DSKE - Earnings call transcript Q3 2020

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Operator

Good morning, everyone, and thank you for participating in today’s conference call to discuss Daseke’s Financial Results for the Third Quarter ended September 30, 2020. With us today are Chris Easter, CEO; Jason Bates, EVP and CFO; and John Michell, VP of Treasury and Investor Relations. After their prepared remarks, the management team will take your questions.

As a reminder, you may now download a PDF of the presentation slides that will accompany the remarks made on today’s conference call, as indicated in the press release we issued earlier today.

You may access these slides in the Investor Relations section of our Web site.

Harbor I Caminiti to Group, Litigation with read company’s further, over the who Reform go meaning forward-looking the Joe the statements. that to the Safe cautions Act we of would Private provides turn like call will of XXXX Before the within important Securities regarding statement Alpha IR Brooks, please go ahead.

Joe Caminiti

of for Today’s Thank you. within the non-GAAP our statements. presentation Safe Act Projected forward-looking of Securities of the Please are turn our financial Private meaning statements. a to Reform Litigation information, Harbor review Slide guidance as contains X forward-looking statements XXXX. and outlook, including

discussion result undertake to future We not events occurring whether Commission assumptions Forward-looking for statements, reliance risks and are that to and our revise securities prospects forward-looking business, statements. undue or forward-looking encourage strategies, as a information, statements of after expectations laws. of affect be subject could including performance, uncertainties can Daseke’s read to I a except results Securities projections. cause our with you required and and circumstances our those any filings as may reflect on are from obligation based place of business to no new revenues, or to current that differ our risks that earnings, other events, Exchange the and today, management’s materially aspects to to and on the actual respect projections with estimates, otherwise, under applicable

in presentation Web principles, adjusted their of to available press measures directly of and free Investor to or adjusted www. including EBITDA, and the income measures release cash investor the some are accepted daseke.com. Relations conform included discussion site, US non-GAAP items GAAP, which the GAAP of call, loss this are flow. issued that adjusted be Daseke accounting in the both not there ratio, to net operating Reconciliations tab a operating the During do appendix generally morning, these comparable of most adjusted income, also will or

of priorities. are strategic our our Jason the navigate of terms our making open start for the execute structure and we of against with back progress environment today, we review will quarter. of financial wrap walk then before call line the pandemic will Chris In our as a we business through comments a the through up then will review operations and few questions. come And with remarks with to closing the Chris a

Easter. like the over to I Chris? Mr. Now turn call Chris would Daseke’s to CEO,

Chris Easter

On a quarter Joe, you, company. notable Slide everyone. outline the good was the X, few what and we morning, exceptional Thank of from takeaways for an

make still continue industrial amidst marketplace. We challenging a to progress

performance, While although, response segments execution maintain COVID-XX continue industrial sequential on effects prior in at some QX the we still the place agile XXXX. beginning of pandemic of the our seeing our of and well improvements. market been as the it continue to our the versus see some is seeing has focus headwinds We're some team The top-line year. as successful stabilization drag most but pandemic, markets, of to in we initiatives on as sharp a operational our to are strengthening related down put of of we

metrics of of team $XX environment results. the in records markets some strong our record and represent income force basis, of combined delivered company GAAP EBITDA last in a these behind performance for where the finished and at extraordinary integrations, uniquely cost performance had efforts quarter was indicator another the benefits This actions operating, XX.X%. assets, established quarter are of XX.X%. net player, end primary the marked better the important our we and income. just the a eclipsing team adjusted capturing On Our with a of optimization operational efficiency, driving operational our operating The of quarterly dominant our the select million company. Both record strong of the

than $XXX million million shareholder Our a drive us flexibility the compared and third cash results in provides of cash continue quarter optionality, free much $XXX.X improved cash cash improved to are position This is greater strong reposition $XXX.X last to year's and more execute end we as flow greater financial flow, year-to-date and quarter. delivering to value. balance translating up million. to This

