YRCW - Earnings call transcript Q2 2018

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Operator

Good morning, and welcome to YRC Worldwide's Second Quarter 2018 Earnings Call. [Operator Instructions]. Please note this event is being recorded. I would like to turn the conference call over to Tony Carreno, Vice President, Investor Relations. Sir, please go ahead.

Tony Carreno

morning, good and operator, everyone. Thanks, Worldwide's Welcome Call. XXXX Conference Quarter to YRC Earnings Second

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

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

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

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

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

issued second who discuss an and who includes morning's The website. followed our financial format with EBITDA During with YRC by call. this we call, which an referenced provide Stephanie, EBITDA. X-K, an on this will the presentation release as earnings simply available Darren, adjusted conjunction and will presentation non-GAAP on refer overview the In of today's from The to is Freight. of we filed call during release, results update a may will measure was with earnings T.J. along our quarter the our be of

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

Darren Hawkins

Thanks, everyone. Tony, and good morning,

well improve pleased and the results to to the the positioned in during progress second compared we solid with of are made the year-over-year year quarter year. last half We are believe that second

we and increases customer through QX, all a hundredweight continued continued with in yield July per strategy negotiations quarter YRCW in Freight year-over-year contract solid consecutive XXXX segment that was revenue increases those companies. reported During at implemented YRC our of basis, its fifth excluding fuel. improvement positive On in

the year-over-year weight you'll YRC As from to truckload T.J., impacting in hear see from which increase we shipment. Freight's is continue spillover market, per

more of than tractors another half in XXXX, their operating upgrades earnings adjustments not pushing reported revenue we half and As rebounded approximately in shipments of are networks per that back volume through carriers shipments our been and that in XXX to They accept with excluding with pricing second these we the in delivery on call, of I have last best volume heavier proactively QX in to year. expected the QX, YRC higher complementary in also the QX, additions the the the and our combined on contract ratio in discussed reported years. regional and taken avoid units dynamic their business all challenges three rates. of continued hundredweight years. from two Worldwide weather fuel during through in highest the have those are first fleet invest with XXX year-over-year increase The to

provide a of along with in with new with tractors in time than taken this use customers come rentals year. providing the the trailers also delivery short-term maintenance enhanced approximately be have X,XXX and with while valuable We of and we to reduction expect less we equipment, cost-effective fuel In expensive The we closing, for safety positive award-winning over indications XXX improved service to for industry. capacity expected cycle another manner. Industry trucking catalysts safety that mileage in delivered more XX,XXX providing and more of the expense, a focusing I employees our remain the putting services like economic and YRCW customer pricing for strong do. discipline everything and first durable well would demand as on as thank for nearly

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

Stephanie Fisher

good Darren, morning, Thanks, and everyone.

approximately year-over-year was X.X% in per Preliminary results will was gain tonnage quarter billion few earnings the June. $X.XX of a on consolidated up property last year-over-year the in X%. increase the company XXXX, which a disposals. segment quarter $X.XX indicate comprised For day adjusted in and the per The keep revenue property million down million presentation Operating increase the which second was statistics. At second $XX.X morning million for of a and from focused April quarter loss XXXX. decreases information compared to from $X.X included and This and which reported YRC financial to of million year. X.X% key an quarter operating tonnage Freight's quarter YRC period income XXXX, second stats. YRC the is reported $XX.X I an comments Freight, release same billion, X.X% of XXXX. day includes included was second this million, my quarter net year-over-year of Worldwide in $X On second Therefore, on an segment X.X%. $X.X for This $XXX.X income in million, for May disposals second of basis, XXXX down July million issued net $XX.X EBITDA the compares

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

the Regional segment. Turning stats the for to

X.X%. in quarter second The for and approximately down of X.X% indicate year-over-year X.X% July June. per day segment's the per year-over-year This in XXXX year-over-year Preliminary X.X%. day was April, down in comprised X.X% tonnage decreases of tonnage was Regional was May results

regional reporting a X.X% day XXXX June of July, last increase a X.X% July As June reporting XXXX tonnage year-over-year year's carriers the and reminder, strong and a with comps increase. in for per were

