DSKE - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and thank you for participating in today's conference call to discuss Daseke's Financial Results for the Second Quarter Ended June 30, 2021. With us today are Jonathan Shepko, CEO; and board member Jason Bates, EVP and CFO; and John Michell, VP of Treasury and Investor Relations; and Chuck Serianni, Board Chairman. 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 this press release we issued earlier today.

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

Safe I Michell, to Investor Securities VP will the further, over the Relations, Litigation go the regarding read John within forward-looking XXXX to of company's important Reform we Act would the that turn like call who meaning of Before of statement provides Private caution Harbor Treasury and statements. John, please go ahead.

John Michell

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

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

not net directly cash or to debt. be Investors in – income, or Accounting U.S. ratio, EBITDA, that both there some presentation not During the GAAP, of tab to issued to Daseke the limited conform website, in flow income non-GAAP are press appendix items adjusted Reconciliations adjusted adjusted available most Principles, also the operating www.daseke.com. will and operating which GAAP morning, of Accepted free discussion to adjusted of the their call, which investor loss, these are comparable and the including but measures a Generally release included measures net this do of

making structure Chuck comments we will call remarks will strategic Mr. before over quarter review of Serianni. review operations are will a we call I the In start Serianni, provide your with terms Chairman, over which will our With our financial Daseke's that the by the priorities. Mr. to the as After progress the we which Jonathan then Daseke's will to recently Board line will announced business Jonathan permanent few some hand wrap of the Executive key of turning up closing as a on Shepko Jonathan Chief questions. call for our our and the point which execute appointment provide open comments against Officer. Jason Chuck today, at of we

Chuck Serianni

the and best organization, to best vetting This you, lead John, development. months organization the was improvements announced Jonathan we further its has appropriate the operational forward of priority a the and the Board across time identify organization suited permanent our driving in Jonathan on our taking numerous The spent of strategy. needs Thank right and good executive person to next Daseke's to the candidate – conducting to morning search of the last lead process, the comprehensive that morning, role Directors everyone. interviewing has After against a through the our several to evaluate basis. CEO board appointed concluded executing phase us the growth order we with prospects that of

year. since since the board's the He into dutifully role. been of than beginning pairing has more expectations the As stepping that you know, has title the Jonathan interim the

not has because that search undertake to only able and through strategy direct it around operations, of diligence and native in Daseke our also a process factors, capital and investing. as in has Jonathan is of clear professional the breadth the his director execute and direction into equity maintaining become brings trading combined will of executive financing publicly depth In fact, was debt Ultimately, we Jonathan were he skill in the operational with the insight significant and board as did that transformation. team complementary month He the strategic much achieving. several at success a early rest unparalleled. priorities, business to the a and knowledge added paced our this continuity. experience aligns set markets, our we since business value necessary be benefit of began and These continue but a carried Jonathan with XXXX which operations that extensive our and been best more

the of those Jonathan special results. constructing our critical to tactical our allowed a the that of Chairman that are operating a and operational For served as you and new overseeing role in to that pivot story, improvement our transformation financial operating also for played and committee

us our We and bench emerged Additionally, resetting team XXXX, have priorities that as against sheet transformation lead key veterans the supported strategic to by as year. executed committee, industry of be efforts, our helped part chair earlier Daseke's change that path, in introduced significant this is continue our from Jonathan's long-term in recently, of entity will qualities strong volatility the operational into the took is broader expertise leadership stronger as his executive were form to place global economy. achieve which operating his tactical in the refinancing our as across restructuring Johnathan and direction and that fruition. and to of a of to key the had very and company a he a on at leveraged middle pandemic still with More stages much strategic in balance Jonathan companies. strategic bring sustainable working company the transformation. to the suited Daseke forward playing successfully each – a team but the larger And committed numerous leadership our executed demonstrated meaningful that well additional overall a progress. pandemic growth. as completing we role to experience as to the that made better talent a priorities our win and by very a transaction of of It's to indicative for significant of that reiterate continue of we are of as important appointment we our not role

With towards of over transformation Jonathan As is to a Jonathan. call Daseke's I'll to turn the believes complete now continued look growth, begins leader company. right a truly our board company accretive our phase becoming to of that firmly new to the that, world-class

Jonathan Shepko

morning Chuck. Good you, Thank everyone.

Let how I as of am and position me excited permanent CEO organization. add humbled the to great this accept

our to of is excellence accomplishing plan and logistics significantly and to before identify are believes operational advantage long-term profitable in drive in I for that tremendous and We've still more largest our level possible solutions believe is take We've initiatives We company flatbed, We strides that growth the transformation objectives also these of over achieving the opportunities our made to years. specialized have will North team America. last transportation a sound. begun two this organization. approach

model, operating and will diversified to leverage Daseke and end opportunity As financial a more an build we significant and ratio markets as to value you strong earnings our larger, more operational notable here the portfolio together a and we platform drive team a time have the highlighted, about of a efficient for quarter. Daseke performance have business to talented first standing. share. the Chuck at incredibly uniqueness that performance from this to takeaways unique which all the forward from setting looking emerging have we a With spend offers Slide country's our And customers, for to develop very QX, I'm delivered X and stakeholders. please of this of leading of and of speaking the team $X.XX all that few proxy the a leaders XX% turn organization. our records that diluted of numerous will We all adjusted industrial of let's outline per with to quarterly an continuing across in profitable business serves adjusted

business like across seen far periods volatility, are in naturally effect markets portfolio smooth XXXX. to the true the serves shows we've While when experiencing thus our demand normalized force multiplier of out more

fleet which most with Daseke of owner-operators, position meaningful company-owned capture of in to benefits resources business markets a corners favorable. our valued assets is trucks and puts our a by competitive the combines into capabilities deployment the the network are of of unique our Our landscape model, most concentrating strategically where and

you of we cycles. across our XXXX, for close up and for very study second offer proposition of With the compelling of market solid performance value provides model, case a which quarter the the

less cost prevailing provided aggressive demonstrated operational and we of us post with market focus operational lose the and the struggling. to control nor global end the our on economic which our impacted have and intensely complement and hand, assets our balanced well time, but freight relative softer more stronger are of of service performance. depth have the our of focused at markets the and the a compromised. again pursued XXXX In our cargo, Despite markets when markets sequentially where continue customer outperformance. one by end proactively we On enabled were execution of improvement rates extremely doldrums rate struggles companies high good, intention this as have resulting away an many financial for We and to implemented easy into industries very and were It's with environment traded contrast environment, of improved such team the exposure which our while you solid neither margins wind to absolute all operational rebounded to security from sophistication. believe most results measures, return XXXX, were times that efforts service dramatically reposition KPIs environment, end higher we has because the on aggressively XXXX, in of increased pandemic,

