YRCW - Earnings call transcript Q4 2017

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Operator

Good afternoon, and welcome to YRC Worldwide’s Fourth Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. After today’s presentation, there will be a question-and-answer session. Please note this event is being recorded. I would now like to turn the conference over to Tony Carreno, Vice President of Investor Relations. ahead. go Please

Tony Carreno

good quarter and Welcome YRC to Thanks, earnings afternoon, conference fourth XXXX call. Worldwide’s operator, everyone.

Joining us O’Connor, Financial on Executive the YRC President call today are Officer Operating Freight. YRC Worldwide; Darren of Stephanie and YRC Chief Officer and James Worldwide; Fisher, YRC of Chief T.J. Officer Worldwide and Hawkins, President, of Welch, Chief

discussion of any forward-looking in we Before this inherent afternoon. the begin, I must uncertainties in remind our you statements

assumptions of forward-looking this might laws. Federal uncertainty call, call, of meaning the we results historical within on During differ statements to thus the all of be to The that This future. actual are events a not facts, and risks all discuss and this us of Securities some forward-looking statements risk not statements and strategies allow make on statements which These may factors. does are intentions this company’s fully call regarding number and subject materially. the may includes future other format expectations, regarding made the

XX-K are full the website recent to afternoon’s XX-Q. yrcw.com. risk results could the to cause refer our please items our differ, release of a including Forms filings, and These our earnings discussion SEC available factors most on that For and at this

income please Additionally, or operating or a loss see on loss adjusted segment net basis reconciliation basis. of consolidated to for a to and today’s income release on adjusted EBITDA a EBITDA

James, will and overview on by The Stephanie, YRC will on from along earnings afternoon’s filed our provide Freight. call. this our refer the quarter include will was issued discuss who we events which an In Darren call, this on a our and of fourth in presentation available of format an update we and will the financial an the to with The referenced may measure release, release update is conjunction simply during be adjusted followed results an earnings During recent EBITDA. of non-GAAP with EBITDA today’s X-K, as website. call presentation,

T.J. will our the question-and-answer Following call I’ll session. prepared now James. to remarks a for available Stephanie, be and Darren turn James, over

James Welch

good and Tony, afternoon, Thanks, everyone.

really pretty revenues grew with well increases prices revenue contractual it YRCW growth wage in as normal planned. a company benefit and just offset XXXX, Net expectations. higher as For was we our as fuel line and

Our goal is profit our yield. on to extend volume improved margin and

with quarter and However, These and and drivers. revenue increase transportation quarter, unfavorably fourth trailers for improvement. tractors by were an expense, the purchase to operating factors during impacted in incremental margins X,XXX shortage and eliminated the rented XXXX the in a approximately demand led equipment margin fourth of rental short-term for planned basically,

environment, year to strong in Additionally, service, a equipment along a in believe a for despite we were we on our better revenue with positive execute positioned The enhancing confident our focus down growing business did good a economy investing and customer stretch yield, with both is that in our we and excited XXXX. commitment tight technology, freight of. news some and XXXX, forward is, the company steps like capable fully is not taking

in quarter, and XXXX. for another successfully approximately we we XXX pace a of of about worked comments scheduled quarters The have first extending loan. revenue the Next plans the XXX earlier of I’ll In term provide and year, fourth the tractors, than we on our few intentionally our was delivery more amending XXXX as and took equipment more onboarding in moderated two delivery XXXX. for

XX% still of of XXXX, the fleet. of of the have in XXXX, to first got trailers, by more delivery our fourth and tractors, We upgraded approximately the tractor fleet also we more taking of half able XXX the beginning the fleet or to took X,XXX trailers than equivalent $XXX of In the for million we of or X,XXX quarter expected with than year. another the invest delivery be delivered XXXX, CapEx of were – Since in XX% X,XXX XXXX.

