YELL - Earnings call transcript Q1 2021

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Operator

Good day and welcome to the Yellow Corporation First Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Tony Carreño, Vice President of Investor Relations. ahead. go Please

Tony Carreño

and first operator, everyone. to Welcome Thank XXXX good earnings Corporation's quarter conference Yellow you, afternoon, call.

Darrel Chief Joining us Executive Officer; Interim Chief Darren are and Financial on the Officer; call Dan today Harris, President. Hawkins, Olivier,

this The on within meaning results statements are format this forward-looking and a and call, this number of risks some that statements historical may These the all uncertainty law. which differ we other allow make to securities actual materially. risk might factors. not During call, statements discuss forward-looking may subject federal be not are does facts, fully all of these and call of to therefore, us of made

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

or please the our see is X-K, to over which the presentation release reconciliation with In for be adjusted a a Additionally, filed in on net was and today’s The along earnings with website. during earnings the referenced available issued I release, a Darren. now will turn may release EBITDA. presentation we to loss call. conjunction today’s an income of call

Darren Hawkins

good Tony call. our and afternoon, Thanks, everyone. Thank joining you for

leadership our QX all In President as would like responsibility of new I year aspects to overseeing enterprise for the President Initiatives our of to results, company promotion, guide Corporation. Darrel’s one of his transformation Yellow the Before Strategic becoming the of I He details transformation. yellow. primary Vice role, into get Darrel his joined of will Executive the with last congratulate the

him Xpress career, his will innovative whose to I an Yellow, of company's solid help year has Chief XX Systems. Prior energy future. most with new success with record track and to Darrell ideas extensive experience, his look the Executive inspirational role. he recently Officer joining leader, LTL Global as, is and forward experience. a served of built working guide During he

had QX, work Turning for an it into to impact network challenging a that to a can to us weather, March. recover. American network with significant recovery take severe and our expansive winter on lasting Trucking requires as through weather outdoor the sport our North fully while

XXXX of One the and recovery completing of events the from expected yellow will quicker. similar time the transformation, to be one benefits the is much weather be

and are Industrial to impact QX. momentum we consumer and look from optimism economy trends have continues demand recovers it As ahead, contributing as year-over-year yield COVID-XX the tight build to trucking into the pandemic. the carried environment. of capacity Favorable pricing strong a

of April, averaged around month the For Yellow on contract companies X% the negotiations.

the the hire factor of drivers, purchase trucking impacted to tight our expense transportation wide to unfavorably Another drivers need capacity an contributing industry shortage and QX. qualified is in more

We have mechanics hiring two more events launched a focused drivers, dozen nationwide recruiting than recruiting dock workers. drive that and includes on holding

of have driver locations expanded XX. number the We also to academy

families competitive In carrier, our every can home night. as drivers at LTL to jobs their of most good be and with offering addition benefits an

professionals are Our our most to we XX,XXX working is nearly important asset freight of team aggressively new members. add and

the These most maintenance will expense efficiency investments help more impact of first a and XXX should containers, also late the in over of our which by added and we tractors, quarter. over age of fleet on refreshes our the trailers one than have were made positive X,XXX company's delivery fleet on than During largest taking quarter, mitigate time. history and more in of headway the X,XXX

For million. XXXX, million our $XXX expenditure capital guidance between and $XXX remains

one going speed, yellow choice, market provides visibility reliability. one as means. what means to yellow Next, simplicity, and customers I would like that to brand share It with

yellow sales be means continuing network. team, customers and also invoice. Our interact one XXX,XXX yellow of the one right customers through customers to bill one yellow the our yellow receive one There will Culturally, will shipments one employees. will move do with roughly thing who and lading our will for

provides the this to for progress turn completion multi the one also be steady will cost year that quarter. and are the making on vision the benefits expected it single unfunded This middle Corporation from many companies will by about other schedule transformation retirees substantially a additional step employer to of act team. remains the protect enterprise the Benefit for Act in pension mitigate call is towards the the yellow, application the was March, and will now the and Act many plans. underfunded The of hard XXX brand to industries, I in strengthen Pension members signed to share XXXX. Dan, large next is plan liabilities day XX eligible passage who with Guaranty the of critical years. XXXX structure and multi aligning are into our We and LTL for rulemaking severely is completed relief the rescue followed will The carriers. details The summer. American In wall. this earned of period The yellow passed finalize plans rulemaking including pension their over process

