SNDR - Earnings call transcript Q1 2024 | Schneider National, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome, everyone, to the Schneider First Quarter Earnings Call.

[Operator Instructions]

I will now hand the call over to Mr. Steve Bindas of Schneider.

conference. your begin may You

Steve Bindas

Thank you, morning, and good everyone. operator,

Logistics. today Rourke, Campbell, President me Transportation Vice on Chief Mark call the and of President Darrell Joining and are Executive and Group President Executive Officer;

release Earlier today, the our Investor investor issued an website the at are on section and release. available earnings presentation Relations an press company This of schneider.com.

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

statements results involve current risks cause Forward-looking and uncertainties to expectations. could that actual from differ materially

The by identified company but call, such discussed not except review duty today's forward-looking All in XX-K annual made risks including, in our any to to, update and Form most recent earnings of this release. urges uncertainties law. of investors are the to date limited report required and statements filings, risks our as statements, disclaims those SEC Schneider on the and as

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

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

Mark Rourke

the freight hello, current and year cycle, Thank you, context updated first the to XXXX cover guidance. as Schneider recovery our opening of pivot joining ability for as comments, will quickly eventual the market full this the positioning Thank multi-mobile Steve, everyone. morning. you call we our with in including well platform, In quarter with the our results

earnings call. we fees Let's last our of start with the recap on the highlighted

the matter XXXX not when. but of a also we but mindset demand that recalibrate if that would they entered a with heightened a sense general, supply conditions uncertainty, First, noted in have it's of and customers

indices standard. cycle is freight internal below year, any suggested long by historical full XXX enter the surpassed we which that down the our as days Second, load neutral,

on Truckload, segments focused margin toward actions initiatives, improvements, company-specific on our operating path Logistics we targets. asset efficiency and of returning irrespective are and of and reduction Intermodal including long-term scaled Third, market, the their a cost and diversified

themes to here sit we All be relevant continue today. of these as

In the a with which especially network. portion first of was volumes persisted. challenging weather, sluggish condition winter excess negatively January and adverse the large quarter, capacity impacted the

We assessing moderate. beginning market that are signs conditions to are

For the renewal low we price single positive network. closures for truckload first in time the X quarters, in the contract digits experienced

seen market While this point. is not a an the at sign, promising enough consider inflection have we to

service pricing first outcomes the as our and In achieved We market next renewals with large some across the for volume positive quarter, share they varied offerings. gains phase. customers of pricing the prepare strategic

and at short The certain volume We when to spot configurations, capacity and an also the market place at and term, our required the reduced be more with other to of renewed contractual if quickly our we This dedicated pivot, improves. customers including our platform retaining advantage multimodal if to market, price us necessary. prepared positions scale are across volumes concessions. approach leveraging

truckload owner-operator down year-over-year count sequential are network cycle. around financial change majority In insights I'd centered enduring each contracted week that is highlights in operators the the quarter of to truck The in Next, change most rates. through specific in the with first small the provide the segments. year-over-year, extended business revenue network, to to some depressed of of like per truck due our per which strain community, XX% this

market advantage if means count Our maintain materializes, has a when term. an the short spot to that even company it flexibility improved we higher of as truck percentage steady been take in

the down due fourth impact sequentially low to severe in week from per flat and X% Dedicated was weather primarily the single-digit January. truckload In truck with revenue quarter per year-over-year utilization

and purpose against also portfolio benefit network with teams, along has operational a and for and Dedicated survey as our commercial improved margin year-over-year improving XX fourth Our adding the our Dedicated and revenue enhanced market an quarter. catalyst units XXX sequentially pricing units by will on are dedicated Average from share executing count performance from with drivers growth. to arrangements, backhaul truck professional while grew our value customer. the back

quarter represents accounts. below truckload and remains XX% continue to award take series of now action pipeline second and tractors. we and implementations, successfully a further of us confidence closed gives to this contract address Dedicated threshold The have strong, on business to third new

largely with XX Revenue is compared the basis region I of the Transcon Intermodal and ago. to implemented network healing to flat contractual were seasonal was declines from dray favorable weather constructive as improved renewals impacts. more was of new ago. points The first awards Volumes a year's the most margins truck being most in overcoming segment. quarter in the Intermodal last West, fourth showing is flat quarter, the typical which a order to quarter year-over-year. alternative. sequentially efficiency business compared consider were signs the severe XXXX. the per intermodal year in first Moving with gains. Growth by Intermodal East, quarter X% the competitive modest Mexico [indiscernible] offset year this first were down cost

higher than is were However, customer upon and and Pricing their gains season outcomes the depending more of early typical. the were renewal in amplitude strategies. volume allocation losses volatile

us efficiencies intermodal Union the differentiates well and positioning operating that partners the asset-based connected further how volume growth fully are deliver Pacific long-term rail to our with we take as of and they returns. CSX enhance Our advantage

we excited the between our a and new Southeast. about Texas to approval provide service and will C In STV opportunity to X CSX pending Mexico partners, of the the addition, allow CPK are be that created rail to