way, environment business to combined with verticals leverage operating the which with adjacent performance for and rallied shareholders. team manufacturing record Our construction an resulted leading our our rate improvement in ongoing collectively initiatives

results we and for million, of XX% In an up QX of the $XX million, drove adjusted increase of which EBITDA XXXX. revenue quarter, $XXX terms versus of over our was XX% year-over-year specific

we in operating here the said and income business that performance. our our is As in improvements EBITDA portion committed equation in evident success to we're earnings past, of the driving

there historically was into in backdrops environment. the returns. when similarly to think I strong strong these a convert strong most it's struggled profitable had But to note that notably times, top-line during we've important Daseke market XXXX seen performance before,

completed current As impact the discussed decisive emphasis have on environment and operational with our the transformational measures we this last over only underscores integration though the execution, years. earlier two of

we efficient operationally manner. basis, an environment ratio XX.X% on were operating in able which to showed that adjusted XX.X% or Our is an engage the results,

company afford profits million $XX.X income our after million remains of long-term X.X quarterly point operating our this Our earlier with to times, stockholders. $XX.X our strong And flow objectives. to transaction of strength us refinancing balance cash year that to roughly free will and support flexibility deliver our our of strategic sheet demonstrated of growth with ability completing closing a leverage our

a to at call to I the address talk turning our moment more over state Before a performance markets. granular financial brief to level, through the of to Jason take our want

in environment. of Our business economic the improving the has led half with high economy first industrial the by environment year the strong healthy a broader rate supported to performance recovering demand across combined and has capacity been

year. during services economy. have in saw the all aggregate declining to the periods industrial of pandemic markets niches broadly within tend like correlation exhibit business demand downside last through we Our specific looked More

review and as serve has wide undertaken which that as the this our records board four certainly However, remains talent. economic company in our even open-deck the this further these full we signs will industry, as Jason? materially Jason With starting improving of up contrast in light the different strategy the of positive both the I broader Well, which to many our that, to We modest we a quarter's many our raising tailwinds EBITDA quarter during hope for has capacity give from by performance are to financial call of exhibit end call. effectively market markets; fundamental our later isn't In operating remains end slowdown. change transportation the for markets, turn the current across on over tight. now our comforting outlook benchmark freight To Jason will markets end, ability which reflation provided has that that it outlook well adjusted economic demonstrated and are our to this of would depth real to second revenues a segment value to Bates been a encouraged and execute are cycle. I of Demand by detail stockholders. our served the year this performance. believe margin the gauge and into and

Jason Bates

morning everyone. Jonathan, Great. Thank and you, good

If high consolidated to a me the our you for we'll review have please Slide results of turn with level X, second quarter.

results our market are ability into testament backdrop. to mentioned, Jonathan to strong Daseke's execute an As a improving

This continue contributing business. related momentum beginning growing freight particularly manufacturing in been see and year. in in construction has key a factor This we environment, uplift our to of quarter seen to a verticals, strong has recovery flatbed the since the which the

right the for Aveda the of As a Jonathan year's on in Daseke provide mentioned, of of of the of we up second business done this in with slide, nearly slide. left last the million, business the quarters, few compared to On last this view snapshot of we've done $XXX.X inclusive on delivered side performance $XXX quarter. forma the – second side XX% a quarter, we've the revenues consolidated divestiture as million revenues in pro our

As year relevant management financial thinks of Aveda the table the business comparison. we And the of and we right-hand apples-to-apples reflective provides believe know, and and on makes in decisions. about is slide details most divested the you for business of more mark how last the that

reflected our last where more pull had would consolidated market. up end pandemic performance were revenues to in with by we than that true the expected and the as line revenue across noted XX% our We industrial reign more sentiment improving quarter Aveda, to Excluding second year-over-year. have absent this be begun closely in demand quarter

level, delivered volumes XX% versus team consolidated of after Aveda $XX.X in for the below industry industry recruitment averages. our it XXXX in diluted of record. and home than of grew that EBITDA phenomenon to what quarterly over are energy million the At and unusually many to work cited work XX% coupled Adjusted This OpCos results adjusted combined to high positive share our has with quarter, of on due our of paid continued I million them significantly EBITDA concerns the associated than safely, by wind normalization – driving nearly with $XX.X in growth and or associated more overcome year-ago, time. were were we the the Flatbed in to done has also revenues driver of destination segment. income on excellent the the getting rates This last momentum of business Excluding turnover highlight like would million getting report period. segment particularly of team $XX.X highlights margins Daseke remains freight project net professionals. per our our million as in miles, adjusted $X.XX with $XX.X pleased excluding is the our our while and results the we have focus plans, Where second that making attractive driver traction and year's them each quarter. getting retention, compared comparable Aveda, improvement quarter and improved in the the operating up EBITDA notable more

the We performance on situation encouraged monitor organization by throughout care our overall very of but remain continue will are we closely, professionals. as taking driving to focused our all the

through segment and our forming the fleet Slide number that, level. segment results. expectations. Daseke benefits X, like expense at view I'd through like highlight was reductions achieved on to overhead reducing we the evidenced we've this made corporate to category. by our walk take present out a results reduction to I'd various XX% operating specialized the a from With Finally, of On moment detailed augmented companies, in by services a the This our insurance corporate expenses, you as progress on burden in entities operating

the we segment execution lower revenues However, excluding is consistency from Slide Aveda effort the up the the comparability energy to which that the from away versus and were revenues with million, shift the aforementioned offset wind $XXX.X strong present divested year operational going by driven of segment maintain ago year X% period. and exclusive impacts our the nearly forward, business fleet in also mix the project an displayed specialized size results prior X. Specialized number of on business, Aveda

in the increase from impact in Our assets impact fleet our the quarter back business segment, by stemming year and notable respectively rate given pedestrian, the were environment year's XX,XXX that that segment it's the of of the unusually supply wind rate in strong solid and in optimize our segment marginal points results protractor and of adjusted integrations period. second was this has better rate business increased operational as EBITDA was which year-over-year and away as segments, rates utilization despite for strong of compared the further by per the clear energy in in as right-sizing, evidenced the second the operational shift quarter. XXX made Again, mixed this And This XXXX, $X.XX which done up second from was XX.X% to attributable grew mile X.X% again, by ago $X.XX enhanced is the versus chain to this but was to specialized impacted execution significant quarter. improvements the COVID our that of appears to and only XXXX. versus drive revenue XX,XXX and the EBITDA year work evidenced improvement basis unusually last last particularly a margins,