We structure. term XXXX in also successfully early maturities loan opportunities we the runway provides revenue of XXXX, additional transform notes continue the YRCW’s improve XXXX. recapitalization. continue to And these extended to and our and seek to capital and to CDA extensions operational Completing equipment

I million. strong company’s $XX solidly and During and XXXX, structure reduced to our by debt and capital quarters, by the price, economy past to to has mix we XXXX. expect outstanding note $XXX that and important profitability, was operationally been debt improve freight five With and million a financially in think the over reduced performing strategy improve it’s nearly

secure Our equipment Reddaway And Holland, and to harvesting focus provide. Freight, service our goals customers YRC with investments price for continuing we the and that revenue and XXXX to Penn right on customer made continue that in enhance will service. our value New productivities to the the and we’ve improve making include who technology

proud announced I’m roles. and how of T.J. in experienced highly senior coming YRCW proceeding Bob strength is effectively and was speed new to are that and transition their as planning in well leadership our exemplify for the and succession capabilities and and executive December depth future. our of quickly into Stone management up Their Darren, team bode Lastly, planned, the

review to I a the comments, these turn now over Stephanie our will of for results. With financial call

Stephanie Fisher

afternoon, good everyone. and James Thanks

income in of fourth million quarter $XX.X operating consolidated quarter compared fourth $XX.X reported the with million the YRC For XXXX. XXXX, Worldwide

Freight, company across and were the at fuel For and million compared consolidated surcharge The at increase $XXX.X the Regional quarter higher in XXXX. operating of additional revenue fourth million impacted with organization. carriers by results related full volume revenue higher year year in XXXX, an $XX.X primarily full favorably yield the income reported YRC the to

in an same more offset On of transportation $XX.X cumulative benefit million results basis, than period to by the for company impact reported compared year. adjusted last increases $XX.X million the in increase revenue purchase the of contractual an quarter However, and increases increase costs, expense. wage fuel in was fourth in the EBITDA and XXXX

stats. decline million focused adjusted and a quarter key release Therefore, comprised The few Freight, At earnings year to comments per increases this a quarter per November full per hundredweight. approximately X.X% of committed information remained XXXX, indicate weather year-over-year presentation the down experienced fourth winter decreased normal fourth in keep to tonnage my YRC in million day month. EBITDA XXXX. X.X% improving its afternoon of as per financial revenue tonnage in the was Freight the We January October, full tonnage more the year severe This issued and in Freight’s Throughout fourth year, quarter For and was on include day and day believe year-over-year early X.X% $XXX.X later volumes compared and $XXX.X statistics. returned January segment results in X.X%. year-over-year December. it in was XXXX year-over- of was I’ll result to down was Preliminary X%. the YRC segment YRC

with hundredweight fuel, Although be variables revenue basis considered when from statistic working been there than more the points to increased to freight per mix, by year-over-year quarter needed the that must that a inclusive quarter of has fourth XXXX. Freight and results of XXX YRC several are improve, the first

excluding X.X% fuel revenue per was quarter and X.X%. For surcharge per surcharge up was including fuel year-over-year XXXX, the revenue up hundredweight hundredweight fourth

up the X.X% XXXX, was quarter the X.X% excluding per surcharge and fuel including For when year year-over- shipment up fuel fourth surcharge. revenue

October, Turning tonnage in of comprised year-over-year indicate X.X%. in in up for per X%. This year-over-year day per tonnage fourth stats of was was was November segments’ regional January day the Preliminary to XXXX the X.X% and the increases results regional December. the X% quarter segment, down X.X% year-over-year

the up surcharge revenue quarter XXXX a improvement hundredweight year-over-year the surcharge was of end Regional fuel excluding noticeable hundredweight fuel X.X%. the per For Through carriers X.X% in down including yield. January, revenue per fourth and experienced was

and when up fuel excluding quarter For surcharge year-over-year X.X% fourth including XXXX, fuel up per the shipment revenue surcharge. was X.X%

of maturity available quarter its equivalents and ABL the total XXXX. cash million accessibility $XXX.X liquidity, facility, year-end debt XXXX, which used In our extension of was cash $XX is notes, of and at notes. the conjunction CDA we the $XXX.X to terms company’s XXXX In XX, the on under cash managed year million with of the lowest was principal million. December at balance reduction during million, $XX since first reduce the The and

XXXX, end EBITDA EBITDA was the fourth to adjusted adjusted facility ratio a credit at times. quarter months XX covenant, to last our maximum $XXX.X debt compared funded times and Regarding X.X the X.XX million the was of of credit the covenant facility

maximum at times covenant remains end through X.X the reminder, XXXX. a the of As

few just Finally, a closing thoughts.

