J.B. Hunt Transport Services (JBHT) 15 Jul 192019 Q2 Earnings call transcript

Company Profile

Participants

David Mee	Chief Financial Officer
John Roberts	CEO
Terry Matthews	President of Intermodal
Nick Hobbs	President of DCS
Shelley Simpson	Chief Commercial Officer and President of Highway Services
John Kuhlow	Chief Accounting Officer
Brad Delco	Vice President, Investor Relations
Jason Seidl	Cowen
Chris Weatherby	Citi
Tom Wadewitz	UBS
Jordan Alliger	Goldman Sachs
Bascome Majors	Susquehanna
Todd Fowler	KeyBanc
Ben Hartford	Baird
Allison Landry	Credit Suisse
David Vernon	Bernstein
Ken Hoexter	Bank of America Merrill Lynch
Matt Brooklier	Buckingham Research
Justin Long	Stephens
Brian Ossenbeck	JP Morgan
Ravi Shankar	Morgan Stanley
Amit Mehrotra	Deutsche Bank
Dave Ross	Stifel
Scott Group	Wolfe Research

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, welcome. And thank you for joining today's teleconference, the 2019 Q2 Earnings Call. Please note that all lines will be muted until the Q&A portion of the call.

We will provide you with instructions on how you can ask the question at that time.

With that, I'll turn the call over to David Mee, Chief Financial Officer. ahead. go please David,

David Mee

President Commercial kept of John worst Kuhlow, Highway afternoon, with Chief thank President Investor in Roberts, me President Hobbs, Terry Good us. our Relations for I Accounting the Delco, of Matthews, and President of Nick Intermodal; have this of our Relations. Shelley Chief Vice Officer everyone Services; and you. Officer Simpson, the secret our you community; and Brad joining CEO; DCS; Thank afternoon John Investor

As same far rules ground call as goes, as before.

to start with open minutes me questions. view Let our lines of the quarter, two we'll three then synapses and of for the up

If they'd follow-up opportunity getting don't question an please can like, one ask with to and so question a appreciated. everybody you to one if limit get mind, yourself we through this

there the had freight weak becoming Overall, the to wider from beginning some we we environment. more than season end cost as is of anticipated. felt pricing expected. bid normalized. largely pricing our We like an positives performing we inflation what and otherwise originally And range was saw Though, is

in not asset-based low fleet remains and pricing in season be In to Though, single-digits. very, year-over-year subsided, has because expect strong. increases dedicated ending outsourcing very the intermodal interest the private are We positive. trucking the pipeline

as saw disappeared intermodal, in completely that signs visible the the we loads for we has quarter. seasonality improved But not throughout Specifically were freight quarter. disappointed counts with per loads the of flows workday the our

to the off XX%. Our alone. Eastern due the knew in loads whole But we we closures X% start down were network linked could

levels. percentage is which points X%, around below XX about remained compliance to award XX historical Customer

us throughput a from that additional to improvement our increased QX, However, in our did count sequentially profitability. see load modest and allow

and for profitability, profitability the defined continues business charge that And settlement. its a continues to and as DCS it base improve did strong Mile which its expected, as for from on to the non-Final revenue excluding The anything the both targets Final perspective. operated quarter need we quarter. action business, the and EBITDA had a Mile

while to the ago, results. eliminated some drive-in We disappointing, the quarter the sector. we're growth able was of compared a year were we marketplace the ICS, or In conversion Hunt the adoption some encouraged trend with LTL to top to with but XXX. for business line effect lost use see and of offset of to in for continue And the J.B. the we

come And and increase margins, and without The $X.X new that There's platform. million expected spending, some a that. not pressure harden in the on puts technology, develop further to though, year-over-year we operating does hiccups. that's but

However, that And technology, some gross new late some with new put manage missed internal the and to specifically. quarter the in bugs pressure those the processes margins, even applications in new further found we on features.

