DSKE - Earnings call 1 2023

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Operator

Good morning, everyone, and thank you for joining today's conference call to discuss Daseke's financial results for the first quarter ended March 31, 2023. With us today are Jonathan Shepko, Chief Executive Officer and Board Member; Aaron Coley, Executive Vice President and Chief Financial Officer; and Adrianne Griffin, Vice President of Investor Relations and Treasurer. [Operator Instructions] 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 issued earlier today.

You may access these slides in the Investor Relations section of the Daseke's website. I would like to now turn the call over to Adrianne Griffin, who will read the company's safe harbor statement that provides important cautions regarding forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Adrianne, please go ahead.

Adrianne Griffin

good and Mikala, you, morning, everyone. Thank of non-GAAP statements. X today's presentation and harbor safe our contains Slide Today's contains XXXX. Private Securities presentation of Litigation meaning also Reform forward-looking statements Act of the within the are Projected including financial our outlook information, forward-looking guidance statements.

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

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

our the quarter the first the our and outlook, today, Coley call we prepared operations line will start your conclude against recent of as execute business call structure I'll turning review results. and update key updated for Shepko, our capital Jonathan I on In open Aaron our provide Jonathan. allocation strategic remarks our the will an who progress that, the making with we Jonathan call will questions. With then XXXX of actions we're terms to over to by our an will over priorities. before hand

Jonathan Shepko

and near this you relocations high of in facing prompting than were is this morning, for experiencing capacity the beginning this joining likely listeners today. industry demand it's our our Good levels. operators record us reporting surprise call an cycle, thank to many everyone, of point, At of from at quarter's no that weaker maintaining breakeven at year. rates, net with forecasting industry Smaller exit the spot are our the

at the is strongest time, resulting nearly remaining every in industry capacity pressure into reallocated same being rate across the markets, end sub-vertical. While

company. pay pay, driver Compound prices typically the inflationary I'd is the persistent and for notably in backdrop contextualize sector's where a at most are prevailing inflationary to of this like headwinds up Despite placed with environment. The driver rate what maintenance we with challenges the to our costs demand, be in a of year. cumulative and strain lower set these challenging fundamentals, as effect lagging to response current headwinds, framing weaker

a initial us First, for third of efforts this environment million the record our in year's notably drastically of XXXX, of Daseke. first financial year XXXX record rate transformation a year demonstrating $XX.X company, EBITDA. better preparing performance It was quarter different and a adjusted consecutive reported for the for of we was this favorable success challenges. Despite our

XXXX. in first EBITDA second shy trend the best quarter the frothy our quarter our history adjusted was fact, for company's of first in of million and achieved only In this $X.X record more

freight company environments, generally haul, percentage an miles the cross-cycle Within which our relatively of experiences is in increased several which functioning of with indicators, noted Flatbed as model, of like I'd increased we durability point slower operating length load positive count segment, Next, EBITDA to designed. a as improvement flat quarter full to as out more also including our versus load total helped percentage first compared of XXXX. stave only rate not of off the helped of miles year period. the but quarter and productivity adjusted us each XXXX, of prior deadhead, of margin to improvements the the reduced which fourth impact These the drive volatility declines

the the prior our accomplishment light macro delivered adjusted environment. a adjusted substantial margin flat Specialized first XXXX, segment EBITDA quarter in of year of During the and EBITDA quarter, to

we technology like continuous a collective teams the my delivers and business improvement. cost-efficient name to transformational sharing intended the Daseke coordination culture consistently best I'd durable while series practices, model our shareholders, and In of creating streams leverage facilitate One the continue around unite One to will the idiosyncratic across It's of we across letter Lastly, the future transformation. growth highlight introduced of as available work profitable cycles. as close recent with Daseke more the to these that company a to still opportunities Daseke. initiatives of

