SNDR - Earnings call transcript Q1 2022 | Schneider National, Inc.

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Operator

Greetings. Welcome to the Schneider First Quarter 2022 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Steve Bindas.

You may begin.

Steve Bindas

good and operator, you, morning, everyone. Thank

company on and Chief me President available Chief today, on the which Relations press Bruffett, website call President Rourke, and at the Earlier Officer. of Mark the are Financial an Executive is Vice earnings release, today Executive Joining issued section Officer; our Investor Steve and schneider.com.

provisions about forward-looking under and prospects the These constitute statements Our the plans safe federal call for applicable forecasts, harbor will securities laws. future expectations, include of for remarks purposes Schneider.

statements in results involve including, filings, to discussed current company risks cause Forward-looking are uncertainties call, and forward-looking by uncertainties release. as identified SEC most investors to expectations. duty law. today's disclaims earnings but made except could that not urges of this review actual of recent and our from the limited update statements XX-K risks and date Schneider to required the differ to, materially any in The our All those statements, as and such risks

In of referenced any comparable earnings the measures. addition, directly which be can includes non-GAAP a in release, found most reconciliation G, today's call measures reconciliations during GAAP financial to to Regulation pursuant our

turn Rourke. to over like I'd CEO, Mark call Now our Mark? to the

Mark Rourke

our you trading our support. represented XXXX, been segments enabling the Logistics, transformation as leading X% for XX,XXX transportation Intermodal order thank Truckload, asset-light exceeding April of our recently how XX% the return attractive flight offering, to strong in the In and consistently placing insight, in volume growth most completed your I'll with first currently been XX% Thank within container fifth since tractors revenue customer XX%, over This has new of of XX%. and rail configurations, with Intermodal of this to par not are when quarter, Schneider's the month and traded our with and produced logistics company. quarter a and of annual you, anniversary is publicly runway reshaped operating order journey network. to XXXX, of you marks us those services Logistics mix, we metrics, excluding of additional illustrating, Truckload, prepared the surcharge. of the of everyone, Steve, have start-ups current we conversion compounded with start morning with of averaged The and comments consider call quarter in has In multimodal you dedicated opportunity by X rail fluidity growth Schneider recognized Intermodal segment's grateful business hello, Year-over-year, count growth been grew multiple Many encouragement our an date pipeline. the in platform. Logistics in on XX% another and operating quarter segments Truckload company. essentially with our portfolio fuel year-over-year order a joining on Since count on into for X,XXX performance our this with revenue begins rate the segment. of very morning. brokerage and being brokerage our for or growth a

organization. of more than remains proud long-term much Truckload one-way is enterprise, Truckload our While and Schneider our the important illustrate element are a very metrics of of we heritage, these positioning a very truckload Schneider

addition been targeted over ago, mature, an Systems of that Midwest X realized the approach the dedicated cost of the was acquisition build customers, pleased for or XX% per excluding and surcharge received transition In at as our the strategic MLS more and in affected truck, COVID-related let's the productivity than year the base Revenue the hardware opportunities. failure was productivity XXX% separately availability revenue above outage results segment acquisition business with driver of the upon to going respectively. dedicated has are associate that customer well drivers year. and week, X in and and emphasis well on expectations we grew again strengths quarter, intended by XX%, is impacts organic running that to nearly asset XX% asset quarter price The our dedicated experience quarter in and our as XXXX. in by customer year-over-year under particular the most of in as synergies is In up improvement fuel our With as improving and the associates startups system network, of new logistics. specifically, on by a evenly on belts, due was earnings. operational temporary We business Dedicated, with are early are the with and truck of focused end Truckload, it at Logistics revenue the the both in related network more and improvement growth and So and network growth growth to experienced per driver was we vendor well. of split intermodal the between the approach

acquisition, the As conditions, It shipper and acceptance dedicated business, particularly the cost maintenance to smoother Better rejects our less better compensation adjustments driver in inflationary replacement and and and acceptance delivers events costs areas tender such current quarter that price first business market allocation price cost to have largely moved contract in for parties. results in execution equipment results, and which, service. new view supply chain and is network general, parts. relates highly contract, spot equipment all supportive around in as remain it renewals direct of the

network-based seeing and tenders allocation award prior we acceptance our those are levels In and of materially after events offerings, fact, higher in events. to

expect company growth On our call, discussed to the in So carbon let's for to play their as emission reduction commitments. additional we value offering Intermodal. transition a Intermodal our earnings we the driver while role customers last achieving

the with player with value Intermodal is Part most model was owned create who desired Pacific double and of owned in goal Union to driver the CSX the differentiation. stated chassis competitive plan the with industry unique by that dray the an asset-based model. of Specifically, container, largest and XXXX. shippers execution provides West model our in The company East differentiation alignment the asset-based to

we is the confident and Sequentially, our plan with allow all Union the rail our our air the to Intermodal in be operate the our the a chose We Pacific we of and advance gave this relationship respectful execute are highly high open the containers. announce transition also X,XXX be also change. ally us importantly, Pacific our in in quality timing to and commitment, could collectively namely to working partner a customers team. speaks the and a excellence collective BNSF their as an a develop regular time resources open fashion. grew highly stakeholders integrity an just to by Union very execution to communication quarter, joint The western of long-term on change with The we in with the the be leadership in change It our robust of organization are to drivers container do year level through dray transparent in and manner capability. constructive so track, professional them a and act and to with with the to and and operational we stakeholders, to count that with plan within first

