YRCW - Earnings call transcript Q1 2018

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Operator

Good morning, and welcome to YRC Worldwide’s First Quarter 2018 Earnings 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 morning, conference first XXXX call. Worldwide’s operator, everyone.

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

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

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

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

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

was this of non-GAAP James, call during today’s website. During release referenced an presentation, quarter and EBITDA of followed The the Darren. will the call, The include will filed in format earnings a available is this earnings issued from measure as an call. on X-K, adjusted we by from which EBITDA. first the overview may comments with our to conjunction our morning's of presentation release, refer simply In with we be along

results discuss Next our Stephanie provide Freight. financial update on and YRC will will T.J. who an

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

James Welch

can the My return always allowing have still a until I’m progress believe YRCW in to while me make board Thanks, a it. When there's found still Tony, and that continue goal to firmly gives was Darren company. moving before CEO leave who confident a to announced want on we to days made better of will the retire. opportunity before first Darren we update. the to the timing XX. went named comments the been a few I that very that I in on left continue than in and as help believe very with right of Senior much to late week change earlier good place morning. better I I ahead we team executives of and the and talented serve a Advisor remain the just lot quarter ahead when forward. I I and YRCW XXXX And our employed accelerate July to are company pleased I CEO the have do. pace retire Darren I this transition was place a have for

sure this community of over how one you. know each will to lot So, last also I from I have quarterly enjoyed years, be our want let the much the my call. for a analyst have interaction learned I

call over to With these will I comments, Darren. now the turn

Darren Hawkins

good you, James morning Thank everyone. and

James's the I legacy look a to opportunity with forward transition. investment his want of James leadership instrumental community. to I and of quarter, and smooth all for him our to for evolution ensure Worldwide, contributions grateful James' the continue closely been and YRC customers, commitment and our has his I strong leadership support. employees of thank am the to on working to and to stakeholders commenting vision the including Before our his personal

to do. let would and said me Turning financial what we reiterate the in overall we expectations were our results with line QX,

especially our that remained carriers YRC In and favorable Holland, the provide. on per improving right the hundredweight Penn, and increases excluding yield freight corporate the value fuel strategy since demand New Reddaway We year-over-year customers surcharge capacity highest are pricing we're to Freight focused price and freight executing our secure the environment YRC and The revenue QX regional and mix and XXXX. and our service channel. reported with in who

at while day positive monthly year-over-year March freight the per per channel due QX turned quarter. year-over-year the carriers predominantly positive tonnage during quarter Although the down day and was the corporate improved during the to the YRC regional year-over-year slightly tonnage in results in sequentially was

We by equipment this a onboarding year. of significant are revenue investing also amount in our fleet

During and more for XXX than with are the units scheduled QX of approximately improved delivery another they we less than fuel efficient require count tractors XXXX. The in safety delivery tractors replace. took more XXX maintenance with equipment

be XXX to expected in in approximately with than trailers took another also of We QX, more delivered XXXX. delivery XXXX

expensive that with upgrade we fleet positioned a better for with number with to be is expect our As these these business of we expect renewals a decline units short-term XXXX, more and a we similar We overtime. to results units, its pleased our year to remain from in segment yield. increase an to of financial be positively segment the regional year-over-year year-over-year stronger by basis, positive reported improvement second improved the weighted results. YRC was On The revenue impacted half in yield confident year. freight

year. unfavorably to March the and our impacted in employees making However, the segments direction. worldwide award-winning in we results of along the are YRC to weather that In in yield series severe we seeing, I was with a early nor'easter's our by closing, regional concluded January putting to moving fleet first it like decline the in momentum we're which service nearly compared confidence everything in is that segment last this do. financial give in customer right thank investments for continues providing me on the to focusing would safety and XX,XXX

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

Stephanie Fisher

and Thanks good Darren, morning.