issues addressed We we we've these overtime. the as added prepared believe interaction better we've fixes scope technology with continue increase platform functionality of both and and be the human or to to

Lastly, result environment. company contractors a fleet in in the trucks independent truck, sluggish rate and expected yielded mix of the

rates per customer margins, the and year-over-year. sequentially planned total control both size the truck While higher fleet mile, allow and in-spite its revenues to improve of year prior overhead from to flexibility down of the efforts

and ability. questions to open remarks. answering best concludes and go we'll That pretty much lines. our you [Viju], our can And taking prepared ahead the start the up of

Operator

being First Instructions] caller, your un-muted. line [Operator is

Jason Seidl

little Cowen. mentioned. talk wanted from about a you bit pricing to I It's that Jason Seidl the

terms your Can dedicated you're differentiate in You your of road contract? said between the asset fleet based trucking. getting and on you what over

John Roberts

Go differentiation, ahead, that's ahead. Nick, the -- the go since you're

Nick Hobbs

index, some increases XX% it in of contract and built business revenue our happens say just of automatically. type and the just would dedicated rate I our or to had that in in XX%

are ours in not we're so separate. business out and so, And the cause dedicated

so X% to and anywhere And year-out. consistent X% from year-in but its we're

you follow work. If indexes historically, understand those how you'll us

the XX% is already other just doing. vary I and on say, XX% But working contractually ours and like the we're based it's forth is on of pay rates at anniversary what scheduled date, typically is contract. so driver it's in and The the demand

Shelley Simpson

truckload year higher season through the, earlier was In been as discuss out to the that we I the didn't did us. business, it flat actually started off lower say, progressed in single-digits to would mid this much for that

Jason Seidl

for the guess so far based I up. expecting year what Are the demand? as And forward of on with you you're updates a seeing follow going remainder

Shelley Simpson

higher I historically lapping on [Technical assets were business. prices would say Difficulty] and published parts of top business on of truckload

for rates to here year flat up much expect don't second X% and year we to the from half accelerate X%. in to the visibly So, full the we think of

Operator

our Caller line And your next moving is to question. un-muted.

Chris Weatherby

bit the helpful? from through on I a talk Chris Weatherby and maybe for be what far taking Citi. talk bit the the been that'd comment seasonality so you've I guess about It's growth load return. about intermodal quarter a to July Thanks question. progression seeing little And if could want maybe and you in freight

Terrence Matthews

what with tell was workdays, about because you came the And and change that's really that. and where our I've comment just from. into month, given details we then Sure, Chris. Historically, the where by everybody I'll dig start

down -- X%. X%. were In So And we we were in down down X%. May, monthly, we in April, June, they were were

X,XXX on X,XXX loads in April, X,XXX we Now, And June, we per workday. we loads ops, so X,XXX In basis, per saw per workday. workday in saw work May, a saw loads days.

Chris Weatherby

progression, that XQ, or carryover does type into progress early of does And XQ? that

Terrence Matthews

that data customers don't to not Well, anywhere. assessment. of that run I have away, or would advantage Xth I have that -- so hidden say was mean, it make I July enough week

Chris Weatherby

leverage the to if through operating half an continue fleet potential improvement you Can of forward And the expect year? just bit some And productivity profitability, dedicated and you pipeline terms then, year from back of a type side what had move fair Okay, in appreciate on the about I for that significant you in and excluding growth? that little charge a enough. that. talk looks of the then, the there.