First, the Act we customers believe Jobs will Tax the and be recently our XXXX enacted overall economy. for positive in

of losses for as or minimal. available million with end near-term the a taxes we tax of our corresponding approximately cash impact remain federal impact However, to don’t the XXXX, expense our and to state anticipate net income of paid should operating $XXX

second our short-term refreshing and from we with and to the provide Second, in of allow These networks. CapEx this fleet year across turn use invest be year-over- as enhancements to Darren Freight. years, expense rentals purchase improvements expect to local continue consistent our technology will closing, last term, investments in call transportation short-term the our discontinue the will reduced and to three In we the reliance work mitigate on of transportation. to discuss productivity hire additional us standpoint, At over we our will local a and YRC purchase year. half rentals the near weighted time, drivers the I

Darren Hawkins

operating include year-over-year most ratio quarter YRC operating good The Freight everyone. Stephanie, revenue, Thanks, fourth afternoon, results yield. for income, in and importantly, improvement

hundredweight including Stephanie, XXXX per in items shipment a fuel delivered XXXX. and Freight XX% revenue of increased per fourth YRC in QX, year-over-year YRC same revenue to increased in three consecutive per period from surcharge, X.X% for year-over-year quarters EBITDA largest XXXX. yield the X.X% in you QX As in And per of revenue represents year-over-year compared improvement when since and resulted heard Freight. revenue hundredweight shipment increase positive improvement. the the These quarter This

upcoming the X.X% trend our continued implementing fourth capacity rate X.X% customer continue environment, companies. X.X% also intend the Freight for and increases for quarter. on that we non-contractual YRCW quarter, gains XX, a the with averaged pricing of increase on emphasis in to for the first set customers at contract pace and and into During throughout rate December XXXX, all YRC current February Considering general coming negotiations, by solid has contracts on XXXX

rental working to transportation part and As of you’ve expense and heard reduce from integral fleet. an strategy James, local we our are to short-term continue upgrading this purchase is

but the in improvement Upgrading that what expect only as tractors by fleet line-haul units was end the we three approximately we service efficiency, is not decrease XXXX. safety, a noticeable nearly equipment, expense the be XXXX XX% a With April admissions to will and maintenance the Freight’s see to YRC which years of old, compared reliability less ongoing also replaced. of it than fuel enhances revenue double of in

to continues ahead improvement, YRC technology for this avoidance. supplemented outside implemented assistance avoidance most nationwide employees the prioritizing an initiative in addition proven look being deliver we operations. frequent our and Freight new around objectives employee in of focuses accident in to dividends include: is being a is daily on strategic yield with by As partner investment safety. by the first, the and around exposures XXXX our success This injury the area elimination injury new field with of In-cab

network The in processing, meet network our better to of the latest through density greater improve service. two expectations faster Second, centers eight This were and have transfers XXXX. now of network that which the shipments. operational enhancement part our customers’ fewer results to is efficiency, and contributing customer help good for months distribution for expected timing enhancement service to over its regional been

of quality. line-haul being Fourth, network now maturing two and and stages The cube XXXX and on hiring. implemented technology to change around impactful operations mile areas through these and benefit additional continue is delivery sufficiency in overall reduction utilization align benefits are throughout our XXXX. a intended management Third, better pickup large each company. into projects cost install should driver around These multiyear investments and reduction, and

XXXX, instructors allow hire. the We throughout invest allows additional applicant schools recruiting support as in country. training tracking operate network expect technology system made we personnel continue and our for reducing our the throughout tuition-free XX driving driver In such for time schools. over to streamlining to processes that driving to We’ve to to in investments

We promoting also on continue to the dock-to-driver focus program.

