Yellow (YELLQ) 3 Feb 222021 Q4 Earnings call transcript

Company Profile

Participants

Tony Carreno	VP, IR
Darren Hawkins	CEO
Dan Olivier	CFO
Darrel Harris	President, COO
Jack Atkins	Stephens
Scott Group	Wolfe Research
Bruce Chan	Stifel
Jeff Kauffman	Vertical Research Partners

Call transcript

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Operator

Good afternoon, and welcome to the Yellow Corporation's Fourth Quarter 2021 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Tony Carreno, Vice President of Investor Relations. Please go ahead.

Tony Carreno

Thank you, operator, and good afternoon, everyone. Fourth Earnings Corporation's Call. Yellow to Quarter Conference XXXX Welcome

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

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

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

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

Darren Hawkins

in were of Tony, deliver that reported what $XXX.X we helped XXXX laid our everyone. XXXX. and strategy out by year. EBITDA Thanks, reported and in to executing Thank results is ended our initiatives afternoon, early million, joining call. double for staying and adjusted We good you for we the on Sticking strong course which QX, QX the

Yellow operating focused through QX fuel have the hundredweight, In capacity-constrained XXXX. the favorable brings the In XX.X% year-over-year LTL lowest that per the freight increased on an freight and ratio of trends environment, carried capacity flowing price XX.X%, market. into of including We revenue the QX, years. remain to and value which a network and reflects is pricing in ensuring right we the X also is reported

on contract For Yellow the month January, of negotiations. X% and X% averaged between

execute that we saw the our tonnage expectations. As in per yield LTL we strategy, in was with line QX day decrease

have freight priced that and on is network that appropriately. We to capacity fits the take our

operate we return we LTL super-regional transform as per expect a to to day. to tonnage carrier, network the growing As

Another as during the than revenue certain to of Actions expensive reducing area transportation short-term XXXX took of emphasis PT expense was purchase adjusting use In acquired points expense the and minimize to decreased purchased percentage was in QX, of we was use steady down of revenue XXX as the and basis XX.X%, the in a each of purging QX. which more better linehaul lanes. of equipment network network progress rentals our transportation. included amount We quarter made we the year. it

map transformation One We and be are the also to technology the is the on of planned executing multiyear platform schedule. One as Recently, Yellow. key to converted Holland final cornerstone to road platform. was us pickup of integrated the streamlining to integration delivery the network operations. as includes of and as and and to service regional operations. linehaul fully optimization our both XXXX, One to our continue the steps was completed technology company It enables long-haul network Yellow The on Yellow well In operating the support

containers, improved additions roughly the trailers, XX% X,XXX, number history. more quarter lowered assets. and of fourth fleet. have X,XXX, plans XXXX, the trailers up million. added which and than time tractor end which nearly through was from of The and XXX-year was is one than Starting invested box include the help safety through is of age of by sustainability number and acquired over other more You investments gates trucks, wrapped the of our around frame with XXXX fleet the in lift are maintenance technology, and tractors Those of nearly this will mitigate $XXX the average In The we tractors, efficiency. efforts we the company's this expense largest hear more enhanced X our fleet about expected QX, approximately of expenditure the fuel Darrel. to years have X% capital

expect As XXXX. the we look have ahead, we momentum to that we carry generated into

labor super grow and customers with financial will improvement. We a customer we and to demand, Dan, Overall, experience constraints with steady lid to deliver By we providing I healthy staircase One a economy an enhancing complete attributable while additional to LTL the who the the as disruptions about chain on the all-in-one be are with from Yellow. COVID-XX turn our over pandemic a share capacity. modernized a quarter. will company market the regional to transformation will strong industrial details solution, supply of the call and now remains tight consumer network keeping expect