quarter. This is came our that business to the prior our to of continue and the spaces of where absolved delivered boosted that our exceeded of important Niche serve we model to these continue our capture with business of of million. industries flow economics resilience a these a it volumes. the proud our environments of ongoing these periods. types wind that is portfolio high face which not all leadership strategically cargo, this counts. lowering pandemic take Our as of to net advantage diversity as It the revenues weigh-on broader meaningfully Daseke results, markets ongoing like to That capability debt is company is Overall, pandemic. this It generating of cash energy freight our the I'm and as said, ability of entire positioning presented market balance financial note our verticals unique a challenges security noting debt result under the environment, our broad philosophy team, diverse from is big aligned these headwinds sheet. being our in by worth model. our quarter to levels results array commitment the ended well and progress de-leveraging performance given demonstrates these our us very We customers, $XXX in the particularly further in of particularly and served

aforementioned largely While we are building environment the from we by best-in-class the the the our of some with operations, pickup encouraged troughed depressed by have markets. focus volumes in demand offset since maintaining April, to the been able help tailwinds along in volume on

results demonstrate the the quarter. great with slide team. our this coupled pulling shown of strategic We financial additional levers, value to Slide some key Turning X. right for by on highlight results execution the The

the a of basis. we'll Daseke will and of model our in I financial much fixed to before pushing it our full performance Last We to additional would points better deliver the a provide introduced Jason or realize like over goal the on couple to continue ourselves make we results business minutes, longer-term few handing greater forward. moving but a to color of on have operating him. core potential ratio quarter, consistent XX% successfully

target maintain our on a And we've and the The longer-term us will with and strategy Taylor. team at will performance Officer, insights. operate been in continuous to and order from capabilities relentless includes We While a transportation drive quality we target, Jim this recent most serve to background business well our first technology this cycles. leadership it and to deliver not help across Jim now addition, overtime. improvements of is must experience XX-performance model, making decision joins that drive across as focus market merely building in greater developing line Chief believe this Information aspirational. velocity ever his is the We leverage as is company. sub achieve results

capture us new efforts Daseke will Our future track on quarter. the I that Bates Jason financial the past to pursuit to within into third With the profitable value even our now well over organization, to as team's growth year more further positioned review of extraordinary platform. to exists look have of over to that, as turn the the much your call performance

Jason Bates

Great, thank you, Chris.

$XXX.X third results. Slide revenues year's detail If to In of financial you our down consolidated quarter. million, to $XXX.X we please where last turn quarter, XX% in million X, with revenues third were me consolidated compared

However, we market business, earlier made in this year. which decision a keep oil focused and the Aveda in strategic to our mind, divest gas was

completed at this that essentially have process We time.

is our business of However, business it helpful,especially evaluating we and go our modeling about forward believe financial the results. address performance our to impact for capabilities exclusive

pressure down consolidated the negatively year-over-year. in our year compared the ability the and This $X.XX top and deliver of primarily million aforementioned very flatbed share. of of demand. place diluted we're per industrial or In income driven freight net affect the ago softness decline Excluding demand line on period to Aveda, segments the economy impact was by to quarter, ongoing common volumes $XX.X proud freight team's pandemic downward to the experienced X% continue in were specialized the our as spite lower both of revenues

EBITDA just net of cost results million. significant year of of a increase year's quarter. the past delivered improved income delivered prior from income and the at Adjusted of $XX.X $XX.X $X.X million $XX grew exclude ago fleet third And the Aveda. quarter team rationalizations, exclude This the XX% the in time improvement XXXX reductions period. integrations, was Adjusted plans Aveda, third in which million Aveda, by relative to $XX.X over net millions corporate million to in EBITDA came when you the you $XX.X when Excluding a reflects compared million, strategic the XX% year. implemented operational in of results when adjusted year's to business improvement the by compared