X to announcement the segment, transit on asset-based will lane solutions. are that that Union Pacific in reduce general, have from are We days by favoring country's we encouraged freight by Chicago. the Logistics largest our also today's In customers, observed LA

volumes X% through the our quarter volumes brokerage grew assets first only for out have year-over-year. seen We order order the as month and our overall favorability contracted play asset-based each power-only and quarter brokerages the and in year-over-year

Similar were easily impacts as to not quarter, accretive or customer In going the and has as market its maintained returns. maintain pricing rates other January's carrier spot volume surged. absorbed segments, weather brokerage discipline the costing to in

However, margins operating quickly. ago, quarter a basis only basis Logistics compared first eroded the market the year XXX points over but moderated quarter. XX points to the from fourth sequentially

network offering role owning through power can both margins are business experiencing larger an rebounds. Truckload, turns. Despite the capital has end-of-quarter and its serving each and up gains customers truckload seasonality market the highly of current play grow encouraged efficient cycles, value our month of down across improved We freight and Our proved successive we Logistics wallet it share of when increasingly and assemblance the to expect freight in to customers' that at with push. with our Intermodal quarter earnings slight conditions, market we and March extreme

summary first Before X I his year quarter recently guidance updated a and for to Driver associates to I surpassed amazing of milestone. turn rare want XXXX, the driver Fame extremely Schneider significant to it our for take over financial insights offer recognize Hall who to Darrell full safe opportunity this and

more will safe accomplishments, among million Schneider, in who million every for the outstanding safety have their our we are year, or them XX I at for driver awards and all core drivers associates They professional customers. are service the professional live day. X out of miles to earned and this Everyone grateful Daniel, X an and being forward our we their to who held values this safe honor driver Michael is commitment where Wayne looking miles. dedication offer to and celebrate to summer, Kurt, Schneider congratulations to driving event John, at achieving providing

Now over let to me turn it Darrell.

Darrell Campbell

you guidance. of recap joining thanks Thank us of first each and a you, perspective Mark, XXXX updated I'll give and our provide this on quarter morning. for to results our financial

summaries our included investor Pages website. of XX XX You to presentation on on can our find

income prior per million XX% adjusted was for was first the share for Our prior in quarter quarter first earnings down $X.XX operations the year. compared the $X.XX the Adjusted from from to or year. $XX diluted

first net of reflects a which which and the to $XXX line the higher to included we level versus fourth on current the of and a cost in sales million, asset demonstrated headwind earnings efficiency and The continue sequential per was equity of of quarter investments implement. equipment gains XXXX actions gains EBITDA period, share. quarter on aggregate $X.XX represented stability with XXXX

truckload fuel XXXX surcharge of excluding flat quarter the revenues our or segment, first for In year-over-year. Asset-Based

Solid volumes in on dedicated per organic network on and our a acquisitive due growth truck was pressures. offset for Truckload week by revenue the year-over-year primarily lower and to earnings were volume business. per lower network price basis, quarter first

builds. strength sales equipment controllable implement and related new a improve position start-ups equipment-related costs. costs as on costs business to actions Lower we can advantaged market all business and manage from asset the recovery efficiency of segments, to dedicated Across be to executing mitigating while gains inflationary

commercial disciplined be to continue We in our actions.