and efficiency We system process operating pull the forward extend of are deployments initiatives to subsidiary integration the and cost revenue synergies. and traction more the integrations long-term efforts, our the re-sequencing to out post-integration sustainable these of transformation providing improve the

as revenue coming operating will available $XX synergy continue the incremental in and initiatives provide focus still the our with quarters, of income additional cost million cumulative to opportunities business. optimization we of thereafter we on Over excess these expect

to these totality Daseke of efforts to in we prepared call before our collective $XX mid-XXXX. With work approximately rate XXXX offset our over earnings do to partially on of contribute XXXX Aaron realization headwinds run our Aaron? late call, closing from shift that, in support I'll adjusted One re-sequencing to EBITDA as referenced the million synergies of these slightly is the hand our expect still last remarks. and of While the expected streams

Aaron Coley

ongoing you, debt from X.XXx operations. long-term end, a normalized target expense everyone. to decisive this of for After Xx million interest hand, established pro long-term we thus February, to $XX gross Thank and with adjusted leverage X.X on In leverage gross to debt our the good quarter cash took morning, with EBITDA reducing cutting Jonathan, we action X.XXx. toward debt total off balance and forma associated million of $XX paying goal, of

undrawn we pro or have In of million by million of including used shares liquidity annualized. Pro at Series B-X credit to facility. were a annual and $XXX.X forma $X.XX basis on balance million $XX a dividend the our of cash $XX level cash These million, forma of thus maintained of million these we actions class of preferred EPS hand healthy XX% availability on for a that also transactions, $X.X adjusted $XX.X receiving redeem entire available combined quarter addition, dividend, $X.XX a eliminating payments. revolving improved first cash under

further We will shareholders. improving repayments risk-adjusted current continue to and prospective gross the reduce outsized evaluating opportunities leverage, return for for additional

end overall revenue, $XX.X of As freight Jonathan environment lower opening due demand I'll an moderated listeners and as our offset reduction economy, by the million to industrial focus slightly quarter company. The while symptomatic we first X% not of right freight the an record to our for additional rates. improving also his to expenses of markets revenue demand highest to higher adjusted ratio quarter the the of environment a brokerage current headwinds, we mentioned and of in fleet. The EBITDA than owner-operator or freight broader brokerage agriculture deliveries all higher shift utilization high model by Flatbed our operating cargo was revenue declined ever million. was million was first in continued a intentional the more in and by XXXX, segment, to slowly market, operating to $X.X company realized remind on of of quarter as strength $XX.X and construction that XXX our our which XX.X% asset the within afforded and security declines. We reduction a million in margin with company-owned degree for of remarks, to softening these margin impacts. partially decline immune contained $XXX.X better continued us a equipment were the first uncertainty. Compared The agricultural increased entire loading by relationship characterized transport revenue. and points total rate capture the owner-operator consolidated basis decrease of of And interest was well pull-through quarter non-correlated year end year $XX.X due company-owned as to freight model a assets allowed our fell adjusted million continued XXXX impacts this offset sensitive by to economic first quarter in the as cargo

and lower, were we pressured and benefits in expenses margin. operations maintenance expense overall realized and salaries, wages While that increases

income was diluted period to to per begin flat Over quarter, several the million expect to quarter In debt. did $X.XX of interest quantum of the from or the quarters, share. million net prior million the the year related on share $XX expenses rising of decline not or prior $X.XX changing $X.X dynamics we earnings of quarter absolute and compared expense comparative current in floating these diluted resulting net reoccur the net that reflect to the warrants will current of common expiration now interest however, incremental net income. next cycle. Transitioning loss rates income $X.X a per of the

with prior cash comparative interest in million with the B founder's representing EBITDA XXXX from and was as as Regarding -- headwinds, net was and XX.X%, in mentioned improvement or repurchase. Despite shares warrants connection to decline previously were expiration adjusted in EPS, margin XX the issued Series $X.XX period related adjusted of share in November increased of $XX.X modest the approximately well margin of EBITDA in these the million expense XX.X% $X.X that quarter. preferred year associated the dividends a

million of prior a final in generated nearly a quarter, environment. than results, cash a million, $X the $XX.X free difficult flow highlight more we As achievement our significant of year consolidated