as combined in from which a realize to operating business, we Flatbed than per for generated levels. able industrial translated points per at Lastly, see This was quarter contributing fleet metric, EBITDA detail the grew million rates. in has $XX improved $XXX.X adjusted to segment's happy XX.X%. our the a results reflected prior we increased into $XXX.X market of this we in to basis of end-markets those from last captured X, We points XX% XX,XXX by with This additionally segments quarter. Flatbed to robust a flatbed which million, operations And the Slide coming grew of where backdrop in XX% initiatives the our year-over-year of by near we are our broader million the quarter been pre-pandemic performance to segment as the ratio results. each improving On rebound adjusted able environment quarter, in year's results more our to year margin results help compared across in business nearly demand nearly second quarter. the growth across of rate phenomenon the profitable XXX demand rate operating XX.X% number upswing million was of EBITDA the to sequential revenue XXX segment This second ratio a number improving quarter. which basis flatbed adjusted improve EBITDA market have the expanding improvement The were in demand efficient mile. XX,XXX served key with to continues in industrial with noted, more increase factor Jonathan by XX% revenue secure and $XX.X capture XX% the tractor in XX.X%. stronger a to

the segment's at Finally, operating XX.X%. ratio coming XX.X% basis operating an with ratio in improved to adjusted XXX points the

equipment amount program in our had capital the million year, and $XX.X Cash million. in cash Through Turning CapEx million, Board cash to announced second million, flow the $XX.X after a we collected of free this the have share. $XX.X and provide point performance conclusion up in will flow I'll sale X pursue million bringing about the Earlier in financing paid upon the or this that Directors to Daseke like to our of share X we of accordance with and options million authorized outlook. to million time; cooperation cash common cash options as I total of completed with update from with completed of we repurchase. activities. debt Having the in speak shares net agreement, capital of $XX.X allocation for of $XX proceeds had we million on take from the that would X finance $XX.X with million moment evaluate total or our shares the purchase executed activity conjunction Slide for operating X, generated quarter, Daseke's year-to-date. resulted we three CapEx shareholder have price The we'll was agreement drive full successfully leases generation repurchase cooperation in the has believe share year commitment creation. an million and $XX.X aggregate our price to the $X.XX per of shareholder will at into the continue greatest the average entered at value shareholder always, share this XXXX. available

side updated our the On number X, outlook year. will Slide the of a right see of hand you for snapshot

the the Although insurance we equipment general acquisition, and cost industry-wide and form other well recruitment in continued pressures do foreseeable driver as anticipate expenses future. of as retention, into

strong up outlook revenues billion our EBITDA initial through for of are we range view for range the metrics. raising $X.X positive our initiatives and ongoing our and the improvement billion. adjusted remainder realization X% nearly Given the between year, halfway expect to performance guided to $X.X of our billion the of billion, and XXXX, guidance fundamentals the from business market both $X.X now mid-points revenues We at $X.X towards

XX% relative now the outlook to this this EBITDA, to CapEx outlook. To not increase our Additionally, million million between prior $XXX earnings affirmation generate at time. are than million at be which XXXX $XXX of represents $X.XX in considered mid-points we increasing cost our more to $X.XX in we adjusted are the million. and expect headwinds clear, outlook Further

the expect given strength below guide. However, several previous CapEx dollars market, our million we used in equipment would in come the net to

for generation year, the with continue outlook hope adjusted substantially combined to just upon. trend EBITDA drive the meaningful fact I build to will we free referenced cash increasing to that help improvements our a So flow

few to final I'll back Jonathan the call with thoughts. offer that, So Jonathan? hand to over a

Jonathan Shepko

more and last to few That we coming from now begin slightly to over me in mission snapshot points execution; the with you provide quarters. quarters, a the conclude as key Thank prepared we glimpse our of heard shift initiatives. us continued our I'll a XX, few you've better to Slide value provide on let a will into of be to we our priorities provide around planning next all refined visibility you, many said minutes add where position the more quarters, specifics take for our several near-term a over remarks Or Jason. these priorities.

to their to creating continue systems the however our rationalization across platforms enhancements TMS mentioned carrier. front The centers preservation our healed and drive reputation with are have believe all these OpCos our culture constance. standardizing I'd market, people, as remiss initial will business, of not that of First, to and with their facing continuity be technology and an companies competitive standardizing we that in will our through functions we believe systems, single to allow the advantage, platform. consolidated to will sacrosanct across call, position of network the vast these continue brand back office, finally while the improved however, of intended customers differentiated the with, standing continue amounts streamlining XX institutionalize the will a near-term, front or tandem actionable necessary them operating larger to mid-office relationships goal will as to is efficiencies and In and analytics to provide or brands to best-in-class and with opportunities driver the on back the benefits We mid-office be are shared fleet, initial better organization as usable to leverage will top that preserving functions we of for to and technology team efforts, special. us as makes with a drive OpCos service one customer fleet minutes the processes through mainstay. back will be their in data that pedigree synergies and of biggest data enabled In focus customers standing analytics unmatched centralized efficiencies lending sustainable drivers time well to a will profitability, integrations. the our with on and and to something a data, point solutions scale coordination, their assembled office benefits lifeblood regional line alarm strategic the additional is a to make initiatives out while initiatives we us their transform finally, into as organization and a function or be network realize ultimate we'll continuity the of These efficiencies. across real environment of of And provide systems preserving receive for the to the optimization and office sales. our our the our longstanding our within with the ability using last longer-term the community coordinated driver operations. continue our and broader repository with and us during such five offering insights strategic leverage technology This seek our up ensure along across our we

I'd spend growth. on like discussing to some focus Next our time

be takeaways potentially of from most One of could noteworthy the this section. the today our first bullet call

the of end objective scale. building versus market, by growth As to with open decisions approach looking think simply about strategically footholds relevant agnostically will we mass strategic we desk prospectively, a

serve we end ultimately of today While will we many verticals the market be that targeting.

