Saia (SAIA) 3 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Matthew Batteh	executive
Frederick Holzgrefe	executive
Jonathan Chappell	analyst
Thomas Wadewitz	analyst
Christian Wetherbee	analyst
Brian Ossenbeck	analyst
Jordan Alliger	analyst
Scott Group	analyst
Daniel Imbro	analyst
Ken Hoexter	analyst
Ravi Shanker	analyst
Eric Morgan	analyst
J. Bruce Chan	analyst
Bascome Majors	analyst
Ariel Rosa	analyst
Joseph Lawrence Hafling	analyst
Christopher Kuhn	analyst
Patrick Brown	analyst

Call transcript

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Operator

Good morning, and welcome to the Saia, Inc. Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Matt Batteh, Saia's Executive Vice President and Chief Financial Officer. Please go ahead.

Matthew Batteh

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

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

Frederick Holzgrefe

for with allowing investments national provide ] [ record and now in direct quarter by customers. to far customers level record, results. to hard the and X us XX discuss Saia officially in, thank to existing morning, grow ] X wrapped work all service we they marked by made of shipments, fourth thanking company. We like year footprint, up the we billion our with nearly carrier, We which a national our better you $X revenue, as our to enabling a record year terminals in and [ an for I'd XX and XXXX our [ opened terminals for in for [ a delivering customers our company, states. XXXth We relocated ended of is real crossing service the a team positioned year put Saia's all Good XXXX. members of year terminals. ] year a the joining to The estate XXX full the us in additional the and record in event XXXth leading us million ] start XXXX, contiguous

to fleet also for in our and addition to their our in-service equipment This in allows investments for In provide estate, record unique XXXX service over us a X,XXX as investment customers needs. better solutions year real trailers. we was

record and ] In we addition XXXX as asset, focused most values onboarded people, team training to is that notable core over members. a new customer X,XXX investments, team first. capital new represented growth on our Each goes our with seen our through program [ member important

investment customer new commitment XXXX of record our that culture putting in Saia of locations. our level represents to ensuring each the we're in our Our first instilling and great

the remain reflect While year-over-year underlying our macro uncertain, growth results trends to experienced since mid-XXXX. continue

decreased X.X% see surcharge, services. surcharge, was and differentiated QX, increased improved efforts. Compared was yield, that [ per up weight and we continued to shipment optimization fuel continue our fuel X% and our per reflects hundredweight, by by year's revenue modestly. while as quarter X% workday X.X%, fourth from X.X% $XXX is quarter quarter haul any increased company's Weight record and million of last shipment, fourth in for length per Our and shipment increased X.X%. fuel Shipments per surcharge, fourth per increased excluding of increased revenue our the a impacted or mix excluding value to customers quarter, in excluding revenue Yield the ] history. markets

sequentially. a ] our focused compared deteriorated optimization trend per [ ratio basis year. We fourth seasonally the direction positive by our ratio weight initiatives. Our We're pricing in to points XX intently to of on XXX quarter remain fourth encouraged mix and of quarter see XX.X% operating last operating shipment in posted

around mix per an indicator turning weight positive, renewals. shipment and continued the or ] and through the industrial [ the don't we management to this efforts backdrop GRI increased While view customers as reflects contractual macro our

As discussed openings these throughout terminals October, and onboarding X.X%. in and weeks the and Saia focused to is terminals of of the year. training, in contract presented renewals we required with of new after the these the in as Establishing remained GRI the provide we on We're some that quarter, extensive our are with remain incurred opening. XX new strong the was has terminal the shift ahead service openings late of the critical. new that our with customers. Similarly, And implemented we for typical, compensated very grow are progress culture new but customers. each quality Each appropriately opportunity did to previously, volume we've ensuring opening us in which costs recruiting, been existing see pleased that we're averaging

new While total our to company and drag OR, see we're more terminals starting with a in new the we're on pleased these execution. openings operate efficiently, remain very

our investments support our that full continue As fourth call for us year will results. more turn are help current our in year now discussed last to or Matt network not investments quarter, or quarter and the customers. I'll the quarter over year the to -- from long-term for rather details current

Matthew Batteh

Fritz. Thanks,

As record impacting increased decreased for weight pleased ongoing, to despite increased fourth million, shipment and revenue X.X% Yield, mentioned, see in which $XXX X.X%, lead are fourth including quarter per reported shipment metrics. fuel any by remain to surcharge. fuel a to quarter Mix and declined increasing by the negatively Fritz history. revenue the per yield optimization we yield efforts by trends million surcharge, excluding the $XX.X company's

X.X% XX.X% ] XX.X% fuel in XX.X% attributable GRI in between surcharge a decreased reminder, compared the quarter X.X% increased ago. from head as quarter of months. of to [ year as The facilities combination fourth count the impact in a ended to XXX expense represents employee to year-over-year wages increase and averaged is Salaries, sequentially increase wage growth of opening improvement quarter. and relationship in miles. Shifting per Revenue to to revenue increased of our the X.X% to our and for and a related XXXX X.X%. ongoing July in our a X.X% ] third to X.X% to pricing XX% well the [ of sequential Tonnage surcharge the weight is compared ] well of XXXX the $XXX.XX increase, approximately excluding XX increased X% headcount The lower compared the XXXX. and past $XXX.X primarily XX in as shipment. typically total increased result of volume average efforts. yield is prior as interest weighted of as As year quarter per our the few approximately new in by which driven shipment weight heavier the X.X%, shipment, shipment increase a shipments an items the mix [ a benefits per in of revenue a key partial drives was haul Fuel which there side Length by yield. growth

to haul including and to increased by diesel fourth result prices volume of transportation XXXX. on decreased expense transportation compared quarter. Purchased increased company X.X% quarter to in primarily of our basis. wage by increase ] XX% to [ [ shipment per to ] The quarter quarter costs the [ technology. cost XX.X% deteriorated was the and higher non-asset expense decreased miles in ], both in claims as primarily related with The primarily as ago. self-insurance cases. Depreciation revenue Compared quarter. investments during operating unfavorable Truck compared year-over-year expenses were rational X.X%, rail the XXXX, fuel $XX.X terminal million LTL XX.X% miles of costs increased year ] XX.X% the due and revenue development expense quarter year-over-year, of purchase last fourth by national average line new [ miles ] year, to decrease increase fourth the the a increase XXXX quarter. Fuel year-over-year. our X.X% and the XX.X% PT quarter increased of XX% and of And [ quarter the estate was equipment, the in compared X.X% [ in ] the increased ratio ] in fourth of ] total [ of increased in to [ a Total the real was well linehaul revenue compared decreasing quarter, [ X.X% the ongoing XX.X%. expense impacted in expense due insurance over XX.X% with open the year-over-year activity openings. by combined X%, of addition, In associated while was in truckload by miles ] the by to Claims total to