Dan Olivier

to Thank gains Operating Full year, you, was XXXX. million $XXX.X $X.XX to $X.XX XXXX compared million million in compared sales. property the Darren, billion was in on XXXX compared in XXXX good and EBITDA $XXX in prior afternoon, included $XX.X year net XXXX. was $XXX.X of full $XX.X operating income Adjusted million to million billion year which revenue everyone. for

compared billion million the XXXX, EBITDA was prior the the income For compared $XX.X XXXX, XXXX was operating $XX.X million for in to was in $X.XX $X.XX of and quarter fourth quarter revenue to $XX.X XXXX. billion million $XXX.X million Adjusted compared in fourth year. to operating

the prior year. XX.X% fourth was compared by revenue performance, executing to up continued strong was per growth XX.X% reflects quarter strategy. we lower offset LTL hundredweight LTL targeted pricing Including in up shipment the quarter fuel and per surcharge, fourth yield our XX.X% revenue of as revenue volume Our

$XXX liquidity million XX%. at at compared year XXXX expenditures year-end were XXXX, year-end a million. a expenditures October weight XX.X% $XXX a be the compared $XXX to year shipments and LTL January capital trends million we Total LTL XX.X%. approximately $XXX revenue down was workday Total of was LTL tonnage the fourth down per to was we a full to Excluding per capital by follows: ago December in decrease XXXX. shipment On prior fuel our million X.X% driven range LTL as XX%, plan X.X% and was and X.X% full up preliminary in and the capital LTL the of XXXX million. $XX day November day per surcharge, LTL refresh, $XXX million In basis, year $XX was cadence in equipment shipment. revenue LTL were return up per hundredweight normal XX.X%; were per for to per a expenditures tonnage down decrease million day in and to to per quarter Sequential to expect tonnage XX.X%. down compared year quarter more fourth down

approximately on associated million, a the One During stable as our will family future in turn finally, we a I noncash December, And Service this volatility accelerated continue losses $XXX of execute with help a our credit $XX.X Yellow upgraded nonoperating upgrade we balance improved to Yellow's assets. This BX obligations quarter, the and with more of took plans. reflects pension assets million over fourth recognition operating that, corporate will to of to the transferred outlook. performance mitigate employer potential And in rating for obligations sheet single to call strategy. Investors our loss to an Moody's This Darrel. and by transaction settlement derisk transferring reflecting plan unamortized Executing the insurance resulted step these company. the in

Darrel Harris

good Dan, Thanks, and afternoon, everyone.

independent same same operated that platform, from operating results that As regional are technology the we progress, are varying you overlap in companies getting pickup making XXXX. Yellow the have for have with to Darren, shipments way drivers footprint. heard network. our transformation our the we Historically, One on the visiting lengths North well steady from the our in and companies American of becoming successfully on continues the YRC operating customers haul. and Freight's networks journey companies After delivery different This of

with parts. a As delivery are moving a the carrier, we operate Like complex is support many both move surface operations. the the we network platform, long-haul network transform pickup as as optimizing as network to transformation and single to regional linehaul well and to integrating technology super-regional

terminals. Yellow phasing integration will in linehaul efforts. Overall, lead the year. So we drive exists speed, optimize create trailer will efforts Yellow, efforts efficiency optimization and help that expect sustainability progressing optimization network. and the in will we the country customer with both And have in plan in operate you city interacting and adding enhance to pickup capacity our Over-the-Road we operations and to the which driver changes give the without by delivery eliminate our The enhance around further customers to cost is the Northeast. We consistency and When coverage completed, will updates throughout network the density and services. efficiencies One between how as transformation service, long-haul network the greater overlapping regional are the region beginning on will savings brands. currently for our

the current and among carried into to the increase seeing first variant. Omicron our impact in We Turning quarter a December the of that employees cases weeks COVID-XX rapid the in started of final quarter. the

truckers XX,XXX appears on The great of chain. to is our to country severe. our path made while in closing in employees spike is less around for the focused Darren about continues I remain one a transforming temporarily be Overall, COVID supply meeting XXXX. excited and While largest work quicker are turn now in this more back on will the customers than companies productivity apply strides evolving many of variant America. the it logistics closing, couldn't to faster. companies more safely to North for over Yellow and result, as the comments. majority returning more pressure contagious, some the I call our be And the recovering of slowing They cases needs of ahead. In team the