Our positions niche be building emphasis leading will on these of in each industry sustainable, markets.

differentiated would limited OpCos end unfamiliar which today, fleet adding and highly other be – hybrid trailer open all flatbed modest trailer Daseke our capabilities, also verticals be not end wherein where expanding our industrial have would such would looking our be and and for to markets traditional today could among highly would of we entry support further for our specialized the approach. strategies, scale Examples segmentation. to or life involve types composition, freight moved sciences, with more of includes' will to have markets all we involve intermodal, different by handling industry with and of of reefers provide in market which markets customers, diversification waste, These these chemicals, deck decker the staple. characteristics freight look high with than or scale would to critical barriers provide Fundamentally, we fleet further non-correlated how. tankers. comprised looking those of open drainage array high Examples capacity, portfolio know build pharma munitions. ability in XX% select things our provide of capable And we'll specialty to in configuration were explosive, end fleet cargo. An capabilities than Additionally, fact interesting and to that security cargo, support and of is weather defensible commercial

in that and an change we All opportunity about with this away reset one only overarching from tactical we higher strategy, to clear while nuanced to much our be of more industrial necessarily driving end be added to will we This centric strategy shift and growth loans. And now with underpins taking believe favorable come isn't shareholders; a a a think targets trailer a for the improving how will are benefit of that our and it's markets. margin which intensity targeted focus profitability our priorities. strategic

or well customers. brokerage may leveraging to expanded the our Now an will out tuck-in or develop third-party We're leading us opportunities acquisitions organic that impactful then of dedicated of or look requests service highly the the integration end-market opportunities build to respect as opportunities be in front of industry with our have a to we provide to foothold for sustain from in build for the and of a continued competitors also growth, to identified. verticals These that growth we relationships markets. capabilities, platform strategic new end vertical customers fleet position benefit excited from traditional offering capabilities us to out number about

working to this approach brings to final best play is creating And prioritize the delineate books, these hard to to Our market, go team strategic execute priority opportunities, execution. to to us the decisively.

of As you our tried OpCo what of most me was around has clear managers at the our the companies. that they've operating at oversight, and been from the without bunch ops teams the the cycles. time. formed regional have of our running levers acquisition of without prevailing through running made convincing executives to through look We and winds of a They a terminal trucking Daseke the from know, proactive talent necessary the or multi-generational decisions have optimize have models it's bunch a Daseke table, are subsidiaries, CEOs These are peers. operating improve differentiates When respective that the already operators. we pulled to I operating the don't OpCos. series corporate, given us And

this direction our We've teams well asset to market data end facilitate a and these next point our diversified performing leveraging retain to quarters, ability approach access the distinct opportunistically, our providing for right which striving our we heavy unified and collectively a to composition the the over with as at what OpCos the systems are repositioning market within the fleet light as asset industrial and and For of as to team, we freight to to composition last best our able are optimize ensure balancing insightful Daseke. recruit few light network, right capabilities, business, strategies. heavy here managing understand blended given asset while the it's highest environments drivers providing and asset help by strategic executive and assets context provided our they use all providing right were about our framework and opportunities timely lot on to

the be decades. The will our that this inevitably customers, importantly work of which have maintaining place of and over of several customers. with for we in our day, to value the with partnerships maximizing we frequent our we're shippers side prioritize the the rate we most is has fortunate been in some but we Finally, because one the some we other our because bullet, Daseke open table longstanding know on communication in and industry best all relationships last with customers. the times reason like here,

solutions will we including additional engaging to to if be forward, needed, looking and looking looking or Going better. terminals with broadly concludes pre-transport customers highlight for of fall, questions, through host the prior look offerings, via our our ways for go shift integrated post-transplant our Day quickly or before or Investor prepared in technology day expectations located ways in call. much more their provide get additional investor ways This service before to and lifting work through event. three fleet for We'd to some given dedicated regarding we capabilities, supply deeper to heavy capacity ways like and I'd yards, our near-term a to priorities. services, the additional to today's goals I dive five-year work our outline private and just provide customers, that like to our greater to for strategically remarks call to provide we for looking But outlined all through leverage a – your chains

event – shift XXXX. to the we're first of So timing we're half shifting so that the to of going

the hopefully to We're to a will executing second event. XXXX. over many you and virtual the York to in-person near-term these of shift event We in New will in the timing allow to forward it as priorities looking us against doing City opposed host and half of see

session So, Kaleen, we'd the Q&A like to now. move into

Operator

of [Operator Jason question with the Cowen. Instructions] first Seidl you. our Thank from coming And line

Your line open. is

Jason Seidl

maybe to the operator. look in we Hi, morning Could impacts done. – it's we a let's getting XXXX? of dig way. year XXXX that thank impact like on started as out bit there's getting this Good Jonathan, about a I'm from? expect going could some you you, the has mostly side. support. of be more that little looks by everyone. got Wanting presently passed, about in talk if bill bipartisan how congratulations, any favorable results an in – sort It expect talk should it's infrastructure and we And your to flatbed little when terms what assuming should say, bit it

Jason Bates

Yes, Jason. Hi, good question.

with There's evolved even that your mean, question the type I exposure the our or any question. this point to so market I over that mean, no definitely fruition. It's from pretty to there's us to is and benefit bill six all end last stand the size bill, complexity valid. comes would closely. were no months of So, of think that regard infrastructure watching of I

exactly constrained for that to it's I something to position for might elongate, and definitely firm see shareholders. in extent our come that's supply it ourselves to is think environment, mean, that, but hoping to of possible say us details we're safe a – think demand best our that project would it's that gives hard which opportunity what absence way the Given kind on to of us to specifically, that I but to pretty customers try the it the been and what's fruition does the help

of and depend And so, there period right. looks is there, what bill, would good extent it the lot to assured this rest thing really a were that – that's end watching that be it get something year, so like uncertainty be we And closely for a it's will would to ramp our it on but that passed the later for market ties, given definitely definitely us.

Jason Seidl

or in think division? Okay. division have you'd the the you And flatbed do impact specialized near-term more

Jonathan Shepko

Yes, I around we've be came flatbed. to newer bill, out that heard Jason, And it's only it to infrastructure. it's – think, it's traditional looks address – again, bill largely going night. but this $X page But only last we've X,XXX just trillion

the think the and some with So, attempt does said, we're But of absolutely versions something does [indiscernible] I to end benefit. pull overlay well with and if – to positioned to well markets as Jason that. issues got there reconciliation going it we're our I still it no with if couple bill. you've when through, is think, But

that expect rate environment. We certainly it of runway favorable a the will extend

Jason Bates

flatbed flatbed within phrases of from are benefit that that Yes, that. OpCos There definitely there versus to and question move your would to our well, some there… also stand is no would specialized, would division about benefit question the flatbed the that from different

Jason Seidl

Specialized…

Jason Bates

I what say? Sorry, did

Jason Seidl

that? you third-party you what for of that question. build-out think you to brokerage had a knew Jason. divisions have a little your both of in about want mentioned one Jason. to specialized. more in be meant, of generic because your then I'm of ask going Jonathan, I I assuming I on more sort – portion ones Could the brokerage you, And you couple obviously easy more I meat you're give your us but of flatbed, a much sort a is capabilities. growth doing

Jonathan Shepko

around Yes. we I this the kind million pre-pandemic revenue we $XX within right of said, mean, brokerage for got to as look, levels quarter, quarter.