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

$X.X the to of was operating highlights full was income Revenue Moving record million. results. financial year $XXX.X on XXXX billion and a our

at by term. million credit pleased and approximately debt finished efficiencies us $X cash about the XXXX and of with relatively basis facility cost driven million revolving of from and expansion, points XXX business inflation, expenditures ongoing drawn the show the bring by We X.X% per new associated remain hand of on the costs deployed team. Cost underlying ]. to $XXX openings, with end the by XXXX, flat, XXXX capital employee to the $XX strategy. shipment total increasing excess in Our long was increased I [ our trends billion. The investing reflects on which The operating deteriorated the in to leveraging remained cash with structure year shipment the the Despite and ratio outstanding in XXXX. count shy achieved in in million from through just level execution is fixed impact the to in our long-term $X by we to of the cost year. were record of capital of of reduction operating impact XXX commitment per committed in

the XXXX these Our extension increased credit revolving the we sheet expenditures supports beyond. and completed gives successfully flexibility investments. planned capital of capacity and balance facility with and upsize December, for In our strong us

$XX.XX per some diluted $XX.XX the earnings were call versus for XXXX. I'll for Fritz to comments. share turn over full now in year closing back Our the

Frederick Holzgrefe

Matt. Thanks,

XXX during [ strategy have I'm record of this with the As customer our we years demonstrated completed of business, of execution expansion. pleased year approach our our growth ] the and

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

and customer for margin standpoint. impact we execute analyze acceptance new long-term As we openings strategy, the constantly a of

the value terminals to new global While as more discuss footprint customers. to well current new as every with our smaller our solutions to customers. are [ an attract having openings in pronounced some opening for base of critical peers markets, customer is in for less us is our associated opportunity dense to proposition costs ] a the new

implement company the While the may the for to come. XXXX whenever take to advantage supporting a on in success. XXXX long-term next of able a We're entirely customer levels. up comparatively of and in macroeconomic our strategy short backdrop will us many time. The that set made recovery is be our a uncertain, stage investment landmark on is significant portion of development investments industrial focused our year

successful complete exceeding and Our being by a return national for network appropriate expectations, while realizing these same our LTL many execution time, provides significant an is defined of on the investments. customers solution and at

X have of the ] success expansion, shown customer our value XXXX, the since facilities [ of we keeping focus May first. with As on through an with are creating over time intense organic which we started

further to significant also would the invest in support openings and continue relocations, for to be to XXXX, not from service but additional customer to upgrades better to network to high-performing back as value XX only facilities our and national from include excess of capital We of realize we believe our the investment we committed to footprint expect for investments expenditures dating pipeline. openings our long-term up $XXX that our the experience the anticipate real network ongoing We which XX estate expand framework million, the XXXX provides XXXX. success. We're the X X in openings to customers,

relocations, our we our and XX developed As expansion. we shown have over repeatable openings organic last in XX competency

Incremental growth that and further story, remain and quarter covers -- next to long-term initial Saia development week on our about ] the and or new the open then from are may remain been operator. local volumes generating on to a for or will our long-term for come in open returns new familiar not our as shareholders. We value with performance that the our great customers culture now ready we for with mind. our [ customers markets of focused We're focus those line market. questions, creating and volume and for for relocations They're reinforcing they've focused continue execute our for to strategy. As a be reminder this

Operator

first Instructions] [Operator question with Our is Chappell Evercore today ISI. from Jon

Jonathan Chappell

okay. in going that's to just couple I'm put if a one,

for us Matt, to remind trend the give into all, that yourself see if the finally, So what we think based just you you how January also if in want last give for and what opened shipments, our those of back can you but year. clarity seen December then for tonnage seasonal And categories. of can terminals you for January first I of just XQ can is that and some on what the normal you you've maturation setting XQ to in the up plus X

Matthew Batteh

Sure, I'll shipments the with tonnage. -- give Jon. I'll start and

date, sequential shipments shipments full look, are some X.X%; [indiscernible]. I X.X% day in X.X%, dependent, November worse. you you it's tonnage weather up shipments per shipments were X.X%, go for ] In terms X.X%; course about in tonnage October about So day, history, the you I'll years up those. up [ that, mean, if But I probably XX.X%. tonnage years think at do back per And up up really up to up all And up X.X%, dive to December the are if January into some tonnage of better, XX.X%. if [indiscernible], look

to was January weather, love across. challenging from pretty obviously, talk moved but don't that a weather we So about standpoint

month So or basis we have range. is quarter. look maybe point I stand think at XX sort the right for us, still to make QX January and but the a of from behind we us, is February XX deterioration now, March really break where for we

think it now. see importantly, But we things. two I right how that's So

those customer on First, company those. you drag like But that seeing We're were the those at was gave in of shipment a And in of about at growth don't we that average. X/X is keep opened It said, from for just terminals margins. acceptance look if operate that January, mind, Fritz XXXX. a in great. were lot

When mature point volume range stand the X but a on we're at range. that's full those still So on year, that like full our good from to aren't we to well anchoring basis yet. But the within XX standpoint, I here year. improvement, feel see we're also and fully XXX markets we of think in February and thinking look

couple ] [ of we're deal hopefully as but QX in the better look some So here months, with it. really weather full on year next anchored we the at

Operator

Tom from Wadewitz next with The UBS. question is

Thomas Wadewitz

if see about more I bit talk just Yes, could -- a to little wanted you about the OR.