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

of first The year the reduction quarter cash total equivalents the of more the of liquidity, which million, accessibility was end and of ago. $XXX.X XXXX. quarter the from our XX, $XXX.X terms to $XX.X of which and second debt is a the million, under an million compared at managed at cash was improvement In facility XXXX million ABL end company's XXXX, June than a $XX is

in business, during second quarter, and we to the capital committed are on the $XX spent We million investing expenditures.

total entered capital in equipment of of The We for into million quarter million leases total second $XX.X more than is with $XX.X million invested the operating XXXX. equivalent of double X.X% $XX.X or also revenue. for revenue the a value

as we to reminder, leasing strategy that long-term to this a expense. fleet, Just continue our upgrade the increase employ lease will

will at at Regarding X.XXx credit of credit adjusted X.Xx. XXXX, million quarter months facility nonunion was The our EBITDA second to remains discussed through the liquidity for balance from end maximum we covenant adjusted XX funded not last the EBITDA X.Xx to and YRC consolidated from the the will at earnings XXXX. or end the of ratio income. maximum of EBITDA cash Freight settlement impact covenant, adjusted call, charges debt pension compared last excluded the a These be potential On $XXX.X and in company's quarter's facility the and covenant was charges XXXX. operating

the expect to no in will be $XX EBITDA. included to third these successfully pension initiatives as impact quarter I'm total closing, the and execute $X In nonunion from million results was but approximately were invest the able impact GAAP However, we with and million XXXX. the the on charges, There of quarter in our financial to second charges we further second in to settlement fourth quarters fleet. results encouraged yield

half second and Freight. year, to I'll initiatives we expect call the experience. operations, this cost structure At T.J. customer profitability the the to to to ahead manage our on our over and diligently YRC turn discuss improve our Looking execute time, to of

Thomas O'Connor

improvements the year business morning, at the and year-over-year of EBITDA in nearly of YRC everyone. performance up in the best and of exactly is years Freight million quarter, These price XXXX $XX.X ago. Thanks, kind Stephanie, and of XX right revenue second quarter continuation the ago Revenue good was our right this this adjusted reflect X% a second industry In category the to historically since environment. the secure freight adjusted during to efforts EBITDA. strong increases reported compared

as the negotiations in into opportunities pounds Year-over-year July. As and second the averaged month trend shipments for this strong our tonnage each progressed. was improved second YRC XX,XXX contract second carried especially comparisons customer an market in the and quarter plate quarter X.X% quarter truckload the example, shipment Growth created over as during Freight.

much of number weight per small metrics shipments report. a truckload percentage meaningful remains shipments, of absolute revenue had in handled our we the the a higher the pounds excess XX,XXX on While of impact shipment overall

had While increase on our hundredweight unfavorably positive statistics. overall shipments shipment impacting a per our per and volume results, in impact revenue tonnage the revenue

volume with confident Freight's are pricing benefit the YRC they We balancing are of that appropriately. we shipments shipments network. assist is these An additional

with our replacement pleased to the And possession to XXXX. of tractors focus placed half year, in shift the we so of will far are as been the We have move service second taking into trailers.

short-term short-term made trailers tractors rental our has be rental in the a removing While of will progress. YRC Freight from this work reduction progress fleet,

of forward, needs now focus hiring. all quality efforts have. like any you members this as initiatives customers' Looking that will continued meet service, enhancing happy our to drive and efficiency for safety, questions and as answer I executing to morning. to Freight every their for your would strategic well would We remain of expectations team and Thanks our time our thank YRC the on may each be day.