billion. consolidated been we've around historically, million $X.X million, against revenues of right the $XXX So, of $XXX revenue,

opportunities our of bolster asset lots of to capabilities. So, light kind

technology One and lack and so. been is, of to that's not of really prioritization asset light place. really, think, in that of the across kind really of operating part and lack I our the is done do things job we within a right and of haven't good a of And direction part a the capabilities of centralizing platform strategy been a coordinating companies with that's and having

technology right internal the technology kind mentioned is last right but for working with OpCos internal we're got platform execute – And philosophy a and and the invested capabilities. load up to coming facing so to quarters And we're getting We've and of an now, the internally have is, load working an makings kind on board. board facilitate extra one right now, We're the the of better the of bit internal external a few place. on. brokerage also it's of we've in really on things third-party in

this. thinking a as of that across kind that up them how release cycles standpoint, that you to think take your opportunities additional like And brokerage redeploy relationships use a loads market when you take truck. revenue – we're advantage of you in you'd a valve. those lot company think you I use it things – built kind against of of And down flex times, of about additional take of better take better those from and kind I soften, would then loads and do really

execute underpinning with the So the on then getting that on about strategy. and should third-party about like look it's solutions thinking what brokerage it really page everyone right technology internally strategy, to same

Jason Seidl

don't completing kudos that more this, color. just Can be missed easy. if to should great then think or ones and quick yet that's one gain And announced a sale And They outlook? Jonathan, forward we should you know I have CapEx new your And share about coupled going repurchase for I with to? plans Jason? give two I the on but any program. guys How

Jason Bates

XX used or equipment, is but the to Yes, market used we difficult truck so what you is the it's and volatile on to the equipment used of internally giving revised the it's just just actually a months not debated difficulty been kind trucks, XX the about predict. over highlighted CapEx the question first has exactly very last guide,

down if the can that longer slowing you've industry as been I long don't been it not than And know it's near-term, this so strong pretty have have, as as and of dime. a in and late, we you but on I see in just turn

project kind model, So of little us. it's at been That's tricky for a recently as forward. we – that's and kind a the we general that of one look caveat. We're where

And about so, that's how it we're now. thinking right

I anticipate you that seen purposes, probably a to think taking how ask there been bet of about think a CapEx ahead organization. CapEx in a already We really flow really didn't to know than lower for had the I in is what year. opportunity. kind anticipated, will deviation any that's free take not I'm look of at we you material as that hard cash as I that going to do the there come We're just an that And model hard we've we're but and taking forward. this So mean, that and as good question, our incremental modeling trend going you which net going generate the guys seeing as go for to assuming is look. we've a

of where that being communication aren't had the where that We have capital we OpCo gotten deployment to communicating visibility point platforms we efficiently capital flow and when of at identified of we've at and historically capability. across significant get a the and expand levels We further only profitability as a and or upsized requirement, revenue generate free able levels cash utilize deploying we profitability look other. a each what can data revenue more would that or you improved and maybe as just of be maybe with without similar better those we which in lot to kind of efficient opportunities more structure have form

that color identifying you year encouraged guys over forward here pretty of plan. undertaking to the we're further and refine we're to giving coming be exercise. opportunity quarters as So that Jonathan we're something some at five more looking strategy And alluded the kind as that's of we as to we'll this three

So, there. hopefully, the that answers question first

plans we be the have top. not to repurchase, repurchase, any The share share second but current for at will it one incremental regard with do

prior at those alluded the shareholder and our this month. we're figure of capital out, which most reduction one is a most our M&A, and accretive three We it's them, hundreds organization look is move to manner take forward. that meeting quarters in that of case unnecessarily sheet. balance sure We've want to to or I'm or of makes in have share we look as and going the our later from a just just the there to going millions all right, deploying deployment, capital always the for deploy sense ways at sitting friendly possible. intent as debt on We dollars whether or that And have is make we're not we're key four board or to to sure each repurchase dividends

we'll additional guy’s move color that as you we to give forward. looking point So, be on

Jason Seidl

sense, market That to that's gentlemen. me. good Well, from all results. nice the see Take it's Jason. Appreciate makes the time. Nice listen care, and results recognizing also

Jonathan Shepko

Thanks, Jason.

Jason Bates

Jason. Thanks,

Operator

the line coming question of from Subin, Bert Stifel. our We with next have

Your is line open.

Bert Subin

and Congrats quarter the congratulations, Hey, morning. good on Jonathan.

Jonathan Shepko

you. Thank

Jason Bates

you. Appreciate Thank it.

Bert Subin

closer how more you you an integration about Can are and be color bit there, from can and guys from Any remarks, the went standpoint, early prepared provide think you what helpful. we of are provide resuming a later would of Thank you innings, ultimately getting in investments us, I operations, you mean, an we innings? through but when update to you along of Are in this you. your sort should on M&A? sort where expect operational middle far are we technology endings

Jonathan Shepko

I'll Yes, let sure. Jason chime comments. any additional take in that with

in didn't a last mentioned one handful opportunities, call, non-binding was of ultimately So, on M&A and actively, we very side, close to think shareholders LOIs think M&A that the entered on best we're of we're I the on looking the actually acquisition, this forward the move on into we've it at but particular interest actively we're acquisition.

a to opportunities from from value cycle our about, additional full As looking those the in angle, different we've lot acquisition considerations, considerations at of at proposition evaluation. we've tactical looking of employed strategic targets. rigor talked We're every really

very not disciplined, market valuation very the current trying So, complex, kind environment we're – notwithstanding. being thoughtful and of not the of opportunity, kind rush to acquisition

we're So, something open prepared definitely it's to do we're it. to,

handful the within right OpCos, a the OpCo particularly have target. depth to and have have capacity our the We of absorb stable that

too integration to share kind not much on standpoint, that. that's So this prepared From at ongoing. time of a really

of continue lot I of lot work think that we've a done do work. and a to

we're I integrations type or a ago you rush than accomplish. The about particularly a when year very were think it's to XX integrations that we next taking integrations, to to where XX and composition, customer We of capabilities. the want nothing over two to integrations operating months. half very that different culture, going think models, we're be into to make want thoughtful, account the very surgical these

as full So really think picture of those, considering we about we've the got teams. a lot great

move thinking pieces it's the to game So, around stakeholders. to on for optimize the offering table about how the our

are systems. you fulcrum in got for opportunities they front, type integration we've better provide a topline And integrations, mentioned. front, really event. are M&A XXXX to better of not some we probably to fulcrum for They're going those more systems whether XXXX whether if some think help the of it's though Systems to on to Better on have it's us. about the systems the going again, We're OpCo with the think are movements. really the to execution, the, are place going here facilitate the they of be I lead event. a likely