X.X% partially and a $X.X in the construction and prior flat slight Specialized the increased $X.X energy decline manufacturing these Solutions prioritized the now company revenue as a increased $XXX.X increase revenue the as growth as added versus segment. from year well roughly the These quarter. net company assets. first average declines Transportation primarily mile agricultural million in OR rate quarter, expense. decline per a the was completed were slightly X% In in our to markets a by the waste due at segment miles, increased to prior from improvement focused quarter interest of to margin of company-owned flat adjusted hazardous miles team markets. Overall, SJ our which freight gains the was in higher year outpaced strength and end end $X.XX Turning XXXX, Specialized the mile. Demand rate in income approximately X.X% was recorded per segment late offset a efforts, million XX.X%. acquisition, contribution Through year million, as to Revenue loading the in in prior that to

EBITDA adjusted adjusted Finally, slightly or XX.X%. $XX.X increased margin million and EBITDA to

the segment very of and are difficult performance pleased We financial quarter. with operational this during a

our Solutions Turning now to segment. Flatbed

of result environment asset-right to margin X.X% owner-operators. The first by company primarily driven The a to quarter time movements priority an rates the in due adaptability as company the million revenue due increase compared driven higher revenue. half the segment to a brokerage available to X.X% quarter, in team our XX% which an roughly decline than strategy. demonstrates this company increase the $XXX.X year $XX.X lower in million was miles of million, a lower freight these our and nearly versus loading in of with X.X% $XX.X fewer flatbed prior miles generated revenue market year, of assets, shifted loads last In

with markets market both our and in steel was to quarter period end primarily end than adjusted teams. the the XX.X%. serve, improved $XX.X by OR million, Solutions EBITDA industrial markets. Flatbed and to decline offset the prior adjusted Segment due Though sequential for efforts adjusted by construction lower strength With XX.X%, more improving operational EBITDA and slightly revenue. productivity quarter flatbed end margin we manufacturing was was in

Jonathan turn we Looking results, concentrating call working the our model our to as update asset-right designed. to year. I'll at on is on enhancing XXXX an for outlook. back operating the productivity, our now efforts We're Jonathan? on expect these which across improve

Jonathan Shepko

Thank you, Aaron.

our is first difficult that demand likely freight XXXX, a second anticipate uplift recovery in rates and While in we remainder guidance typically volumes our we of and a in seasonality and our prevail, our delayed with anticipate demand influence fundamentals, organization those and by attenuate broader the recalibrations navigated generally lower to the quarter, previous $XXX range in is expectations initiatives successfully peers rates, our now realized which return compounded stronger or these consistent EBITDA expectations of seasonal recovery, to announced to by million our rate appear most XXXX the in in X% below and XX% performance. beginning year optimization truckload line full than be remainder supply made XXXX, the continuing the industry. If $XXX to including well of cost X% financial ultimate quarters, with to the quarter. the adjustments at million, by year with are million, for of third adjusted revised X% again, of A economic that this $XXX positively which along the forecasted to could revenue of the is

increasing million. expenditures future all of organic the and to imperative sales cycles to profitability. $XXX as net property reinvestment Our consistent, prepare equipment believe fleet and expected $XXX to compared outlook operating We expenses our disciplined million are to million our experience, for million original capital $XXX across to $XXX an be reduce in driver of is fleet enhance

are up current growth to we've driver managing positioning the and next controllable stage while in technology prudently recent investing and improving, cycle. this reallocating is environment. through had largest performance In to utilization support of fleet us in the the we costs outperform accelerate the near-term recruiting early in environment, processes classes and the further are in resources this history, cycle, recovery to Our our profitable

will in inflects. Throughout execution near-term efficiency team to channel our we and augment through high to they the Our our continuous the long-term the when of model of that at attractive watermark excellence can new organization, resilience compounding how environment, this profile One and the support Daseke earnings in operate practice with strategy, growth foundation knows technology, not inevitably a efforts our with of the will while fortunate challenges only improvement, cycle the best across returns. are leadership have us a that but

your to the Now back we and questions. operator call take will turn the

Operator

[Operator comes Instructions] from of question Our the Stifel. Bert line from first Subin