and dedicated a solid revenue strong business is portfolio. the per account grow existing resilient continues per indicative to Dedicated dedicated week start-up pipeline in operating the of to performance The of accounts. activity, Our truck of due nature year-over-year consistency robust

revenues segment, corresponding down revenue and lower performance. MT and were non-asset In volume to due higher logistics to basis, a on of declines Intermodal, order year-over-year, a first quarter. in surcharge, Intermodal were due year-over-year quarter excluding as result down revenues, X% our revenue earnings fuel per primarily order by first In quarter improved partially decreased our for overall grade year-over-year offset XX% revenue segment, declined declines. per costs, repositioning primarily the per

with seen across return cycle. all improvement we as earnings to more a we first this seasonality, the by progressed, of continue believe positive current encouraged is have segments We're the and quarter navigate we as indicator a freight the

momentum We're of also as allows sheet, of our expect margin remain this long-term to build allocation to which work We cycle. year regardless us the the through our strategy encouraged restore committed of capital to remainder targets. our on balance by the to we strength

efficiency. of fleet for actions continue execute to million while $XXX CapEx age on spend objectives quarter, the we to improve our of in reflected asset As taking net the appropriate

paid million X% the the We executed in period quarter, which nearly and share repurchases in above during was dividends XXXX. same opportunistic $XX

operating flow leverage strong We generate continue to X.Xx. of quarter, during at and $XX the net debt cash stood our million

on remain all our delivering management Moving in commercial containment been our improvements. and leaning control, forward-looking focused cost intensive These revenue comments. successful of including now factors on meaningful executing and managing and within we've our delivering areas business, asset discipline, the are to -- efficiency ongoing, heavily efforts those initiatives.

the only these and efforts persistent However, impact supply due demand partially challenges. to offset the

concluded, consumer largely begin to the are signs around although extent confidence that restocking impact the Federal has We're of Reserve. interest destocking by rates cautious including inventory cuts on inflation meaningful and reluctant and partly timing of rate and shippers based uncertainty the interest seeing on

In spot not previous throughout rates improved we're we the degree the contract our experiencing to in expected varying guidance, have date. and pricing addition, results shared season since to allocation

business across in power our resiliency dedicated with signs businesses. our positive within on order improvements earnings seeing network We're and

a in market was as that growth While demand progresses, recovery the from moves differs towards year market previous timing balance guidance. we our capacity in of do anticipate attrition, modest the what contemplated

current conditions to sequential of modest of guidance in anticipation the remainder return seasonality of Our for degree reflects some improvement the in market year. a

all on focused actions. in controllable we asset market As efficiency conditions, costs remain and

the we businesses, network we pipeline. our based in in and year, truck to in growth visibility As and anticipate progress improving growth our continued yields through dedicated intermodal logistics on volume

quarter for updated adjusting range year million call million first earnings have in we rate revised be and assuming a for the XXXX. to $X.XX our $XXX results net Taking our to With our market guidance of diluted our We're full effective open expectations year account, to into full also your per XX%. tax that, XXXX range the $XXX the we'll to for questions. share of CapEx adjusted $X, expectations

Operator

[Operator Instructions]

you. Thank

many We one question-and-answer possible and question time, as for of interest the my questions follow-up limit to that we will the to yourselves now allow In you as session. for one begin audience. ask

Ossenbeck first line of Our comes from question the Brian from JPMorgan.

Brian Ossenbeck

especially just with talk maybe side. wanted about Western you to season, the on intermodal allocation Jim, I off start Mark or -- just the Maybe can

bring do turn a think year? was a How there the How And you last visibility out through to more area that more some did called you an little expected will have you that rest of much help I out? to to the balance more that challenging was start that? bit quarter, get there. balanced

Jim Filter

the for Jim. Thanks This question. Brian. Yes, is

still our allocation we're XX% way So season. of about the through

we been really transit able We're corridor. As as And the fact network. differentiation And the we in into opening. West, through Mark's the areas talked an it in where we've in about sell saying, disciplined. about on improvement gone Mark in that, was our we have excited that to those remained we've time have largest

continue think a so from position opportunity to we to competing than going we're grow hours we now were behind -- transit we where So XX we're the there. competing hours an transit XX to have faster the

and and there. So the and additional now expanded between in capacity CPC we results great the that. the the Southeast Mexico, to feel really We've back service had opportunity the getting between Inland provide some And the that good And terrific opportunities their us about UP with Empire. there's Mexico. for West, in to Texas

that And so from us there really is important corridor. growing nothing constricting

Mark Rourke

Yes, traction growth and of both Brian, Mexico helped see us into did in in in of continued the the difficulty the first mentioned, would And being pricing. overcome quarter, as more to truck truck TransCon East because just we regionally. real just the out some a Jim sensitive and the alternative market of that West,

we've ago. which a -- reversal a is the little East. growing I remember year So in bit of been more

continue to a of with into growth bit West, is in and highly that. which the reissance little encouraging lean a had we've So