Jason Bates

too have much add there. don't to I Yes,

well. I think you summarized it really

and that in what tactically be is M&A a sake much It's it hopefully we very noted makes thesis comments not listen, changes no, data just forward here and aligns for back afraid energy the And to get pause as making a are and that's coming thing to M&A. decisions to here being growing push as and months means things, it isn't that pull there's we're and grow going there need more as we're that organization to part making and to up that our continue that right to of over of strategic And play Or systems took this kind cancel. going or the going that to going sure you move be stated that team. look demonstrated long-term of a horsepower of was. be this and critical and is that that we how around the applied as this for of even want to that to those lot of going that. kind there the is his into And strategy, we want push understand something guys the world is not with already with go Just make I away But discipline. again then a he to time we from we is not that’s approach we types strategic sees. kind a where what once back there things. And that Jonathan I thought approaching you what to is disciplined I'm that's sure alluded to team think, say, type regard and we've here, to said, again, echo then strategy from path we sharing of as quarters. to the just down

Bert Subin

Yes, that's great. quarter as follow-up, I the just appreciate Maybe look great a second results. all there. color

we and think tied and trying is be it the starting maybe Just or softer XQ to specialized you. is it business slightly operational you thoughts a of becoming just this, helpful. by interpret unusually leading high sort on sustainably out to challenges a Thank more profitable, are how will XH? Any guys should rates really very of to function market, figure reverse flatbed sort and really good there is

Jason Bates

Yes.

and Jonathan then I'll let start chime I'll So, in.

that integrations, I kind of be quarter this into two in feeling on Jason get that. lots in that's manifesting in But by customers supply kind quarter out together started by that itself. that dissipating the of first locked the that definitely and there all going happened, not XX has kind Candidly, decisions, second that's is in as lifting for of what to started Jonathan quarter, has think want imbalance seeing away of there other the going doesn't be of no I masked to in people, his that that between last Seidl the least anyone from came infrastructure don't because on been scenes service market. question only right. to going really tough somewhere prepared There's behind comes soon. look and is things And the a And those lot were really markets it's walk kind think on touched we further a with you remarks up, Heavy that work conversations demand lot There that things. What on the been bill I to to in anytime that down downsizing, the of the drive that's that. a going this if we at fleet world. XX months. length of our been in tail pipeline, to to brought point

the combination of I it's think so, And things. two

of on hitting and indulge home this ability to the one want is organization. to touched point I the that an I Daseke things love as three time, and you'll flex key more one if about our we is calls, think organization it on drive so two me that I've or our

have different the that into And to informed flex a different up we now down demonstrated and six, quarters companies led and to forward. operating as to, flex and so We need markets. operators, unbelievably, of move can we've last, by do expect are who continue when over that we variety seven talented

Jonathan Shepko

we mentioned the we I add down in this EBITDA to basis also, XX%; it's a We it's to our of variable year. rationalize out going no We XX% Jason the revenue relative trucks think, did But a was up up that. mean, bit control so. rate XX%. mean, on secret. good last mean, I it's headwind It's I’ll but adjusted executed, or think, and a out pointed fleet I a a right? Yes, into to year, again, little also, bit script, consolidated we important costs. I call see environment, was I

asset great conversion if performance, able So, utilization, were we look you improve topline. quarter, greatly at there's great to

on a drivers a miles. to percentage I did kind the that's at given COVID out day, backdrop. training deadhead on in different flat the having of opportunities important job And this we of [indiscernible] year-over-year. miles see looking moderating for going particularly, truck you was last point or per of drivers, out, think or probably great weren't living of the around time, kind focused recruiting truck quarter was lot were with to what But per improve able Our

but So success all great around. execution on with Also, touched we Jason, inning with this little some brokerage, early bit a brokerage.

got drivers job. do to lots or again, lots So get of credit our of phenomenal did OpCos a credits where our I've and

Bert Subin

lines what So those speaking you were just about. final from maybe question just of of sort and me along

first truck quarter owner-operated mix last increased year. think, is, I of quarter Your the every since

for Now is that you of a time. continues again organic are level. increasing sort at that think all that Thanks the Is from like you XX% because to growth here? And getting increase tougher? do

Jonathan Shepko

touch that. on Yes, to no, happy I'm

OpCo of the differentiating stable, across relationship. that specialize focus driver companies our on we to So again, different operating kind getting strategies different back have and

much are more more are and owner-operator-centric others purchase some So, lease company-centric. and

seen a a opportunities in keep percentage compensations aligned of no We on have and pace. And fuel that our of has contractors to question are has rate helped been more environment in lease-purchase independent grow mind a the strong. that. lot typically there's have I that rising mean, of environment owner-operator lot the

drivers they company become they're it evolution And cases. independent do and But to an it's lifecycle many and being a of And the job that rising lease-purchase they us an there's in for types to an becomes that a really thesis contractors, at kind it so eventually of of markets. forever. in kind so, attractive driver of guys aspire those what to to want some happy get just good then and do also

that that I a an no company variety play are seen the going for there, driver that to that seeing the out drivers there's opportunities. know opportunities a to bit interest things scenes So aren't would as there's question we I some be them. on I why migration. of kind don't behind we've of think and what helps little shed of doing hopefully we've but of light that but a are But characterize in advantageous it – seek the going most been

so. that And last the so evolution we seen or months over have XX

Unidentified Analyst

Very you. helpful. Thank

Operator

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

Your line is open.

Ryan Sigdahl

Congrats Good else, the morning on and guys. strong like everyone results to you Jonathan.

Jonathan Shepko

That's, Ryan.

Ryan Sigdahl

So right well here? But I very guys expectation long-term better could target, this sounds that you here. savings, cetera, the potentially identified commentary guys follow-up, commentary, still XX% than on as me one cost as or a tailwinds. strategy the one talked be some I that is have for companies Or have the that industry but [indiscernible] specific just of at were further XX% certainly detailed some appreciate from about you quarter that in you you've got et that? XX% kind current

Jason Bates

Yes. No, Jonathan, joking was question actually question. that, with I good that come. was to going

[ph], I thinking and the more on basis, valleys. XX was the a think we about when peaks it full-year that were OR through the –

first just I and an as to are you think of and going typically cadence about quarters seasonality very and quarters and your to quarters slower. earnings when I'll open-deck are as be traditional know, be to but flatbed fourth due your going outperforming strong second reiterate organization, the third your very, our So

operating kind that that if And are much so love a of seasonal cadence, of exposed but and in we more earnings have see a to volatility. smoother some we'd others perfect world, companies, our to

we're so And that taken performance be super with adjustments the getting the that of into to we're seasonal need the pleased XX OR, realistic of while also consideration. team about kind in

with XX right, through the a with we was business ago. has supply target, we integration on deliver We and XXs. at flow-through listen, ratio target up year-and-a-half operative to aligning almost initiatives, helped There think, OR like, XXX, sent an on business demand a to it or very cycles. sub-XX continue well. of to impressive oh, was that were been able a we're it improvement want high the And our as time combined constrained a I XX which bumping sure environment, very make traction the

don't going can points cycles, And things really things to is deliver that high XX – our market's that to be able away, to 'XXs So and alluded through and when broader the economic through the we're down, there, each mid-'XXs just kind slow the an is initiatives times. we – take when to of really, annual times more to them, in then maybe low the that those lower performance consistently longer also We high of of want term. of XX approach everything to at those the humming want one XX, but be the but slower time when OR that strategic not But, cycles. XX great. here, be to basis kind and about Jonathan all things we all chip points how stuff basis so going tactically help in

