People We bit customer. not there, in the it. just we've little a lose results, parcels we're -- that cost an stops LTL our I you take of environment an could the a it's save influences service tell may think they spectrum, that's of in up how now. margin don't that's right pickup it see -- it's like on part we you set Do the make service the margin. do on -- maybe performance shipment. of I kind on may because of you're of now, to advantage dependent think carriers delivery right those truckload are. I'll of not as carrier the really either. and in for go parcel where

I've overall I right now that seeing that what changes fundamentally, of we're is kind think described. just

Operator

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

Stephanie Benjamin Moore

wanted maybe of a openings. I facility some the to touch on bit little just

Or actions forward, really you where as within environment? progresses, I as But going of the as kind dilutive of a to maybe for now think just function neutral in about continue kind to just you opportunity overall is necessarily through, an change Were is control? this from of think to with open Maybe more little are just bit expectations. environment? just talked talk as not that we there your they terminals freight be the of some maybe open this how they'd kind year reversed XQ. about a it

Frederick Holzgrefe

customers we're a expecting same service we're at going opened provide to that high else. Thoughts we facility around the is they that everywhere that get level

if a of frankly, didn't started So provide we're, off customer and disappointing we proposition. and new the in part that. We're value facility a that

this think or se. on margin, level. I material So it's you things, you do do things we really maybe at cost notable can't training The per the but don't some around

there's that opened I the think the in we've facilities value of are we've that ones some that opened, the QX, big -- those facilities.

facility biggest that's not impact this a of of capital things, about that put into the short they future maturity, these offset horizon. probably potential they openings we longer-term of some only As P&L opened because the help next, develop term. When in and a have in to we these these going the quarter impact think the in our be on we outlay on that of the of offsetting we openings

QX Over opened, because the we've ultimately, And are thought to way. the quarter we looks did place about business. we where important And assets. focusing a exact customer, the we're trying what that to value if the to in in critically what when or value on we the facilities I get it that last we've we're like long-term XX really same the second think that's deliver these derive

on will. we are that's way, to now, So being cost to smart But a those customer on that there we're with with in can to value we're things it continue what -- investment. any spending smart for is if doing us. the a way do do in that If compromises focus we destroyer for going a optimal right

Matthew Batteh

the year area point hit open Kansas in gave Stephanie. Fritz West, City Dallas year that us. year now, that City and XXs last is the second a facilities bit been little in one home, probably for Kansas a -- facility us. Kansas to a example. That's more big Just We for than in the opening last the operating the Metroplex in a few opened and area

the was the training associated same a moving there your beginning, where onboarding the things equipment, exact you're new opening. are at with doing you're you're So challenges that all

that and facility So But like months, operating look it certainly us, improve. forward really we in continue well that a to X fast for first you that. the later, year didn't is expect and to

So example. and These for we're value for the X- to another customer. that's, be to ourselves XX-year are us. These again, investments investments to a strategically place doing point, aren't that proposition Fritz's XX-month

Stephanie Benjamin Moore

quick one housekeeping And helpful. me. just really item for That's then

for the began versus any takes quarter and volumes little last more quarter. there's bit third prior do this I disruptions of year terms a that quarter, think In given in the third puts just quarter third the

Any disruption lack be last would you we help -- whether frame should would tough us of pickups, because helpful year, seasonality. it's of kind of kind comps about think could seasonal be appreciated. how help month-to-month, So just of

Matthew Batteh

to the As of year. really started win started disruption late volume our you last QX then ramp. kind know, And

at of half the back XXXX. you of July first of If half look to the the July

and probably QX verdict think like in We've look I ramps hung customers But here a the disruption terms think on is final way the of standpoint. last a what ramp see throughout really from fair started at it until to last to from I from comps it it year. really given. . year, that, look some So was we saw

Frederick Holzgrefe

we'll That in going made same add in QX. the comps the time, things ones harder bit the the to this we've quarter opened, we've make from which Yes. half but but that which in QX, our would little second all a not benefit -- at only the

Operator

comes the with Susquehanna. of final Bascome question your Majors line from And

Bascome Majors

really continuing kind new? your start-up to has expansion X think going X Just the the next and costs were you deep Fritz, costing strategy And Northeast the kind years into really understanding largely there cost the of Has on the started last bearing opportunities freight tweak of opportunity since because way some and you've months? for even about have and thoughts about your question X, and cost the investments trying been is I'm structure concern of technology of the the some the when really and a people that bid from -- kind there's in surprise few and so for of to an been years? really in stopped there cost that X, today X, it at investor gotten if software you something underwrite structure for to. And your this? your of any understand expansion. you've maybe made of I curious worrying used technology improvement kind price estimate forward they learnings for or the good it to or used growth

Frederick Holzgrefe

Yes. That's question. a good

X are any lot the in those there opening XX quarter that -- that important. our and this thing terminal we kind of XX, we've is that to really And with I this. Laredo, factors big top a of think We've facilities, with the are remember Trenton fact up the those kind are may involved or going larger Garland facilities challenge we underestimated the opened end that others there. was of that opened of scale incremental in, itself Laredo to facilities. are that are a on too probably to out that we're because edge market a facility, some around that. Frankly, around of optimistic the those already a of costs sort be the -- when -- There's it that probably but of thought cost unto couple much we was thought we trends the networks. volume a got

on the out XX underestimate the -- of them, one probably pretty that we've a that's good So performance. of last opened, and cost we

the On we we it, other got and -- side that opened outperformed. of Garland

a a things go that. There And regrettably of into are it factors or so spreadsheet. you these are put when that model into lot

and customer to be be with what the a as them creates that think see. the of quarters can't all But and I do and open, have we look all. develop payback pleased happen both we will we will that, we value over that you for those capture I them real for the that the that fact know that number over Sometimes we'll next X Saia time, will

Bascome Majors

learnings of your actually has bigger a question when been the you're the that more on if different I'm of this? thing. Has cost operating to or sort there surprise? from taking customers, and costing that any there freight mix, cost curious the been just of it's And servicing new freight on that of the the

Matthew Batteh

understanding that's ever customers, cost for what we and working always model to we're Well, enhance our evolving. do

the volume industry the no Bascome, that volume is challenge in know, no commitments there's You from customers. agreements. There's

change. route So than assumptions you work and of under may a mix They you differently may set things customers' expect.

we're what So about a that more doing and of bring customers, solutions we're it it. is being for to for standpoint providing constant that of able are up challenging, to from lot our what talk diligence going understanding locations just

that's approach at our that legacy can -- at evolving facility so customers. facility or internally So with constantly and a no conversations we our and our better we're different a new analytical teams have

Operator

to that Holzgrefe our turn remarks. for the session. call will concludes Mr. now closing back Fritz question-and-answer I And

Frederick Holzgrefe

we've thank think to really and openings excited in are quarter And be want had to in. second results, opportunities, the in everybody quarters. -- we're the and calling such for of the Saia's just that as I about customer what opportunity the there Okay. share economy advantage the done excited we growth about our opportunity to to for forward and will we we the and take we those will have position they And unique a only the there's a growth QX, team few fantastic about next what customers in as not in look that, have for has that do our taking our opportunities but and company. results then job care significant fact longer-term to we that evolves, QX for we'll really the want of with out Saia a terminal

you thank So for time. your

Operator

this concludes you today's participation. Ladies and gentlemen, we and call, thank for your

You may now disconnect.

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