Operator

question [Operator Instructions]. first comes from David And the Stifel. today Ross from

David Ross

the through in because I you're missed but than Freight faster of the talking write, regional I July? kind I day, caught Stephanie, YRC tonnage that of it, day, per Maybe the what end per April but was tonnage can

Stephanie Fisher

in was a preliminary decreased. X.X%, July are results of X.X% decrease X.X% in of May for April, and a then of it increase decrease an and X.X% June,

David Ross

Okay. in least June? did It And from seemed it like some at go why backwards was building momentum July there. there

Thomas O'Connor

by of we O'Connor. really in holiday in much week, a delta and this Xth week don't at morning. that fell Good When of after the the T.J. before David. month the July, was year I This which just we middle looked first Wednesday. When biggest which week the see was the Hey, is the apart an outlier. take July week, as on

had that's So by the biggest deviation week. probably year-over-year we really

David Ross

or bit and/or freight then can better And talk about you Is situation? regional? a the that driver at worse little any

Darren Hawkins

companies. YRCW David, I'll this a the as year, hiring well. We've T.J. provide XXXX color start with additional year some let active that and total over had then very across

in been. they large turnover recruiting has teams in two to and others, good nonunion ago years in on we've and position it's some year Our had. most the investments the continue certainly like think on remains made companies pretty it I provide that. comparison benefits, challenging to those but that we're Based some a We've

but some with level people pieces the that want have be you of and training and So in, think T.J, add? to bringing be the experience forward. other for that additional people prepared will we're case to moving anything require those I that we

Thomas O'Connor

in is drivers. Not year-to-date over I we've at would to hiring Freight employees including XXXX comment year-over-year hired fact, well add David. and to lot in up, that also that, a whole YRC our just total,

part address things our traditional to So got including in have the to doing very a to We're driving many to help we're license of force. good that them commercial sponsoring that get their very, we've We've driver customers our and lot service creating them done many, become training things of own. dock-only our to the addition driver's employees. traditionally employees shortage, been help

David Ross

environment And year? a did start that Freight, the the go like that And then happen. back to quarter? of lower again then, in backwards It good what might to change OR the for going T.J., year-over-year seems the allow half YRC to why very in

Thomas O'Connor

Right.

but I think can specifically. that changes those some accounting And address of Stephanie were

Stephanie Fisher

Yes.

million losses. a Most and of XXXX, gain related David, the In the And factors, quarter. quarter. in to couple being in that had we of different of $X.X $X XXXX, then in So, we one gains was it's YRC million Freight. a a loss had property

chunk that change So that. million big basis a $X.X a is year-over-year on of

for YRC piece is pension of other specifically, that, Freight The accounting. the

consulting that's then some non-op that And or in expense as we the moving into in the an piece and XXXX, is that XXXX, operating have. to Freight. With nonrecurring big down final operating YRC at change safety now are change some initiatives fees, specifically a from Those of nonoperating creating creating that well.

David Ross

the this quarter kind for or expect X? another a we should OR to be Or should mean, go I soon? way the trend right of

Darren Hawkins

the trailer the down the we Xx reduction they're as delivery rentals, to We the was that. well. along rentals. which with the we a reduced Freight expand was around maintenance piece, expense to continuing progress made those did in along together, reduced, tractor at where optimization driving each those - do would local the have just encouraged encouraging, as YRC YRC is David, cartage progress would and tire certainly bring first, the new I'll to YRC expensive with pickup what predominantly more close miles start driven terminals company like with the month, have at that in in zero. that. that whole, on new is to I expense. Freight tractor net we per looking tractor All Freight, rentals, impacted in those that is than QX, And by The fuel at tractors - additions Tractor we're seeing we said gallon

So half half when results about better second second T.J., anything I else? to the XXXX. in of of expect I the got confidence the that's be where saying think our I that year, than the

Thomas O'Connor

improvement The highest the million, since to of $XX.X second I figure, only is quarterly the that EBITDA XXXX. too, to the up would thing add just is of quarter which adjusted

good years a So point XX there. high

that. we're YRC the So I'll at making That look to on reflects progress Freight.