quarter first with Even the YRC reported first one up billion working $X.XX half of Worldwide less billion year. XXXX. consolidated is revenue which quarter XXXX, in day this from $X.XX For the

of of consolidated company a of same down segment XXXX statistics. the key few keep of At on an compares property terms per quarter operating financial on million my segment on million in income includes the quarter included quarter a Therefore, first $X.X disposals. adjusted a an year-over-year last was In to XXXX. presentation the XXXX disposals results reported basis, I’ll indicate This to comments April loss X.X%. issued operating focused X.X%. million this which On reported Worldwide morning day in and tonnage include in The January, and day for $X.X XXXX first of earnings YRC first of stats. year-over-year and X.X% in million This comprised X.X% per February and $X.X results operating $XX.X tonnage X.X% first Freight, compared information which million an Freight’s release year-over-year increase the was million down property YRC was year. decreases $XX.X March. loss loss $X.X period YRC Preliminary EBITDA in of quarter results, approximately

the year-over-year year-over-year has shown at reporting Freight increase XXXX. increase comp biggest was in YRC a with day month X.X% the which As in a of XXXX tonnage per reminder April

year-over-year hundredweight fuel surcharge excluding X.X%. hundredweight up X% per and Additionally, including revenue fuel surcharge surcharge. was for per up the shipment excluding revenue X.X% X.X% up first was year-over-year for including quarter and when was up revenue surcharge XXXX fuel fuel

This X.X% up was year-over-year increases to X.X%. and approximately per regional quarter of first X.X% for was April comprised X.X% the indicate of February and day decrease X.X%. down in segments’ XXXX regional the day in tonnage in Turning Preliminary stats per results was segment, March. of year-over-year tonnage the the year-over-year January

per quarter was per X.X% year-over-year X% X.X% and shipment surcharge per [X.X%]. surcharge was year hundredweight excluding up first surcharge. hundredweight XXXX over-year excluding the revenue including fuel surcharge For fuel up fuel was and up when revenue fuel including up revenue

of XX years. XX.X in first XXXX million, quarter during the million represents is the The demanding for under March which to the $XXX.X ABL our end is invested $XXX.X facility, quarter quarter of cash with The to In balance typically expenditure which terms continued and in we the XXXX, what our line first XXXX. or yearend of business million accessibility XX.X million cash XXXX. the equivalents during XX, and of was with and equivalent the compared million by the a total lowest liquidity, at liquidity at revenue. position X% in reduction most the capital $XX.X of a over first maintained Reinvesting was the We managed increases company’s in is million cash and our XXXX. the ago strengthen the end XX.X quarter operating expect of total debt year

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

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

or progress non-union these cash In forward right YRC portion approximately will while we with to fourth customers total closing information, Freight, like impact and operating making price charges excluded and [segments] income. charges I our settlement to second materially expected do the secure looking and balance XXXX. be typically the the we million with potential of not million encouraged the company's from would impacting XX to and are company. adjusted provide the liquidity pension Although mention in to not X for are quarters the changes at from our EBITDA I’m will The investing with

we time, expect YRC over weighted to second T.J. to As turn in improved to the call year. XXXX that you performance the this year-over-year At Darren from half Freight. heard the discuss of I’ll is

T.J. O'Connor

reported our the largely morning with team that I on good as to improvement operating once making good year-over-year with everyone. the In again, ratio Freight results revenue people Thanks customers' These EBITDA. Freight improve the YRC first be many we adjusted acts with income, energizing of Stephanie excited and operating earlier deliver to YRC recent strategy my expectations. of to are reflect and career progress our the working and company to and the quarter its portion yields. I’m saw part

these shipment mentioned quarter the when encouraged in accelerated several very to and revenue demand the revenue period in increased year. surcharge we strongest were As This as excluding is the results Including fuel even quarter Stephanie fuel compared clearly, are more one surcharge the increased freight per pricing first per the X.X% hundredweight last Poor by increases same of marketplace. progressed, years. current significant. state environments and of X.X%

negotiations increased operational in fully in customer the of discussed designed. handling we are eight during our our XXXX centers as quarter. year quarter enhancement average X.X% first last fact, freight became and as distribution part In The new network contract the latest of

revenue on overtime. These benefits and units heart we our in the in of creating progress rental short-term reduction many the needs equipment discussed the our should including As first operation made meaningful planned have investment we our previously are and a quarter. drive