a pandemic. to move of in of We're want the these I results, very team's segment a on complex These result our different of team's direct niche a lot hard to thrive amount and impressive markets. of context. in before put face I execute by ability are the people results the Now in tremendous a numbers ability of to proud quarterly to highlights quarterly work

impacted fail to the of the results. highlight be which would we However, quarterly we tailwinds, positively remiss some if

and activities quarter be we in providing security million. an were markets to in We benefit We from be the aligned roughly wind estimate incremental our had revenues navigate year-over-year chains end COVID-XX these from capacity unprecedented the in the able to First, be to to where customers challenges. EBITDA high by pandemic. unprecedented both and adjusted benefits our $XX this margins superior by ourselves dynamic strength to a these the supply and to in position disrupted service strategically to

response impact this to we also cost be the in to of fixed we don't short Additionally, to in continues some which fuel term have COVID-XX subsequent reductions a anticipate quarters. favorable quarter. pandemic, tailwind realize the And

insurance per as XXXX, difficult. much headwind going And quarter will is be recruitment the million such On continues becoming as side, as a to continue driver retention and forward. and dollars flip couple increasingly into a likely potentially

Our team you be as as goal as with possible. to a transparent is

management our to a more few quarter acknowledging with results. execution shared detail We pat I'd couple at of this strategic both start well. showing throughout the on with detailed look a for a X. here hard unusual you minutes back the had the all our you as but that, taking the work, benefits and that this spend pandemic, team Slide With segment I’ve also segment results, to we on starting like all So our full segment specialized

previously Aveda. me leads of wind discussed. $X.XX versus Aveda This year’s per down million grew mile specialized basis where Aveda as expanded business increased, these performance business, quarter. per tailwinds XX.X% points to ago our excluding with previously believe of of last versus $XX,XXX number to million combined from flat XX% from segment's excluding roughly essentially we year's we Specialized year the $X.XX, adjusted X, the results, Slide XX.X% detail improving generated of the revenue Revenues hard results, prior $XXX.X $XX.X of reflect more X% last given is to the segment in lot quarter. work rate by were materially our XXX margins compared XX% by results third third However, tracker our the have EBITDA nearly but quarter, in $XX,XXX. Again, result EBITDA the results we reviewing discussed of helpful. of done a million up year's to $XX while improve the increased year-over-year,

grew X% in XX% detail results the flatbed weakness, X, Moving marginal segment driven of mile. Flatbed to per broader macroeconomic by $X.XX we a million, offset third volumes improvement roughly decreased by rates, to our freight which revenue the weaker for quarter with to Slide partially $XXX.X quarter. aligned by

healthy our operational to Our segments flatbed ratio segment results of million to of our manifested $XX EBITDA executed results than third improvement. we at which in compared These adjusted or the are XX.X% declined This sales the both when upon, is respectively, XX.X% work improvement XX further evidenced $XX.X the at and improvements year's EBITDA results basis adjusted operating indicative margins. quarter. improvement of of by marked have points looking million X% each less last ratio, and in operating

to free metrics. Slide where and sheet balance we our turning detail Now cash flow X,

million, $XXX.X a XXth, borrowing of in million decreased had a September As including of Net and credit million difference our $XXX.X makes. debt $XXX.X cash Daseke of facility. liquidity million capacity available the has year year-over-year, total on what $XXX.X

operating of work the of generation leverage thus flows on we've dropping our capital million, million. capital net flow. first strong proceeds has over transformation free this net balance by sheet. cash year, million been face million on year-to-date, balance be up and somewhere has leases in net side. resulted in the A proceeds. CapEx our by chart of on our our to was was a This and for perspective, items. sale million returns. EBITDA are $XXX Through sheet to debt $XXX.X resulting the upon us basis three the flows Cash or the improve CapEx you was has will year-to-date the year. of year overcoming adjusted $XX cash $XX the equipment point Slide helped operating key provided Our with a far $XXX.X in anticipate expenditures free in flow which earnings $XX supported lower net headwinds the substantial includes the displayed a quarters activities revenues healthier in cash focal right the from the last guidance on see executed the and business. million. QX totaled cash endeavor cash to and clear with income of in debt transformational million Success in divestiture the weaker cash the cash key XX, to between macro million improvements flows of net From operating we CapEx stronger net deliver to $XX $XX.X Aveda resulted Improving resulting hand financed And