XXX be loading year-over-year a XX% growth volume and fuel, order We to improve fluidity customers' excluding contributing per at improvement operating in to expect as containers labor improved the into unloading locations. rail XX% in to year-over-year, basis ratio Revenue translated XX.X%. conditions growth our and order point

were led segment they excellent for XXX the delivered to our move the another time. As improving by offering, Logistics points earnings XX.X%. which ratio year-over-year first Logistics, Intermodal we business quarter results, to of surpassed brokerage operating basis

productivity advancements the are Our benefits. digitally are shippers investments with connecting and drive book track carriers to FreightPower business. focused the price helping to automation and in third-party Schneider on in The

In fact, just brokerage grew in order count X%. over with count XX%, increasing quarter, people the

property we strategic The across regularly operating that a wanted from some I context various perform derived a provide was we our capital gains, to Finally, net experienced asset exercise allocation for so development. gain units. sizable

Canada the have was profile Intermodal we remain offerings. based by we cross-border quarter, especially resources, have for inside capital capital in largely resulted been determined across power, years, Therefore, to an States. nearly the other the property stock sales of operating in trailer substantively in of and expedited attractiveness inferior of to operations to of return Canada prospects operations and rolling the our container Truckload that current assessment reallocated United higher assigned The the uses While end the in expected series Canada XX commercial of future process. the and a

performance embedded I across X feel full raise. So to is our Steve that year as to opportunity for I ample leading over it continue segments, have confidence operating to we his deliver remarks, turn our guidance in and

Stephen Bruffett

this joining and Thank you, thanks us morning. for Mark, of to each you

inherent This prior So this increase picking full than with We're up of guidance share represents increased an to less now $X.XX in $X.XX $X.XX off, comments. guided the year this our earnings despite increase equipment midpoint. left for adjusted a sell share. I'll was We've our we initial fact X% per additional or context year diluted to to regarding Mark from range our where begin expect per making forward-looking our guidance. that

gains for of similar I were XXXX, last be our expected million. call, During which those we earnings $XX equipment noted that XXXX to to

gains for to $XX we approximately so Power it the is can expectations opportunities our Dedicated retain growth million, outlook and offerings. and support that our equipment, Our some in we updated trailers, especially reflects Only see

portfolio remainder of forecast reflects the So updated EPS for our the strong performance the for operational across year. expectations

going over couple and shippers provide. return mentioned, we're healthy to the capacity the were the has environment past that of contractual Mark market tenders As and the contractual we of service many that rate stabilized remains as normalcy spot absorb months to value seeing a The as market. the

market remain XXXX, in Only capabilities and segments. to core conditions We Logistics while spot our conditions both our and broad solution fully and FreightPower utilize contract applies expect of decision We our leverage adapt. both tools platform. to augmenting constructive to participate Intermodal to and the dynamic and able reach Schneider the markets the and the Power actively Truckload with our them intact our rapidly are In segment, opportunity this science provide throughout brokerage

quarters due up to regarding full first up incremental quarter we're Regarding with comments X of increases $XXX this all differing capital top excluding investments CapEx expenditures, the first fuel percentages The they the the first for brief XX% meaningful trailing to cost was XXXX earnings was contributions per share I'll our made contained combined the dispositions operations over that that equipment and of $X.XX Also, reason increase Adjusted segments year XXXX, XXXX, some to on quarter. XX%. this to recorded wrap in while Revenues, is adjusted equipment. sales quarter it's important expectations from were as million, surcharges, income gains a and quarter. this from equity with limited increasing were quarter. increased growth. and for of our first over XXXX XX% note loss net line minimal increased either

was the been performance a even The strategic we and and years comparison is on is generating which portfolio past will move continue operating reshaping than that's strong the capital, forward. So outcome as stronger effectively executing EPS underway year-over-year for invested several implies. returns the of

topic of for proceeds, $X.X million, this quarter equipment. a during the only the capital, CapEx On of function mostly the offsetting was was CapEx net first property the and

deliveries a all to our Dedicated, and sizable allocation strategic priorities year $XXX As of anticipate prioritize the technology. while we our apparent remaining investments capital steady in And over is businesses, X we year. Intermodal Logistics from it equipment continue guidance full step-up quarters towards making growing in of this of million,

open the so And we'll call up your that, with questions. for

Operator

from our Instructions]. [Operator Jon Evercore the first with question of Chappell And comes ISI. line

Jonathan Chappell

with starting Mark, Intermodal.