While reported financial freight last over YRC improved results year. the

We performance. overall happy with and are satisfied our

objectives and quality, we efficiency on As our enhancing as will hiring. well move remain service, our of forward focus driver safety, strategic as

to needs answer the the YRC to for may you marketplace. happy to I meet to We customers' We to continued the that be that continue are also your of for favorable for would leveraging members we capacity and industry morning. now questions and time freight this efforts expectations. team have. Thanks would their appropriately like any ensure all dynamics our to the compensated thank services find we provide

Operator

question first [Operator Brad Please the go Instructions] from of And ahead. comes Stephens. Delco

Brad Delco

luck that couple congrats sort you I did guess the quarter what pace you any you the extent come guess at color much congrats that of cost cadence off first wanted you, cadence short-term tractors around should as questions I I'm of took can about these first we on there new and can in to what your short-term in well. of figure to new and just you trying on quarter a saw your and T.J. you the the I role the and to delivery role here. to ask off due of best and you when rentals the provide or quarter? see to second James, to talk your quarter? rentals throughout and how us out

Stephanie Fisher

Stephanie. Its

fact As quarter, of back quarter, those of we half did in the came beginning March. the in the not them quarter through of all the in rentals unfortunately went the in at most come

can line basis, rentals year-over-year And on with so, in rentals end higher QX, kind were a did experience see we the on significant short-term of transportation what we you we year-over-year saw in a purchase our consistent slightly to quarter towards as increase of from QX basis. did the reduce able but a we short-term experience

demanding some in environment for piece additional that that providing business the transportation of margin are continues line our purchase a operating providing than our customers, that are customers we really recognize in, to of just is to that solutions are on. The we are so solutions, we suite our more that we grow other the customers business and LCL solutions and

Brad Delco

the said But in in terms X.X to rentals, was of short-term something which included I release expense, as lease quantifying increase in equipment rentals short-term think the X.X you're you than what separate right? referring PT long-term, that's of

Stephanie Fisher

other the rentals. short-term the of piece is That’s right, X.X but the

Brad Delco

So, we could like -- that what assume is that…

Stephanie Fisher

X.X.

Brad Delco

okay. million, X.X

Darren Hawkins

worked T.J we of in there. on with do January a is and little X And the hit network what color they more on his are well got team units good delivery, have have once pace all we just Brad the like this OEMs, certainly we didn’t immediately Darren, that, tractors but are beneficial. and come the the a seeing

So, good now. we are on pace a

Brad Delco

then is that that real property And estate? on you is that loss your are the the losing or on disposal. exactly money disposals equipment What is

Stephanie Fisher

that in property are equipments few of items most of those the equipment we its or scrapped. we minority Most write off sales that is there list, that failed there either of but from

Brad Delco

your] weather given [if item are seeing an to saw you your improvement and other half results QX need that happen QX flat of year-over-year, the we until wouldn't It that I is back prevent meaningful improvement we could if be impact from close on to that or cognitive we guess then as year. something of in cautiousness adjusted some more XQ, suggesting And the seems could and you see basis then? why in

James Welch

team network respond Yes, responded of I’m certainly the in centers they respond was much the all to proud YRC what of eight with that T.J in way a couple were Freight end clearly existing new distribution of have recover we quickly and than weather, opened time the the about efficiently and one were in long-term Northeast gives saying weather. the the that and of and some enhancement in able the really that, do business able the me Midwest weather who to first more days to impacted Northeast. of also by eight That days past. impact weather to with to and capacity and there, being had At company's effectively. our to needs largest summer business able especially bigger that confidence carriers three that our carrier heavily the impacted Regional over with been

So certainly, QX to for win company. the out come I and of it flat a impact is on think

QX be going tonnage we flat our as the up. QX have yield to momentum far to good fees As certainly, got into focus is where

new we companies business I the the and pricing business think progress in around on with what to saw corporate QX. that left right we that leave. expect business was to And QX in it the make back welcome

we the but the half comments getting and around first that in short-term rentals the also under signs following several encouraging year. there's control are previous of So, our

Operator

question next Malhotra Deutsche Amit of go from ahead. Our Please comes Bank.