Bert Subin

that the guidance generally the this a How Maybe the EBITDA the you I months are now that How concern to about view range but into in the left little favorably, side new bit derisked off XXXX to you of seems there's year? end do think there where range, pretty if year downside. things. on stage at like some just investors think thinking be probably were is? it you would case more X-plus you evaluating bare

Jonathan Shepko

really We're looking the a those at I mean, a -- revision look, for of X March uptick is even load-to-truck out of that ratios, at We to during lot of there I seasonality us, And a Yes, in increased you look, of data noticeable and April of April load-to-trucks, when at. normal think on XX% of a there's lot see downward the the QX points -- looking trend bag. utilization. seasonality. in We're from by because EBITDA we're quarters took frankly our about because rates QX, generating to mixed looking trends. rates. ultimately seasonality it's those think our X typically XX% lack quarters. utilization, about We XX%. And being typically

uplift. not just we're And us. for really quarters seeing important really So the seasonal

get our an based -- little like well really uptick have increases seeing X% we've in in pricing actually we industry we looked look, data. point. with in we improvement we bit this discussions assumed drive feedback a improvement whereby which further based as little recent on -- the as at up at look, we our on are shippers, back at volumes, it have we've such volumes. pronounced it's customer not also firming of of to guide at rates. hand But well, looked And can call, that, a degradation of bit -- we've down. And in it's around -- rate We've looked the -- And I peers, X% that a we've in could and said contracts so, things kind taken on

be think some we we So which seasonality level, pronounced at that is the might to not there be going typically as simply see. as

are transformation underway, -- about efforts We've feel guide efforts, also the that the are good so we So pretty performing and as that those integration far. and expected. got

And some segment for able Flatbed you Southeast drive do going lot continue if this not improve we're offset mean, the which rates. end we're productivity, think we at that have was saw holds. economists us. the really -- not loads does we and things think But drive we productivity continue we and a to freight of to If the will the I quarter So to soothsayers. day, hold,

doing we're So data we of with in the best the we can front today. have us

Bert Subin

of XXXX? helpful. into ultimately think $XXX things, highlight can sort and of super very That's factored you initiative what what's side in so-called on the this cost guide to million $XXX can the you drive Maybe for million year you

Jonathan Shepko

Bert, last lot costs that, costs commenced We year, transformation so The were kind these we we're efforts we of noticeable from said -- about a where thinking benefit efforts. Yes. think offset those those really we've of -- largely to going is way any got year last the have dissipated.

of year expect of the million kind incremental probably $XX we undertook we this enter to year. And an $X So year. roughly benefit get the initiatives we with last that from million

So we're table. efforts year thinking the of of in there's high the then run this something that rate on that synergies another $XX XXXX, improvements about probably $XX those realized million into feels we like million teens. think to an going transformation we with related And exit

closer probably -- total to million of million million, XXXX. $XX of $XX that run a cumulative rate an $XX feels exiting So exit like

the operating the the pole the of are these of of the kind TMS, in But lifeblood here, prepared around little So timing been remarks, forward think pull think systems of we've long primarily some we of telling as companies. the kind to implementations, tent which a has said timing bit we -- shifted little I what a the bit upside market. on to

better still of is too, there. is that opportunity But quantum shift. So that's internally to the reason absolutely -- we we've think underwritten, a