Dan Olivier

you, everyone. Thank good and Darren, afternoon,

billion year, $X of revenue included property sales, loss compared prior property net operating $XX.X was a a million compared For the Operating operating the net million the million billion which first on XX quarter XXXX. included on gain loss $X.X sales. for $X.XX $XX.X in quarter in was first to which million, XXXX, to income

compared loss to and $XX.X EBITDA sales, quarter in million the XXXX. $XX.X the first quarter quarter gains first Adjusted million $XX.X $XX.X million XXXX. compared first a on property the the net in losses for in quarter was first loss operating of the million was Excluding XXXX to

operating first during costs Darren quarter, severe As we financial Central impacts materially the mentioned, the mid events weather while operational income network. always anticipate events events significant first in our February And higher adjusted our impact those a million. of the during weather and Corridor to be and spanned quarter late of that EBITDA the the across had to on impact the impacted South many impacted southern approximately $XX states estimate We and US results.

quarter first growth follows. day LTL weight was the On X.X%. prior and preliminary April reflected were Sequential per X.X%, up per to per X.X%. basis, and as tonnage up for revenue LTL shipment year tonnage LTL day year-over-year down workday the per of up approximately tonnage March trends was X.X% down January Our compared February X.X%, a XX%. LTL

up shipment fuel the prior X.X% LTL were and compared million, the was year. million million liquidity for $XXX $XX the revenue million, per of to LTL Total end revenue was only first quarter first X.X% Total XXXX. per up first revenue the quarter surcharge, first at to XXXX. up $XXX was in expenditures the fuel X.X% X.X%. compared up the shipment per hundredweight the surcharge, $XXX at compared quarter LTL capital Excluding and was to of end LTL hundredweight was revenue per Including quarter

As to still in million. you expect be $XXX $XXX the expenditures of heard Darren, from we million capital range our XXXX to

the quarter, rail the purchase on our strong of XXX plan XXX During containers. X,XXX we continuing of tractors, level second and approximately trailers CapEx, including

the for Now update on brief US Treasury loans. a

tranche million A $XXX the First, loan.

of of the the down used. million be tranche A a drawn reminder, million loan remaining $XX all As as was and end to there $XXX of XXXX, was

will use $XXX $XXX the loan, Related tranche $XXX million first next to that tranche during expected, had be we we of million A drawn no down million end as million. the the quarter, such, the the in And As we B tranche there April, $XX activity. as quarter, first of of and B. received

to draw a total drawn down So in on now, quarter's headwinds the total. continued elevated and as strong remaining with first half last of the purchase the driver would million And true. be the shortage, demand, $XXX an financial we the discussed of half industry we economic expect through With have of to we costs we call, back earnings of expect XXXX. the still wide million million of $XX $XXX combined persist finally, And transportation XXXX. that

those forward be remain With through necessary will to prudent financial continue call also and the I taking XXXX. our performance about the as that, we to actions we However, we that Darrel. costs, move we over confident mitigate are optimistic turn to

Darrel Harris

I serve I and time I'm freight you, exciting a company. want be our professionals Yellow I meeting look committed XX,XXX It's who Corporation. and our expectations. to are alongside honored very afternoon, to begin to of with proud good Thank President And everyone. our forward Dan, to working am as by saying to customer’s

on process operational This structures anticipation with streamline an and And point Corporation, brands company we Darren to we network. our shared in moving of the resources, currently, officially well of to our this company eliminating in do operations, are As journey we're with our safety human solution. technology Yellow mentioned, easier service, will flow to the renamed This enhanced wide LTL Earlier XXXX single our contact, for holding a and one to customers The onto the maintenance, rebrand sales Yellow. us, year, technology redundancies making provided we also brands. one information it sales, platform. business customer Yellow. of when while to began a of one all in way the of align becoming

to the customers more way continue in the faster, have can get before. efficient easiest, offer we next access in network service and Yellow, we'll all most asset give while One will our customers of As create our The Yellow, to lanes, broader offer service, next to yellow business. integration efficiencies, our is locations regional improve our And we as market will day year, with we strengthen possible. never yellow network on and complete One and the meeting multi-year will providing network our Yellow to growing transformation services. enterprise customers One a When laser-focused of needs go