obtain out a XXXX. there lot by to what growth of laid you're your ambitions You've growth doing and that

per it said Just the fully to days. preparing. going transition revenue Obviously, sequentially. has it you're And wondering year, early start but down order that, been relates as until as next doesn't before, how you of kind

if Or Just part going move wondering UP? run of away accessorials was maybe to to bit that's Or the preparations little was the representative over it seasonality? be a that more of some forward? and if of the rate a going

Mark Rourke

Jon. commercial with receptivity whole engagement and the to really feeling process, coming things. we've the the across really the the question, we're X feeling mentioned, the we're just change about We're great from do a and of been well, and Pacific of with customer the Union good the to our the aspects pleased Thank you planning community. the business as of relates for in as that commercial deal it aspects, integration transition you dray And

and And plan of rest of year this operational we the how solid have excellence. really, degree through so high that to and of a preparing part the commitments do with really ahead is a go make

the with sit team. as really here really So all out I'm exactly And well to now set of we stakeholders. do. what positioned across end pleased feel I'm we're do the our to we at really proud the of of engagement we April,

first So part. that's the

business applies offering. reflective And the highly whether talking Second order, in we're the around retail the seasonality that. renewals to peak yes, revenue will part per that's as impacts continue relates of the the responsive be are the and expense that through evident costs customers it business highly our to line, the Intermodal But or are tell that. inflationary you that contract in some to season I there truck

Stephen Bruffett

add making haul was a East, comment to revenue length length haul as that sequential a of or the which order component than per And growth has just the John, that is occurring our move. about there. I is transcontinental West in There would you're shorter most of the of this in that Steve. also of

that's well. So that number as in factor a

Jonathan Chappell

to and And availability. to And Steve, helpful, acquisition, you through to CapEx. truck it going just do ability that of how count then more you just capital laid rest kind second OEM be loaded of the think spread network really That's the spend MLS but it. and how the one to actually Steve. the as Got add it trucks out to back-end about dedicated able between were relates how to it's equipment availability a dedicated and just as relates the year? that's you your

Mark Rourke

believe get a going portion Yes. best We We're of we're giving kind here. you at out point. our good to what we've estimate of this laid

first a in for it have slightly potentially, get lot quarter. a new we fashion of equipment delayed plan didn't we the So which in

is how out consistent expectations with laid this with the So we've our OEM.

pretty supply full fairly So the year at as you confidence been we'll out. But their while high, this to the have good. know, how fluid. feeling junction, we're And has plays chain is see

Stephen Bruffett

of the Yes. And end now configurations it you will, growth, I dedicated expect tractor be the Truckload we dray of fleet of this Intermodal year, it. component with as of count, see far supporting as or mix network versus the if and equipment, kind a mode would if the to our in maintenance

Operator

of comes Stifel. the question Bert from with next Our line Subin

Bert Subin

a you obviously, your If this thinking like seems it So bit changed I look volatility for over earnings network amount a recent business the are parts, the years. has enterprise How about obviously exposure is fair overall just quite your last? cycle at lower. versus

I here. color think Intermodal, on be to your really growth helpful. would come Logistics view Any that So would from down

Mark Rourke

and growth we mix absolutely in the configuration, truck generally business, as network portion units at The that. of X,XXX the prior I units You're anticipate -- sit to you today would here of we're in dedicated right. our the much with to if than phase. as configuration X,XXX business in different dedicated in mentioned, continued And of periods, and it back compare XXXX particularly is our you

so think the quarter quarter first pipeline. we I the units XXX had in mentioned from as fourth in quarter in my comments, first I to or start-up opening And a organically. very robust the sequentially

the in So service, around provides community there of dedicated customer certainty any type serving in cost and for to specialty we're the markets particularly enthusiasm been our more dampening and the Dedicated has what market. not that

about we our well for would being truck elements you which segment. So think the more consistent contracts be continue bodes that well as we're dedicated mix change the that the mix expect to longer-term as resiliency trajectory volumes, of truck in we as that will seeing those business, think

on the activities On too they're the And Intermodal relative solve there's again help around commitments the we we based upon to to much making what years believe conversion of the been over back front, road couple the supply increasing the of customers addition emissions. to in last chain. can on urgency carbon the

business that sit think, the we that here, its differentiation all and continue being the great to a And we're platform. of experience business our We're And more have cycle. relative own of several the in some there well executing service those last container will variable cost adapt great to Logistics business a tailwinds. to and bringing customers, regardless the years, is support and resilient thirdly, as honed the idea our all can of in our and well again, we received over by more of so its decision think have to setup, and offer with chassis truck, nature so have proven to And can be marketplace, our well give adapt very owned developed and we to been FreightPower we we in market we very owned that model.