Brian Ossenbeck

when the competition out the broadly of there. at year the you And speaking, look rest and just Okay. global maybe for then guidance more that's

is You've East pretty mentioned competitive. the

You've their business mid-single-digit year. work that? can large competitor looking How down rates of basically through you book other one at got to this for

I than more you then get Do even a seasonality later thought. gives though bit that initially And side? that? capacity the and to half think you are that squeezed guess, Is to your see to of thoughts out? specific back going more what on it's you this recovery, sort What the are confidence little on really you start is demand seeing

Mark Rourke

improvement looked price results it's Sure, season January and last leaning the the every allocation we and couple years, quarter market March, in in predict is been think, Brian. as over standpoint some positive into But movement the sure. first pricing, place, continued demand both not a to we every encouraging Obviously, through from of in seeing now the this but in hard starting turn and in at see in an condition to sign. some

kind between consumer seen forward our as we've in of would And thought process remaining embedded April there our and far so what's the has going in as industrial consumer markets. the hung And we expect, markets to date industrial and highly quarters. diversified we're really is what in for

happening, view, of as the into as particularly were what felt in positive of not to some through be there is I So capacity we latter little to we we moderate and that a the our the the market. were in resiliency year, improvement but seeing, felt would still changes insurance still And coming last we seeing a more and have expected expect we going as again, we and turn front, in revocations what hardened bit was part starting into think we're capacity aggressively, some more we're seasonality. seeing moderate reductions moderate demand

those year. for not remaining it's factors really so key -- the the the And so part of are

Jim Filter

this Brian, is And Jim.

years and will a It challenge the for ago. The at network, something that's disruption is with us. of is competing their the other we factor looking a number CSX rail there's some the service. that that we're potential as they East a reworking for experienced potentially be was

of total. the year see momentum here that some could there's computing so potential in real up a Feeling the that on remainder some coming we disruption intermodal in service. in And

Brian Ossenbeck

to single-digit put And clarify renewal truckload. maybe mentioned Truckload? more just the contract sorry, a current that low wave you that earlier. just for can content Was of for Is you little contracts, the

Mark Rourke

network. truck referencing was It

Operator

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

Ravi Shanker

contract with bit increased some you recent Do encouraging. had how customers going more rate of on feel conversations increase Can I just comp? commentary that for the Kind think like who a customers? of impact sustainable? easiest little the down those that's pretty are you that was is

Mark Rourke

easy the comps. Ravi, about Yes, comment

comments, allocation ago our are later as -- the the truck we comps and intermodal quarter. I This in year year. most in our a opening kind that referenced network season in think constructive both easier of first was

anticipating And solutions think, so where I value next comments, strategic going are in also my in more. looking more indicated are I asset-based the also who marketplace they're incumbency to customers and

doing and sure for our consistent season. theme alternatives more that's the and not different to for it's want we think the have necessary, we're business. I volume we'll shareholders if that through also other then press And look right thing to for to make hearing those everybody. in that a And reduce we're a And of but our that allocation continue direction, there.

is good So, with build to but sign momentum of intend the as agree a remainder we I go that you, we a encouraging it and season. on through the

Ravi Shanker

why as for someone seeing opportunities of potentially Got it. kind said you asset-based pretty back preferring just carriers to operation starting shippers you do reason your towards large a with rates Kind customers see asset-light consistent moving as logistics more suppressed of while. trend a are swing are hear And we you're follow-up on a maybe -- what of being a a is because towards that about asset-based? well, a

Mark Rourke

and Well, I we conversations are we way for a business platform brokerage asset only multimodal pool I and we And customer work on base the hard that advantaged certainly comments just have with assessment integrates seamless. my the well in and behaviors. trailer power when our do customer, incredibly side do on to our a that we make offering think

it year-over-year. resiliency and whether where I or is combination think offering, in market so portfolio we're relates advantage, to across seeing that go the and as I down. how us think, that we to up with brokerage the volumes and power-only gives market the segment market growing And even showing is of it our its

Operator

from the TD question Cowen. next Jason Seidl comes Our line from of

Jason Seidl

do rate could in that sort future, improved push past? on maybe into cross-border. mean, intermodal whether wondering, clearly, the out coming the you seen that growth think was as from of it's to we start there's on intermodal. west Wanted what actually coming beyond I or going I look the we've service, that, lot a with

Jim Filter

reason This in you Jim. I the Yes. looked is creates in and -- service more that. expected differentiation past a is a to question, they using Thanks sustainability. Jason. agree Absolutely. as savings that intermodal reliability why to as It Great. customers well for as for difference, service addition change us at reliable it's a you reduce it discount for transit the with that that starts

have service there's at the go customers they intermodal, as already further, longer that this and expect weight customers at sustainability. the a for more that'll are and discount And given already towards and are improvement expect looking that there that sustainability more it's we no you today put

Jason Seidl

we just that at truckload if between to be least recover, rates side narrow going Should as we assume truckload so stronger rates expect growth look and and service volume So well just you're Intermodal? intermodal that going improve. we out for the to that they're have on spread as as

Unknown Executive

Yes.