Amit Malhotra

be culturally a change but wise? obviously actually just regional A whether structure to with James momentum it to a positively still of best would environment and LTL with quick well, issues fact to invest loss level, maybe its seems needs I wish guess the are a for cost or faced I get of which the us maybe to ability how -- high small legacy you issues was the reporting gain maybe what profit nice couple love everything, Darren decade. specific some in guess, perspective. work your you there and a really accelerated The be we is to What obviously as sense give to we down? first, Company respect company an And in to needs there? know in OR questions get maybe that quickly there. at operating you strongest to over of can is you. some

Darren Hawkins

operation. with XXXX per also that’s any of largest Freight regional I increases. to we strongest that since and yield the increases start certainly and in LTL platform at yield the companies shipment like Both that levers was had profitability built one the YRC with

last that So, metric coming right on ours of YRC pure per at top being when I put there being yield make numbers pace right and a strong the in shipment some yield are at now X% really rising and the X.X% not that the a with per the we at track companies the price once at YRC contract at along very the look it's is like to X% closely X.X% revenue freight And I X% regional that it's and YRC X% Freight at on X.X just is is and have an The is encouraging. and sure shipment of regional. you the regional Freight that’s then metric at there watch with seen and yields encouraging.

piece strategy the yield is the the first plan. So, of

fleet one the have. that’s levers in are investing is we beneficial the into are those that a And to we certainly immediately the day impacting on profitability We put progress service. them most of

approach and give all come certainly months. environment economy, period respond The all exactly pricing carriers those consistent which that on for and the summer the talked make overtime. to I our in improvements of carrier LTL. that the national can't on to regardless over I productivity I time way us It Our is remain other next the prices and capacity recapitalizing very they at and I’ll we a nicely but a other the network time, still enhancement potential fuel technology approach we technology the XXXX their think negative we are time realization few summer remain in perspective of for tailwind focused And firm have the a a strong for a for just is doing. are over will along demand coming see that is investments assets last ignore in company to of are the And to and with expect demand have about I the seems along is and long what anticipate there outlooks, favorable comment to benefit quarters.

Amit Malhotra

pure on the mentioned proxy the at off it's the have about you if you renewals but Could then talking perspective? the you price. I started comment, a price just obviously -- this And that pure which trending of earlier, for know given don’t just fact us help necessarily what are yield contractual not in terms what

Darren Hawkins

X.X% don’t in and Certainly, regionals, QX up. trends YRC those and for appear X% letting and Freight the to be continuing are at

Amit Malhotra

And in then for the last the me progression. just question of EBITDA terms

and imply you quarter did move run also in guys then You our this obviously double-digit for on of potential EBITDA so the you you low thoughts doubling on EBITDA third expectations. in as some that of or we you And million of as in if EBITDA year It through if know move how which XXXX. so the Any CapEx XXX calibrate would to like for CapEx view change growth looks if progression trend quarter would just your you XXX second EBITDA from plus quarter. sort can also million rate of year? the and the mention the can first

Darren Hawkins

item though what so positive performance our half of and All momentum. One year. to expectations out the retention standing then stated those second Presidents lead position build forward-looking and companies don't I’m on improvement. continued a long I’d mentioned the improvements do and for the increase previously was that the of about around the left in That’s will we I factors here into list the it’s say certainly together in I able had of rate] year confident even we please my those comment we be that our of this all of XXXX towards CapEx. on that Stephanie let foundation a comment all I’ll answer also things EBITDA [general solid a

So, Stephanie CapEx. color if give you on a little

Stephanie Fisher

some revenue, from we fourth first over were did Sure, we not X% that perspective delivery items of that CapEx a was from take quarter. of for still the quarter from

So, future. that of the be we will continue do foreseeable to revenue CapEx our to we X% will so expect for that range. in X% And

Amit Malhotra

of And that’s net rates sales. proceeds net from

Stephanie Fisher

Correct.