at seasonality. just year, OR. the than little is going about you you're back XX on to you you more you you'd comments look guess last fourth about doing bit think to kind different understand guess, XQ. better little seasonality guess, want like start I I is factoring we say then, XX versus weather. XQ normal than into so as I And the normal the you call XQ I a or And on commentary if of some do of think a the lap as the terminal that, I basis think pointing said like your then worse quarter you're you're to points seasonality of improvement doing

what's about in kind about thinking how change. forward do the the when think and XQ timing ] of Just kind OR it'd may the [ of that the and look add we

Frederick Holzgrefe

Yes. Thanks, Tom.

we starting end the in second So of through facilities opened quarter last XX the year. the year of

it the we than you capability Matt of QX, there. through We've we from [ opened as January. they're a just pointed been some lot contemplating to really, terminals a there's X/X coming have we're trends in thoughts give got consider. When So lived to whole is the less QX Certainly, ] in out, past, the year. growth, what around saw

average. for not at the is those but -- facilities improving, certainly operating it's ratio company the those So

of of a as but a about sort that's not a But bit multiyear a only headwind. investment. thinking investment this XXXX So

as in sense. So QX in complicated different And first that the we've we March. usually quarter, with as pretty at history, dealt times makes history, that at and I that a in we've look you That's know quarter. think we weather usually had is consider events made different the

longer-term think, this tough. of And of right view see we attractive. we most now we trending it off really, is is importantly And the so see what pretty is what pretty

Matthew Batteh

Just add. getting equipment supply good OEMs I on is got than factor, chain one what the another pace mean, more are standpoint. time, to more from I elevated we've thing mean last a we would we're in which a typically,

is a history than So depreciation a also more typically what little step-up than QX bit we to of well. would from in QX as see

playing that's it into well. as So

Thomas Wadewitz

and right? the second investments, as market see utilization. hit we you easier effect improvement? start appropriate terminals? to of against it say, why you okay, is But need if at the reasonable it's quarter, to comps and has think say, little long-term you is help the a -- in lap would the And making okay, build is see then an And the improvement? Or understand So on to that to look comps where I get you when you're that to you do bit that you freight something order year-over-year you think

Frederick Holzgrefe

we through looking improvement we're Tom, to go the year. see as in

As levels an costs. going is in certainly these to start-up higher reach add. be of we we'll be which And lapping had that maturity, facilities periods

quarters. the get to would we're I that first we up to quarter, in improvement. full so year through I year if bit basis improvements to is back improvement to OR see XXX see that a full mean would the continued sort other the points And number, of that year implication going to little to XX of in -- that get we expect the

Operator

with Chris is Fargo. Wells question Wetherbee next The from

Christian Wetherbee

about past the maybe to guess of you've guess, full I XXX. points year, talked XXX OR. just think maybe for XXX basis the XX so I to in I

seeing some on guess follow-up how just And moving get to kind a from obviously what question up. significantly because sense ] volume or want a then getting of sort pieces. per of growth is maybe just of good of shipment kind you were shipments, the than but you're tonnage the I moving [ about you roughly better a think So standpoint I weight

an weight takes X So curious from past? perspective. in seeing the you from shipment And kind a you're the then relative about what about thought year perspective, puts of and the maybe of factors full kind those OR what to per had

Frederick Holzgrefe

to So that question. the intensely appreciate on of mean customers we're good really markets continuing in focused value side I service. find

Saia. is developing is now for think very we on of And we differentiated, then us playbook an So to of focus maybe a sort sort and and providing to kind better the competing profile positive like competition. you're of that of is seeing freight that opportunity right which levels the us than high service, doing that's continue feel grow customers giving those little

environment that. our not So value into any we're which is be macro of step seeing that we're assuming coming investments in you, We're we're in in environment, important. To network the seeing now. honest with competing we're the right now, play up the

So domestic step if we see manufacturing, the environment macro maybe up. improves,

a think environment we going intensely we're going what operate customers. I we for I on that's to to compete that right But and now, the in. for tailwind in that service, get paid we're -- we're to going We're think for we're Saia. assuming this make sure provide

Christian Wetherbee

ratio maybe full just that for on the thought how about thoughts relative the year in And past? you to operating the

Frederick Holzgrefe

-- added XX it we're -- I right maturity. environment making -- we continue to facilities And think is we're got to that around to to the going and assumption look, push be XXX as the is. we're that we've we reasonable got Yes, that stays that's the now, XX to

on we than of kind dealt we Is the that that that focused improve, It XXX of possible? could we're traditional to the get up get I that think into numbers Now and I talked sort But if sure XXX? Is to environment more we've possible? and hand been to think we of now, right we've Yes. it that if is. higher Absolutely. or beat were playing just that's about that that where range the think I have. step

Operator

is question from Ossenbeck next The with JPMorgan. Brian

Brian Ossenbeck

yield comment Obviously, rev you So progressed is could on little more the hundredweight, through percent see up. but mix ] trends, quarter. as they moving if per I just mentioned, pricing to [ the how wanted a the impacting bit

can you and that maybe X.X% about little a So of bit the the talk more GRI? then acceptance

Matthew Batteh

Sure.

standpoint, trends. just I'll with think I our pricing general start from

focus. and see mix been lot You contractual the that. needed on through is that's about front, talked We're that, year GRI and it focused a focus that our our we time from we intently has about that same work where our we customers is, to renewals handling especially that and last before in it as seen percent freight hadn't that and always for and our some

we encouraged upward see trend remain foot weight our the pedal shipment got to fairly So for keep that to ], that. but we're the ensuring on and to [ per compensated committed we've get

know, impacts come per But Brian, that focus us per internally So we everything the shipment, costs shipment in on yield. you revenue to our as basis.

we heavier where shipments weighted our get those that's all prefer them. And focus paid So equal, is. else generally, for more you because

we focus to to. same. from track we'll if conversations the and frequently, of in contract and advance go And is we're mix we the very have our pleased good need some see that We're So customers, that. trends seeing

the for In manage it, But we moved we of based timing took movement terms short do. and have year. little that for what acceptance moves the what GRI around we something always moves making the our of time, bit. good. of a we're took volume side. has a little And bit But through the period It around of if slower we periods beginning. more sure just just when bit on may little always of get of away we magnitude a on It's a acceptance, been it paid at that's the

typically. settled the that gets in it months So out follow

Brian Ossenbeck

the expense about it talk was don't amount. just line item. know, you if good other a I ] [ Can follow-up. Quick

insurance, And just color is seen stuff, the some I but past. really we've at of I'm appreciated. think end the the be that that the normal on year in assuming would

Matthew Batteh

other That's... that referencing line. I assume operating you're

Brian Ossenbeck

Yes.