So we'd than expect transportation. that grow road Intermodal the over faster would

Mark Rourke

this a So, Jason, West in in here through UP lanes we after going those like now condition again, And also had stability through of have customers chance partner getting it Mexico. on we're the last our the I we just not in toolbox approval all our more some stable to with think performance in year, with when were fully some other more a we in and tools a going like we're STP a year to year exercise and intermodal. change comes

Jason Seidl

on guidance. trying other to sort follow-up sense. is makes That of My your a get just clarification

do what equipment half built the year? you in of sales the So in have for back

Unknown Executive

Yes.

on relates the to gain equipment. guidance recall, you headwinds that fourth of said as equipment expected we sale it if for our we we when gave So for quarter, sales, some

a we which are flat essentially million headwind. was X gain So on assuming or sale, $XX

stronger relates we what it that the saw we quarter, So we initially the but saw the of based as pool, as selling, improvements progressed trade what were to unit mix versus price what is thought. through we're primarily we proceeds on first also

through in the saw continue. that going of But as go gains to the would not that the that's first year, moderate expectation quarter some we to the -- so expected is be we

So what guided a ago. had we we're few with more in to initially line months

Jason Seidl

year back now. in flat of the much half right pretty the So

Unknown Executive

-- little very gain. Very Yes. yes. little

Operator

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

Ken Hoexter

Mark, by from heard backdrop, you're definitely the what little some positive surprised others. a given we've

little that and Darrell interpret here. like intermodal, positive to bit. want little a just sounds bit on turn pretty It more seeing a a I of comments been has So the maybe

you or You I'm and Because spot. out answered little Ravi, then in on the I was were if moved if because trying guess contract more figure still a threw to bit. market, we've underwater contracts just that was your that's also strength? to business up real which commentary,

a maybe little just or some thoughts. So that out follow with more bit parse up

Mark Rourke

not Ken, the are calling is commitments and have that and we're opportunity through how allocation to in thanks season market. those in an value alignment we to customers there cases we what the looking value What reflective. for the the at recognized clarify that looking discipline Certainly, be we're provide and inflection with relative highlighted our for really we it. incumbency, to

extract If camp, dedicated goes folks a marketplace in what to are are think then that and or from don't spot that's that not more the more to sustainable. more we in is looking that

so we commitments lower might lower And customers. and those with our our cases, in those volume

slightly so contractual the low digits single front. the in on net that in the in was quarter, And aggregate, renewal first positive

that's read It's it. positive let's I wouldn't do it's market that into suggesting would it that it's I it So what at negative, we're way. in less we're -- I a believe at But minimum, sign. that put least inflection. read a into

Ken Hoexter

you just per about some market have panning And undercutting. competitive some a I sequential is talk I you out? side? a follow-up quarter maybe the truck. Yes. or in How X revenue talked on guess now ago. peers the Dedicated. know win dedicated on Can big decline about a noted The it

Mark Rourke

every the is virtually Yes, of the within highly not the extreme if the growth fairly consider our But highly equipment. from only we're on segment specialty industrial the which retail, stable. -- big way we're economy, talking and diversified can, market diversified would that dedicated we're up we box. increasingly in the retail the improvement Again, in market largely we're home of side across to on all more in focused value

scale, balance folks there, who have folks it and characterize always go the have play and competition that that of years. more while have to good than folks wouldn't ahead And and in what sheet difficult we've have couple there experienced everywhere, a any there, last competition the we we find we is referenceability

So it's a focus.

resourced pipeline build. the well. and We're continues the haven't performing We to well

Jim Filter

in no is that pricing. This Jim. drop our was primary off That had were on QX productivity. events was impact There some There in weather driver. some the

Operator

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

Thomas Wadewitz

I know think talked fair and about it's I a to bit commentary. could see -- hear constructive you rates, the that good

of to In in your terms trying in sequentially? Or think that guess, I stable on actually rates, for sequentially. little the the revenue say to a just that's I of contract comment how it you intermodal But model sequentially? modeling XQ XQ. kind for mean, revenue into maybe per per is truck or think about down per it's week bit up translate Would we Or load.