In customers, that steps the of restore plans we're quarter, we volume the we levels the service with to the equipment contributing placing transportation really took and our in capital into rental expenditure making first company's are purchase to in see in our we already history. process our of the of addition one enterprise XXXX. short-term for appropriate It elevated progress transformation, are implementing network expense. to In is the largest incredible to

as structure. us, cost to short the momentum planned equipment actions rental purchase gain term the our transportation our take to We've in and rising we our line number the hiring In the certain most of expense full lastly, our of retention haul arrival managing Number drivers. transportation One my of Number lanes. be And action advantage in of locations priorities requiring high in With are while strong two, to of of weather locations the closing, us we've allow term lack adjustments delivery customers' rental Yellow In one, the transportation, execution also short which and taken pricing environment, include our firm And very we've strategies, to consistently to utilizing Yellow, purchase expense of purchase within due immediate going in minimize straightforward. made reduce as future bolstered These as expectations. behind President forward. levels here meeting summary, network about disruption successful in initial return new transformation three, of impact hiring the equipment. more the excited XXXX. Yellow. cannot completing tightly enterprise our I will and

I on but I journey day. to professionals what over have some closing thank to right the Darren XX,XXX I strong for are deliver and We we to them who environment. customers special the look now makes expect our want for becoming plenty freight to working us alongside fully and advantage every call freight Yellow. forward do, and truly They this are path turn take I comments. of continue the work of One back to to to on company our will each the

Darren Hawkins

Thank you, Darrel.

road for our at to any of transportation your the end strong remain quarter well-positioned all the we expectations our about our happy we afternoon, multi-year the and April. enterprise March in of near-term saw we confident one As answer capacity, momentum We history XXXX I from largest are questions in headwinds, first this we encouraged company's you the have. have yield CapEx that by the time progressing, plans and that With now are be purchase ahead. are beyond. this along heard transformation weather excited in may Despite and would and the afternoon. I for high team, with you Thanks LTL tight the

Operator

today [Operator from Please first ahead. will go We the Our question session. question-and-answer come will with Atkins now begin Stephens. Jack Instructions]

Jack Atkins

Great. for taking you questions. my Good thank afternoon and

Darren Hawkins

Thanks, you. to from Great Sure. Jack. hear

Jack Atkins

early maybe March. network it to can let's your big Well, I into so moment, and I think a kind guess, we a if and of Darren about February in start trended Obviously, quarter the impact weather and for sequentially. was guess, pretty how

You pretty that made clear.

Could came it operating got also -- on may salaries expense my little bit wages. Because be for you buckets material preparation expense what fourth or two -- you expenses that and in look those You've yield the end. momentum into expenses the may had there, business the focus XXXX? and some like pretty supplies first from side. pandemic-related maybe coming at you talk about recovery the I’d question in could way, and in around quarter that into demand increase like just a in be a back the first for reduction was drove significant particularly quarter headcount cost and a removed back Was

Darren Hawkins

XXXX, of $XX at in million flat, with environment, you the results, the this, all, and property this I'm pleased for not with Certainly, start and it's excluding Op when in $XX these the QX of in Yes. weather Jack. pleased million not And $XX -- in that. first versus you I'll sales yield million QX look put even loss essentially

when that month is great run quarter, However, of and moving I'll to from the at as about yield weight, pricing. purchase expense script the an say reinforce forward, to as fuel utilization Linehaul the us transportation align including give you per customers. take just our ask to needed, also will standpoint, XXX in to operation also our for to I on of It and proper that network. the our And mentioned care of Darrel allows key we're where each think you some revenue metrics surcharge Dan progression

network. an done that the Now essential into things direction, driving using key wrong we that of area, optimizing in is of the get get some but moving out expense purchase to the for transportation the our loved expensive customer, purchase right transportation but forward in proper regional to QX without did use is

advance as would further my the like we QX to start yield mind mine for level expensive been our So most from exact out trending. in pointing these And of it an yield Dan comment. well. the call, was called why exposure how about April give everyone expense comments would perspective renewals that highest our earnings hiring That's I category, have numbers still we're But QX, Dan you numbers just to the of to that that with we're concern. seeing piece contract reducing keep of also Dan last by on but if lines. as my gives to strong