Operator

Our Ross next question David go of Stifel. ahead. Please comes from

David Ross

and side. I’m guess going off to with the So, got been you into the YRC and work? west weeks have I better-than-expected long-haul at Freight looking there since what's now more that start T.J. in to been What's you coast moved challenging

T.J. O'Connor

stated et are much the environment by to a very the at we I The very even thousands which very three with and engaged encouraged cetera around four implement for if for recent are that have performing getting existing going frankly. very employees just am what is attitude, new been the looking And sales engaged shops and some organization as encouraging larger The Freight. around of yield is new new to customers. YRC People so dedicated been you while very ability energized in network pretty change much lots that enjoyable. is previously designed, but rewarding operations, and it's [indiscernible] these to of will. favorable more can-do There arms It's and as makes energizing. do some the new, and very I my a business, customers and some is on solutions positive at

in challenges there know like continued is not out our the everyone pressure hiring. you industry enough truckers there. So, on

are our meets we universal in are focused are to standards bring that that additional are different those some our we two industry can the we we very own, So, [under-hired] talent on recruiting the and markets. right are doing locations best ways, growing for now on methods, different

see challenge that with here impact organization. optimistic because regional I encouraged the what coast and obviously of dealing size the very I'm the at challenge was But So and what so very the of organization. a rates the a overall bigger by side a opportunities on and west in as it’s for

David Ross

you shipments some side, be that the and weighted on issues pricing given tendency shipments. done. side I issues were I the surge year know last there push going it to of type doesn’t there truckload comment some caused that appropriately have of what's on can throat? negative a network tight are your freight compensated you been make in sure to LTL environment are margin that try done then that your system? I heavier is impact truckload shippers you down to getting with guess you have any And What the that guess if on type hauling broader guys and for those

Darren Hawkins

out good spent a something when lot we happen. of time addressing a and that started started we and we That’s internally call year that David I’m of very last that thankful QX seeing in

you Holland and a at shipments So, two a and bigger most are about Freight our when companies take you YRC business over is carriers. thousand day truckload talking truckload combined than largest their which look

So, and growing. there's there of it's exposure a lot

actually to fills [indiscernible] network contracts margin. little that have corporate at us. is business very more and that negotiations contract a process. a have But also from forward. comes we continuous the in a middle and network QX and of and your The then onto the handle nice positive so things identify feel it truckload are its could side being the you XXXX. way. drop very improvement the started does business of That’s empty that’s rates last a we lanes, with piece trailer a right that year is addressing customer address that it's I play It gets and Now business complex we it into LTL shipment of for of like on doesn't our part in put that addressed in line It’s our it. quickly, that corporate all in good XX,XXX-pound

two like we the which in, we I’m truckload that I I the some predominant even on in seeing, seeing and cases. like also, mentioned that numbers at numbers segment is are the the I So, LTL yield position business are the companies truckload exceed

talking good maybe of a I as be -- it for forward. an opportunity moving issue is it's feel more to like of I us about it and business speaking So, an won't segment

David Ross

XQ little way of since it? have year half as repricing tail up annual headwind back there addressing renewal anymore end bit you for started the put of come the like the by for gone might a a a to sounds it is will issues cycle whole that of So, but the fair be the be won't it to contracts you

Darren Hawkins

Yes, [NASDAQ] that and approach carriers, and well. are to of the other other LTL meeting a you it week saying so probably carriers couple the you listened from some I like this stated did, from heard

David Ross

last me, question talking the start the [indiscernible]. team for And then does And start? when fun of guys you

Darren Hawkins

doing process. here are there why that’s way I relationships we as [teams are the certainly the Well, moving will is opportunities XXXX that specifically agreement. through organization. still on Those communication is employees, and we all current on and forward. our There of March opportunities but the our well continue partnerships why mentioned our informed dedicated the topic on frequent of all our not believe that expanding expiration have business that’s and the through] T.J strategy and the we