Darren Hawkins

that supply to services all of have. the what and be our the Yellow and to Thanks, now we their progress grateful We any to part employees are important for I'm of for who may Thanks continuing I and are financial extremely I'm for would of freight for us provide essential continued questions happy Truckers I transformation chain transportation improvement. operational this stand in and And Darrel, supply challenges positions about of answer excited afternoon. up by am you like Darrel. communities U.S. chain, our our to customers remain ahead heroes, is the that XXXX. an time confident your proud and tremendous serve. the daily We company, efforts. employees made Yellow One

Operator

first come Atkins Jack from with Our Instructions] Stephens. will [Operator question

Jack Atkins

has a the here, quarter this know a on guys. in time great you. long Congratulations for I been making

Darren Hawkins

Thank We're you, proud it. Jack. of

Jack Atkins

maybe obvious and the quarter Well, do question, wash the got idea you've when How you in step I think could trends, January give the us some your at company-specific from play yield start, and guess the market, momentum I plus you would then the you we would the just obviously I Dan. with think you know on. be. for stair the things that. one long-winded seasonality what that going the is I of and perspective, this you or translates what guess you're it's staircase kind like all everything first context see seasonality some expect but if the to there? But ratio operating you and probably Omicron about maybe an seeing guess, quarter into for about of improving question, you first should trends quarter-over-quarter most I profitability, when a of the to through there's with trends and put in and and think

Darrel Harris

question. the for Thanks afternoon. Good Jack. Sure,

that operating by QX to controls was First, let cost worse. historically, our XX with say driven were our continued of points a it's along strength from basis around able couple transportation. When me That primarily pleased am points by usage QX. I to purchased yield that of ratio percentage we improve

sequentially excluding X%. the was On LTL revenue QX, fuel, front, per per up yield revenue from shipment, our X.X%, LTL fuel, was to excluding QX and hundredweight, up

as front, heard XX.X% transportation percentage in you purchase in QX PT XX.X% Darren, was compared from expense of our QX. as the On to a revenue

that's the weather-driven. see mentioned we So referenced XXX of now in our to you variant your some that historically that the about of basis impact continued QX the OR December of Omicron mentioned. and has But points. on will and and third QX, have comments January, to supply the an has yield productivity. entire pressure starting I QX's chain late XXX as Most to to Darren the move degradation tonnage on his carried opening on throughout degree, course, that time, in question, put from in Offsetting is of as we strength more even

just having full not simply So what too course, I yet as will do. and sit here net-net, run they in with of Omicron guess, the project left normally I the today how impact months full X sequentially early its it's margins quarter still versus move to

Darren Hawkins

XX would Valentine's I quarter. and I just got make at been you to and for to years Easter. LTL Day that. about In you look when Yes. That's and the I've tag QX, doing on think Jack, it, And between your

manufacturing, the in with retail, fleet right up that network. always our You're the looking selective where things to wholesale, the XXXX dealing got good, I But things years, January. that shining us our anywhere consumer to the allow is in our about through e-commerce look, LTL, and age think there, allows be are good. at weather And economy's being it normal play. price are standing into pieces contributing put all we out I that type business We've and strong, extenuated about X at those pandemic down when now, events

drivers, has our got are XXX the we're the located and facilities, physical of terminals much network the our in terminals with best plant locations. Our and value where some so

I'm So headed, all positioned. I've a on and Yellow then working couldn't that been we're be more the excited where lastly, of you One in that I the about put about rear. way is And I for companies the on years, few all something and like together, having confident technology having we're

Jack Atkins

Okay. difficulty the makes Well, projecting All I that that. understand right. sense.

that and salaries, we pin beyond. kind impact hundredweight? now. sitting, that How further per if from on also, I impact thinking on we're savings where PT, be you're biggest like put taking results we'll out? complete. a could gears of real will it the you in -- improvements Yellow Or and model impact? where And So is a Will to and about cost Maybe XXXX of there? be this here trying opportunity there's wages this have sounds One where this From as to complete should is kind just financial it shifting up? that be look just the in showing now once Will that you from in will all you also, it revenue maybe benefits the the outside forward guess, it be for seeing is in, looking the were be

Darren Hawkins

my able at tonnage my time, our and certainly a in -- when company this Jack, In Yellow get opening the aspect, the those gap driver yield things. iterative talk on comments One tonnage comments Darren. of decline, is from the opening growing growth, revenue is the being to about It's same I piece positive an closing the approach.