Mark Rourke

really obviously start pretty the businesses the we the guidance a metrics quarter all and business, of bit Tom, March, specific what give January X and to a see year, little but April. the Yes, and you the was through through here metrics don't or operating we improving performance ultimate conditions of quarter. to difficult on relative of quarterly start in back I'd month draw and can to to its the

very our both adjusted actions some to for doing of to our directly and several and give fashion and position, the momentum build credit respond guidance, doesn't a but consider fact condition of and what's and into turn. when to getting organization cost the that what costs, in capacity how our market standpoint benefit cost it here, and ability the the impede from starts to a So smart it the great demand is that that get behind quarters a we've been last downward modest our we leaning on we

So cost what the and income I constructive statement. sustainable leaning into consider would smart, positions across

Thomas Wadewitz

-- a you has volume I Okay. of intermodal had normal. seem if does your constructive, but some I growth. seems of How have, you one this too, know gotten And like players don't churn, you've in think but on word think, than movement maybe bit It on I used just do the I a greater dynamic know terms couple aggressive more competitive to seeing think, outlook the and volume. about seems

visibility to pressure? competitive of And do of some much have how happening rate Or do greater just Just you how the dynamic [indiscernible] did that's volume about avoid the you you the in market? kind growth? think the

Mark Rourke

which I I underlying are really it, missed is starts Tom, please key But we to start how want I back. come partners, approaching I Yes. what we've really aligned of standpoint, asset-based a have if based purpose we largely we good specific with our from question, how our much our for about and that really, the this did our to company and think dray got rail distinction our with that we feel to with model upon that competitors box your owning relative as own own as chassis, and possible. wanted strategic

could solution support and the our railroads help different type that of that. underlying to that a bring So we customers

the that. looking well other capability only us intentions CPK encouraged some which operator And doing relationship they've that's and the in been newer the C, for network, and do to of extend announced parts a like with to terrific reach extremely in us further by Mexico

But in So outlined and take business not immune of we're front has to Intermodal pricing us. in the combination pressures. in it's pressures advantage the our again, has what to of And what's competitive maturity strategy. And getting ready market think we be or been I ultimately, of some to ultimately, there. the poised

go along a us bit. market Now to the we just with need

Thomas Wadewitz

visibility the visibility good volume you about contracts the like think kind volume what you place just the side? on have have in to you of Do growth Or to the get that?

Mark Rourke

visibility Yes. we a customer's of the -- but and about about XX%. said, you're fulfillment little left, to yes, season to, a allocation be better what so close have to roughly visibility is always the have We're delivered yet lot like and so a key awarded ultimately we to What us. I is of getting business the have we lot But year go, we measure as to always through, there. has XX% rate the have

Operator

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

Jordan Alliger

on longer-term that volumes has of safe of rails? productivity point Just return guys a targets the dynamic and the about. even sort have the to this say intermodal question be and price to quick you're seeing with at to sort and that the perhaps it Is you to margins that of just relative driver the key talked the

Jim Filter

is Yes. Jim. This

of So the all, allocation. there's number first through we as go price on of disciplined a actions here, staying

driving miles to asset those empty So we're of network that, of dray. need helps our our but and also us on is and improve we heal to you a bit price some saw utilization, productivity as that drive we part where out saw a out seeking little miles improvement our -- empty some

Intermodal on then is where areas be going cost ability focused to other those we And segments that to where we're And is our but at into growing preserving no have we're where grow. the differentiation. managing time, than specifically same different growing

And so the is what margins. hitting taking path on puts to us those actions long-term our

Mark Rourke

cost So yes, general. a costing it's our of combination shortly, our in rail it's a it's of a actions. positions combination revenue It's combination and of

have we out of we've in we -- ways a got are we're So but the to where market. path, on the coming go

Operator

line the from comes of from Hana. Cisco question next Bascome Our Majors

Bascome Majors

the to to seasonality question. want back I go

in got a typically If about you've be for sequential market. the businesses you tends see in peak your quarter. from comments of depending the that it the you April. like seasonality. into you confidence kind just half, the pretty second the And It second third all And quarter through see in sounds look meaningful in the typical XQ lift then on continuing sideways first that historically, and momentum to your

the different Just year your might year. would a of the we historical thoughts that helpful the be than patterns guidance? how about Is little rest of be contemplated the think the your about as shape any seasonality in