advertising. using the partnering veteran is and with creation external Although leveraging resources: traditional our and also ongoing with hiring to media agencies, following along events add providing military the are internal and fairs, external driver partnerships preferred both most job method with driving reimbursement to organic and schools tuition we social drivers,

profitable. that companies accomplishments I appreciate the also employees like to working and in to new my that for process continue the direction. T.J. We to will of continue right of to evaluate expand to of ensure the proud hiring contributions move congratulate additional driver to strong and and I’m President with hard resources transition Officer to to we YRCW, same Operating serve Chief our the would customers. to his opportunities YRC at In our have role as Freight. as O'Connor the I recent have our of of fluid, closing, required improve by balancing revenue be and investments would Reddaway, confidence continue I in results very these afternoon. companies to confidence company, and answer that have. We the intend you all at YRC volume happy full in the yield your importantly, be of our our now and our enhanced people. momentum price efficient equipment most will questions he should technology, Freight. any operating this for keep Thanks have and may improvement networks at further time largest cadence We operating through that the continue

Operator

the Please go Wolfe Group Instructions] question from [Operator comes Research. And with ahead. first Scott

Scott Group

afternoon. you Can thanks, pricing numbers that? has think I a Stephanie, in that Regional around put you better mentioned lot some Hey gotten January.

Stephanie Fisher

Yes.

the [indiscernible] about come as to So they’ve X% Regionals their on January. are X% through price seeing increase a

So revenue hundredweight a per from turning positive for them that is actually perspective.

James Welch

call And Scott, out. important, that’s I think to

weight day, If was quarter. X.X%. fourth you X.X% their up the up in it weight their shipment think per was And about per

per definitely growing the going get finally we forward. to – yield to shipment per and on Regionals weight to revenue been, momentum, offset yield and catch with know, weight slow help to has been the as hundredweight. the which day way a is So we their little per turning had the but the moving They’ve want

question. good So

Scott Group

was what up point. was four Stephanie, you gave the metric just that So

Stephanie Fisher

Is that X% to X%.

Scott Group

And was the in that what quarter? fourth

Stephanie Fisher

it closer think was I to to X% X%.

Scott Group

talked about impact there do you having then is Okay, there typically – give of don’t of what mean. the first know you half been tonnage of I way at Freight. us half couple a what – big weather’s But okay. any or you any think January this. of And sense second the way you Is to a sort last of January, on have just get to us sort give weeks on

Darren Hawkins

line Darren. this a some of having running, weather what not as January. of companies at not last January, our is noticeable Freight when at up seven terminals the tonnage saw the around well. Certainly, days the would Scott, the of entire business all open we all we month, and first decline only half regional of and in The in networks were with expect but

So noticeable it was difference. a

Scott Group

Is down it still year-over-year?

Darren Hawkins

Yes.

Scott Group

minimum Okay. $XXX on And here? then sheet, balance Stephanie, much just How to the what’s to run million. do so down the plans liquidity thinking some about And the raise – to start need capital need you business? is we

Stephanie Fisher

a that of XXXX thought of year. and million loan the valuable as extension that We $XX more about want investment. balance more always We of the – with We liquidity was move in invested down CDA, debt. cash course, paying throughout sheet in we extension that, the on the our and term the

talked Additionally, we also here fourth in the and revenue are quarter quarter as in you equipment. for about XXXX, know, the and first investing we’ve

more as look we So like build have But cash and perspective. at an options to from of cash? XXXX, and move our would we’ll through continue I equity all Absolutely. debt we’ll to

Scott Group

Is there of of is for a the can what think you cash good liquidity you balance XXXX? rule is? minimum a share CapEx And what thumb

Stephanie Fisher

X% last a we From revenue like that invest debt I’m have, to in to three that liquidity. a expect in lower revenue be made liquidity like we to in perspective that I from to perspective. a CapEx, need the range, been in have continue equipment and over $XXX million For technology that $XXX now. CapEx the the to we X% was perspective, We said, of to million I’d from investment worth XXXX But that below like right realizing years.

Scott Group

Thank Okay. you.