Matthew Batteh

is. Okay. is estate That's disposals that equipment all real and

Operator

Sachs. Alliger with Goldman The next from question is Jordan

Jordan Alliger

wondering, it about of a talk like to can And a weight just balance you get to -- the optimization? we meantime, that. per little don't just some try would I get yield mix more I yields specific expect point, ex Is at point to program? bit color -- little both normalization a more fuel was go on a I think but the I historically, where and up. know can there's one if stay been down mean, case. that's the year-over-year? But and I shipment in point a

Matthew Batteh

have seen different of year know Well, I I -- a versus and we've QX. weight don't I'd QX back go up that where I to our time prior it look. don't that was per shipment pretty in mean was significantly. the

what opportunity in that trying conversations network that better we're may have XXXX about a customer went So work is than have in have to would competitor of handling looking past. at place had direct didn't freight we in optimization a national we a them job business. speaking doing now customers part identify a points this and and them about the access that. And of and have of to But terms for our out because is a not we that back we're with markets efforts, time key one handling every the for ever we great to of in with that handle the we everything of were after mix that going us for what part profile and after best

we're Great to an have not book as [ So in certain to business customer's because access that ] Plains of -- a [ mixed had example. instances, may that's going we discussion a ]

identifying So mix and but they and it's commodities for ensuring that appropriately also them. job that, the around various them great it's we're charging a doing ship for

when that per we're really that's from. number coming where look shipment on track basis But a it So internally, at is shipment pricing we focused on revenue and is divergence per the is weight yield we how it.

Operator

is with question Wolfe from Group Scott Research. next The

Scott Group

can Maybe like shipment, be Any about on way OR maybe what's seen we've the yield range or per and revenue that within within to that give as -- the well. you've QX? quarters. in color Would last helpful of to you again how guidance, sequential differently, increases X directional sequentially And could of revenue in there? continue the expect you assumption some think sort maybe got like that

Matthew Batteh

Well, intra-quarter focus standpoint, shipment same our But we revenue and pricing to on [ conversations with We're continuing the give exact updates having we're don't yield from customers. thing. focused per on ]. or

the are let and contractual environment our has there when comes a renewals loose our going certainly capacity, and of where trended. customers But we're go. with they it instances ready seen to options time, try and lower-priced where to period have everyone back, to numbers option willing And decide now, have that You've for right rate. we're at a be

more we're rate So customers we expanded have. focused do ever at more benefit only we and having for on than have price these a national And and better about the our a on but not that price we can a footprint conversations them. with and of footprint that's discussion that

from couple here. the yet, a not it's got a turned standpoint, industrial been pricing our to be foot paying of customer we but that the on seem only is is our expectation So dividends, efforts our gas quarters, keep to but mix

Scott Group

are terminals sort to planning year? to Mexico just if way any, secondly, border this you much just And I exposure. because it's And frame all, many color then Any cross topical. much, how Canada there. don't how but and at open any think just it's of

Frederick Holzgrefe

Scott. problem, no Yes,

to kind moving the or really investments. when to customer. end meaningful it, that you on markets ] market we'll They will X business, plus one X call that of up So XXX have facilities or we'll impact or X the year. all the to get But going not or add be They're facilities, back [ great closer certainly, through meaningful a more to the or have doesn't of so minus. of scattered And are an impact. that X of the, the half just open

would pretty drag potential low. think be I So

business the When actual you cross-border of for we that hand X-ish it's think percent about total. off, us, the

But think company, really I the you breakout fence, North cross Canada. of total If so in manufacturing terms deal sort their got about maybe and there. is directly, that their in side what full sort with have have percent X-ish don't a of both border. it's we of and on South, manufacturers of a Mexico

Scott Group

for X% each total total? or X% the

Frederick Holzgrefe

Total. X-ish percent.

Operator

from next with The Stephens. Daniel question Imbro is

Daniel Imbro

talked guess, start any here [ progress in survey. pricing? imports up supporting Mastio that about to service in Is network underlying grown kind you quarter, we of Last kind that initiatives quickly, to end direction the of how to seeing your year? and here opportunities, trended showed service where been ] I your right the Are the have you've XXXX?

Frederick Holzgrefe

numbers. It's volume really in We're excited our about up we're what showing seeing.

plans, Those probably So facilities place that vote we with where And all customers I facilities. because, we X/X increase see a are is. the probably in quite to important company structures that's that's so the focused differentiate on typically how And that of are that's understands thing. incentive frankly, good customer related are think marketplace. their and have Pleased feet, new metrics, in the that's those that positive. estimate to the year-over-year

So I'm where that's pleased to see [ going. ]

X environment -- more all in we've opened and back think now or last X, in I And frankly, you about that X it's maybe ones when those opening that maturing are and ones we've where opened. the there's to you're opportunities or X stabilizing get those. years, in an the XX the

think progress. we're making I So great

Daniel Imbro

terminal does And ] moderate, opening's ] million you going then how [ guess, If should as we cash said $XXX think year. about that you CapEx one low? Matt, just big free think follow-up. to Great. I I [ this