there. from it take Dan So

Dan Olivier

update, Yes. In January, you Darren. March obviously, our our in March accelerated my up including our fuel X.X%, up as for opening February, touched X.X% heard up that on the Thanks, yield, quarter. XX.X%. yield comments, we that In reported total mid-quarter surcharge Darren was were as we're were X.X%. we up we In

couple continue. averaging yield things the priorities, other cost one that that this with So would -- continues items renewals if to -- the up clearly not top mentioned. to on And A are expect be contact our to We performance our we're and of you between X%. our happy X% point. Jack

million all, in wages lot falls the operating weather of, bucket, a the expenses. salaries, of impact that naturally, $XX it First into kind benefits and of that and

an where just of than really total impact that impacted. perspective it’s more on quarter then quarter cost well. the that's first the other lot that as And has quarter the just So one from days did, point had itself, that working three a fourth a there

Jack Atkins

that Okay. That additional makes I color. sense. And appreciate more

renewals that up Going Is back interesting but April, to the in about on contract that? was contract rate, for quarter any that maybe the to compare to you plus way average signed there commentary just talk first the really X%.

Darren Hawkins

the were X%. first through came X% to we quarter, as Jack they Yes,

renewals contract the stain. were So building

rate as took this we well. know, our year February general As increase in you

to that started benefit those have and renewals strong. remained we contract see So

is So that X% as X% guide, to to continue well. a accelerate good and they

Jack Atkins

ranges to We're higher for Could Okay, And hearing revenue with Are which sense. rate okay. in Understood. potential accessorial if of carriers. side yield opportunities other a similar from about then talk drive the contract that call moment, maybe as on X-plus-percent area the, just per you up as makes lot increases sticking are a there it, well? shipment? a range,

Darren Hawkins

to Yes, absolutely. to the of collection carriers, to in times, and of doing is that drivers the of handheld disruptions trailer customers piece we've has and year aren't customers The we've and just tie an all retail into all availability become because e-commerce, continued side what's it put the something us devices opportunity pandemic, that recent sector and us accessorial actual And quarantines, it They're shortages, and seen even weather recording on been but capture better of at, for with the with a those things other attention. much explosive allow those ELDs and growth container happening as crucial intentionally. is LTL and those together. up, that doing beginning vaccinations, impacts, since the trucking others be continuing us with also lot the this large

we're of to those also we've residential rate detention there's in what the rates. compliance including other with the being So higher pay deliveries, multiple so willingness areas accessorials, tight. then seen much And past for seeing them HAZMAT than capacity a

Jack Atkins

Okay. There your guess it. lot you. I your the of one's And business. Darrel, congratulations that this within need are, areas on obviously, right. focus All promotion. on a for Got

your impact initiatives about we're that next to here think undertake drive can what you think capture highest strength and you months, As in number be you the the number market? really seeing are two the priorities, profitability that XX the going you improved one, to freight level

Darrel Harris

to our key the successful as hear a and regional I'm pleasure mean, both to we transportation We're execution mentioned, me important, I to customers Yellow, But our both one you and as success extremely for its discussed, of relative we've our customers to of over our purchase underway, your really truck services provide our track. future with our the But long-haul focus for own on to to and of and and expense. that and our brands the Yes, Jack a we One employees. I your going easy and obviously, our to offer, daily point, mean, plan point, phone. well initial we're that's Yea, you, that's thank costs technology. really component driver. to access reduction discussed, for transformation to one got focused And line it's call, sight one with the with I

a focus, of environment controls perspective. profit on is business margins We should here cost necessary the of course, from And have our we a fundamentals yield the great and to the that have this in market. drive

Jack Atkins

recruits? think putting guess, we that's for in hiring start I the you building you think And this second that purchase out enterprise? are turn last should going impact question. Okay. either year it's efforts, Is quarter? could I for or pipeline's impact the the you something pipeline early, but over. know that of of I looks think what terms profitability we second the expense releases, do When to guys talk about in or pretty when regularly, half overall having start think level I'll just just of the level could could of it your seeing new press an you still transportation you the and like about, do