and on transformational on of into side. This near-term, flow a we navigate results to driving the optionality we consistent as cash hand sheet build have in be generation. improvement and flexibility much the it left position, the up especially preserving translated the as the balance cash sequentially every continue on in our efforts prudent the liquidity, intend to industrial allowing indicated turn mentioned, our the cash uncertainties our stepped in provides, we In improved As broader has is to graph which quarter and to to to best that, said to our Total be opportunistic Having key evaluate we which actual metrics amount economy. will be end third remain also continues in debt at continue as the drive reducing but we future. that to to to committed we will pursue debt carry the We our of seeking not interest million of also the stakeholders. to only improve, down intend $XXX.X all quarter. of to the options leverage improvement dollar we continue the stepping look with

I'll off over to and that, the with outlook our hand priorities Chris? Chris it back forward.. detail to moving So call

Chris Easter

Thank you, priorities our reminder XX, outlined we Jason. a I'll quarter. XXXX conclude of on with last Slide

year, year. As to with final over will line in our we continue momentum we quarter forward of trailing thus the the look the far successes driving

and of of impact adjustments its the We will end on the industrial pandemic eye within while maintain business our economy global key broader economy. continued context making a requisite markets, and the overall pressures the the our to navigating strategy, on

as our on We'll initiatives We the of and have execution operational most actions to prioritize year. move as excellence safety with and development additional also people with throughout will we challenging we include of carry to this into implementation the customers XXXX. them our of the continue our

our invest financial year. top prudently We further improve balance a will to on in we'll success the the cash solidify flow our culture in further our that And operate our strong existing over in delivered with developing sheet continue to bottom from focus mind efficient generation, to strength. finally, helping has to team past and optimized an continue drive positive business fashion and

environment. key carry as industrial strategic there stronger our Daseke even emerge market, turn will the execution an we the of and of the priorities, concludes your opportunities with as with and side questions. growth position in over broader And the unique I'll remarks. market other prepared still on substantial uncertainties While are leader our volatility on we for call That this

Operator

line comes of first question Seidl Your Cowen. the with [Operator Instructions] from Jason

Jason Seidl

wanted to XQ that's how going think to shape I up. you about talk and

of things look power? market, consumer probably anything should trucking some some The about losing we sequentially that not as type obviously, business. the sides in the You're one flatbed the in like earnings we of quarter. is think How

Chris Easter

it We're of But seeing kind caveat some we seeing continued should seasonality expect. strength of in normal the that are you would quarter. degree fourth --we it's

and we're know, QX typically Our But slower. still you are Jason, QX, as to a solid add QX. seeing to you want that? if

Jason Bates

think QX, seasonal think has about moving QX trends right. But there of obviously, Jason. an I the when is you in a October been actually October, decent for lot and pieces

in So just keep that to context.

also by our we're trends we that for trend adjust QX. So like to of and But what overall, accounting actually in based some saw what seeing look kind expectations from have seasonal benefits we encouraged a perspective. we're of on the

Jason Seidl

you near pay And where cash Jason, you to at and of we obviously, building term guys forward without term. see penalties you're at? going debt to would look what's are, sort like sort debt down sheet and longer-term longer the balance you when the opportunity any your your said of for But ratios