Matthew Batteh

the return it right has we've the I ] Well, [ so of capital in use mean been far. business investing back that proven that

of terminals investment at the that the look talked group. to for easy no If task been a able pull about, openings lot pipeline estate our forward XX really we've Fritz real is and you

look we the we of we be got estimate as [ But tractor make that around by out, as get impact that we're there. we terms We our at be in for the to is mean I made year. the and and look we years in to in some $X mean, to subject that line, into the comp, we year now, out stand So interest is Daniel. ] too, right call still in as and projections just that our EPS use figure look as timing. investment I we'll -- on on a credit when footprint, go right we at we'll FX, this full obviously, so than past. But this or facilities revolving bigger

facilities bit used our continue CapEx. get we And figure bigger these more to right operating we'll some after cash generate way in So we credit through we little flow, that years we're back deploy than the of as of to a to. out

Operator

question Bank of next Hoexter with Ken from The America. is

Ken Hoexter

a thoughts up just you other Maybe last performance the updates few or revenue Great. [ couple there ] spike what on from And claims that's for million in quarter? ratio $XX up about then quarters. ] Can $XX a was of went from? on-time million, give the million, to through [ $XX

Matthew Batteh

Yes.

line, revenue how In In year. on ratio, Fritz about stuff the bunch asset-light talk of for that's with But got terms claims at that and time that our a terms let business, of adjustment. it facilities -- and X.XX% we're and everything. that's the for I -- I'll full GAAP was the looking new Ken, the mean, X.XX% of in quarter

that are that of in number things a line. there's So

Ken Hoexter

did I'm you sorry, say Fritz or... wanted And to Okay. on add

Matthew Batteh

Indeed [ Yes. ].

Frederick Holzgrefe

well. those we're different the from that there. time in XX% On code number a sort peers comparable in all of to our and I on-time on I around everything that it we're measure the we mean our see, ways as that we of say very best-in-class sorts raw view service ] to for we're customers, and pleased the [ service, pickup trends of completion things, above would of focus. are with all

Ken Hoexter

Do then rail XX% truck guess about or XX% that's Any down last and forward? trend ago XX.X%, a that from long-term year And just opening I the mid-single you down thoughts haul comments, on line thoughts as targets? a you quarter. at Any percent in Okay. maybe from think should about PT of XX%. the on how we toward digits? that going mentioned

Frederick Holzgrefe

changed around I Ken, haven't really philosophy our that.

whatever and get our in OR the XXs an is Our singular takes. business important portfolio. that objective PT is the this into part of to

for of, have expectations. in the all So not line we customer the low-cost anything Most importantly, has a We while to haul look cost as we meet for the that, -- some customers' lowest lowest -- it that's we customer. to when We'll cost, the meet makes a view options. the that do use cases, then sort sense. it option conceding

to and cost other XXs. that business have target there growth operating the to into can got to of say than don't a the the So we that the drive I continue we've such . of this the business get OR

Ken Hoexter

in I just throw one. one if could last Fritz,

maybe you your $XXX the OR months quarters got economic? target? ] to look million, million anything $XXX on the it Or Is some in above than few that just throw [ is what thoughts next that should get in you just there Just you to target. getting mentioned better there? for we Maybe else back target, maybe

Frederick Holzgrefe

successful can We've I highly of team think don't I limit we got we a think is do. execute. the that there we've got potential. what the

is. the footprint that comprehend We potential national though. I'm it the think sure be is I underestimate of outcomes. The I little I'm we an in not I think execution about just maybe that's the our keep just it that And give really that we're but excited possible deal. that favorable, is -- one sort a the going. underscore guide, balanced bit year when to view we're of to we're to trying a just want -- balance think take trying environment what a fully big we that. wouldn't that all you more either. with of this that may it's pretty we I accelerate, full team we

We opportunity have the to outperform.

Operator

Shanker Ravi from Morgan is Stanley. question with next The

Ravi Shanker

Just a couple here.

kind go talk customers but and there ] Or as Just ] market? you up a potentially the end the be? macro some spillover ongoing head also tighter into about the your you might volatility [ of an think revenues. can potentially you a what say run already? other telling cycle you -- I follow-up, seeing some rate Did question are to LTL what [ back are that you is that given PL in obviously, of of driven, tonnage, on as Maybe

Frederick Holzgrefe

Yes.

to the first year. from to tonnage earlier, So on opened of part markets going there, point so made the last comments X/X has I was that we come it we just

business, coming think gotten to I that and may back think volume everything being [ ] way So truckload us. customers with the or I with that's has do spillover don't us. pleased catalyst do the to it's got it back for I LTL coming think from on is don't executing what it's margin. the be with there into Saia other one To that really extent they've a been the anything

just the -- I that, mean, to sorts debt to other other includes adjustment the at the line, that revenue includes all think time, deferred a those end to are what add whole bad things deliveries. timing the or range of of things. of over revenue So quarter, It receipt comments, line of of happens I revenue, expense, sort those things that the from gap that revenue of like

So the anything sort is think as of of view percentage a of a I run drives rate about terms a And it in else. calendar that. metric, there's I revenue, that know multiyear the of kind much would of as don't

Operator

from Eric question Barclays. Morgan with is next The

Eric Morgan

the on volume up follow to wanted I discussion.

up and XX.X%, know had year You as [ year called called albeit shipments up I last out for out this some X.X%, ] weather well. January. you tonnage

we provide Feb could think way in comp. you seasonality and if for implies wondering full context the about any March, more is any on that if just And that what to normal there see So maybe quarter?

Frederick Holzgrefe

decade, year. there's the we business, Yes. I've business in account in Listen, can see weather we always something every regrettably, the LTL the for and been a numbers.