David Ross

rate. be be if it'd could great a Yes, that run

million $XXX can year. You to EBITDA get the for up adjusted

Thomas O'Connor

agree. I

Operator

Stephens. question comes Delco Brad from next from Our

Albert Delco

into year. did dig the year. about we want of your kind had I disruptions to back from be mean, improvement the just kind half I in the comments of to storms some of last Darren, fair,

in easy, quarter. fourth is comp your third quite think, So I and

on are So pretty of you in terms the can kind of sequential in as do we're of believe saw thinking I just about or easy. basis? the we in put improvement comps Because a it year, back what half QX your

Darren Hawkins

callout second those in there. things of expensive and Brad, were equipment certainly you XXXX, good mentioned. most tractor of a the and a our under that The that situation, short-term part have half all control, we was we rough the It rentals. situation that of that was amplified just

that is addition You heard from of in we're lot me in. of the focus mention our piece earlier the bringing half the a of trailer year, the the now and second come benefits trailers

predominantly not situation about capable rental As XX-foot trailers in over-the-road in we've our the talked the use past, of renting on trailers, network. we that we're

fully and valuable most negotiations the operating good ever a getting momentum half producing some The also regionals metrics. that talked had the equipment, we're have ELD to the at better locations So we're got, through we've you with then time. overnight. and contract qualified driver seeing literally have those happens time. the of at understanding that and stalled technology at One one yield regional think with be visibility that. of year, companies. handheld CDL tractors where before. customer is, while bringing revenue detention asset, lot can that like our our than the in deployed this in and on information also be benefit thing already doing also interesting XX-foot we That trailers, we'll all, now the of when happen metrics been that hasn't we've first reducing to dedicated thing technology I But with about a we've modern that I'm our that fully unproductive we looking But just handheld the the second year add are we'll as have in being over of a in is monetized the the got our rental expense, we're our load half efficiency doesn't average first driver, short-term and overall did It

of from the seeing. half opportunities build So the on of the lot those that year aspects, a there's to second momentum in we're

handle what in sector add certainly but going at Lastly, at to LTL continue I to I'll momentum fully is not just in as national than a a think, my we're being career. we our only any deployed better that yield this on mention dimensioning time have whole, pricing as companies to the

Albert Delco

and just try good the for mean, comparisons I of in kind the color, to on but consolidated may sort year. you first us a on the I focus flat Well, to that's half of back second of be kind of half go think year-over-year performance EBITDA guided the basis.

should What of sort of have we You beat year just sort XQ. you do of improvement . in the for $XX in back think by the or. mark half million . expectation that

Darren Hawkins

at believe drives equipment, in about second around the Those companies. YRCW provide. effort I've is, QX they negative to we're is a positive of for guidance recapitalization that Freight negotiations that the regionals, specific narrow comments And have talked to of we about look some and that that the Further and band I the year. of being appear But that, remainder would the of I track momentum. this of all remainder with we we last slightly year. from of think don't I've the the tonnage and that prioritize over my year certainly second for continue of that yield peaked of evidence I together, tonnage, the the year. the the expectations of in will to have made contract seeing things something slightly continue right be will Yes. the and to that The at when past, indicators, naturally, around be to along only the YRC outperform they that, half as That leading half don't that and appear

Albert Delco

the give in competitors your seen Do guys into this norm your I you a have a the shipment feel mean, up, in today. back you're get about this it, we I you heavier-weighted been truckload industry, like yields quarter, queue. think guess, what competitors. - I I of before the pricing? some sure of like which, seems your lot have bigger sort pressure be X%, sort one network. think per report, Right across second it last coming X.X%, have aggressive market the in lot but yields. to T.J., I'm than of But weight understand realizing seems on you you're color with call now, of of trends kind puts have being one you Maybe freight enough kind lagged Okay. I opportunity

Thomas O'Connor

off, customer-specific for for quarter, averaged negotiations would second quarter Brad. into say first a that, is our Sure, that number, the which continued I July. X.X% the and strong