There's the those. the So One that's the entire there. benefits forward, areas: delivery Yellow big I'll come done. was linchpin let and speak for pickup and and benefits operations, moving technology linehaul Darrel to X big But the in

Darrel Harris

Darrel. Yes, this is

of that's technology can effort Darren as all and bandwidth, resources As said, making the time always this happen. been in spend there's you as tremendous and and imagine, on component. a But linchpin said, to he's the

the he is mentioned, this the network company top we're path in of pickup X we're and area. costs LTL so delivery starting And area and which, down optimization, the what out about year, any the in excited linehaul is the moving as

really growth of weren't the it transition. us to to excited opportunity story. our gets ways the and in The that and But to network, And in start as optimization network. tremendous in completion say we've just leverage particularly us before, there's we so regional one able there's amount would prior duplicity an this talked start providing the tremendous also, this, for last synergies that in about be is a side. redundancy we long-haul to leverage I P&D network our gained on think to to a piece is as linehaul is services upon with This technology of

whole us when concept where attractive. the customers the we want of to about lastly, they long-haul so I us able we areas there. you from us size, for network and a country that one in then have one been our regional And as the that's with of today, provide services the start you pick our truck. lot have and don't think where, can regional both It's extremely we're to of do services scale an offer going and complete, services example, we growth. And driver once in an future with solution think will up those front see opportunity optimization additional us all-in-one what to have telling see be That's to the opportunity

in So about, that's mentioned, just the the something day. a that lot I it's that growth a of but story certainly excited it's and we're end

Jack Atkins

question last it hand I maybe, one guess, I back. But for And before is Dan. this

and on a sheet structure. question Just balance the capital

here perspective. its December. a Moody's, opportunities maybe XXXX. the EBITDA you, some maybe some upgrade debt, the believe, gives you that? improving optionality structure operating and finally, in I in capital that With to came maybe getting that here options leases mentioned some think, the see approaching from through You could you are really out I business How would footing some late take refinance And us we Can there? walk from

Dan Olivier

In of prior XXXX. with maturity discussed quarters, on couple no a Yes, significant that. Jack, we've things these until of that

Our would the would favorable ultimately which options staircase improve the of the our provide structure, into door us grow financial transformation this have do believe I the did made open evidenced structure. to as some the to reference capital Yellow around improvement us. more you and and opportunity progress certainly of believe I point, then there capital in front I One Moody's and by we we've mentioned, and Up opportunity upgrade to that still that also to

into million from but new made couple leases. to You liabilities by XXXX years, ago the at number go. $XXX A over additional million they there and year million, not improvement short is last leases. leases out we've look to That that entering sheet When improvement $XXX operating lease a where XXXX, of you lease the for brought and of still and our million of in million down at operating end $XXX $XXX long-term end balance that of buying up buyouts. XXXX. combined $XXX more area at the the Part of the is significant and still number one down room significant from CapEx includes a nice are old

Operator

Wolfe Scott question will from Research. with next Group come Our

Scott Group

A questions me. few for few a one --

one perspective? see you’ll Just in following profitable you operating quarter up say Jack. be that Do an from enough the first on from to ratio

Darren Hawkins

one. that with foundation We’ve pieces. with also Scott, demand has and I’ll year XXXX we’re starting that The and unpredictable pandemic parts. the very QX has about those about start me Certainly, the yield talked environment. confident the

We’re XXX a motivated We’ve employees. got terminals strong of right now. group

hiring our efforts like Our all are driving running our open, still position. and of wide is I academies. so