I first don't the us. Highway I still XX corridor, that weather across the XX.X%. we which -- had is is saw Tonnage up think an impact time this So on

network, guess. it when a got weather about you thing you've nice diversification, got too, the So national is I

have So facilities markets didn't we benefited snow. that in from having

the as just important that and where to has March, we'll ] be. always -- [ kind March So real the will execute the weather that was of through market good. I month will don't I think and that in for indicator really February know the quarter that's what is. have any most of I be us insight been, the

Eric Morgan

And from just start Maybe think -- seeing the mentioned that terminals, the yield up been year? I we it. of line? contract how what's you kind Do should follow-up happening trending maybe well. a focusing shipment. know Appreciate with to at mean, get you it's this kind on new digits be tick calibrating last of mid-single as just few on X% revenue you per and Or renewals, quarters? I you mix given that quick can the the

Matthew Batteh

to, rate get earlier, I lower-cost a we're carrier go that not the back right shipper and like we to need taking to of try certainly rates that. away I moving instances, going an mean we're the at going back to we're it said where environment other I Yes. some the think part comes there is, are, But when that handle chase struggle, And a to opportunity increases now. business hopefully is our ]. that or [ option

So freight as we to. of continue book each ] business to be focused we shippers mix each need [ on pricing, and

to were go weight our you pre-Yellow. look, down I and is back per If mean, shipment

to ex bill per out from it's is up. Yellow it is fuel was where before, still where went So revenue it and now, below it's

where We national conversations So how pricing our with is we're may for ] customers. taking of deal. like view the get business at the that I opportunity network those and to to Fritz our a we have opportunity price customers think big [ having not an the markets. had that's haven't And look before. we're served we said, Because

we'll of well. that's get freight it, we on of what component from in remain So terms But customers. mix a it focused we as and see

Frederick Holzgrefe

gap is with closing the [ I Eric, focus peers. national biggest just our to Saia to our add, an keep peers, is intent focus I -- think the on per that thing ] bill with revenue on mean, eye

making network are investing national investments important, it impediment thesis is that now. paid Saia. to that's that. think and the sure so critically as part eliminates they are what have in an We that that business and We capital of But those does a mix of driving appropriately

with win. I -- a on that's finding think we freight for, focused pays can intently that. the that that a are amount create that's that And of tremendous customer bills value where we we

Operator

Bruce Chan Stifel. next The from is with question

J. Bruce Chan

last increase workforce Yes. in a year. the Almost XX%

market. underlying in improvement you're that any the anticipating mentioned not You

investments this year? things terms custom staffed are kind the So then given this wage the there you're I more stabilize to feel make in of market, like you do just guess, Or point? of fully have there? driver at additions ] fleet [ maybe And bringing

Frederick Holzgrefe

always We're Yes. is. force with matching what demand environment our labor the

making X equation that people that makes added all of and about in in same the we those somewhere going facility well. a we'll economic but be you require [ balances last in to that But we open we're the of to I of the that it volume in probably add, to new the scales sort Saia the of across to the go to that open else appropriate from part same continue employees have needs growing X,XXX us. Certainly, time, network. it's at a the markets year, all at customer for XX -- probably we'll So what is the have all X ] Montana sure market business at staffing which the you're won't those through in the level. add To you likelihood, extent us to company, as complement was sense mean, with the year the facilities that. if facilities, along and staffing if

volume will we extent So appropriate well. and week. need along the second attribute growth the think the have for X,XXX as people it, numbers know volume don't dealing we expansion had quarter, that with I this -- as saw it to the be came in the with anywhere you network the increase few would to. and into we'll and But staffing that that that add we're near probably I 'XX. a we seasonally there to the we the I

J. Bruce Chan

to mentioned like quick number per seeing quarter's through was looks just shakeout then some think shipment it last quarter? post-Yellow weight per trend. in that follow-up starts a the positive any slow And Great. still Matt, a there residual we the in guess, you to weight reason Is numbers. move January, still on shipment. you're I as Okay. there nice

Matthew Batteh

Well, had there we of was weight pre-Yellow, that this with, but are freight customers season historically the right? mix impacts books worked not I So mean seen. in that more where for seen ] year hadn't when [ per handling certainly we shipment portfolio we've in peak we're business still just pronounced freight, that below maybe earlier was before. we Customers that of

not through make worked But on ball. have still too, got a we still only industrial a to the a that And but I that sure that. we're it's but customers we've been we just really don't quarters, that, So eye and it's crystal and have that, have we is clean really of part hoping intent couple stabilized, think of there.

we're But that, paid get well. just different what hopefully as about, So -- efforts as in the when that too. and like and our bit bit intentional inevitably, we're a we we customers, we backdrop of view making a see for with talked this really is little Fritz sure mix and more that conversations targeted of customer gets what do, each around better, we'll

Operator

Susquehanna. Majors is with The Bascome next from question

Bascome Majors

see or half openings from kind the know second And cycle? some investment LTL to little to about could where talk that. a of merchants forward a typical XQ the cadence in of is should just to full slowdown bps big XX turn deterioration where the we the with get as grow of Fritz, I year pace year, cycle X- a into the XXX it pull sort [ really the Matt, your with Saia [indiscernible], this we level, early from X-year the mean, the runway ]. opportunistic think high turns, openings of I start to for shows it's this we just year best and to But are of margins to expansion, XQ

Matthew Batteh

I first, start off the that to got to mean, comments. says XXX, look, XX get of us this we've to to for improve on it Bascome, I'll sequential ]. thing [ the

and we've But of year, our quarter I basis. due from [ mean, what bit. us projecting by QX I July operating goes and [ backwards this off certainly, is wage we're part quarter best to best little ], ]. of operating increase freight typically in yes, targets the our But QX, ratio why for mean, usually [ We've a achieve got So typically improve OR our best a quarter. got QX generally QX to that's ] year operating over typically

Frederick Holzgrefe

to I for building think is about in us this year And important we Yes. the it's catalyst maturity XX think open. just the

I that there in think scales. But extraordinary on year. is a help the is we even opportunity control, time potential that business national others. network, And a our weren't we're facilities a background, pipeline from XXX that the very there think part real were business wasn't Saia, as facilities of the you those normal for taking lot at that I workforce think put facilities out on things around this currently having that estate think goes there's have customer. the that right? we even I to right now, identified to probably facility the estate as get as well it focusing be there. there's the it are know multiyear think I think that the as the faster. I that Absolutely. of we can we -- of I These the of -- in find we although mean of bankruptcy, to network, certainly I growth openings we back into pipeline. them here? a and -- intently in able just expanding real And There's engaged growth little still are focused runway focused an had and our terminal probably care facilities growth the that that -- Is we But proud as got

I an here [ from go ] expecting improvements bit year year. an of from uneventful which OR sort of means full that be a from the perspective, could improvement potentially QX, they we're think to during that

tied maturity So around to the that's and we've really opened. -- facilities

I at about that's think So a Saia. optimism for least we how there's think us, of lot