Jason Bates

I ability the time, any at think that's the have concern. not to debt prepay we

I concern sure there, want preserve is, make the and uncertainty just optionality. that think to the relative given we we flexibility out

sure and them may of make almost the people the capital opportunities, the running a are to going whether confidence, as and And most allow with do making numbers I acquisitive of know that this to pull the think restructure, how trying we open whatever we're team earn week, executing. regard we're we're sheet us to continue math looking you're all see on balance to decisions. comprehensive to And right what with can some is the starting every see, we that capable to we more all going to regard and up that there sense going pursue. hopefully, think the to them to you doors, it are we're makes to utilize for at shareholders levers that's potential

Jason Seidl

one last my here. is CapEx on then And

the yet. I finalized we about You But basis? numbers CapEx think probably for a net gave on QX. XXXX haven't directionally how know you should

Jason Bates

reading actually I was almost they're script, script Yeah. XXXX. about I in I'm ask the missed because the and to like, going

I So told about it. have might

So first roll pass done we up. have actually a

it. has team together worked on entire Our

As out happen you us lot figure going to election, with plan for to the the And know, what's think to we're of I a still are going COVID, that trying still going mean. XXXX. with what's what's happen finalizing

there's will But moving a I tell of lot pieces you… there. So

Jason Seidl

you me let find can out, right? know, You

Jason Bates

exactly. Yes,

And I you of replenishment normal so right we're million $XX that to from cycle where now, think kind kind guided $XX to pre-COVID. in from of we what sitting is a perspective, a that's net CapEx

I regards parts good and to that's with moving different a of to kind Obviously, that. things think there start. place like different there's leases

So good think XXXX, early preliminary net start. think $XX that $XX as to I a a place is million you think I basis probably to about on million

Operator

comes Your next of from question Stifel. the with David Ross line

David Ross

wind in next you that you to referenced the potential the again? clarification benefit October security. the a in year, Just when a done a the and cited October? that Is and high little you third continues that on it's or there into Is going not it tailwinds, benefit continuing strong benefited you and quarter one in that is

Chris Easter

complex case, certainly if sure. to That Jason -- But usually the in for degree or challenges solutions, complex not But our want but therewere in some for I the our to some else… of altogether present XXXX know customers. that still think that's don’t anything or anticipate in the doesn't challenge to that per won't a mean you it wind October supply repeating I especially all we do chain sure. market dies in onetime challenges that kind solve wind se certainly stuff, the for of opportunity probably an complex lift it add themselves off

Jason Bates

think I QX us. way that's down Again, when Yes, about start it. slow right to the things is to think seasonally, really for

October. but to about feel So pretty again, we good October, historical relative

keep context. to in just sure want I make that we So

of would of fourth talk lot in a was operating seasonally, our funny, first this tell to she if guys business. us we wind knew unit XXXX, that so And kill of business, she's probably one you. wind the really I And that. But slower. exactly leaders like, saying what look with Wind quarter, long it's for like I does quarter had going a would

that's project got passed. three is one vary in different there's certain degree life year business, unique relatively you it than different getting So like and The a It's things customers. reliant contract, it and in builds and prior forecastable volumes most year my business contract, is because where with of on predictable nature. or very wind not

an what so we really of delivering the and is capability they've relationships way track high say got of of goes, positioning the regardless demonstrated themselves, so extreme record that the has that can of team which level service. And it at

be assured had rest team So it. if after there's opportunity our will to go

Chris Easter

thing spikes on And one similarly into to we kind wind, that of our that capacity think our and also. on tap on companies sister are other interesting would the final spikes our work of just that in companies model sister as can see in tap whenever And those I and it's those other capabilities reach and evidenced ability type because extend it thing, there in volumes. we was to we industries that segments for run

David Ross

we Daseke's back you into impact, that the as as have or yet view biggest you markets, move across on ones you're closely business as have most lever XXXX the the do that the booking the industrial biggest come not customer have or watching either could the the business? I look would what think, ones base, Chris, that important most that