All that they’re running X,XXX of we mentioned, the network those tractors in today.

savings, the driving. efficiencies power are and then Darrel his So team yield and the benefits, maintenance that the the operational

You the not I’m trajectory together, put about those even giving guidance, in all year. this at very I’m still Yellow’s point but confident

Scott Group

I it. on the starting you contractual Okay. and Can first missed us quarter fourth renewals quarter? give for

Dan Olivier

Yes.

quarter, the Dan. For fourth is Scott -- this

Our all X% consistent in averaged story And the X% the in now X% holding last QX still year. contractual renewals going They’re firm the been way there and between to January. to that’s range. late XX% back

still that momentum So on front. strong

Scott Group

a sounds want that tonnage you more on this do it to start focus year. When And growth? start little tonnage like you Okay. growing bit to

Darren Hawkins

go Dan up. But just then one comments start that you with I’ll the wrap some on and ahead. and January the beginning Dan, I’ll of year, let

Dan Olivier

Yes.

our look normal and X%, from January, If per have in we go subsided what tonnage was rapid per then mentioned. was QX, did by from down a and basis. seen year, back and typically January’s in decreased quarter QX LTL tonnage certainly But that around would been which I of by declines our sequential tonnage historical about QX, from the change sequentially per my tonnage the this resource about And sequential a full full on caused only I day sequential -- January to remarks XX% on based January’s typically it on X%. day cases the average. approximately full would to saw change X.X%. say if constraints be about basis, would impacted hasn’t year-over-year I December decreases QX day So in reasonable tonnage for LTL our probably than mention yet. that down historical moderately per of least XX%, prepared to COVID it’s completely to LTL in day impact have we expect the Omicron less fact the that Darrel that increase at our

Darren Hawkins

pickup opportunity. it sure Yes. cap make off And monthly yield move at, us And that to that have that as got is still as look have also move this transformation, Scott, a operations that the XXXX. I in closely, through and I but we From in a believe, which where want we’re all we’ve watch see through positive multiyear to then out near-term happening is just delivery goes aspect, and would value is right digits, piece and run. trends This From is to the with. at network weekly, the I room line to on Darrel I into that head a not into value this a think a taking. local a was XXXX. we’re When haul environment that we I back then we standpoint, of the and from more be tonnage back proposition, XXXX. pricing it like throughout the tonnage this reporting process approach now, balanced momentum allows proposition single And that technology daily, I will to there,

Scott Group

to last, the want I talk just just Okay. then plan. about CapEx And

that that more is $XXX CapEx? say So elevated run would still for normal maintenance? or is relative Or rate that $XXX normal that’s million, now million a to you of

Dan Olivier

to tractors, described normal $XXX No, that we’re more that going what XXXX, it to to $XXX is being XXX to CapEx in of $XXX -- million be. like of cadence return than normal. as going In X,XXX quarters our we’ve million, million be, double reinvestment more includes that’s talked normal going trailers. about definitely that level as that X over always you in guess, to about spending the Obviously, more what I how

slots think range will dependent to available. going on equipment that mix But to of of production into. and probably that’s the basis, go-forward it’s we’re to going Some a that fall that, on fair be be the

Scott Group

Okay. get that that, ratio further the CapEx? with to in flow positive of operating what’s need guess, there order And reductions? amount plans then terminal be you cash are any with I for And to free

Darren Hawkins

question. answer terminal I’ll the

So we’re now right these change at wouldn’t the approach XXX the moves to company expect be XXXX. at around Darrel of as through could We somewhere Scott. slightly. And number that the XXX end it would Yellow One be large terminals,

but So it’s done. more few been just already a adjustments, lifting has the heavy

giving any up not We’re geography.

improves. not on also tractors our having coming capacity. the we utilization to think we that tractors the human up Yellow And just can We’re want XXXX Darrel’s unique than asset same at in, utilization. remove a free we capital And the Dan from asset the giving XXX improve of up as we then of but any employee customer the to daily capacity, create about also fleet We the one as more basis. in mentioned example some older opportunity

the So I or on side, not expect on other tractors. overall to Dan side. the let the further age comment comment choose on our of I’ll other gains