Terrence Matthews

of We're the up they’re coming year last big running out profitable stable. the a and seeing, call and so of you're wave what truck-add and and we

starting And see that. to in level continue results the we'll adds we had in the adds of so think and truck QX, of QX. same truck to have We good you're

so as when top at our has been. look And seven we we way line as the stages. stages, or just all ever it six have beginning It's from different robust

But the a that Seems bit out target feel last pure the our demand like going good thing little figure would rate, to very we're is longer. the plan amount for The of high a this its about year, on only for what's deals couple trying say, that little on business. still just of just everybody's I same months, taking and very the that tepid, economy. still is dedicated with close is

Operator

moving And our unmuted. to next Caller caller. line is your being

Tom Wadewitz

give from I about favorable, of things guess, guess, you level the seems or similar you volume Tom you helps maybe where of see I there's be little why if outlook. would hurts a And or whether gets a intermodal like a pricing you could us afternoon. half. Good on not to bit Wadewitz clear but perspective the the, might second I half, think how wanted it's, year-over-year in second UBS. if It It's ease? pressure, bit just the margin reason

margin? half second on thanks. thoughts any And intermodal So

Terrence Matthews

years the pick for the going I should believe, half, We're that get north XX% here little second the just either the a margin, fourth and up from take it of half. intermodal XX% XX% for I because up you if the quarter. XX% history course, that, adding volumes margins are of year think to and we better the into our margin. where and I outlook third in today. improve our between think second say long think they And term should five And will quarter, is

Tom Wadewitz

I So saying OR, you're improvement. the you're it? you're saying in you're right improvement, to some sequential year-on-year -- saying the or sequentially that not understand mean, Is saying improvement way improved

Terrence Matthews

correct. Yes,

Operator

response. The hear that correct. unable it's said caller that He was to

our being caller, your line to is next Moving unmuted.

Jordan Alliger

at Alliger Jordan it's Sachs. Hi, Goldman

volumes and rooted on pick you looking on and Just basis what a intermodal is that second curious in. down I'm quarter? you're up the shipping front. half be rail the into for third that fourth great. an it to move Is for the mentioned Is as coming for better? primarily just would we question color for expectation service it Any getting demand pent-up inventories you,

Terrence Matthews

fourth our Well, as the were look awards we and we via volumes cycle our we in last that through two the at went the what quarter, and there's a quarter last months. be probably territory. And quarter, bid the look increase those should this quarter, And whole as will comp believe the us two to positive We should the get for that or three bids bids. sell or fourth by as versus positive year the regards year. then with into to quarter month third fourth a quarter

Jordan Alliger

quick as follow-up. just And then a

mention last Or issue slow quarter think or the warehouses you least about situation? hear work hear pretty the I mean, did continue case. and to of is that's and situation down we of you I starting that still anecdotally see warehouse to at port were are any that? that impacting trade the

David Mee

on And that. bit. from Shelley little follow-up I've a have our I'll customers, little it's a then From that answer what I'll Yes, mixed. heard

off they're say some inventory. to month of going say have customers customers where still off. Other two inventory try they bled has a Some lead the or to

So, from message perspective. it's a mixed my

Shelley Simpson

that demand perspective, a customers happening year. back optimistic. level studying recognize really of half our to they was they But what They I the work about avoid are through brought say are And feel from tariffs. of the incremental inventory the in better would did that to and inventory around

Operator

And next being caller, unmuted. is moving your to our line

Bascome Majors

that things you from first up on In from on, normally? below size there? book Thanks, April, now? sequentially visibility have Do compliance" was across July? here. compliance that quarter more -- how Bascome during Susquehanna your anything based normal. you from that "normal share or the the Or are probably could big into XQ maybe And intermodal Just tracking tracking blended during Can Thanks. you helpful? awards said what's progressed you guys Majors

John Roberts

and to were did July, September we'll through and think bid think state XX%, I as second August around normal award. quarter. XX% the that have into regards XX% usually we The our uptick went with the We first the a mentioned compliance that to compliance. an bit we change quarter we in But is of little XX% of going the of not

Bascome Majors

I pick starts give the extra up? below mean ability of side to Thanks. still mean, the even in the need capacity a manage you the second keep that and business case side intermodal at the volume in Or cost normal the to -- the to does I half? does capacity trend stabilization you that tighter