Operator

comes Wolfe next Research. Our of go question from Please Scott ahead. Group

Scott Group

you yields updates; Best us April can give of for Stephanie on luck give April? tonnage to anything James. us

Stephanie Fisher

to have trends We first are the the that quarter. in see continuing we seen same

but both at around first are range YRC quarter. the same increases price that X% trending yield regionals our are mentioned Darren they and direction actual in trending think Freight I were in trends

Scott Group

And then we forward? of is price tonnage a as a of going tonnage going still we forward, focus the goal the balance? to the mix gather about from price think continuing if or down per it's more okay want on the and What's is lot do

Darren Hawkins

band discussed we and cost course to is and where a closely that’s cost I me tight our make environment capacity of important tonnage that and that certainly it There up really the want to going yield. negative expansion slightly slight networks. to Revenue past. especially I’m watched positive comfortable covering are with, we I’m in hire for is of sure the in on that through have a getting that we

a around I there flat. there my watch I believe stay in able why so be volume references and are So, current is that’s band, closely typically band the that that in that to I’ll environment

Scott Group

references focus be of And price year this couple you then year? made improvement investments reason three. at And margin a the I’d to X.X different saw of should -- XXXX, that you

Darren Hawkins

you give about The into And can't I difficult, and they piece a think make the here today, the In environment. items we actually from out rental that feels things overall that predict. laid leading a standpoint. that very you But I I say it in reasons leading business. I it what XXXX, could indicators but are our feel will with listed points out, we can't that that differently. I got similar certainly short-term stronger are pricing like things that indicators see there demand

Scott Group

And just liquidity it's then sequentially. one on flat the last front, of sort Stephanie

Your that of cash burn point you cash is targets we is you there first get on by to think you get that typically we quarter and liquidity like would here. in should from any it right build what the end can where when the to? Is and liquidity year, is or

Stephanie Fisher

maintained that Yes, on with end position quarter, basis. we I plus million through where think actual really end nearly year, feel were the if quarter see at liquidity a at we typical basically about the spend, we XX quarter our even the our CapEx in demand about the first heavy the liquidity good of of first you of

move we the as to will year build continue cash. we So, through

the million XXX is We million by to zone. that I in will of my end mentioned comfort range as be XXX the year

Operator

Willard Global Milby of ahead. go Our next Seaport question Please Securities. from comes

Willard Milby

equipment in out rentals, quarter on the it's versus back to can there? I through believe maybe split tractor those short-term you those I the of many went replacing to If how kind the replacing older what went us XXX, help could additions was of go

Darren Hawkins

the typically expanding have it's operation. rentals, from one situation about a fleet one, to but are we the going equipment not remove we that the rental a and good The idea for in

to on a close So, it’s one rental once service. tractors the pace one all for the of into get

Willard Milby

So, were XXX that added take of is replace the from all rentals, to way went the that to this? away

Darren Hawkins

new the local a and of replacing our we rentals occur line in off the late Its lot city operations. our ones and in put

Willard Milby

think last XXXX quarter the half the of year Has there of picked the talked throughout about year? the XXX I thinking up in those been remainder tractors on a change remaining the we all your of getting first adding XXX just in wording in and

Stephanie Fisher

from when XQ with XQ. versus we soon It as are hold get it them to it so getting manufacturers, can manufacturing. but is as of timing can, be the might the might we be them we the up part versus

Darren Hawkins

There significant that advanced is in certainly will we fleet we soon and under those as order possible. tremendous area, our and the well those demand as so customer, implement

Willard Milby

and as same kind guess those story issues some trailers, I given those on loaded deliveries half for maybe of well. back the

Darren Hawkins

way that’s at Yes, a look it. good to

Willard Milby

going expecting new not are maybe those eight if see And to as could up the now? of but improvements BCs fully I I guess now. that on Could up be step T.J Are you running right -- of transition touch as are that’s a running the and new and second half are why to year? this we right part there last in efficiently