Dan Olivier

If it year is I of to delta call flow FICA every to $XX under mind cash those our around million when you the the that exclude day, a compared year-over-year. be got I million generating of keep at of our year-over-year items for million flow lot want cash amount will top XXXX in flow and tax and of The improved a it positive, but full to deferrals cash XXXX, get comments to at out to Cares we a those impact interest I’ll takes operating look priority it. of of our guidance in that in clearly, what flow $XX in and components couple Act it’s the list OR, long-term of the it’s did each give operating $XXX Well, on to couple cash the actually single the important free years. make the might of pick on cash nonrecurring basis, delta flow. path

our with we’re won’t I the there. on in I’m even well being continued comfortable that So though performance, guidance provide operating improvement to our specific way

Operator

Bruce come Chan will from Stifel. question next with Our

Bruce Chan

Congratulations here. detail Yellow. Darrel, I the appreciate around the and One color

the Just labor and X it that like us there because maybe efficiency you the efficiency. with network magnitude P&P filters could to powerful with with like as P&D through and help the replacing can kind something linehaul it of the or feels that with understand simplistic it X if wondering this you're of equipment Is consolidation too that? say to pretty or drivers X be X model

Darrel Harris

routes and can now, areas Darren there's about. there's, of that would you right a mentioned, from there's Bruce, perspective view costs facility-related that an to obviously, But I good some there. reduction still so many convert the as talk are synergies different management say you nearly efficiency talk you. that's the go we When opportunity I directionally, in mean we've through country. to seen some gains as The certain the in P&D regions about makes the of again, in the and immediate operational in improvement it's about excited pretty that more think we'll clear utilization. of environment this to to start and in opportunities lot fact asset sense has it way. all. human capital component see that But our the it Yellow the obvious additional in city that

so story, some going finding I network be driver hiring we're workers challenging is reduction in about are. in environment academy we a feel where optimization the for through growth us. because right is obvious. have Darren that's now. our are And for this to relationship aggressive have maybe schedules, to everyone. It's initiatives, course, meaningful that our capital But human demand and why What linehaul competitors our priority for synergies top mentioned, in we this these of a us of not don't we drivers issue is like As a

that driving the folks regional have of each We and some YRC brands. right past every and other, our each brand are day from Freight

throughout can't for I sure particular area. to year the update this to committed but you making there is start the meaningful give any everyone opportunity am specific guidance that that here, exists full company consolidation there I at in this on point. we take so And as we our

Bruce Chan

over I that. both side it Okay. side. percentage mean, reductions a if there is points is that? helpful, this that's to guess I'm and of route just is reductions basis long-haul if life if the target and I maybe that is And than this hundreds of or of ask there years That's the over the or could route project? mentioned you I I of have, appreciate -- much reduction the of P&D more something trying incremental the another I you whether a way, couple year guess per on understand

Darren Hawkins

Darren. our in Bruce, those revenue think that areas. is I the overlapped this is right about of now is way And XX%

grow opportunities So operations to also but overlap. those that,

made in those operations we've getting tremendous Now together. fit where roof they under would one progress

in the the we're we're best number not why continue moving transformation. that's in right reduction and in dramatic the density phases first country opportunities. to across will happening about to going XXXX. we're So it a terminals. as to talking of not greatest occur the the the going Northeast because the opportunity, But It's far now, get and a as have phases, all multiyear Its

from of comes just part one benefit piece, other on the which The play. in technology, is haul already being line

into pressure platform already a momentum have we our and us on do have in only not back going of momentum the that's being one for technology we So pocket. fleet yield XXXX,

majority the this subject. the Yellow those of call to of and the our we've One put devoted you majority together, script So

over a our big think customers the have So opportunity time. we certainly and that validated it's

together is So country across methodical in a period the it's moves that's process methodical of out, that we mapped it's short coordinated. also not slamming very This that process things time. a very a