Operator

Stifel. question next Ross You’re ahead. with comes from go David Please

David Ross

Could in Or missing Good some and – mean with and I the Freight to both you’re was your difficulties, afternoon right year-over-year does So headcount happened people? just you that ask have I places? in employee the hiring everyone. headcount not guess in down Regional the you – way right the that was the quarter? that question is, did fourth guess, another what year-over-year people what to

Darren Hawkins

down specific. is to numbers, be we enhancement, location point That Darren. both would Regional David. chose did Yes, large but your network hiring around Freight. and Not When in our locations intentionally This of about YRC success we there. our

But drivers the up a So lever that’s in the that’s purchase and to drivers. because certainly downtime customers. a to transportation short. having organization the about done But contribution providing And of lot this a a that mentioned hiring continue make a across few We we’re time, hundred I of for to service around script to efforts entire our focused went making certainly still network. year, the crucial. it focus we’ve we’re investments the the those even the reliable shortfalls our overall, that certainly in to just

James Welch

And created Dave, overtime certainly, cartage. like bad have, that city which along is purchase more what to with we’d than local transportation, that

any about bit So T.J., Darren about? to more you talking comments want a was what Regionals make little than the

T.J.O'Connor

Well in the certain available geographies, certainly, for David, exceeded continued industry – demand we certainly, had that frankly. driver

our the in by markets business, negatively were QX. to seekers available needs of hire particularly certain So job and ability impacted the to very

David Ross

concessions wages yields from pass to be or I how high you the to quickly for market-based better that And pricing? gotten know higher up adjust able on Are you able NMFA enough. you’ve that some would then, hiring. through previously

Darren Hawkins

to speed is got ability top the progression David, up the to we’ve out pay.

once sufficient. the identify applicant. locations, that And in you most So is

near around life LTL. is drivers modes just quality in other And still of well our as other from see you to piece attracting other not of turnover’s The what segments. the capable due we’re

that even for TJ some has XXXX. are those But things trying are. wage been we’re that drivers a are just change wages referring difficult was And on the what since working commented certainly markets hasn’t the The of us. any it regardless think I of those And that. that you to to, trend was new help. there recently invented progression been So the

James Welch

David. This is Jim.

that that think markets we’ve wage got now. XX I important to it’s note in different program right

just starting on have we’ll effect. we’re And XXXX. on an build to certainly So that

Darren Hawkins

trend question to the the Freight yield But items the on you I GRI, of the we’re David. it. failed cover the the seeing yield think about answer to investment that our worked side positive at we’re making, YRC trend certainly, we asked that efforts, all yield, the together announcement at those of Regionals,

James Welch

And Dave, pretty interesting that even to those not two to to starting I’m what we are narrow. to the negotiated pile on, starting getting. more a narrow two several we that’s starting those negotiate good on over in gap we’re increases something to very in it’s There’s excited And been always but with see numbers rate be haven’t and we’re increase And actually pretty about that while our a the get. and actually months, what good numbers customers that. the last we seen

David Ross

And you. less be fleet tractors the mentioned. percent you tractor are When the linehaul is linehaul that tractor three to then that Thank old is you of than on going of the What XX% P&D? versus few in fleet a said last just months. question years

Darren Hawkins

P&D. side the would XX%, equation be be versus impactful. XX% certainly of would mileage is side most and between That linehaul the XX%, But the the

David Ross

where end is today, XX? And one? at then tractor December either where Or does up the count

Stephanie Fisher

trailers. and tractors XX,XXX XX,XXX about have We

David Ross

across that’s And correct? segments, both

Stephanie Fisher

Correct.

David Ross

much. very you Thank

Stephanie Fisher

David. Thanks

Operator

next comes Stephens. Please Brad ahead. Delco The from go question with

Brad Delco

in year. comment margin the year-over-year of throughout guys you all of that. color sure the optimization, Can the improvement. I expecting with cadence put P&D back of more improvement are benefits that? just to optimization, be want a the margin half the will made linehaul yield the I With initiative, you cadence but about James, Stephanie around the heard year greater make

James Welch

of of Yes, wants and great I’ll off that’s take we’re board. first year had quarter the that. in to day, just in to first that on but until mean, this too. fourth end new ramped quarter. And is we half We to tractors fully Stephanie come not new the on those the XXX I like equipment the with we’re if the the add momentum James. yet comments, some amount the is of get taking coming up every tractors

business So we while. be going a know a we’re cartage in We short-term while. be for the know going we’re to the rental still in business for to still

We throughout again, our just we So results the bit along going yield XXXX that’s with relief good had is couple cartage in $XX but new will at million amount of as year, story I give to about, feel the wanted spent more $X of equipment mean, that’s in in. that like about know we feel look PT, bad we a move really really us areas. the fourth that ramp-up settlement developing miles we quarter, And some in then of you than the just we local and if rentals. real short-term a million. about legal coming

different I up could fourth bridge categories. that number pretty just easily So quarter four in

we’ll get we for well Brad. definitely better that XXXX, So in bodes think us in those and

Brad Delco

million rentals? wasn’t the $XX That was just cartage anything And or else?