Darren Hawkins

when that's us. talk making purchase that addressed. that area XX Yes, getting internal headwinds going is we progress lanes about first in to half academies Jack. pipeline we've right got about to in internal in But driving per dockworker. one. of an certainly the point in the your and our script, comments Certainly, on I'll PT the And pipeline, transportation pipeline on to Darrel crucial as the the we're And jump year. Dan's see prepared that --

dockworker, move move come So a driving in you're -- career you we is paid. the in path you to the getting academy while -- as still

driver. conversion You CDL to can box from truck the truck box also the route that's and go full Class we where get grown A dockworker

for in that That's to continued over or that If there we we've academies. four us it or goes we've then one convert area that sense with makes pop-up number instructors three academies them, beyond those accordingly. in to put target got to dockworkers why of areas. truck driving benefit expand the So box CDL get and with the

strategic these being first. that the So employees that's areas putting why we're we're in into

have in So confidence that to pace, pieces. improvement QX you're going see around that we those

Jack Atkins

for Appreciate time, Okay. Thanks the again guys. it.

Darren Hawkins

I it, appreciate Jack.

Operator

will from come Group And Please Scott go ahead. our Wolfe next with Research. question

Unidentified Analyst

guys basis the on about over to headwinds transportation It's point discussing? just first quarter Good in Hey. initiatives the you from in the ratio, light Rob purchase in the some as of evening, seasonality XQ should weather quarter guys. XXX see the Scott. to of that about well How second year? as first we XXX for [ph] experienced from we XQ this you think quarter, the Typically, operating improvement of kind to were

Dan Olivier

that when significant I'll Yes. percentage I targets X.X that a at about and improved QX guidance now. Considering Scott, transportation chance Historically, actions we're we than QX. we'd one. XQ, even some you profitability touched margins, and take at about better that environment on that's Considering the to it perform weather about a XQ this we expect provide a to we're or talk sequential to in, X we don't had that economic Well, around would points in purchase is taking trend. specific those or mitigate historical behind you that costs, from bit of but from to our to Dan. little about stab especially overall, that the and talked think it.

Darren Hawkins

the Rob, on. into forward is, we're And like it I areas about your that question the Yes. part goes facing

when largest our we're one we plans CapEx of that, about in middle XXX think the in the So year history. of

actually funded side and multi-employer pensions, one with the next As next, forward, and we're of moved they're side the our customer comments no over is done away matter legislation the non-union single be environment, years. of in the fact, on Yellow, significant on technology over Yellow with network acceleration the right coming that New Darrell, moving completes you Also XXXX. well mix With employers, they're heard yield facing disruption, of XX Holland where one our Dan's you good any the confidence news forward. to contribution went union tech last positive That's first fully Yellow seeing. Penn Yellow that from our for recent without just front, in on half we on year, track, that'll of one this the the

Unidentified Analyst

is That's a you've costs a nice expense our segue kind a that, a means inflation, well operating into as at you kind walk us for standpoint. historically less which cost little a a cash view through from rank now this some of from Darren, as down can kind listed see But funding we really kind that this a can of how that XX-K, as this this pension thoughts pension non-event that the the reform. from contingent flow, you as future of of impacts that bit to brings get is inflation. down to ultimately and of Yellows But full contingent, as filed? curious in to got to be expense cash disclosure XX-k well, the alluded at over get point, probably file, liability flow later looking decades seen your time. accruals we're your withdrawal come for XX-Q I'd and But we've year a potentially the liability

Darren Hawkins

Rob.

good As got comments and well very on your are how and very this a Yellow. applies usual, homework you've at of you've done right understanding your

as for. is thing hard allows all that very say they've to pensions employees, and would them I current very first development our worked and is good The the for access this retirees our

bargaining know, agreement. our rates pension part you the As are of collective

So the those in of our through which current are for goes life locked XXXX. agreement,

over accrue take subject. I pace Dan before how out, this let called skis from but and it, way that on standpoint already really, financial You've that for a get will I we the my

Dan fill any -- go there's not that points ahead and left, we but So many anything in missed.

Dan Olivier

making right, a contributions expect Darren. financial to Yes. and to multi-employer the the to congressional degree bargaining Scott, plan, continue Thanks, perspective, all our required we agreement. collective you're from pension

liability we've of on don't not pension sheet. withdrawn balance carry any plans since in unfunded we the those of from obligations past, or potential that However, our any

your on to there's immediate no So impact exactly financial us to point that.