Bert Subin

Can following overview. just the up bringing That's sequential year-over-year about encouraging, numbers there business the on which in-house. of you're on in It you I are point in doing doing yet keeping purely if differentiate talking allowing Maybe logistics. a programs I brokerage a would perhaps in-house? your from talk there is you're for that that your you you great it last what basis, to technology loyalty is more at Logistics on drivers like about volumes, Or seems improvement saw think on some a you're side? them peers? that still -- terms stuff are look things Is what's

Mark Rourke

logistics an them in things of a them business invested and Intermodal, customers, leverage don't a model the model developed have self-serving totally we and some I because we how lanes own that networks, to us, the or allows of also ability from we're grab be helping that which differentiation on But part we organization with portfolio. and we and playing whole reliant benefit our which and offer, customer, the of develop is in think, their have on fit people's the share be ability a think enterprise our the to a is have capability plays. playing that demand to overflow and not to standpoint, have I other so their -- well own other they that for truck, have -- we're the to enterprise develop

a that our for smaller the by that that then standpoint. yes And we've And underneath so because obviously, of say us. with developed network more that's importantly, balance in configuration, way. our and which we're box a -- networks really orange of you positioned. in to And have commercial a to a your have how go think carriers both bring so business fashion model using easy you benefits customers is and capability found the to ways, operate to to getting our to from we've solutions trailer very and pools ahead to in is network do have business you a really that And

And like our our favors but to so get that can also keep carriers third well way ourselves trailer manage balance serve the I capacity network customers. parties, think a in that who capacity, as in both as

is of of seeing And so our that playing kind all results. out what in you're

Bert Subin

on clarify to platform? on shippers. the keep your Just How for about do in think ecosystem, being able the beneficial that to drivers that seems that, you them

Mark Rourke

driver how about networks our owner-operator disruptive network. company our Yes. we valued up that we're not are How to we network being and our Power integration with set is Only that think running and

things determine And us that. those of fit best, from customer, that the a technology both and but ultimately where then value from capacity and segment and price so our to serve the will tools also allow

with we so execute de-conflicted the back-end. that have the processes front of go so end on on And we can the excellence and ahead that

valuable aggregating access trailer same we to that to network, our really And Power also both capacity, who but have do and the third we're pool of increasingly so the owner-operator is that's because that quality shippers front. Only to don't some company and parties that of what on

Operator

America. of Our with Ken Bank Hoexter of from line next question comes the

Kenneth Hoexter

kind your terms talk got per revenue now that can about looking you just think just in we truck, other revenue or before showed I thoughts seasonality and answer your to at little your Steve, of you should about of But then going market? in within that season. maybe Jon And Mark forward seeing you're the the I about bit which about go and deceleration, as things. a the how through components on environment what per bid ask talk truck,

Mark Rourke

our we within contract network. dislocated about talking pool Ken, networks, contract on the business really talk about, we're that's our play with. that something If in the it's help world, need trailer we they spot supporting their When do generally customers

the And things know side business. the emphasis what lot that really to spot, do, of a not on boards that's and applicable have on the I truck's particularly that we focus of there's nature and of the so but asset

quite the healthy share So and across when price gain at quarter. nearly towards in the we through our around we to with look side. contract of recognition the renewals seeing already XX% demand, We've very inflationary it's And in equipment. contract driver, been first take improvement costs around the are healthy

very responsive the upon based business. costs come the necessary into we still that the is So market to that have think and

And first based those been upon of quarter have but encouraged so and year nothing we've the progressed. how things the

the being that over is a in providing. on some value XXX% and the in highlighted the we're so that at in year-over-year well network earlier issues of reflective of comments, market where in with side, because of I look throughput truck we of you have revenue my that price XX% of the the the improvement side the business, line As

Kenneth Hoexter

shifting you And Is of seeing. anything that's where the revenue of it Maybe can just mix? talk components length Is about within about haul? talk the truck? per you're it

Mark Rourke

deal shift length great difference Ken. underlying configurations the configuration. shift we're hasn't driving anything been that's experiencing of in truck more any haul of or network The of between is that in There dedicated and there, a

Stephen Bruffett

applicable we to on length per Ken, Truckload was and the referring revenue comments was not the where that's on I segment. My are the order, Intermodal Yes. of It haul that, differences.

Mark Rourke

versus West. East

Kenneth Hoexter

on that No. the Intermodal. guess I I got

utilization or maybe mix is was the miles than truck, within from there right? pricing, was more anything truck. anything I aside you if other just thinking just of maybe detracting break aiding If per don't given So I out guess per revenue

Mark Rourke

Nothing to, I'd no. point

Kenneth Hoexter

Yes.

resources follow-up my kind how review adding it kind is whether then where allocate of you or Intermodal or of you between, of little in want Canada, growing a breakdown? of was the of business, analysis just more it's dedicated where a there also the in often. to just in third segments more getting of at X same of focus Was you -- And more? on a you kind focus specifically terms there capital you kind Okay. Or a Logistics? out do Just mentioned of did look the keep business quite your

Mark Rourke

we As is Power business. well, the allocation strategic we to Ken, we assessed Only we've chassis our of best we growth our things trailers around Intermodal; technology increasingly in reward believe we for both and and kind that capital, dedicated more where the how Logistics do our want the will have but focused allocate driver that market and what when then truck; capital we thus, container Intermodal, and power say believe

in for back was the against those Canada to change to really really assets. Truck within to capital segment And the And growth. best best look redeploy the focus that's so to that ways value constantly But improve the of to elements, was enterprise. we customer those and allocation within value the put our Network the those