We quotes number increases rate discount in of surcharge published, negotiated have we system. have of to line a rates allow truckload processes as shipments from that that we'll and the manage to that our that us existing through customers the volume those Transactionally, volume schedule. rates address fuel

helps We of so to I as reposition larger monitor pricing do a shipments network basis. appropriate in drivers back So needed. our our shipments able comfortable with on larger equipment these mind, look use that feel existing volume or of also, coming us we're shipments. customers and to and we one-off equipment balance to balance keep it drivers and those from is deal some to and on for origins But that

Operator

Research. comes question from Group from Our next Scott Wolfe

Scott Group

July? or if tonnage So year-over-year that's hundredweight Can give can worse great. you you numbers per guess, say you July. on if worse got, that And in got revenue better said year-over-year in I that,

Darren Hawkins

did mentioned What on July. that, around Scott. Yes. is into we say, trend We those that QX though, that continued negotiations don't that, from contract we comment

Scott Group

the pricing? look think contract the we'll When do yields you more like see

Darren Hawkins

been at into they that before I closer Freight. you have lot it know that other and got talked I about a regionals as earnings that at And inputs Certainly, think goes the calls. into number. about and you've on than there's those are I are it's well, talked that YRC several

vary. the As yield we're us into at at length pricing CEO, revenue earlier, I translating those revenue haul think I bought for. at I that where an that the it's of equation a overall and Then on of national moving of we've actual overall, that better a look as when at trailers lot course, and look more per overall cause contract the And from company, mentioned mixtures aspect, improvement from And look per what consistency we handle think accurately and But aligning got to we negotiations can certainly negotiations. through metric well. comes pieces, seeing that a those with got such that the inside contract aspect. allows I hundredweight shipment, I as operating we the to number it I the ratio we're price that our projected it. into looking we're

all me - gives my that as of that pricing our So quarters career. companies any is as time our accurate at confidence future over at in

Scott Group

a are today of the spillover that of at that Okay. to say you're truckload seeing seeing And TL-rated Or all? the ago? Can you tonnages trend business business some that what percentage year going there? you accelerate? truckload is versus continue What's to is back

Darren Hawkins

make I the think When real that around it contribute contractual example pounds, movements there's strong still is win we weight pricing gave Freight, shipments. XX,XXX-pound demand of is backhaul those lanes. coming The an and network. ones overall to those seeing at for company. those through shipments our demand any get he's but a sure of there. with What the we trying to our spot the still do, is reduce YRC empty negotiations, we're XX,XXX a LTL over agreements is shipments, that into high can T.J. weights heavier for

around As exposure largest Freight, can one run a regional the there of between those networks. companies, a day and more and shipments YRC X,XXX overall percentage, certainly, Holland, our two has that

Scott Group

back? go an led is starting accelerating or And it offer or still to an number

Darren Hawkins

just in needs. area their of network attacked Holland July because that specifically

as being get out keep with slightly ones and seeing are make and area There's well. we network it that we the opportunities very drove want upward with it. efforts momentum they down head-haul still concentrated even of it expanding the we're aggressive sure So that shipments in the by to we

So expanding. those are yes, shipments

Scott Group

question last me. the for And Okay.

of done use to year? negotiations, how Now want do a negotiations as you their next trying you're you that from that contract Teamster ahead quickly your to what anything for is accomplish? start that And ABS with template

Darren Hawkins

in for look year for forward period the agreement starting the process the as five at of has I a in time. landscape the certainly around We're economy the the last for can to industry, appropriate dramatically time, the only that changed We and make time that at a and year whole. that's comments this us,

Scott Group

Just to from deal? we that and the the backdrop point, back is contemplate last enough giving though, to where need good landscape concessions some of the the

Darren Hawkins

We look most past, forward appropriate the these to we the at in give In commented that's time. at time. starting I that process situations, haven't and the this that

So...