Our there, make clear, aware very of But we'll a steady it. I in we motion. it's lot of the for a and But opportunity there's approach guidance things effort, provide to but will employees and want more we in happening way are already be now, it's go. XXXX and a lot as

Bruce Chan

happens quarter. and really forward helpful. looking Well, Congratulations that's super what seeing to next

Operator

question Kauffman Vertical Our Research from with next will Jeff Partners. come

Jeff Kauffman

or difference of pension show going want the plans, where we to I your the offshoring for sure P&L I a you’re income But questions. just this the mean, does transaction I say. in plans should volatility. the couple essentially, going A How annuitizing see I make payments forward? the statement? in to of union you’re up understand where some are

Dan Olivier

Yes, Jeff.

feel in how we about plan. single at So where our we’re start pension with overall, let me employer -- good

not that There’s pension funded at any the plan that and of has it. And get losses the balance nearly and the nonoperating that by XX-K reduced status life lot those expense going last get pension that opening this that of of I over improved in accounting it Essentially in a a on you be recognize those to the $X.X the We total volatility. risk expectancy $XX to and $XXX you a strengthened participants believe that point at statement, of XXXX of information related the the million pension the lot over expense assets, losses million and our nonoperating fourth the end income about such billion and short was of mentioned over on you see $XXX Our benefit annuitization. is as plans obligation, those X accounting was million into now the just in has quarter annuitizations parcel come call. plan which pension the is amortized $XX.X obligations million. that I’m the years. the comments annuitize of sheet, of unamortized through plan over will

Jeff Kauffman

Right.

the a corridor, you certain amount year. that So you’re outside each of recognize

it future? in before remember, there how affect the did income line? realize that period neutral? So when Is income the positive this to into the does other income you losses is accelerated negative? been I trying this other net-net going forward other it we this other while. is because this income as a -- it’s just done I’m company, but a you’ve Is

Dan Olivier

Yes. the up you’ll now at the nonoperating compared roll X are see ago. years that’s when accumulated unamortized plan in Again, million the to primarily the you just the in $XXX the accounting relates forward value losses comprehensive Again, recognize of -- million section. to plans, pension those to which it periodic actuarial in of of the Again, just plan value for the the the see and you $XXX XX-K, the other changes remeasure loss losses, assets. when

Jeff Kauffman

follow up offline. right. All Okay. I’ll

kind get hey, really $XXX role didn’t for within a I’m an we CapEx, want XXXX but there’s told -- your of any the stay this $XXX the speaking it, into in normal this get So that to just more you CapEx of whatever to companies We you from can trailers of consider reason. if there we that for tractors in a idea get earlier wanted me, a I’ve ‘XX with all question have any lot number? XXXX? you million I know of been all Is represents in wanted. portion range mentioned we million of kind hangover that

Dan Olivier

of X-quarter The equipment that not. XXXX. $XXX was actually completed that million Darren all mostly No, referenced end of the QX absolutely that the already by period, in is over

talking months there’s it trailers or actually into years, now. only we’ve X about any feels of the So no for bleed XXXX over that for but XX like tractors been it’s

Jeff Kauffman

Okay. going free be And probably negative more of go level through bringing you’re Is cash want keep you minimum process ‘XX. that cash that to this in a in Dan, I’m on ‘XX, CapEx? balance just thinking you as out flow still level, there at At hopefully, loud. sheet to not

Dan Olivier

some a quarters magical the a target worry there. million. is we’re straight is It at liquidity important position. we where decisions. We to a that X finished level. very the us don’t we’re We over plan keep have of maintain short-term at in position to elevated the don’t we about to year it at where comfortable that And $XXX strong have our That’s risk

Operator

back to earnings to closing for I call. the like turn conference remarks. the our any would over This concludes company

Darren Hawkins

for to joining any questions back contact Thank you. may And everyone concludes turning you, This and you call. us our Tony call today. that operator, with have. Please again the additional thanks operator, I'm to

Operator

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

You now disconnect. may

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