Operator

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

Ravi Shanker

conversions. about Intermodal point So on I the want to up follow

and in of truck to actually else, truck saw cycle was. truck as rail we this seen our despite everything and conversion well, more that conversion I mentioned, -- tight because think data congestion of you market the the how you've the

the that to the rail? how XX I So loosens back rail even market congestion even if the do enter out at of say, you that going mean, cycle here? X see playing months it Or to truck? Does next, half a of kind see on down the do eases, year, if over you more we if back stay traffic truck do

Mark Rourke

Ravi, longer-term comment more a close in. something maybe and maybe then

market, for the to scheduled because point, some we recently what's market the seen congestion. As and addressable your then XXXX we railroading of because initially back available precision time have of more study was and on Intermodal that conversion frame an

we there think growth laid so And achieve that execution model to out we laid doubling aspirations XXXX. out we've is for have by the in what opportunity our that ample

think the such support we market that first relates And have happen reduction. around electric to offering. dray our so vehicles, as to I will can as where, most valuable adopt dray a the -- particularly start emission And we that, operations Intermodal performance within commodity that it the when that's or

And together, of so the value. combination those of things, customer offer I great think, all

And then that so we and yet can see in that get turns more conversion get back on still we with term, the back term, normal, think the as our fuel our the can starting can confidence the objectives. price can we improvement obviously, of relates value it some to of that and those the longer combination just Intermodal X, with the emission unloading customer this in to to volume to finally unique Short provide us year, gives the reductions, so improve Intermodal. box we

opportunity. a think So both we improvement and the have short- we long-term

Ravi Shanker

Great.

the on on gain Second negligible note question to interesting sale. is

this don't short don't the think market. lower truck think of term the of of position also the you to peers happened this I in some because has sale in kind industry while. about have trucks what's are and on your for replace because new been you in talking a your I the can't gain -- ability

you'd maintenance new come in? there if of how than do the like? you like? do think here going does your of guarantee those Kind a trucks drag is older when cost truck What think and this guidance about is gets out? how you And play to look fleet So also kind

Mark Rourke

of Yes, there certainly and maintenance is age tension fleet cost. between

very that. of mindful And so we're

experiencing to outside XXXX. relates it it Ravi, we're was improve I materially availability, I in your what don't or this question, think what been is here part of the going we've As first think projecting your to

I think this scenario through -- likely through could the stick most even is with XXXX. us all I think

our from to and there do relationships equipment and what to we equipment carrier, that and to get of equipment utility So average have the so that that we're can be leverage get the so at good to we we have, OEM providers that's we than the the can favor our we scale better on. very get our focused have

Ravi Shanker

do there's Got in it. I if the compensation the is not schedule, space, plane on But thought/question. able airline of off-the-wall a to on from type any airline. fleet the OEM kind what There's and to a to age point and airline partners, deliver drags? schedule, what an completely airline Like you know us potential our cost what maybe your do OEM OEM you hey, can -- gives the at tell help with

Mark Rourke

notes. going to try I'm that. Ravi, taking I'm

Ravi Shanker

You it here heard first.

Mark Rourke

I'll you. credit

Operator

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

Jordan Alliger

truck looking it spot has -- contract could curious, to I'm off maybe get peak. I'm just curious, well don't just sort know, ago. Is Just Why trying of closed talk versus, today gap shift to their you I shippers the into much how and contract? few a months of rates to sort between sense. a are spot

Mark Rourke

pool play the standpoint, trailer a From Yes. again, we market. largely in shipper contract

contract the would that why value so a is trailer efficiency pool really creates. around shipper the And and

supporting edges, market. dealing with customers play doesn't generally that that that of the issues with in people effectively as but spot And there I the in are capacity. are can think so the and mentioned the the of they're places it deployed. with we after And live-load, assets I spot inefficiencies get when earlier, come can contract being limitations how that of the play dislocation try live-unloading type we are market It our tail because generally efficiently play to to our around

provider. market as trailer that major completely we're So of the and isolated, but not more what isolated container approach bring and that we're we because a to

Jordan Alliger

a follow-up quick pipeline that I have What to you that to pipeline, sort start. know curve? on rising or in today. waiting on really of that's just I you're curious, Okay. your about Dedicated. that a to pipeline that for for strong pipeline assume proposals request future And is not be the just referring business is official then business continue yet does I'm

Mark Rourke

temp from A the store, that on that just focused there C equipment. dry flatbed the specialty van the bit any specialty little from real a see areas B And to There'll pipeline relates beyond to a moving we're as space, Yes. It's services in hasn't -- been we example, space. providing dedicated are of additional it in that to more private D, a slowdown fleet, be product you a for or activity. things

a for it's us market whether reach business, mentioned, nature broader to, specialty in the So product the as the of I flatbed. be in over-dimensional grade because bit that tank food of it

cost of service, playing all very around the needs think, are and well. that those certainty price marketplace So I of in and very,