Operator

Our Mehrotra from next Deutsche Bank Amit question comes from

Seldon Clarke

is for Seldon Clarke This on Amit.

CapEx, full equivalent still terms do to X% that In sales year basis? to an on you get X% expect of to of

Stephanie Fisher

X% Stephanie. absolutely Hey, We Yes. from expecting CapEx actually revenue in to X% a Seldon. that are It's of more perspective.

we're slower We first to in We what we will than first a quarter, quarter little going not the slow you've continue of were that the the were in year. but down half in seen two pace.

I Darren heard we're back of additional and tractors think an might on bring XXX in the half additional XXXX say an that going the trailers. you year to have

back we've got to of half here in happen some So year. the CapEx significant still the

Seldon Clarke

several replenishing of investment, just years you of your you up Okay. of speed helpful. terms to of you really to obviously, the kind ongoing really next kind And where where do - get like fee And in where but need an to CapEx fleet? to get terms That's replenishing want be? to it's in over your are

Darren Hawkins

Darren. tractors exposure have we the think you on. number shines a lot and look how lesser your operating that is When over new operate across that that's the aren't we just new improvements in companies, we units of on LTL metrics a equipment and line about haul the certainly that's that local really over-the-road is impact and replacement. in But a of brought this specifically, getting saw XXXX line in about from how because QX, the XXXX, fleet XX% miles your Seldon, Since That haul brought tractors or carrier and came the impact your overall company, operates an of through the just I pickup organization. the and of at operation, we delivery as huge does. our the when tractors

from and look a fleet haul old a So look our at lot of of it three especially say on years when less able you the us year. end that at and of than XXX to that now the additional that is line line over we've fleet between we're with bringing segment, gives been opportunity, haul X/X and the

there? So get left but of the for effort appropriate of that Stephanie, there the ongoing so can be add will and an to able equipment work number in that there's do years, we of a the to drive the there we're most new to company the utilization benefit. areas is anything else

Stephanie Fisher

else. I don't No. anything have

Darren Hawkins

Okay.

Seldon Clarke

That's All helpful. right.

more. one Just

to decline kind think, you it I are maybe anything isolated week? weight through You Or read that? of And from YRC that mentioned is is in of there declines and sense both first give just that, us trended? first Could of how regional week until Freight during tonnage July. all shipments per shipment that a just

Darren Hawkins

way weight falls YRC shipment about of are middle Freight, we've When that when the things. think an it per the to using certainly, those week seen similar. still people trends impact and as on not I the T.J. that has because take But vacation, It's more piece the spoke choose excuse. a we're a the of escalating. holiday Wednesday,

pleased year, stay of of to of this is I'm to tonnage that's with company we're working in. of and the presidents the operating message in my tonnage and slightly do. focus and strategic band that we're Our slightly what negative for to remainder going to positive each to the prioritize that band over yield

the started we've I between and makes in to see on the end the that 'XX exposure nice I 'XX, in want equipment make half now that had first of sense, short-term we're to think escalate the with and way progress that the we've second rentals bringing some the it to especially year. of of and half in

Operator

Milby Willard Seaport from Global comes next from Our Securities. question

Willard Milby

kind A answered, the around lot has have call bit. and little a jump around so guess, from, just on at material of jumped of looking questions I XXX haul, that at a I'll been has But deals, unreported miles regional? had my X,XXX freight of historical, length of impact it,

Darren Hawkins

company. T.J. XXX of there. the consolidated update not YRC I'll let on a for It's haul the Freight. still length impact big Regional, you across

Thomas O'Connor

the for quarter. Relatively of for is down flat, Will. The miles average year-over-year XX, XX quarter the 'XX was which XX second

Willard Milby

comp year-over-year. today decreasing was out All called right. you that And all in press release the $X in expense one claims workers' thing million

it's been while out is that gone? can quarter? happen that a Is and maybe related I down where is claim Or like called liability a to every a permanently came specific since that. something adjustments think you've actuarial that