Bert Subin

it and pass one last And I'll over. follow-up, back just

As can sense lot out the highlight to versus reducing out where CapEx prepared just the we to get here be still just range have perhaps look your Or maybe the in 'XX things, we're a fleet? your cost think going 'XX down you're are it CapEx you want the bottoming why based to Is at on you you of you for cycle range, we it opportunities, incrementally? want makes around and maintenance where side belief that that and of of is that? leverage more

Jonathan Shepko

CapEx the seriously. the very very, -- a of rolling And Yes. stock. lot replace take I of the is that we part large to mean CapEx

companies to on does inflect. when the I particularly try just into that can think disadvantaged. get the kick cycle CapEx more trouble, They're

And growth lot the year of as so eliminated last of our this -- the CapEx. we a said a call, CapEx we on lot

the toward for given XXXX. forward And go looking wanted some in replacement there we kind some CapEx on pull reflate -- in little that systems. XX-plus was what so, lead for bit. There's expect a at those CapEx there trailers of Schnable get is which part of which there. $X we've There's time latter and CapEx about fine-tuned to primarily you're wind, of And to CapEx, we of the ahead in that million months,

ends So -- XXXX. XXXX, and banking the could the of situation at if of if rate the kind do being the bottom, market to think cycle does XXX the what to we look, opportunity up year, the We back the be this of the think bottom. we're be we what, on we've bottom, unwinding that to think -- We to seen year, in see that's I worsens, you're take which when massive advantage mean depending you speculation I ahead to points Fed that to going does well we're catalyst think especially the is the there's -- CapEx of that come next of think positioned nearing matter the And basis inflect. no economy, is going to that set right-sized complex. But do relative the kind we get want industrial the a us. later starts bang

about we're how thinking that's So it.

Operator

Our next Sigdhal Capital question from Group. Craig-Hallum comes Ryan from

Ryan Sigdahl

here. guidance on Staying

you were single-digits. for up revenue low So previously, to flat guiding

expectations. X said You to lower previous rates relative points your to X

a little takes puts the simplistically revenue, and does bit? flattish please? Or imply guess through revenue, that will kind of more I maybe So down on

Aaron Coley

Yes.

about revenue range. EBITDA So adjusted our guide is on X% the

Ryan Sigdahl

You're guiding for revenue growth of X%?

Aaron Coley

No, we're I X%. down said

Ryan Sigdahl

Sorry, missed that. I

Okay, down X%.

Aaron Coley

[indiscernible].

Ryan Sigdahl

you kind can for flatbed that Yes. of between year? And specialized the and then split expectations

Aaron Coley

is Sure, down Flatbed XX% Yes. specialized X%. is Ryan. down and

Ryan Sigdahl

the Given of -- I little that. better, in little and year we've specialized a the assume into of guess. maybe on more has has seen to kind relative environment? a Does current follow-up deterioration flows in of through one rest last Specialized just that kind what through hung flatbeds there specialized

Aaron Coley

it Yes, does.

through capacity we see our capacity on while strong held first pretty of As as other as some expect quarter they've excess markets. we to freight, the chasing specialized, there enter in sub-verticals at markets to compression look or across fewer on some those tries

Ryan Sigdahl

we I you mean me, But from side feels many it's or know you then many, could but driver like, wage inflationary there? of better some when I and been finding improvements it's the seeing drivers. the an are I timing Last side? inflation cost see And a wages years. said Kind ongoing on just I wage it for guess guess of inflation also one on battle, lower drivers. on there, lag. potentially kind any of kind improvements availability any

Jonathan Shepko

the side. actually positive had We've driver lot momentum of Yes. a on

XX%. is utilization of kind probably approaching Our

trucks. seeding absolutely we're So

at As increased, of pay you the XXXX rate looked environment expeditiously early if of kind really really when pointed lagging. you out, was XXXX, driver kind late