Operator

The with next Citigroup. Ari question Rosa is from

Ariel Rosa

wanted have quantify been be people get that How a for see the of And new macro kind openings how sub-XX [ line about if just those maybe ask is to of And I to us. helpful target So the improving that really OR. an which time kind much on to to environment? in extent you out? would the of developing you just this guide the terminal ], the could, OR for asked on past, I that have know but dependent

Frederick Holzgrefe

break just that Yes. mean, focus. let's I apart. We'll

time part is The mean, about the you've over point our you favorable think improvement backdrop, when over on time. it. that experience seen first around I Saia I there outperform OR to

think investment I to in requires That unusual different about then XX and [ And where going little bit you're it history that make a now would is our XXX-year or incredibly facilities, ] those long-term investment, as you right? what of a in open it's to expect to little right improve. we company see those of OR facilities you out a are period bit focus, is one -- when a have in mature XX-month time. the

just to service challenged that kind appropriate of would the a I the around You service, a That's a in business. tell very the environment, that focus. improvement with the for a point big lower the at you're the have that versus or and team the are purpose with opportunity the those market is you a think opportunity at compensation life what that getting stronger getting in our for for long-term mix I certainly probably look you level and high of people and OR right you XXX range. of facilities approach a year better. In end the more city market, compete

the it's I market to opportunity. huge a around pricing, I think mean, -- think gap close to the I

this get think the we from we coming in that more at I if and So OR which business. price, mix pace the accelerate of we can improve

about prospects. And other that. So the your part the Matt's we're excited of question, then the got

Matthew Batteh

openings operated the year [ Those these the drag not are Yes. QX If around we the look breakeven seasonally, for like a investments company. will Fritz right the deteriorate XX -- ]. the said, seasonally short we're the in term. making all and total, for quarter that on and to at for QX But that's

we we us really potential yet. opened cost the far show is, matures. we in QX, the Those base so in QX. [ the and not business better QX, And what business QX. cost us they're as of the structure back that X go things of as grow into at to a take in, the they is One about and if ones that as share, then in didn't look goes market months that X did ] at the the excites as but They're potential also what mature did really structure they

as new really about really great the make goes So business, we our each not in for get that also and take but more on. efficiently existing operating customers operations where that's our do to in market sure and the potential but business share, also as in a We efficiently job well. month to we markets, we're excited field operate only more

So [ drag to would in we that But about. as we excited nothing be. them get a term, they're the ] near expect

Ariel Rosa

are revenue maybe those out bit little on maybe that is But weight I of terms in a kind and what a That's hear maybe [ follow-up. shipment focus lot mix. function comps and market tonnage of about could some company-specific the really that of versus Fritz January. And better like? it. are volume of initiatives kind specific you better if Matt, point Got versus is seems a improvement efforts the like much of December trends trends idiosyncratic and look I of break just maybe so could there a that It helpful, of here per and ] your ask how in

Frederick Holzgrefe

improvement that per investment. into, opened right? I that together I'd we've the terminals like to markets gone make business that the a Well, the kind weight were year, So X/X will come that we of was characteristics of we've growth So has from last in right? think idea pull highlighted, a said that the then that of to seems conclude freight as we've shipment good in think data I and the would it points point couple that

of done So result we've a to as said said of of as to that. that overall you're starting disrupted contributor the company. I pricing the at mean we've a that. beginning when and to the see of we that to on continue have business, is we got took we lot performance mix the freight, from the And well work and

focus and think I tell customers we that the out makes Throughout that that. the can [ there. can we costs think that good sense in I sure for And yet, also has results. on shown I openings. markets, wish macro So the all the that up the in in control, there on some value you openings things indicator this, I us, the prefer that ] then per things to focusing those could combination freight shipment making line improvement despite identifying thus I we operating maybe weight that were all keeping control these

Ariel Rosa

I got mean we it.

Okay.

Sorry.

Matthew Batteh

everything the think be essentially investments the costs went to that really No. about part, per made, on this flat with We've all new year-over-year. cost But if mentioned in you that associated but pleased the shipment X.X%. for per year. it essentially We year-over-year, terminal script were with shipment openings, flat the cost

feel is. the like and goes what where openings So is value we to point, to potential show these think the that Fritz's of I

Operator

from is Jefferies. question Next Stephanie with Moore

Joseph Lawrence Hafling

for This on [ you change competitive guys is maybe Stephanie to lot be little force of how the and more a their seeing environment at and aggressive wanted their you a are ex potential share. Hafling about bit Joe on obviously to viewing internal ] guys the market bit particularly sales growing a I are you what freight, speak Moore. hired little

kind guys takes that. the puts how and think of curious of you So about

Frederick Holzgrefe

it's we've that our customers customers But -- at need that. and care consistent, at Yes. identify to of just competitor, a the pay I end listen, happens attention got take of to fundamentally, the what don't mean deal got about are day, we lot having the I to to deal of you probably of customers provider. of from our macro environment undisrupted from think with service LTL change that a sort some an with, mean the want they provider. challenging to

So of tough there provide disruption a sort to high is to a for service, the opportunity limited of the customer Saia in level environment.

career very to place about our of has That's think that's of then workforce. we'll And part think about ] be engagement [ business. work, that. -- in that of to let about I extent mean, a keep company. ], great team great their the are sort that [ kind level opportunities, growing we a we think the to them it. a high how others And about providing that's worry build to I trying pace own We'll our of worry So

Joseph Lawrence Hafling

over then on next ], an clearly And at Great. really of they're I are what sales the insight focused sales guys looking meeting, at mean, if morning you a looking Could SMB year? what maybe you is business. winning give into of force maybe after, sort going they're a your lot force what growth curious they're [ attacking, us

Frederick Holzgrefe

Yes.

arm lot sales in And force, we're force be. or a that what data are sales sales markets developing. the in we're that data spend our of So with them tells might we around opportunities currently we opportunities time markets our where that the combing

So them to give the here's the the you of what of, is. got sort hey, potential top view line

Here's the data.