John Roberts

hit Well, to in increase, because going we months the positive anticipate we're to the territory ahead. volumes

standpoint dray So help assets better from utilize the that a standpoint, forward. container as a moving as will well

Operator

your Moving to caller unmuted. our caller, next is line being

Todd Fowler

thanks, profitability the and lost were like to can good a to with I'm then quarter I It's I expectation how a that evening. slight Fowler maybe KeyBanc. understand to that little bit in guess The with to takes of loss quite help It Hunt what few Todd return puts was there the the you us Great, related understand you out third us help the guess with in unusual much trying versus the quarter. And just sounds LTL can business? here. maybe J.B. cost XXX and ICS.

Shelley Simpson

acceleration there's complete that investment but for of year, and are have talking focus, really our marketplace our that's investment eliminate our anticipate long goods, asking to been further to get range when and investments continue we'll that we've to and accelerated any into projects here do do in continue and inside what to move as we're we error QX. Todd, losses, customers we where try list a and have better to we room We a inside our little to technology that want to people, accelerated good and our we're more this that And we at. space. really QX, our way a So, they that inefficient for making moving been

of get happened tightened month what of traffic a the bid part June, month the happened we've June very inside acceleration, in had but in of also our QX season. So mostly successful as

acceleration that our time Our and really lower along quarter month bids June. in using yielded really our of through were volumes data total falling trying the business as the platform margins from and implementing of on-boarding the new startup with in we we to spot significantly through were

July. systems out those new feel a on We top in in We like here of that with put few Put of do the issues place. some are repaired the and as we ended month that so back we we June. of had those

more experiencing are growth the we business. from the However, publish of side

really and you're the into here operate that QX, smaller the as we operating customers, So weighing to on-board we margins in season and bid continuing are to way. at business that plan

making expectations. longer LTL our were LTL are transitioning system no off we and volume, are supported. sure then There the in on key based that exceed could And into also there into committed as were, and to mainframe can we be space very we few our pieces a the customers' the the marketplace, cloud

for year that of customers were inside that we that promises the to And some the really worked customers intentionally make finishing our IP on those and customers, here business, so, wanting keep. with really out our with exited we make can the sure our gaps to end good plan of We closely that space. that with by

Todd Fowler

that. follow-up the But just helpful. profitability of piece that's so Okay, to all on

intermodal we moving improving the in an will all profitability parts in about improvement that half back year. the second of for expect the those Can You've ICS half? talked

Shelley Simpson

the we to a your profit expect from we From second Certainly, question? that operate scenario we we're second would improve. to the I it Yes, that's marching is base towards. want second would the is. year of quarter, and quarter, half what in the expect think

John Roberts

expectations ICS spend simply margins, historical we -- add this. its I'll and income of tech onto that Shelly. still we're on the below that The be was this, our going But expectation knew have to operating because would

to expect range, we or did back to that the half in to recovery X% would So year, would we in normal be X% we X%. X% not while get to the of a expect expect, it

Operator

unmuted. our next line is to your Moving caller question,

Ben Hartford

Ben perspective on capacity. supply in Hartford Baird. Shelley, with maybe interested your

You about June, made a perhaps tightening in comment, I think comment up.

of is are you quarter Just do and Where the ICS back curious the cycle? point think as about for what the how perspective, we view a the JBT from outlook an half to supply even industry relates correction it through or of year the trended in from supply recruiting.

Shelley Simpson

environment. expected progressed in did say see tightening which would be a road I quarter religious that right was than in things came quickly the two but as we on expected check, pressure and of the So, June. combination margins Part a more really pressure, the QX, hill tightens really And on to more we those that was expected than holiday. put of this in

like on be And of the the As more would the has we into month every move other softening, even second year. maybe July, of expect happened seasonal we've supply market, the a just balanced half supply plentiful we side to June. than more seen in year and it was

just of talk And then could side if about the it. I truckload

general think I but I would truckload come to significantly drivers And drivers, the by talking on on-board. easier side. you're are space, slightly to expensive say, about truckload in on the more

and our And So, here in up our W-X really we've increased drivers. happen of is we up row, professional for that level drivers. seen pay is two the our years so per a with hire cost