Stephanie Fisher

Good minus That's quarter. morning, the In second actuarial for we've given that can adjustment the a those from It's range past, plus quarterly $X in quarter. or said actually Will. Stephanie. any million

it's out. on we're little year to more move quarter, development the hard a here. than really settle we call that that's claim for prior faster and, But that to fact based from as bit received reason XXXX the therefore, This the working benefit related claims we a through

Willard Milby

guidance Is million and know impact And pension you we're didn't we right. $X Got that quarters to are to this that? know any split looking could any the have then. impacts those you. the there between you in - hit? million $XX could on when I expense, I time you of are reiterated is forward All is way QX But kind settlement the give to impact. going Or we the all when at us be there on it aware expect a starting for

Stephanie Fisher

Well, yes.

of here math. July. lot did factors into it that that So We trigger there's a in go

third sure. And depending charge another payments ago. until fourth way for way fourth in benefit we quarter, actually see in in there's triggered to we and no days numbers you come will give in, the actuarial the it for on but those a the just quarter, potentially two the So quarter the math charge do you us then

Willard Milby

the sales second I maybe the gains are I'm might but last question or me. in year And for that constantly estate your at maybe any potential real right. of larger sure portfolio, aware All losses? you. looking in Got you result outsized any of disposals, property On mean, half other you're

Stephanie Fisher

Yes.

in of excess in to change of as moved a the two that where the we did terminals had a one-dock we late of docks So some those we some create operations XXXX, facility. that result we did capacity

for those properties. looking to two find we're open opportunities So

year. So potential coming the there some the of be items half back in could

Willard Milby

And you are the real in maybe be they might looking favorable to trend for markets similar result losses? all? estate more these Or will where where are you properties other

Stephanie Fisher

I favorable us. could be for think it

Operator

follow-up next Stephens. Our from Delco is Brad a from question

Albert Delco

rentals these Darren you? costing are I'll think maybe be beyond Stephanie, you your X,XXX trailer on rental to comment or So or that units, T.J., about actually onboarding these what the of might we expense. could as brief. what do

Stephanie Fisher

monthly about a on the rent that like I basis They're apiece think, basis. monthly Brad. versus, on a long-term $X,XXX Yes, of half is

a adding it's number amount up you big So start have. if the that we total

Darren Hawkins

their a pups and operational and nice those like lease won't come I were of that out are ingenuity, of is And like that to also equation naturally. agreement Freight. over have the able appropriate that to opportunity, buy retail job large That's it. T.J. done And bring but an new through headwind a when that immediate has locate you opportunity with YRC an a trailer, that the with a through fleet the side also purchasing they opportunity

in like of put half year. the the for the second their they together So trailers I way plan

Albert Delco

Okay.

are that $X quarter. all So these of roughly a Is short-term rentals? million right? And X,XXX

Stephanie Fisher

closer For trailers, short-term it's it's to about X,XXX - rentals.

Albert Delco

fuel freight on is where it comment or you today? then And given have for guys Okay. Can you economy before. regional

Darren Hawkins

as actual It's out. with But improving. the seeing nice area. the you gains, these utilizing with efficient numbers And expect, modern We in fuel gains would length metrics. we're in don't those saw haul per is and equipment those replacing and gallon tractors having type of new in the impact a naturally, that miles longest mass we're give that positive tractors, of We certainly QX. also

Operator

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

Darren Hawkins

long-term the believe our our assets serving any investors to got for overall climate call I'm intend improvement networks, to continue to for transportation employees our we joining that well Thanks, and Tony our back follow-up positions we customers We people, industry again, business Operator. the and investments for and long-term. benefit believe if remain continued This making everyone Please will our concludes to you've that you. the today. Thanks. growth. and dedication Thank you, and strong, The our YRCW contact and us turning call, operator, customers, questions. our

Operator

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

You may now disconnect.

Yellow (YELLQ) 2 Aug 182018 Q2 Earnings call transcript