Chris Easter

couple of where very we question, see it relatively equipment particular better if some and year. great go more lift a it the I'm like think and lot a would But be for heavy -- of not there's as equipment, But I and been It's hard lots a still sure aerospace a business are or heavy But XXXX steel a couple to expect too, of although, are rise and in helpful whole, we're expecting dramatically. them in aerospace of the would as into small looking maybe trending down, to in things have steel if next totality. interesting we is a into movements. be light know. areas those down It's we’re piece and been expecting areas been grand that our scheme we as

areas surpassing not Some roofing, two. sequential although, last pretty gypsum, or has necessarily growth, least last in at demonstrated in year, commercial that weeks those positive, some recent some had three blast, sequential areas seen decent growth and month recently particular

David Ross

of last a just And question clarification, Jason. more

You to too think term unlikely talked to are fixed two Aren’t about costs higher and costs do last. netting short reductions that that last unlikely how there of are you know short-term you out?

Jason Bates

there just want David. don't I to puts takes. No, and those, We right. you are you're think about mean,

were in entities well. with there some to that it we which good side different and/or there. continued that also the anticipate a had COVID. doing defer you We that some a some of back associated unique the on and we segments as some of on benefits think of able And normal, the we plays able to at and nuances, work slowdown as the cost that into our side wouldn't realize things that cost were necessarily verticals, specifically to when repeat different guys we're but different come both result entities I were on the as of kind look consolidation of

it both us net in for So, a yeah, I the benefit. was ways. quarter of think But goes kind the

that we dissipate project forward. COVID kind to is going assuming want that move necessarily as wouldn't we forward, to so, of And

Operator

of Ryan with from Craig-Hallum. Sigdahl line comes question the next Your

Ryan Sigdahl

this Good morning congrats guys the results and quarter. on impressive

XX.X. items you I math Just this so quarter OR, for all of items visibility, do what in dig guess virtually operational $XX want think sequential of today, that billion quarter, If little implies improvement this you then correct? et or back benchmark I into QX million of you a not benefit And can on unique a to the worse? bit I XX.X, the see mentioned is the given or do QX at non-recurring One, envelop it from but from two, realized was is or improvements, the you trends, of a directionally good can was cetera, industry that nature. XXXX, kind one-time better lot

Chris Easter

too. its think highlight So headwinds I important the of to some also

So calling headwind, $X you some roughly also kind of insurance as were items. of well $XX as but million million the had other out we one-time

And so takes. there and are puts

through But that And of you're kind out, wind high and would have sides. highlight we on opportunity. unprecedented deployed been of assets I that would the the to that things to also take to going saw while advantage we and cargo, like energy if so $XX take to million do goodness security things other got of unique, doing it was both that it you've otherwise

And don't be so would was I remiss be it we analysis. didn't the that want But that unusual. in lost we to if highlight

is tell. entirely business people be think I year? early strong want And to that's now we do. we results. saying don't it misinterpret there think so its -- as And we're maybe, as to I the will is next are not that probably accurate, them it because But to characterize too what one time

and at delivering at the lot did overall, face pretty takes. it job think think I was And I I so, holistically even results, tailwinds. you with look And just some puts team good COVID, got of the think a of that in of there there. to strong a the But

Ryan Sigdahl

So reasonable improved different OR of bunch to in QX… things of net say directionally sequentially

Chris Easter

Yes.

Ryan Sigdahl

too directionally et cetera. was, that But on reasonable to reasonable lot different at costs, or that hard tell et cetera, second continue insurance, from Is that it this just improving. see what to for of today of had Then driver to you that kind a I headwinds mentioned continue I know based can that assume despite the can question to you moment?

Chris Easter

into the XXXX… referring XXXX, you're If to

Ryan Sigdahl

QX QX, seasonality but early in out… you Correct, as look

Chris Easter

the than of QX versus you But when improve we think seasonally XXXX in good XXXX obviously, is some do kind neutralize we tougher saw, of the we for XXXX, QX. its to abnormal looked at that quarter expect when guys I entirety a trajectory. on OR

Ryan Sigdahl

Then we've how with normally is quicker contract spot consistent improvement negotiations, which rate rates, just it a in goes. seen on

we could seeing contract you are kind then to financials? what your when see potential rate impact on So And of the that negotiations?