James Welch

settlement. That cartage, action class legal then purchase a transportation rentals, short-term and was

Brad Delco

so all Okay, total million that? $XX was for

James Welch

Yes.

Stephanie Fisher

Yes.

Brad Delco

Okay. Steph, that? anything add to And you want to more then

Stephanie Fisher

No.

think to that well. equipment the and that couple we’re important of quarters some just I it’s to be here, in as finishing technology revenue going investments new first adding note

the than why the think first. half the right So better now, we year of investing which second be we’re will still is

Brad Delco

And maybe then, another question Stephanie, Okay. I for or don’t James know you.

be And give perspective? kind – can Can you assume bring could younger entire savings you number? number from fuel your for what could where think alone? the understand a age, but don’t really investors see what fuel some kind we the equipment. given most a terms and could guys in But as need had and a condition we know down good don’t if think we where economy of line-haul you And us give a of here is could have us the you the fleet. But where fleet give average the I go on fleet a a are data on what do. to you I younger capital about of economy you’ve of just perspective fleet that

James Welch

know this we giving Yes. gives equipment around range. a a mileage stab fuel We at James. us older we equipment have older we’re is that that I’ll to we fuel bringing This equipment is in equipment that have than and that. more mileage take on know us new X.X lot that X.X. X.X newer that And

just the is service mean, economy different maintenance and there ages in equipment, tractors. I then in the on two of difference those significant delay of impact, we just And fill pay, it goes on. costs, a So safety downtime.

know that do anything So about it. more doubt bring that to we to can we just on our make no new There’s equipment going company is healthy.

So hopefully helps that a you bit. out

Brad Delco

maybe And does. quick one question. It nuance just

You an provided it. yields us guys November to Freight find trying update – about for that

X.X% just Was I the take X.X%. and shipments on yield finished that big be you that we’re think much a more or quarter came then? quarter helpful. to was would late pricing up change the on through that heavier in weighted up there color Any that

Darren Hawkins

numbers increases as of We’ve the actually contractual on come two those earnings gain to up some numbers Brad, much Freight numbers throughout the the past, comment that continued in in that YRC saw on about And even rate We we James A quarter. earlier. closer our talking momentum this that Darren. we our through and together comment increases contractual analysts now. James’ negotiations. earlier, weren’t called in on it from were seen aspect, And the momentum January. yield made those is increase it talk showing calls out rate

announcing shows a and general in will that through. for contribute year also to the coming confidence rate that’s the us of that are negotiations certainly are that So It price gives increases that right first for pure half us, increase number the the in of XXXX. heavy now occurring encouraging and

Brad Delco

thanks Well, the time great. for everybody. Okay,

Darren Hawkins

Brad. Thanks,

Operator

from ahead. go Amit The next comes Bank. Deutsche with question Please Mehrotra

Seldon Clarke

Clarke in on backdrop, on your And the to an update Seldon there’s like Could any for given Amit. those savings maybe if potential you targets? the just targets just exceed for us strength give It’s XXXX? cost

Stephanie Fisher

referring you quarter the are to what cost-saving Is to? in that initiatives XXXX, that Seldon, million? $XX announced you’re of the we referring the first

Seldon Clarke

of of kind just run I understanding get wanting rate Exactly. the into Yes. to like XXXX?