I guess into inside little inside good had seeing business. space, people result, that JBT although, attract our our that anything I've heard So W-X many a of we're bit increases

Ben Hartford

improved supply Where it larger for more has how tight return equipment balanced come growth just think going or think on or in And that to operator be what than to coming that follow carriers? There about the I generally I it obviously carriers market? And you up is going growth and to back of you expect some to do half think is supply think from? could more have a long you from? discussion what take to that if little take June, you small failed supply year to even comment, is net the owner the that plentiful said among going or is the is -- I a

Shelley Simpson

say I Well, environment, second normally the the side. quarter I is mean, tightest supply is June inside would which in

second we we So an normalized half XXXX say return was more to anomaly. -- a

that on If we last six you seen a here unusual and of have we've July. couple the in trends expect our the that been supply but look really in would happened, at issue years getting it's many happen side, adopting have new an of had have

Operator

is caller caller, line moving unmuted. our And next your to

Allison Landry

afternoon. good Thanks,

go right, the wins quite this. contract there maybe So back questions season. want your I few But a a I'm I to hearing it couple like sounds of on intermodal outlook bid know been it had are you has volume comment. if to significant in

how first, volume you originally you more So loads your curious, back more get the that curious I order earlier Thank know normal price on to about that trade you you in towards understand for revenue that versus guess, and could clarify for would the wins? just of volume I'm weight. And means in whether expect to anticipated leaning I tracked talked year? you you. seasonality here And to than in per to pricing what to had the better QX? relative expectations? loads show of these did half some than But have then

John Roberts

that is Allison, you?

Allison Landry

I’m This sorry seven for one. questions is me. in asking

John Roberts

smart. Oh,

You I just was double checking just That's was you. first. it that didn’t announce why

Allison Landry

Landry Allison Oh, Suisse. Credit I'm from sorry,

John Roberts

problem. No

Allison Landry

Sorry that. about

John Roberts

the half from not The play volume see price in and you not customers, customer or a a increases, the that we and on few work with second in of individual more the year, the the that of per see two play customers. a should year. loads. I out play next been the last differentiation in start It It's terms difficult will time are group at foreign when of think we've service our quality you able looking revenue through of of quarters customers service to was

from ourselves separate that. we think I

And year. quarter, a quarter, comps there hit look fourth in the believe in quarter the or in comps general. And last positive will that as two there's I month we at positive third should the hit we stated earlier, you third if versus

Operator

your caller caller, being next line is our to unmuted. Moving

David Vernon

little went Hunt with J.B. how Vernon talk much about was Bernstein. OpEx David through… a you David, Yes, bit could

Operator

sorry, your We're very unstable. seems caller connection

If and you please hang wouldn't dial mind back in. up

to Moving our caller… next

Ken Hoexter

of Hi, anything bigger Is there conference the be maybe third we from And season? positive. from step your that something maybe outlook shifting Merrill pessimistic America on away Hoexter more bit quarter, and into the more it’s shifted to Lynch. even picture. outlook? It view? it there maybe underlying just like were back Ken sounds point there this you during of a here, like from should intermodal Is that the the sounded Bank is Dave, ICS both taking recently turning

David Mee

just a appear Well, it's starting I that of show think up. matter to to volume

of still the quarter. and skeptic is I'm the obviously, which biggest cautious to and point the probably trends the I throughout my of Now, likely view But I the one to talk I'm customers. see was happy in group, don't reasons

typically are at off. correct, we I get good they expectations July, not worse month directionally mean, below I February. I While think is least that a are July through every from perspective is gauge because yet think month to our than can anything July

I'd come as in we to I more May. what a in a optimistic So when Sure. this yes, on, the sentiment, awards I to see know like bit I'm the on based are August. good volumes than little are was starting little But more and