Mark Rourke

Bascome. question, the for Thanks

and kind seasonality. As look we of step back at

I costing One into think interesting suggests of pricing, carrier us and of between really little quicker items. we the year this were weather that there was those interesting which both those as and weather that a things degree in with the the up increased the patterns difference to ago, events was price absorbed the that for in carrier been long quarter changed first didn't has was tightening. year events. see It spot a When the end weather quickly costing much increase, holding had marketplace

marketplace. -- dynamics. Obviously, a change of started a back. retract least in metrics But was the and pricing, there hit pricing was change that's There those was hold. bit in and to those a there So at

As we projects. to bit of look one-quarter a towards inventory back be, seasonality some back now little to we in a and market most at relatively the not to of seem heavier volumes that our to typical some they should a being very some seeing not Again, started about end the be for those an where end-of-quarter We that, customers return of protection return. inflection. those bit got clear got more quarter. and changes little practices some people an inflection, push out with of of But

And that we're how moderate your characterize we're so it see in we as some that's question. we typical We're what But think seasonality not would behaviors, of back that's of the for normally the the suggested on what fairly to not rest cycle thinking year, was would it suggesting seasonality really we're referencing history, inflecting. similar completely. through I about as which seasonality, you through and again,

Operator

comes of Our question line Imbro Daniel from Stephens. from next the

Unknown Analyst

think earnings you're are in through side. the we profitability sales we on embedded half, of missed start-up look that on but costs dedicated first as dedicated. Growing should the as start the on what as about truck that there. then Or does to roll ramp And We half? are want about back count have winning these we in the year. there think weighing may the contracts it, pipeline nicely the I how like the acid

Mark Rourke

cost Yes, you you're everything good farming not just you're have dedicates for question. starting up. when that the time and best for certainly And

schedule. you there But quarterly third in quarter So consistent go implementation we go impact pretty opening my a through on basis. start-ups we're and when is in cadence start-up have the site of comments to is I through start-up. outlined What a based in upon several second

the yourself. at grow that of churn even a that we to X%, hundred maintain now business units beginning up of year new X,XXX, the of creates hundred you at of modest several that net have out expected a trucks, part that dedicated X% X,XXX we're couple to laid of trucks We knowing to

to the year those out. play initial are expect we so And much pretty and see projections where

ratios So the tractor we which cost Dedicated, driver in has lower We've our pipeline improved our for increased implementation. strong. have helped is to efficiency, new meaning us

lowers really some still start-ups We're efficient, is of so in would very We've which this more got one and not part tractors very those on diversified any the economy. overall, we get things bullish, concentrated new started use costs across to our friction up. area. a we But

industrial consumer good the the have across distribution and We both markets.

Unknown Analyst

rail improved revenue then quarter. you disruption And with that drove despite just There specifically OR first that sequentially. maybe flow quarter Is Or partners? improvement a and down that weather helpful. in had the conditions? some some from That's yet the what intermodal was cost your adjustments through on as follow-up, margin margin, from fourth those

Jim Filter

Jim. for And the thanks This Yes. question. is

improvements well -- and some of sequentially as that healing network. our it's Specifically, we're utilization as drivers. our

through So been empty we out can when sequential have improvement the differentiation, empty and and some out utilization margin. improving have very we asset us in take productivity, that's taking miles. were And going season that's where the talking bid about growing miles, we to specific as of enabled where we're

Operator

comes question from Evercore the Chappell next of from line John Our ICI.

Jonathan Chappell

only. power the on Mark,

increased is throughout positive logistics now business real been pretty comments month margin of level. part rest seems held some that's the Yes, well, that's in portfolio. to So one relative quarter. sub-X% the the the there It the up like speaking, of each still the relatively

I higher only provide of bouncing guess of just us the of -- stickier business a it a absence So is help only margin? kind you And understand, perspective? you'd around power maybe in the does can breakeven. kind from truly be just Or volume

Mark Rourke

share what I see me can let kind Yes, of here.

have brokerage XX% commit It within we contract repetitive. And business contract, a to per into than total, events. a direction. talked about we we are through the market gets it's either what get to our asset XX-XX business, we in of net do in component traditional trailer, generally offering. we there, do only can we in as allocation about higher that, the upon That revenue brokerage a XX-XX, power-only Under percentage even order so our to power First, in because some higher depending we're bringing model toggle are customer. the generally spot XX%

difficulty it's of And in presently the of excuse brokerage the -- competitive -- just the exasperated Live just or me, nature highly Life margin the because market.