Chris Easter

rates contract -- sectors. over spread out the out not across are entire spread they're necessarily, course but the obviously, Our our different of or obviously year

rate say, continued any pretty into that to based in far. what's rate would So the seeing we movement do can't of trends the next We're and just kind positive time be our view one that here's happening you positive hey, contract we on to But point so upon and point expect on next environment capacity, in all to of continue year. improve the in And generally, going year. going rates. to feel tightness

the may all our volumes, if our we where thinking and would affect changes certain of overall again, some $XX of it positive generally, of move be into mix as mile a of these things blend. environment segments a of rate rate 'XX. But rates mix and Given getting different we we're areas the these there's some

Jason Bates

this granularity, And provide Ryan, we at it this look of don't way. level but I know we

company rates If look you year at to expecting the every were up. operating the trends board, to move and rate across this take to projected year next from we're

you the supply next kind talked because business of hopefully we've as mix move economy very trajectory weighted about. that soon. that that Chris's rate candidly, important to follow could kind as should to what general and to know improvement feel of the may crunch the that we’re starting not point, to think up average the I will the to speaks really we rate expect much profitable of the overall really, year, do and all demand stuff, like But causing is Now not much, ultimately move

Ryan Sigdahl

shortage, But you retention have then to kind on pop me, drivers? for and that kind in handle mentioned supply, doing you are more guys you the guys kind the I'll Anything driver driver also imbalance can competitors several turn of of it. mention demand But queue. back other what in a from noted retain One of standpoint?

Chris Easter

sequentially first a that market. driver generally think I is we that fortunate a XX% our to as total focus And think well. the foremost, I in one the and have. finished ago down recruit under our maintain is retention quarter just down as we're turnover, lower year which We you and is whole, easiest from turnover, the this on and than

capacity having all never to where qualified years drivers. all it tight year best a we're a challenge I've easy less dynamics seeing find go to in said the going challenging find but increasing from So a are a drivers. and We're drivers. is also good forward, of to for within more it into -- as to with as But the a always a network we generating are XXXX also do the going trucks doing most in to from do had I perspective. a certainly terms market drivers. we we're we're it's expect It's environment given our efficiencies industry things year perspective. turnover ability the our be The be that But

Jason Bates

one years always all have you. things industry, in in it's the mean, watching be to just I Yes, my of just you those

to home on, what was one that. a someone growth to built of close got in job who was good thing hardest been pretty you are on the a doing I of staying that going these has in sure, very are what one from truck You trucks, teams for was that overall from said, guys ago. when is with company. for a our take benefit finding was making of XX two, the years like with aware hundred, to and time the some was I He's make to you're you're driver, two industry a large second the were do But the challenges. doing, he And sure successful or the talking market. career, to a grew and competitors And about that inline I talking and to drivers his and long this think I early

drivers be mindful to changed to sure as mindful this care of all going we all be them what are and that at move to continue that and hasn't make So something have of of to it's our make think are got taking times. I we company we and ultimately

Operator

time question. for more We have one

Your next Greg with Gibas Northland question comes Securities. from the of line

Greg Gibas

and congrats quarter. on questions Good really nice nice morning the taking It see. to guys. for the Thanks

of sequentially. cost terms said kind us in sense OR How of net-net of But to take see regarding those give I improving total? just guess would still out follow know benefits I kind a up do we we from reductions to those earlier in that on I what should cost are kind one-time maybe fixed you First talked of what reductions? that of one-time the those about nature. guess you much