Darren Hawkins

we once the time. mentioned Yes. we see the impacts comments, understand update more prepared together And then we'll then forward you in the period all move as I over in to rulemaking we that of once happens continue what

Unidentified Analyst

I tractors That's question, turn over helpful. delivery of picked and And my you've before quarter. first of obviously trailers someone final in a it to else's, bunch the

heard I quarter. delivery going be think are second guys in that to north the taking of X,XXX of you I

I you're if kind any and be and guys you for receiving get difference tractors if there's total in So of some trailers could the semiconductors sort just issues we're if because XQ, of the the terms news, -- of of that about chain -- will number your helpful? expected that a of lot like timing, supply in that from hearing hearing be in would

Darren Hawkins

the Rob, question I'll And, start with back half your of on issues.

using. we electronic and did They've The and we others. like were production the able had, we're those. job great that of providing to two done overcome others, We logging into and equipment a few have issues this run we had got a dates not run additional into the some OEMs time. we've at we devices But any with them

taking on delays any unit. the see delivery didn't we So of

time, let point other we and things this at you good the we're not that And have by Dan ahead, chip shape. So in numbers. shortages Dan. in Go impacted go mentioned. been I'll into

Dan Olivier

fourth We taking and tractors started to trailers the already quarter. going delivery Darren. Thank, Yes. back of really

as X,XXX X,XXX when trailers. roll brings think had on XXXX quarter bringing trailers then tractors three another first to we you the through X,XXX be next in and fourth us mentioned. up tractors, tractors, us quarter, In trailers, to within X,XXX of months, here. did the about X,XXX give two So or That you the as expect And QX. XXX we that trailers delivery had Darren I QX, tractors mentioned in the and we'd XXX accumulative

of tractors with through will X,XXX X,XXX once we and at So that, a total be trailers.

Unidentified Analyst

of the and tractor what's in you total trailer purchases this year terms for plan for And guys?

Dan Olivier

Total at about looking to tractors trailers and we're total X,XXX. between X,XXX, X,XXX X,XXX

Unidentified Analyst

Appreciate the time, guys.

Darren Hawkins

Rob. you, Thank

Operator

next Please Research Jeff ahead. Vertical Kauffman with go our come will question Partners. And from

Jeff Kauffman

everybody. very you much. Thank Hi,

Darren Hawkins

Jeff. Hello,

Jeff Kauffman

left. Hey. any I questions don't know that there's

Darren Hawkins

here, ground of that's Jeff, lot a covered sure. We've Yes. for

Jeff Kauffman

here. Well, can let come with what see up I me

So you're you Can bringing is equipment equipment. this D&A than have going new flow this and probably on how higher about value bring to in what talk going you on as you're affect all to your books? cash

Darren Hawkins

certainly publicly Well, out our age. have oldest fleet and the not equipment though we goes discussed

and newest units know, down gallon tell QX with ensure and highest can another in box Class over mileage oldest fleet to programs. those kind the Dan with at expands, the shared, you miles trucks, tractors uptime, it, straight a of year. the those us significantly. our cascade in to equipment XXX on X,XXX deliveries the that age As look year. That's the we numbers remaining late though X,XXX And out bring trucks roughly network going going fleet give fuel what these naturally, the units you going the time see and the for You And age, pieces into then of quarter, quarters consistent warranty came although, lanes, should the over our all benefit in maintenance per when

have to of positive And on that's discussed, financials this while our plan, a our Yellow. one we're part through So that forward. definitely moving we impact will as transition a very big going

that I there So, missed front. anything else on Dan, that

Dan Olivier

and of go a the tractors back part the -- XX years of I generally use We've to both life question, useful just D&A of Jeff. trailers.

can as So a kind don't do math of a currently, percent the total specific on equipment and have you while that new I CapEx number that. our apply

Jeff Kauffman

weather, the give ask question, in if the got here, everybody mean, and year And me adjust but this I real for obvious even estate weather for hate gains you. to the prior Thank affected I I by the quarter. Okay. credit

up than this wasn't other really lot carriers a cost more transportation most LTL purchase Your quarter. whole

with right came of yet margins points, costs of rest your line whereas XXX about basis labor went went points. were rest the down up in basis the the industry lower, industry, yields in XXX, your Your XXX the