And so now power the brokerage only performance is total the offering. so what consider in accretive of market even in live-live most margin difficult to this business part of for and the our we more the

Jonathan Chappell

this for And think it's like still the is pretty how Okay. negative truckload world. across picture country feels products apologize I also then then and That the necessary. but just stubborn some hasn't is, side helps. the companies biggest big I capacity the It of important. seeing accelerated to really some commentary consumer of the we're or the out pace And pretty in

with the January some So seemingly I'm come you has even just trying sequential from since X those remaining to into headwinds [indiscernible] consistently where understand think of and the do improvement April?

just we picture of like Is focus things the bigger there's maybe go here? couldn't to on we way there it that and can't Are that outside just things one go yet. from lower shoots green see only

Mark Rourke

current so cycle, So has the is it through But have perfect elements, think difficult to the been replenish. going through elongated believe Yes. through destocking, that's of customers all moving are those vision backing across up There of which I freight this. do It's something right? channel. whatever most hard stubbornly Jonathan. to kind inventory I is

not to "more that it building lot necessarily, -- be inventory we normal And so relative occur. a does is, it's sales where seem condition of don't while see to

it's the our whether I quarter April. trucks the steady. inbound first to then consider view DC we vendor certainly, D.C. through or coming improvements here dedicated in to into demand from early fairly the through steady. and would And store, it's And our saw through quarter

would the a So But more to future. be to predict we're seeing seem again, always condition. normalized hard

Unknown Executive

Yes. And our one is the remaining that of just successful other here in and one of cycle. making to our any not a significant importance diversified. to key up think that's tied of We're be any us customer the the volume through enables I aspect portion single segments,

Darrell Campbell

right? sequential we It's add the the of improvement. you macro only did Yes. guidance, some the forward, have And have helped taken not as conviction actions improve those look have gone we've our but based through. I is pricing reduction side, in productivity thing that earnings I some we guess outline would we've only the the that led But the to factors to as cost actions on and the on do

Operator

from Ossenbeck the for question JPMorgan. final Our day from comes Brian

Brian Ossenbeck

be that's sticking cash a on still Darrell. with -- but Maybe low real of right. just point, flow like to the I maybe It should your for you're most plan. negative listen this seems quickly here. want one Another ask CapEx

you that. through just So can maybe walk

but trickles is good intermodal. seen be on thoughts would your to thoughts international the that Jim just how on some dynamics wondering then channel your easy pretty in And domestic, We've that strong clearly down hear into growth, comps, headwind getting that and these really IPI sending might more are be for more full see a do more just you bands and so fine, that ocean think maybe should carriers loading? and therefore, we more growth. Or boxes

Darrell Campbell

Yes.

guess I So start. I'll

our the free flow flow, is So almost cycle, -- $XXX was negative positive million very, which impressive. So cash actually right? think operating clarify your question, in I very just to cash

So the is really the CapEx. dynamic

talked in talked the in reduce allowed really of forward. tractors that made the we've we of quarter improvements about age dedicated through, become So it guidance that that's intermodal we as right, attractive growth some efficient will actions. the into as to has targets, would come to as we our expected growth about fleet CapEx and more of going and us relates what's kind year, and continue that entered the We our those

more positioning disciplined, and we recovery. But still to as we're that want the as more said, make become ourselves Jim for sure we

that's growth. we're not trying So necessary for cut our to CapEx

So the CapEx our cash on continuation flow our free the quarter first lower dynamic and for for is the ready combination of earnings strategy.

Jim Filter

ago. question the international And And is really just But up year-over-year to a intermodal. bad yes, it to your about is that's basis. was answer it Yes. this a of, how point, function Jim year on

So does it Coast as distribution stable looks more West between the and East Coast.

intermodal from -- really terms it's of in good bit -- domestic normalized little it's been that becoming say taking and to I international there's this bit share more a growth little see So so normalcy. in a that so wouldn't

ocean there disruption. I'm disruption more of In to pushes longer the taking to their the out need position, pack in because There's is what's boxes more from carriers that routes been one to be carriers lot a to and going saying, ocean we're terms of disruption going and even world, the I'm and still my transloading.

Operator

Thank you, gentlemen. ladies and

will As today's participating, no for now conclude Since at will and conclude time, questions this We we this you conference time, you you further we today's call. have thank may at conference disconnect. call.

Schneider National (SNDR) 2 May 242024 Q1 Earnings call transcript