Jonathan, So add you would that? helps anything that hopefully to

Jonathan Shepko

No. Look, I think said think Jason; said. be needed everything to I Jason already

couple still target. kind cycle objective. been beat of a of this think of five it's think type it's team, of quarters year the think year I be it, going the history to this, expectations. new I And or of a I last has through four couple to normalized kind – the

as time market. to we that continue I all hope the to a team, that to OpCo continue I'd we'll be of we tap have the able – So we talent harmonizes continue over surprise that hope kind as to

Ryan Sigdahl

the kind seeing secondly, acquiring of area standpoint? what an or in you of most market on expansion Helpful then verticals that, with business type cetera. just get be guys. of of kind from into Yes. the pharma, the you multiples in and et strategic is have, getting and in M&A today of any Jason experts units And that to business that there? mentioned And are organic on then Can that that done other

Jonathan Shepko

Yes.

So we I will think the as do, build at always first part, – we'll of look buy. versus kind at we've absolutely, look we and as

a sense the out and make consider And that to looked have blue in or at them markets, new that going to cases new large, capabilities does established end platform of market. doesn't market usual into very internal we're to into a develop or verticals. us you a make vertical of those market just acquire working customers very a us already analysis to these we in space that asked capabilities and to those a build do already gets these to in are that pay today, looking well we're premium, type that playing with to some it offer lot the sense chip we So path markets into going in fortunately have already to

call, we'll in of going opportunities. kind again it's going to, it kind have I we the have – capabilities We So they look the of science, of right do mission reefer And each kind – at we're analysis, the do of the life put – those on do as today. pharma behind be as right we come. we'll you to – of mentioned kind right thoughts

do So to that it's space. that, – we and have very wanted we customers, to few could we if certainly use into leg a easily

So we're looking those things all currently. at

looking an we you standpoint. as pointed are M&A from We are out;

not opportunities. only integration integration, at looking horizontal are We vertical but

So how, more with providing again, scale. is providing this and our about customers – standard better capabilities

yards, getting we doing of the as out testing to opportunities pre-transport that. fund in closer spend to strategically request house customers. those capabilities really whether also if, vertically, love at it's to integrate we'll of some again to find the certain do opportunities customers, certain building initiatives, to We're placed about integrate So things, capital to horizontally, those some

So diligent thoughtful all being opportunities. and those we're those all and –

Jason Bates

add second what on there right. does Yes. part you're The about really the depend is only at, question your It thing of the multiples. I would looking

be If a multiples to going high-Xs, decently are looking you're run going at see more that organization, flatbed traditional you're low-Xs. to

much light, there specialized some head maybe at and multiples see looking could nature, I'll of we've that's just you're the If or more of higher multiples seen more kind scratchers frank, be those for in out something asset us. moving are you

exit things. We have some is those – exit out strategy on hard ultimate figuring the the time of what long-term

be we're this. so, get very we going on not up not – wars, about approach bidding And and disciplined how and into we're We're things. going go to and listen, out to methodical run there multiples

Ryan Sigdahl

guys. Thanks. Good luck. Helpful

Jason Bates

it. Appreciate Yes.

Operator

We from of Securities. Northland have next the with our question line coming Gibas Greg

open. is line Your

Greg Gibas

good and too. results congratulations, to all congrats Hey strong Jonathan, guys, morning, the of and

seasonality in half this, I but back Sorry cadence traditional the or if of this missed commented on you if expecting wondered year? whether you're

Jonathan Shepko

do quarter. we seasonally year directly Yes. I the assume quarter, and hope line in like and the with season the but then we for as is weather thank or And holidays what expect of, we little you know a it go up. third into don't second with a address would I that bit the would of it, on of more in would think didn't to what directly you end we second the slowdown and things tougher bringing quarter today, that. line that saw want but say kind in I we based that

a So would mirror perfect yes, expect little to in necessarily more to – we don't – QX, saw don't to QX maybe I directionally I something you want way. but I what want guide bit a that or and

Greg Gibas

markets that's could And end follow-up the on I helpful. too. Yes, then Okay.

that and anything call-outs to or seeing right or you manufacturing, either trend positively or out regarding now the performing you're and is there trends stood that end markets comments any markets construction are negatively, other continue on mentioned geographical any You positively whether you to expect way they maybe too. maybe

Jason Bates

Yes. Yes.

strong cargo we've but operating seen just been in is high been that one little bit performance really our security been glass has Commercial that from flat in right. you're the about we construction as well. talked participate strong So I mean, really, has past, a strong, that strong, glass, has in steel vertical. general companies pretty

hopefully pretty again, rattled of kind strong. been I So through agriculture has and

it's it was helps good. it that it's to appreciate through The cadence, you to last more right, wow, has normal these, and no so don't it's just bad, that people diversity want – service. been surprise of I that kind right. And year returned that, we about say a forget of is, side here, kind flip end I markets rattled As wind of the kind energy the of of

when vertical that down. market one industrials it's that other is year-over-year comp not still slowly has touched perspective, we at look improving; a of that on So aerospace basis from of rebounded end some quite it's a you like the those then on. while And

of one least necessarily over that another to little color all on I of given geographic, place. kind out service we that would country as that that? stand hopefully would I add the highlight the And at gives we know or call you'd moving the freight where today. a don't There's are one of the highlight to verticals. not country being that than Jonathan, entire So from any end-market with stronger been that's kind or then regard weak abnormally and And I necessarily strong anything area

Jonathan Shepko

agree. I No.