XX% so XX% got And And high environment. peak really really around as for half in a XX%, low percentage rate to was of the of pay to rates of started inflect as us, back started historically, as kind at as catch downward revenue to XXXX, driver wages XX%. It kind the up. of then the

they an increased back down in trucking, and -- walked transport start pay carefully. Kind for revenue percentage setting February, is we but the to whereby environment a percent. of up March. market, that can the kind of kind are think to be So where look, we do of But XX-plus slightly for driver wages non-farm up ourselves payrolls cautiously find closer of as today environment in decreased

of of up So kind they're hanging year-over-year. there, X.X% in kind

kind driver rates So start can of you that fall see that gives off, moderate to and and sign that you've excess you a capacity back. you got when start walking

a So quarter so we're that. I probably doing or think from

Ryan Sigdahl

Great.

Aaron Coley

I'd the say on seeded...

Ryan Sigdahl

ahead. go Yes,

Aaron Coley

On the pickup Ryan, on in rates. just to seeded to I seeing seeded count, we going X% the seeded was are truck -- X% say,

Our measure through count on you the it depending how X% overall truck quarter. X.X% to is about up

we so, larger we recruiting through more to which are And seeing the trucks, classes, do seeding remainder the to continue of year. expect are we

Operator

comes next at from Our question Gibas Gregory Securities. Northland

Gregory Gibas

in increase Regarding demand like you're it I of mostly decline guess, being maybe in rate being that it's rates market, question the of a Is sounded versus a better. how the what pressured seeing And kind capacity? the function volume you're holding seeing? the relatively up versus what in much similar industry of is weakening

Jonathan Shepko

Yes, stay the on a so good because pretty bigger, stay in macro I largest you or second region we'll flatbed -- for I think the volumes. higher seeing flatbed loads about we'll kind of correlation. think mean volumes, country pretty market load the just, That and they're there, better, flatbed Southeast if and it's flatbeds actually in good

though look, is pretty you If relative good right. and

going QX, to QX important be. at If metrics you you let's how because movement bellwether time, QX QX of the you had that's is which kind And we is load-to-truck rest so pretty QX, is then a to of the look if about year good at to as when look, for over look think here times. load-to-truck pre-COVID XXXX, from the at

kind then to QX listening excess massively healthy number anybody I where extremely from capacity. to of months the great an a on XX%. you a or going that gets. your you look you've sure QX -- great, -- as started XXXX, to of XX%. And rates spot it's XX% went later, kind contract in But all QX at you it trucking from to environment to see mid-XXs coverage went rates. as mean And QX pressure to pressure XX%, and down. healthy to had started in substantial of environment. But it and by you QX, see to see to frame really of QX kind XX% started QX continued in that QX really accounts anything down a got I'm XXXX, to you call. means you as few XXXX, If on reference, load-to-truck a on signal relative is capacity that's good not

we're from teens, were going the mid-XXXX time world mean, our down. The of in right? before the recession, we're If kind the QX COVID XXXX, right, this okay? time I was were the last brands you kind last in the of had the look at at you QX, was at, dear of teens look year, at we if where we where as the at the our markets it market, last So absolutely was where The absolute have, have, building thought market of we customers in we're we lumber, environment, in a to we materials, separates with. The freight market, engage when shut that, the we relatively, everybody opportunity it's, customers an think companies have, of our to some smaller look using it's investment-grade size you what contracted. are is the of whether that if share. doing teams maybe steel we steel, to finding us what take freight, relative they're -- I have tubing, pipe those a great customers the the job. carriers they're and doing, are doing But And

basis. low. Utilization rates means excess a ratio hanging there relative you've historically is capacity. okay which low, speaking, actually got they're in the are extremely on But So load-to-truck

just and way, form. that seeing up things from again, to any those tick you so, in we're QX, typically QX shape or And not see