Operator

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

Thomas Wadewitz

sustaining of you quarters? impact performance market a about next strong about margin. what you with momentum the think the year-over-year something focus bit primary side bit changing spot about impact and -- the look the that margin? mean the of to ask sustained also be think be your to And that in the Should maybe brokerage. impressive of of OR forward. Obviously, logistics the continues then we of growth couple is volume on I side? but load Wanted market, on the now a there the can in kind in -- the terms Is and little more very an that that know that I

Mark Rourke

bit just that we've the quarter quarter. Tom. performance, there. Yes, off to little from saw, the sequentially solid go just do in about can spot, dropping you up little bit play from contract and a Thanks, not had spot more market down as really first XX-XX We're aggressively there. to fourth We a and

firmly our our brokerage that our more in the we faster-growing space. contract In in to Power Power it business. Only, both in as -- so that's So feet our into Only have relates camps

costing a customer but more a condition, durable also go -- more more community. generally because of of it's performance. be standpoint and even solid carrier it type any been in to to from carrier durable is and durable. that we costing as a the job believe standpoint to And to that that, might therefore, durable It's from such, continues done business freight we carrier able change be and shipper So of into demonstrate margin we'll more if attractive and consistent adapting very demonstrate has quickly a

to across responsive Only investment ahead our we the it. of platform stay or Power answer market likewise question to be very great and traditional our made to I guess So see in your we've and the brokerage that both specifically, to opportunities

our results. seeing you're and -- So

Thomas Wadewitz

Okay.

like On sounds pretty it one on outlook bullish more continuing that guess one business. I So -- question.

Is I be same? stays that, just of kind on the pretty on extent, be level that conviction warehouse something Just the are modeling lesser and to turns a sense issues of lighter quarter. off you improvement? the think on optimistic does rail outlook issues, will in sequentially where that we'd customer that sequential if challenged were on your Intermodal, be kind of thoughts and container the understand What turns? make that the to a maybe the that issues, it to improvement better case

Mark Rourke

A and several you a key equipment it things right we if markets. you're year a in couple early in the particular as in by lot take of getting in a there, it our the quarter, combination service of Certainly, hub getting were When of COVID spots. all efficient in quarter. in Tom, impacted on the during not

where Although parts they're couple of had And Intermodal pretty system X,XXX sequential change. other your quarter, there is our full our for not one businesses, of those. portfolio. you're were getting benefit network which big quarter failure, the we was days the some disproportionately first books, hardware And a then a impacted of they on fourth to

those we're encouraged to business to here allocation as our serve to as the performance relates making What receptivity by the drag our to coming a we're events. getting relative the and of in and announcing changes the that that turns. the season is box bit quarter, through allocation the that all I'm a share So in first it

with would then throughput those boxes gives behind associated in like enjoying ultimately the boxes. some optimism in and with we're the volume have it So and will us with with lift with us I in that and that that our it's turns lift -- and COVID lift awards -- the our us, behind additional think to

Thomas Wadewitz

So do -- you that component would think that -- important are you optimistic on that? the be an rails improving? that Or like seems of is

Mark Rourke

start there's we differences can performing to less we how get that's, Yes. I rail best improve. to in better between fluidity a standpoint The all parts served. will we returning, And think from roads. the is But as is again, how will yes, those chaos our we allocate West. East network, the than mean boxes think fluidity everything of start that

Operator

Atkins Our next question the Stephens. Jack from comes of with line

Jack Atkins

market love I perspective the general. Mark, So on I your guess, would to just in get

an the lead meaningful Or your and from just a just really in we're through like But market, spot here, truckload going think kind kind understand a the perspective that market, demand year? plays of is love of a but spot the X, And that get what Would capacity here contract pocket? been X of of in do something pretty on shift the of what's think kind in market think tends the freight to In I kind contract certainly, first months out? what's the of Just because more broadly, we're more the much. of you of thoughts air changing do markets or you of you there's perspective? terms rest changing it year isn't on going the market. to the how seeing the seeing market, terms

thoughts get So your would love there. to just

Mark Rourke

getting just spot and certainly, in think Jack, are get to when targeting I contract. And their have are looking specifically allocation, they looking shippers freight to some Yes, been market. on maybe overall comments the stability in the from the more

I the so summer the there particularly some now some food contract think result seasonality front season. bev impacts the do to of also believe, and the a as weather, Northern a in here of the part because of and into We are that. of world of getting on the is country bleed just delayed bit we're And end

loose we're the see break end So -- at finally that some to here starting of April. of and

service-oriented. going they're impacts, what's And so of at that a positioned, is -- okay customer But well do can that of various healthy We've with and data delayed their a those customer, the confident still stress in fairly to on. through in the coming intact world. customers their middle of some obviously The lower see cost still of very them, parts to said, a that a at change we're much being relative folks the are but suggested and channel, I starting relates performance, some large more of see quite some as it the through base. it's think few weather they're tender spending and changes dependent. to to because particularly income the a of feeling more that think going mix maybe that improvement on that really the that -- seasonality we're affluent to I bit more bit inflationary customers And the behaviors talked our

time, So getting be have but out again, to is all and to contract we all see it's tenders our business plays load attention boards. how what's the and our this quite over solid, appears the