Jason Bates

clear, to a a just about two about to less than over talking mean here. we're million million figures be seven I range. a So little misinterpret. little We're but type, type it's I want it's anyone don't something that's, not like talking $XX

people not we're do that again it. of to was. benefit we because how want want I to big aware But we make So not misinterpreting unique to highlight it be don't want sure

Greg Gibas

wanted wondering versus on to Thank Jason. And differently could the capacity you I appreciate up expect of you if forward? capacity was then for if kind I them just maybe you might differ just color flatbed kind added you how trends specialized talks, clarifying, discuss going follow of to the there. between markets, also

Chris Easter

generally where like on side. they're of the I tap navigate aspect kind wind ability certainly to flatbed companies specialized our But parallel of to the in There's across through into of to some XXXX. terms resilience where in just I each demonstrates be go whole the of capacity a model think that because sister as the can think that, of the we there we But things will energy, capacity degree complexity the of chain. support challenge see same back to unique we portfolio again, supply greater Generally, with going and to was that tightness our other. had

Jason Bates

what kind said. of to add Chris to And just

our the I think portfolio portfolio. different different within businesses model, are that cycles given there to that

periods model the have speaks cyclical others. tend of beauty think it And counter that that of portfolio the can some it I Daseke neutralize volatility. Some of to of them how and kind to are to again, stronger

Greg Gibas

a maybe of about degree the and occurring guess end? to about what how you a impacted? like we that. saw markets that your me your the the But it's infection I of, high COVID predict potential end see quarter, if this level spike one of kind in large another a or think wave later would potentially tough just be terms for too, of being how would seems exceptions. in most first maybe that QX how time about concern risk? there were of held saw QX, the thinking thinking on you up Obviously, then And you closures, you markets But around and are lot It are when of well. timeframe we

Chris Easter

going tightening, we suddenness think, it it's through reflect think I shock navigate very wave,.I the through the up. second to is that. to ourselves of in down able to it's I continuing the is how we and and where the predict comes will think And will think to I be to tighten be able think to as capacity be demand we wave through to that that, or maybe hard navigated I expect how successful navigate too. and first big end But equal

to So position a think advantage a perspective. we're business in of from I take that

Our operations continue to expect trucks entire would we a and there period. be that have do able if operating second And on our this able wave throughout one. been to is to

Jason Bates

of out and beauties and the is things or than Daseke we it's I what's Daseke would that, I'm the built of going on, confident in company here Greg, again, be. becoming thing time at businesses, only to I on of there that have one add of one to lines CEOs operating closer these model bunch ever increasingly is, will Chris the in they're the got And my front learned this

day. directive tell they out the about their paying run cutting, cut, and out that's environment why They're for I or running rate to it's make of a whatever, their like, continue the or someone get decisions for of not one in you do have cost jobs. there going how I've or part or they strong them business way one what make to expense to that they're move. and because And them get and in go -- need saw And to or the such they're turning thing increase. And they what get looks there's they drivers it. which to execute learned decisions that. if sitting let what way to They're to and know do customer so to a waiting executing QX, what some corporate And their level they're to do, our regardless in there corporate going like way and trucks, think the every job of them high at hell to a is

companies, team this I've executed when good to see. operators of now So And really that effect. of the lot they'll make through a that's how run encouraging that and you And then out great really has is that’s we figure really who know really second this things we're been one pandemic when to companies get as sister trucking that that's how the here work. take to seen is compounding just starting it of leverage piece. to advantage you It's got

Operator

That's all now I'll closing remarks. return Chris call the for questions we Easter to today. the have

Chris Easter

time today. to again for everyone Thanks your

ourselves is to team improvement, you to again support while have next continuous on we with energized focus quarter. positioning with for Daseke and at relentless the your forward forward the look continue built Our momentum growth. continued on We talking appreciate

Operator

for call. you gentlemen, this conference and Ladies Thank concludes participating. today's

You may disconnect. now

Daseke (DSKE) 30 Oct 202020 Q3 Earnings call transcript