Stephanie Fisher

Yes.

of as them we rate we’re have of think of been at move – run in Most into were those put into I all Most full put into XXXX, all actually costs. XXXX. initiatives those play. play early for

So initiatives full as into run at those are rate. move we XXXX,

Seldon Clarke

maybe And given is and of there increases, just – like the higher kind given stronger is potential just guess, volume Okay. backdrop, stuff those exceed I that? like like to Great. – rate savings like there trends

Darren Hawkins

this they’re Darren. is very good to talking difficult we’ve The in. momentum the initiatives It’s Yes, That’s metrics drive one change about, been of yield powerful. there. to most have

certainly one out the coming going into January. XXXX So that’s encouraging and most of pieces of

service. investments have quick go its immediately miles seeing fashion that importantly, James into the week out, reliability. that technology investment tractors in can be the improved into continuing the have soon as on current even into an the didn’t they And fuel go their service, and because and but of a the of kind lower benefit, We’re those impact fleet, we maintenance you fleet And the the safety they’re the improved measured those that realized injections impact. age those start into – impact on though in go as detail gallon impactful. immediate numbers But most and called networks benefits our large a per

year. cost piece So the XXXX. the delivery those to I’d operations, we continue And pickup to like buckets throughout certainly the to other largest upward call in are investments company those to mobility the of and have, provide our into going expect out mature two the line-haul we our is, technology and

Seldon Clarke

CapEx just then on Okay, a that’s breakdown budgeting Could your lastly technology give just versus you helpful. us And equipment? budget. on for what you’re

Stephanie Fisher

XXXX? For

Seldon Clarke

Yes.

Stephanie Fisher

Yes.

with X% forward-looking that year equipment of X% budgeting here. to on revenue that the provide don’t All guidance. the we would So say I that kind of half heavy we’re first a revenue focus is in of range,

Seldon Clarke

That’s right. All helpful. Okay.

Operator

go Securities. question Please Willard next ahead. Milby Global Seaport The from with comes

Willard Milby

everybody. evening good Hey,

James Welch

Will. Hey,

Stephanie Fisher

Hi, Will.

Willard Milby

talk change kind going Just operations talk Has how about I on had smoothly, there of to puts of update of takes as about to there? that been at just and was the going Just Freight. some that. if progressed? I an wanted kind get that’s see could

Darren Hawkins

Yes, comments updates eight implementation January let this centers some had a the I’ll the as was All then T.J. YRC And controls The And Darren. is I’ll a successful. X. contribution recent it. give he’s you Freight since and to had few network. up Certainly running. distribution on make at are

XXXX. and mentioned I Overall, a locations we going into QX good thing it’s those capacity were the helpful. for that – that also As needed

volumes not toward We’re that, facilities And grow, couple at at new blanks. focus them, T.J. At point. I’ll with in those hiring. as certainly would of those any at any at capacity others, productive it facilities. those more And of this volumes let full around point fill a we’ll

T.J. O'Connor

seeing Darren. we’re you, HDCs additional so business metered one, bringing new through or availability with, online. a Thank deployment of those then business new secondly, volume. Sure. employees really training measured And is hiring with Will, and what commensurate

implementation would quarter. we’re the first through where So we to expect to be continue about that relative and expect to

Willard Milby

All right.

good. Sounds

With or of with about fleet? and just those trailer point of to to get just of, incremental year, of a the what fresh in replacement percent equipment that versus these are coming additions? every kind additions what rental kind additions eliminate from the tractor first view can transportation be the you of purchased the I’m half on asking of going of

James Welch

units. growth replacement units. not all Those are Those are

the our So to scenarios exit feeling of confident anything intentionally very was going to we’re the and of us any XXXX. local types very on. And half amount second That we’re in year. do That’s back just to sheer especially reduce forward can short-term important in of us propel rentals loaded that that of with half the we on to second XXXX. dependency cartage the bringing equipment is

Willard Milby

That’s Thanks. in me. it Great. right. from I’ll hop back All queue.

James Welch

Will. Thanks

Operator

turn over to company closing like remarks. question-and-answer concludes our to back for session. any This conference I’d the

James Welch

very got a like We’ve Certainly, operator. you, Currently, Thank trucking the industry. equipment economy in environment. there’s work we’re limited a with. and in we lot positive feel the drivers a strong discussion of to of availability about

position customers, feel really that for made to will with to like term. its that well investments make continue the and we’ve and YRCW we long and employees the So backdrop, we serve investors

the up time call to of listen some you and appreciate to Thanks. catching taking again, look to with today forward you. So our

Operator

attending today’s for you presentation. Thank concluded. now has conference The

disconnect. You now may

Yellow (YELLQ) 1 Feb 182017 Q4 Earnings call transcript