Stephen Bruffett

of little a of supply Steve. quantify that. -- that, but think some pull we're how and I level, that was there quarter macro just into form This that chains fourth to on think don't global know that that took and is late seeing here a to in of forward, to that early kind the this, through. is have second. place large created Jack, happened bit the I I from the customers add in this that a way But its quarter work maybe dynamic that first especially

could on factor it be it our it a a the call to heard base. So contributor, contributor, but trying customer of not was from we've some what based

Jack Atkins

very guess Okay. up color. That's all on that to moment. helpful maybe a And I follow for

side inflationary second second feels of the support there. year? it's will is marketplace on Do the the there somewhat still customer contracts not market half half in are think about the be think of out going that you specifically, and in the sort increases The as half dependent? Truckload that cost contractual tight, the this to pressures market maybe like tight of although it second year you will in the still as was. renew As Or rate it

Mark Rourke

support were, As remainder we our customers, inflationary look costs. half year, the last out addressing of of the our second with certainly, the year, the to of we

year, very But different. to inflation and be the job of as year. good reflective to will those I they're addressing covering But yes, we for comps much to in still back the we some what did we company renewed in think the industry go I have perhaps so earlier be experienced. that an think address a going they as And had things the later -- needed the a cover and the second, probably weren't those. did And that that of that

customer need where we've this ensure to very, they Jack. the and gotten now as they that the understanding relative the capacity about renewals, particularly, their the meet objectives, very quarter get to So that those good are first ability through feeling to

to a at this that feel be negative net inflation. in point, we're price we the going relative to area So don't

Operator

Wolfe Our If with next question with comes from Majors the our Scott not question the come line, line Susquehanna. next of on Research. do Bascome Majors from will Group have we Bascome

Scott Group

-- in income first the $XX the can the you want I down? go just guide? maybe, operating it it Steve, million Does just What question does to from helpful, the back to higher about $XX Logistics And quarter. the of results go rest it share would when of Logistics million? had the in I think, you in year? Does go slower a assume market. be guidance -- What's

Stephen Bruffett

the we the don't we will guidance we that we're have about give that here profile revenue view ongoing optimistic the margin tools that market, But various and think continue based in that prospects experienced the that how I and year. segment and with. this on Mark's throughout our begin to Well, capabilities growth lately comments earlier we've --

do those segment. Logistics from incorporate we of So our a contributions continuation

Scott Group

at get year? the share, progression rest the throughout Okay. thoughts or on whatever any And gains $XX Intermodal? then and of of the year to then to Steve, of Truckload can you margins just the cadence that just And million

Stephen Bruffett

Sure.

quarters, would expect of some fourth $XX of the in equipment the the bulk we currently we evenly gains, distributed anticipate far largely third million being second. and but as would As the that between

that's helpful part So of hopefully, it. shaping in that

think we seasonality in want through see it as we you that, And some of to performance this year. our if call terms typical, I so margin will form move of

as so in inherent And assumptions our well. that's

Operator

with Citi. Our next line Wetherbee question of comes Chris from the

Christian Wetherbee

coming to and for takes of on fleet With this right what down the the Obviously, Maybe just over has been versus between you X in you The picture. the Is is big do acquisition couple dedicated smaller? at network to Dedicated continue pretty of MLS years, the questions side. Maybe weighting network. Truckload SKUs the business? a heavily the network going think get going think consistently. to network Do that dedicated it more total business. maybe count out is -- and continue first,

Mark Rourke

Look, Chris, our around network. objective be would to grow

has drive clearly, makes work-like but dedicated to that wasn't regularity objective route network have our or believe on mix some more at in is between portion smaller. to of do that combat get their balance professional between certainty, more driver. get a the configuration to to community the driver network But to Our we're things predictability, value they certainty that we're affinity that. that play business help the into working attractive, dedicated, necessarily and drive for for that the schedule to to network we drive bit that the or they obviously, And more more

element offers to that community. driver overall consistency a So we dedicated that our number have improve initiatives to of

So side for mode But relative network the place. back love us numbers but relates network us the purposeful do a I'm growth throw shrink to be the to been offering. difficult as in are a the to we're dedicated we configuration, the not purposeful -- -- not I for and dedicated would to we're mode hesitant it that's purposeful to in of out of since to side

Christian Wetherbee

very then that forward truck counts year be growth, on that. point in this expecting appreciate what dedicated from we as first And should Okay. of about helpful. we incremental go I the quarter? That's terms

Stephen Bruffett

-- trucks Without add sequentially we would think to to would the able I we've trends where based we dedicated that that in continue on see. being recent overly gains that net pipeline of the hundred expect specific, been several quarter per configurations

Operator

KeyBanc Markets. from the Fowler comes of Capital Todd with Our next question line

Todd Fowler

or was then about question year the it think where guidance raise. picked Can just X relative for and So from guidance think another of equipment what's said to the X on I the $X.XX the you driving us guess midpoint, you Steve, I a ago? maybe we remainder were you gains. or help $X.XX the up high-level about lower months at maybe operationally $X.XX higher the