So down that meaningfully what your believe this understand that else's nobody trying has do was? this the tonnage weren't other Was any rest reported underperformance you industry? financially of lower? your company of that about causing LTL from P&L just X% I'm yet was out metrics the X.X%, your to was quarter, versus line was really

Dan Olivier

one from location comments brands proposition. The too. one in I still and our move national much parts one of When initial cost, and apparent when that a system, become can at idea spoke glaringly and aren't inline, of question a you've use accustomed yellow. and to happen prolonged storms, fair networks about stressful our the those winter times, brands country that certainly another customer's difficult got the having of my hub things networks recover made also a Jeff, spoke regional is events behind behind quicker need of that during that the weather like I current to

together, to put we Yellow reinforces when the that do go. just right to it our is thing strategy exactly One and all So direction that the

started as Our the We open and network country. across but recover this and complex, more it'll and more agile will to able be we be centers less more already. process velocity throughout

YRC Freight. service what we now right we've what territories see those we You Rock, that did haven't regional are we're done what done Little where in through in regional Richmond, had providing presence, Texas, in we've

in first So just so half few have few in read Holland. by quarters the time, a technology of the we'll quarters, XXXX, pace away a and

have companies the this we first trailers, terminals by huge. we'll the is the drivers Richmond, XXXX, we all of of trucks, regional have to regional carriers all the going already all environment and have but the one will I of what talked technology the with X Yellow where half of technology, and system employees for this present, Little longhaul drivers we've about one on across already all own having year, be all be use, and to the connected network our benefit the to asset will we'll networks, we've the technology utilization fans from New Rock, visibility same The side got that but done X X customer at etcetera. Texas, company just in remove service then

align exactly with structure Our LTL not now on does single mission call carriers and what we're brand a fix. large to right that's well

Jeff Kauffman

right. All

may assessment? of So go explain as over end costs those all change redundancy you've systems transition and as some that difference And never know, and the that in like we of Is with a inefficiency fair the believe. day, the we'd smoothly that still and these to got you have network.

Dan Olivier

job Yes, that. did we excellent summarizing an

Jeff Kauffman

on I but just to go to replaced an I And the your environment this the but back this unbelievable yields. right, to All not hand, question. It's the, sustainable, not last for you mean, anytime yields. away want other repriced what's at point? for GRI, know to soon. have took still you XXXX been be contracts I What said the percentage just of remaining going year?

Darren Hawkins

something This is looked at. we've lot Jeff. a Yes,

quarter. contractual And piece the the well know, contractual much is were piece, you balanced so than across pretty bigger GRI. As

of at quarter between balanced So they're if also we number to we the you handle staff negotiations, the each look pretty the do, year and way of that. evenly

as the As thousands customers, is that the now of under and of contract. you of is majority business volume know, thousands

us. right And right also the now. negotiations of lot very they're up, got And -- frights renewals front It’s can that also going budgets the understands our not Its an going going direction to those Naturally, businesses in but ahead Everyone transportation they working ambush. all transportation well. customers. lane, in of these so are So right us. secret, run time. We're the make pricing moving we've the customers are for communicating with what's they're with in still effectively. on no in we're good that environment. And sure a their working of their

So we're quarter. across pretty even each

Jeff Kauffman

All right. Thank you very much.

Darren Hawkins

we in and strong way. QX, this started we And a started in

you. you So at us the point. halfway really could did mark I right Jeff, loose

Jeff Kauffman

on. No, just I it you. Thank was I'm you. good. Thank passing

Darren Hawkins

conclude to management will back session. to Jeff. any our conference closing this like question-and-answer Okay. And Thank for remarks. turn the you, over I'd

Darren Hawkins

any concludes and you This have. operator, thanks to back who may again everyone to our operator, and call call joined Please us that turning you. additional the questions Tony I’m contact and you, Thank participated with with today.

Operator

does you today's this have And time, and presentation. attending this disconnect you. today's call. may lines Thank your day. Thank now At for you conclude a great

Yellow (YELLQ) 6 May 212021 Q1 Earnings call transcript