to do claims, you say then you on of on. the service And very a service, These from going we customers, that to them we're what which is we with all call can we transit a do. very, the are give to very need places time, time arm time, competitive industries. provide product These are high we that both low important who are service, level and that. Here's them

and our You over gives that do salespeople to for over something again, that sell.

or great with they in with operate position the starts -- them markets armed you And where we it. look So which data to if it go attack where I service the to they're compete you think they a that provide what had proposition that's results and of then we've that And the I here. kind few of at that that that's potential the last winning I we're of and from about excited a been over months, think our sort works. And think is. focus the behind

Operator

Benchmark. is question Christopher from next The with Kuhn

Christopher Kuhn

timeframe workforce. keep the about kind what with are? addition? you you've that and how full Maybe get that culture just and XX% can your mean of productivity matches that employees almost service talk a the to little quality then existing And you bit -- what's I to the those employees new added do

Frederick Holzgrefe

hiring help where number leader out, place, hopefully to as of and a sure something disciplined place. you to making that but have to the facility focused great bring on a timeline we from Saia new a that's in facilities. had mean to facility of sure positioning Training very months very, I we're mean that, of XX in of kind in the we another be. Onboarding. we the opening had that get Chris. that the a you very the question, culture appropriate it you'd that were it's training I making training point facility. efficiency And still, into Yes, the around peak a like height takes

And so it depends.

pretty Sometimes it happens quickly.

to. a care year Sometimes over that kind a every treat kind where like place we'd cultural keep great is over to maybe of are And to where the only we focus we work. individual, take get do and you get operating that, differently, it of a again. is don't location -- reason order around of at a But people shorter intently to of that goes of that the this a and you takes place that the every rest sort -- place you we'll great around, we in par the this in of why work sort theme And great we The customer. hey, and company. find is

Christopher Kuhn

that in benefit bit the... a did mean I the more OR

Frederick Holzgrefe

Absolutely.

the You place, in all you experienced places, see in service metrics. get of right? more So get workforce you it kinds an better

Your up, we trained employees productivity how goes right? mitigate it things. you or do down So understanding come have safety fully issues ], [

at line see peak that's sales the rates you those which out time. All of a You have you When falling come on proposition. is that's efficiency. you on in see see. you things And ], sort those winning data, and of injury force see that and with over together coming same the customers time, a see those damaged decline often claims things, terms great to that, freight, claims or improvement also [

into kind it if usually but cycle, will, of a of virtuous it there, time. So takes you turns some kind

Operator

The is Brown Raymond Tyler with next James. question from

Patrick Brown

update assume I into that position is of kind term, that what know a on guys today. And stepped out do soon, ownership part looks longer you think be up know a where going the or you have to journey of an door bit. about like do be? quite XX-K your Is want I you to but that XXs? that the

Matthew Batteh

around your doors. X,XXX those XX-ish door year own finished question, about the to of we until doors. north just We So percent Tyler, of right growth

XX% of XX% terminals, So the the of door.

our you we in mean, strategic to I the be period. a So look, may can. market, extent the to best larger certain to instances, assets do we own in lease that have our to for

-- we So XXs get as the a into unless which at of We also it's a important of to don't cost ], can't that we there's extent more we not -- the but we own in that certain [ too. view the but can, points, them. being market we do

Frederick Holzgrefe

I on too, piece. think, the lease Tyler,

I lease think structure. some it's that of of that to out or very, lease opportunities there's you them continue competitive the very market sort the in where because data out a are lease have there around been

candidly in [ be it's more out, ] pointed Matt As to the market. important

If what got you compensated structure to it. for your cost it get is, sure is make you

whether makes property. that business part sense So it around lease to becomes case not or the of the

Patrick Brown

extremely this I that's new terminals to think year. X you said No, X helpful. Fritz, Yes. Okay.

Frederick Holzgrefe

Yes.

Ravi Shanker

pretty door about more 'XX, like sounds count and that in does call relos, them. count look What terminal let's saturation again? are it good exceed terminals, still But will the those basically,

Frederick Holzgrefe

relos that. you problem as expand a for Those operations news sort as lot we of expansions been need of both mean, that to we're terminal have I had. consider I we've you are big there's adding once the is Harrisburg good that Dallas. mean Well, growth. some and us, well brakes so

see count don't "Hey, X exact count expect projected, would see -- the I but but this important, additional were Harrisburg. year. Certainly, in increase They listen, adds Memphis expansions, the than Dallas, we're ] ones to and X I be [ there." reloads door between have open door there's we'll to So every that we'll tend that we'll are, the market see to There's in smaller is no open. no no

Patrick Brown

can to away per just here. college call we maybe one Perfect. analogy, analogies. let's my bill If comments, stay it, ] baseball update your [ come Fritz, Okay. use where football, last you assetful could back on, we this journey, sit And from revenue on try guys us can to a we'll you

Frederick Holzgrefe

The aren't go bad analogies though. the anyway, football ahead, But too -- Matt.

Matthew Batteh

got early. -- feel mean, -- that we've work to still do, we we Yes. I we're feel pretty and like

available compares the And in charge share, ability look a we but in team, footprint a them us else. available the for doing rates to we and the us, front of for about more of those them them, an we going base what do the in that data to and -- of a way how them our we that our customers that in for it, job view a look expansion our we've ever we compare for market there. job help really discussions. and things one at excited is also number carriers do we board, our that are things to to exactly [indiscernible], we're and for than the opportunity every across that and For had ourselves we're assumptions cheaper for the that everybody take where out is to And than and we're great customer have us to for and appropriately drive public metrics great And we're show it. sit

the we're early per we it look in way analogy, the bill say is terms cheaper relatively I'd we're the innings So still on of in baseball still basis. at because revenue total

Operator

back Fritz This any like concludes our to I question-and-answer conference session. the over closing for to would Holzgrefe turn remarks.

Frederick Holzgrefe

our are Thanks, everyone of about we in story in for where learning journey. time called attention that and Saia and the your

an forward Looking to giving you Thank quarter. update you. next

Operator

has concluded. you attending Thank presentation. now today's The for conference

disconnect. now may You

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