Greg Gibas

markets a really bit. of I about was you've ask That's Yes. new helpful, kind on going Great. or alternatives, Jason. And but that to think strategic your quite I touched

So I driver then me can recruitment get and insurance take mentioned the be could costs you that offline and from I last retention, regarding headwinds the elevated one again.

you're any you talk Just the quantify to impact year-over-year try maybe about could seeing in wondering that if that way? or

Jason Bates

Yes.

mean, you kind as to good right? and prepared in talking, done question compare eyes to retention friends we're that that regard. need while of a significantly no there's having. I'm who that close kind of XX-foot I has we're as wood drive-in there what the not really and we that of don't job outperforming our watch, than about something on when I've a arena. want said recruitment been on and our retention, we rug it driver in say little us the a space think it's remarks, under we in got recruitment sweep I harder our say I industry that that do driver So to lot acquaintances to we've time in are worried knocking having, Like team I and keep want but averages, are bit Again,

home, truck so, it's you industry drivers. that's at now. is that's what of I people on of to and teams low know pretty in strong getting focusing many year-over-year. Jonathan reference. relatively always And on, wood, as paid, was QX something fact alluded right due but that them performance unusually have are off And don't attracting of you're Jonathan sure last be seen taking And mindful your there that get I unseeded said, the our our to that that them COVID again you're an knock in we're the turnover keep the on your and going coming year and something can percentage we've say some flat environment retaining you to getting stop and make you're eyes care of drivers, from miles, not like

be team that at and focus the level front. proud So on high couldn't executing is a really we more that of

moving went regard we retention – side, risk with down creating On path of the to we've more a we environment been and focusing are own on our controlling group have as kind talking insurance kind markets to of destiny the where still premiums about and excess insurance. the of and insurance that, up everyone markets three from are the the it's in you're days this row. two been We probably hearing substantially early years but in a entry in or

keep the about line that something pretty one particular this ability But we continue to as got And just we we feel quarter we've to in the evidenced on. We keep so to place execute front have need performance team's that it's in item. by strategy on the our that to that's that and watching. continue that eyes saw to good

Greg Gibas

Great. Appreciate Thanks the guys. color, Jason.

Jason Bates

Yes. My pleasure.

Operator

line Management. Asset Haimes We have our of next the question with Sage Barry coming from

Your line open. is

Barry Haimes

question. us old I'm that and the old Thanks. number, equipment So for my was what but then the understanding congrats on your want looking much. on first assumption number, to to CapEx, update you so old the That's financed, cash plus number what the question just equipment very didn't was? total could Jason, on Thanks the precious and sales? Jonathan. first remind And you quarter the again,

Jason Bates

Yes.

we the a to in for net $XXX even was previous a $XXX million proceeds. guide we So given million CapEx at had

net and of million So that figure guide factored we to had into given cash financing The then $XX kind was $XX million. of or that kind of CapEx.

were than I, raise We a the better you're we generating guide with CapEx used of we capabilities. to cash of would just expect I – of going with are were based the – left that to I I used now. be flow the I given. lower. combined equipment lower. at tens previous we the those had on of worse. markets anticipated five dollars know to difficult if going today, But have EBITDA again, be kind project to don't commensurate be truck, the to side going know the again, XX% So say millions millions again, what It's on would looking say equation, exceed would pretty numbers effect it's overall have and still used months to of it's that's in environment, but dollars right it's equipment a we

Barry Haimes

maybe my prices in feel kind of edge can how in any second And then question it. those pricing? came leading contracts quarter, for Got some number contract if today. second you us up, Thanks. somebody is, going So are walks the get that or a much up

feel for any Thanks. that? So

Jason Bates

Yes.

rate of X-plus and type the Each XXXX, to contract you gave of little us they lot where in be the kind that's in there our kind kind for they're the is guys, that to continue out going be citing that business industry a know, scenarios of I of broader business we're contract you some out to There maybe this you is additional at So percent if smaller of than that data, to looking tell different into a right customer environment. rates is respect look increases, unique would previous us. be, some going in year. to rates rates are because higher take or drive-in

there's we the to much it so way specialized or be about then increases. given the for and or driver going supply unique environment environment business, difficult we the specialized market, others And that be particular may were think demand it, seeing higher nature the the is of

No, into modeling with you the regard not forward that's I but outlook to more question it kind a how about think at XXXX. know that where kind Jonathan, hopefully from anything of we're industry perspective going it's you're direct to you of we that kind for would a can looking okay. kind and of today there, again, so, answer But of And help add. rates.

Barry Haimes

at, sort can that of question, just that the used business, capacity give augmentation that's is market rates. up historically part know on of last my a just your capacity agreed asset then would an I a the you customers disadvantage. appreciate was the time as to of often I and And And market that tight extra course on in work contract to light

asset you just that other are any kind of light the part of So and spot of color how as to thinking going I'm you're forward? contract whole how want of curious rethinking, you the you Thanks. business, or sort in think versus terms work

Jason Bates

to don't Yes. still wise. big it's still We're to think I – saying is asset to all, clear that to about sure this, not heavy, we but asset advocating and you're we're going and going [indiscernible], a want I think we of Berry, I shift so say talk asset, with are. too. asset be make like first be I everyone; we're what to When we the right

you of I point In have your is, number I a additional outlet. think terms about who is of have you about think, OpCos thinking what that brokerage kind build-out, to of who the capacity – think

particular go trucks on they're carrier of have And and to RFPs the they relationships that network particular if of RFQs with with third-party they'll look out after their a out to or in their because and XXX%, advantage asset network XXX%, in we the customers, they'll off pass those approach to really of week, got That's for their whatever for And the the a XXX% they're – constraints go a how day, capacity. a into that carrier from so the go deploying based are they've market out have. loads third base party of market responding they [indiscernible], when the your trying objective going than different to of very kind the loads to. capacity taking get customers,

the when it'll the we're of – flex we to of advantage be going market in relationships going them and trucks. look, and And of extra take And extra access, to in And those relationships to capacity. have that effectively the better take do way freight take to relationships, that. able XX%, XXX%, But of job a shipper instead take point, going doing want XX%, it the and we're instead then of type function instead our really and XX%, we going environments, to XXX% our XX% same out flex up We're all of trucks, on flex on moderates loads these to that loads put to XX%, can XXX%, we where those so going for it. contracts, the XXX%. softer additional what to it's - the make your company capacity to to cycles, of we're sure

So cycles. it's across to optimize market light lever asset really using as profitability a

Barry Haimes

Okay. very color. much. Appreciate the Thanks

Jason Bates

you, Thank Barry.

Operator

now Thank you. further any call for presenters There closing are over comments. questions to no at back will the time. turn this the I

Jonathan Shepko

today. everyone again, for time your Thanks

lead have our right forward of to continue a and the have Daseke, for to and in strategy look you progress. I'm Thank plan We and for pivot great continued your our great stakeholders. right all and team, driving you have right growth on all interest day. the this value transformation I to complete the updating opportunity excited team again to sustainable to our the long-term about and

Jason Bates

everyone. Thanks

Operator

This call. conference concludes today's you for participating. Thank

You may now disconnect.

Daseke (DSKE) 3 Aug 212021 Q2 Earnings call transcript