Gregory Gibas

fleet plans maybe quarter. I I expect noticed throughout the in that in year-over-year Appreciate understood. to adding year there. here, of this color you it softening demand? just was do kind that addressed following Okay tractor wanted How kind the to apologize of but if already XX% drivers in your this trend you

Jonathan Shepko

repeat please? you that question, can Greg,

Gregory Gibas

year-over-year, just year, Yes, added think throughout wondering the softening just the regarding fleet. you that given it I this in XX% the in was tractor to demand? trend just drivers expecting -- you're Basically, how

Jonathan Shepko

think you timing our bit mean I a in about think had last we count, were a of delayed. trucks a orders lot Yes, our difference year of there's when there. I that truck

we year. getting of of end big ended the delivery last So up a trucks at

kind And QX, those in are through a seeding so, the of we're cycling process those largely of in of seeded. lot those

start you disposition process well. as Now the

year. So truck year see just it's be the in trucks going had those -- truly more able more XX relative if about to And overstated we're to than we'd year-over-year up, to We this driver for QX ticking what the of last XX that we'd you're rest trucks assumed looking count more. see at that have year. probably utilization,

go So felt like XX% XX% year. that to we kind year last seeded this felt truck from that to XX% something like something of XX%, seeded would

-- opcos, those again, in comments -- probably seeded, well, trucks with the driver as bit plan, are side those some of those to ahead Bert, X% trucks. substantially we're certain right? so opcos a that the more got need to And the X% And play little the equation of seeing we've -- they we is ahead actually going of on And so We're mentioned healthy. absolutely on assumptions are seeing through.

we're So, at. we're feeling pretty good about where

Aaron Coley

model. is at our in other Greg, of the release that trucks terms if and intentional press seeing, company switch -- you're our thing asset-right The you're looking

brokerage, we're so, deemphasizing deemphasizing operators. and deploying And owner trucks more the company-owned

company trucks. And are to some getting conversions so, of purchases lease we

And so you in that's kind our mix our see why shift of mode. the of

Gregory Gibas

color wages, categories? the some -- inflation could of if seeing across it. wage on other you are guess, you I the some And got already provide of wondering driver maybe just of addressed the lastly, but Okay you cost levels kind big other

Jonathan Shepko

right? XX% kind still we're right Yes, cost XX% maintenance increases, was increases year. at increases I headwinds now XXXX, look process XX% out seeing -- but kind and XXXX. of think you meeting repairs. of face, any environment seeing that were as you rate real for to I haven't to to year of don't up with increases XX%, of rate all of cost pre-pandemic the We're still and CAGR going the going mean inflationary still like. But in shown you've at cost the you again, of of kind off got Tires rates versus some part improvement, this when maintenance of look of of you've kind that, of seeing the CAGR the now kind a of and When vendors it's offset mean and I tire in a be probably XX% costs. till kind about what those we're of I on X% CPI expectation that. on the today, last figure inflationary are look another you adjust so plus had headwinds we really think we're to increases, kind price

truly So kind it a perfect storm. is of

Operator

session. question-and-answer I participation for closing Thank the Shepko call over your the go turn for That to now his today. Mr. you will concludes ahead. Mr. Shepko, remarks.

Jonathan Shepko

like value. I'd and in a industry well excellence. agile remain you, looking we're focus terms of optimization first thank brands for operational comes, backdrop, proactive delivered tractors morning. organization, quick despite shareholder for network that are Though expand the and their all and revenues, shareholder confirmation our X,XXX X,XXX and to sheet trough growth services and Mikala. portfolio enhance drive leverage we unique trailers, our entire diligent up, inflection with we're dedication. we're a cycle person earnings of asset in our and And We positioned Thank our productivity, to and a more balance your this resilient team substantial. time when XX,XXX and increase Thank commitments to a on you challenging macro through quarter value strong

Operator

conference, you Thank your the for today's this participation program. concludes in

may disconnect. You now

Daseke (DSKE) 9 May 232023 Q1 Earnings call transcript