T.J. O'Connor

upward some but And also we opportunity The performing eight expect are improvement DCs universal new -- DCs. designed those absolutely newest of eight everywhere. system in see each as we as DCs the for are the

Willard Milby

me if little about talk as that And one could competitors just wondering to you holding you implement for chosen the yet. well I think last one that a given of that GRI Darren I of some said is was just haven’t

Darren Hawkins

from that in we past. Yes, we're we retention good geography and retention better as by measure or the seeing standpoint years have as

have large the industry good companies. follow me. So that the seen a piece other YRC for was that piece And of and it worldwide of was we timing encouraging to

Operator

up of Our is ahead. a Delco next go Brad question Please from follow Stephens.

Brad Delco

and rolling are where on you the linehaul guys out give to that software. P&D then just you the extent Can and optimization you the T.J update or having an can stands some or Darren us those provide you're impact factor the gauge Can give of load to metrics? help you what us us us other improvement metrics it's on structure? any with cost seeing like optimization the

Darren Hawkins

in last in the impactful solutions like have companies, other take the you got the in for network, three delivery I’ll continuous of significant of number pickup the to provide Quintec the that I that’s also and we operating we it and and a don’t company over that impressive diversions the from seeing P&D the say believe officer an that mine metric not Brad and in organization. is improvement at I so with as turn give would with from I’m the I opportunity on of any area have things months in level across and start was the such let an I Freight YRC companies effort. side, pleased but because an and the QX it's what all there course that T.J of I’m then I’ll saw what YRC our Freight away. T.J for metrics update focus having to optimization it

T.J. O'Connor

customized solution you learning Brad and self-solution, its in and that I’m new an tell my office digging each I’d that Quintec So, role, is about as more the not location. at

amount and we get and customized when we of work of the its certainly with as that that not operations complete at we do we have by location the to we see fair proceed the still of benefit maximize because what an location to to So, specific size if a locations customized, to like it particular nuances technology. install

we We continues have rolled in implementation. we So do full be to of a of but fair terms still that what work see, out. to amount like

Brad Delco

Maybe different seeing these of have we as investments a that on on come you if way, with these opportunities were organization, I could benefit ask point, systems XX% mean they to made when how still seen the about in the have what the we an we or at have XX, I investor mean systems? guys gauge should this the talking would I

Darren Hawkins

front its us. towards there in think is I more us -- than benefit of behind weighted

Brad Delco

some five-year-old why? come market these buy or that of over these six on come, contemplated sort has impact used Stephanie, orders to given it lot and there been to for equipment this know we here seen Is returns have been is have of I may any deliveries and being months. significant on maybe a four, the questions you and is I it the analysis has then new of on for may even about guess, that And equipment what there maybe nine tractors the to next

Stephanie Fisher

always are we Absolutely, doesn’t aren’t looking suspects for at is sometime what make the attractive used right of markets, those us. part

off piece look as units So, the purchasing renewal coming that we can that doing are find as equipment we we any often for coming able. are to absolutely of they are used lease either specs though leased What up those find we like. aren’t but are we that we we internally at or

will we past. in see grow more So, in liquidity. the XXXX to as continue purchases purchase And evaluate you continue than leased will versus we have to we recent done

Brad Delco

assets still operating will you so your end to cash purchasing make some you year. XXX expect that of understand XXX instead grow leases, of be these sure Just the to to to I by and million renewing balance million

Stephanie Fisher

Exactly.

Operator

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

Darren Hawkins

have. everyone customers, I'll call believe term. follow-up certainly YRC benefit the opportunity operator employees you, in climate with industry today. I to our that and I’m This overall well you the confidence great at remains deal The for Worldwide leadership intend we excited concludes you. and we long back our for and may our Thank a contact any investments of Tony that the turn about operator. continue call questions investors have us transportation strong have to we Thanks the and again and Please team. joining that

Operator

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

You may disconnect. now

Yellow (YELLQ) 3 May 182018 Q1 Earnings call transcript