Stephen Bruffett

clear a off based the touched points assembling across in think so I sense our the of exactly we initial our we the would upon purposefully year original into being the that reshape unfolding now that and -- wasn't basically in we've this of as And market. we market the in it the and budgets portfolio already. were it course play It's many how year, And when guidance start we're good on. X now. off have we we performing months how is of, see

we here. X we're gives of ahead based really here, go the numbers us path traveled increase sight and on what of to it's So to and in confidence projecting have some those that line months date to front us

Todd Fowler

visibility? Steve, to just any about? logistics? the think guess, way in a mean, better where I way about of I line Is guess, can maybe on it there you've performance think is to contract Is the you there us down. is that drill I renewals side? better got Truckload help it

Stephen Bruffett

is, build effect portfolio and see to fruition. Intermodal to yes coming I strove on. and to continue of a we're that and at all It's the But thread Dedicated that kind upon. the growth we've to also it we achieve above. It It's think, of not want singular Logistics to basing prospects the

So margins the there's the operational line this of growth. line to top portion execution as to the goes deliver well that go top with it a element as with

Todd Fowler

And enough. just a Fair for then Okay. follow-up.

the bit, seasonality, margins is to I touched range? of a expecting about correct would and we there typically need think quarters XQ. it anything year in a cadence more full the to are we XQ as a But maybe stronger make perspective suggest modeling of you're the XQ shape we've the which some the bit think from else get sure to to off gains got weighted, that a little then this from quarters on that little It back-end you've standpoint. also sounds like modeling just but and

Stephen Bruffett

third Todd. fourth think to we captures And convey what similar we're second in there, the added X, much and what somewhat I you to way, by that's experienced that are trying equipment pretty together. quarter half, XXXX you will, the if when Yes, gains the

helpful you anticipate we that's think up I just as and goes. So throughput plans. as And the she going fully that through is it's so. to keep it steady just up and about I running, And is if need to think, our machine things. execute team and do The the set

Operator

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

Brian Ossenbeck

of reshaping portfolio. the sticking maybe So the with

at range the Logistics, enough enough side are dollars? up that Or potentially right this move just freight thinking at about long power more but with margin, is term? to over of more point? target same that the the growing generating Only EBIT think this How Looking Power you've think and reach done Do the to above X% Obviously, margin that on to well things now. on X%. is scale I you like long-term you

Stephen Bruffett

should on good think we'll while becoming certainly question. earnings we it's be our important a a that's certainly We review. proven focused contemplated we've certainly the something do annual typically profile. growth we'll marketplace our I it's revenue something But fall, as that we a and overall earnings And as an or dollars Yes, change be margins top in whether X-year our in be line driving an been maintaining that's process our And segment. has will that we that it. and to not on increasingly Logistics been basis and then, delivering this under result, begin more look successful We at What as obviously planning taking that year. and on entered list. through take contributor the to

at to you a what's guess, there. other. market point the versus we're a given do. do the portfolio one answer is to and I is It's that what revenue everything in So how simplistic and we grow And part dependent And going on as of the statement, it's at time. a in it the on always trying balance margins much emphasize

term, focus our on and at think So to on for continue least, solid and line focusing maintaining I we'll in near top growth. the Logistics segment margins

Brian Ossenbeck

the a process follow-up Mark. UP. to the that. the hear appreciate and Maybe over to helpful strategy just quick doing transition Steve, for Okay. kind of It's of the

you terms is earlier commitments Do We to a a of type some to shippers. in that know get this seen UP and of heavily. back? able elaborate resources bit year. competitor falloff move in who have from maybe a the like But expect can We what investing you made you're the quite of secure

So started you early.

able parameters there. you out that some the Are the put volumes this able point? customers you're to you're to of over You've some and that bring and types get confidence expecting lanes at

Mark Rourke

absolutely, sell Pacific. we've as as lot robust that a we we're Union be Brian. go to And you because Yes, plan. how announce and going into the question. wanted there's effort as and that as customer resources to early internally And to so did weather, for we're bay a community demonstrate lot Thanks go do increasingly we did, but the of we going possible, in organization, whole then that to as get And put of a sure as great for Union the our could of out transition to means that's a have our going value. commercial get very the and make to implication our well efforts much and have we to that how and whole organization to lot the front what a and together, Pacific ahead a out

the better just looked recently And through couldn't the so you those feel around to response looking I what we're way at than stakeholders I'm allocation confident exercises we'll trying and we that the being from respectful be was customers, initially. really all even that to with and with I meant discussions early way out and the we've when had hey our we planning. more have of also but think been effort, And about at a in to this response -- and us, proud, playing do transparent that they I think, in partner to early our that I they here. we'll what all I is and of And mean going benefit think what us the the being

Operator

the reached today's and session, question-and-answer the concludes we also of this conference. end have And

You at time. may you disconnect participation. your lines Thank for your this

Schneider National (SNDR) 30 Apr 222022 Q1 Earnings call transcript