Ken Hoexter

And just to clarify, I thought. guess, on that particular intermodal

likely You thought, are not intermodal target hey, hit our margins range. to

I outlook maybe that in get for earlier commentary right right that. Terry, -- that am your back on think, of expect reading margin terms mentioned Is intermodal? I to that we

David Mee

clarify. as for question conference. believe got that year. let's interpreted your that Well, asked, The at the I I I

inside stand I would no. the is, that have XX% knocked to XX% by We XXXX. today. the response statement year of my it so And for

I the think to that difficult something is be first that overcome. extremely just quarter would

field understand Terry at, is I what looking projections. and I've and seen his is Now,

that possible or it's quarter. show back not to XX% statement stand particular XX% get we of year would the XXXX. by I that into for full But for we my a -- XX% XX% yes, So an

Operator

next Moving caller, to is your our unmuted. line

Matt Brooklier

Buckingham at Brooklier Matt Thanks, Research.

to wanted for back questions intermodal circle I you. pricing So to

what If contract been what for your your off volume, you and of that potentially talk contract could at to business? of could for where rates remains quarter of to-date expectations second the follow priced side your contract portion of has and end maybe

John Roberts

middle lower-single-digits. So third bids, I And of our first start the that we're of basically the last in all was think higher middle-single-digits mentioned bids. third and through major were single-digits, before we're I've the

at. most part, we but the be yet don't we looking For going haven't to what some implemented basically know we're

up middle-single-digits I all the that'll done when in and somewhere end this said So, cycle. for think bid it's

Matt Brooklier

sounds outlook this half then, or little execute of I line, positive bit volume, terms pricing at partially mentioned what it think the the it of that's the more a have ability UMP's do your to intermodal And reading much by the am that you in the relative this so you're year. second like had fade Okay, guys But been with I service you think, through providing. your PSR contract a into not pretty think, conveying that guys some levels of I with I expectations to in of efforts, Is driven correctly? that.

John Roberts

in starting had into we in a issues this And the year help goals Then of service from they're time, in not rebound on couple to had uptick starting extremely to And the it levels started service, the as especially railroads, we received, up this weather here. weeks being at well. there. goals obviously, March, then where here see would to that June are was be. off we're February last significantly Eastern or starting an a last But flooding are we rebound. Well, from issue their where our to assessed

allowed technology we've made, able to the has tools our couple customers differentiate a But schedules of of product those here from are been what some set to use hours to though will service, analyzing it able better slower even level be of a others. we've better and appointments our to us we've we that there. might think able rail what is be to happen. And been that communicate And to predictability investments and

Operator

Moving unmuted. your question, caller line next is to our

Justin Long

Good Hi, Stephens. afternoon. this is Justin Long with

I Dave, So, think…

John Roberts

Difficulty]… [Technical got you've Finally,

Justin Long

that. get the of know to but about took the a about don't stock, me decade It I only day is coverage here. finally

But clarify in Could per number wise? then the you And a intermodal curious the historically seasonality that that workday on that earlier quarter, headwind from metric monthly pickup. noted you second quarter? on acceleration think normal Dave, compares loads the what to lane second that in you So, you saw the closures that gave the how in the in percentage I the second I'm you've quarter. seen volume

David Mee

going if saw due longer lane the could we simply Yes, loads that that be understood that the overcome serviced. to I the that. our But see the no We will, goal to is of occur. disappear decline, demand And we into quarter. to you to was we earlier, said to said, X% snapshot the of end the expected. try that going the that volume obviously, were of this was, And closures like we that just number didn't allow

As on loads lower month-to-month-to-month, the the in from -- as say you was pretty I trajectory me normal -- far per that even it's the though as Terry, to jump that would as a base. trajectory workday, at this of far

Terrence Matthewsd

Right. and The from continue ahead. into May through April good, trajectory was months obviously, quarters and it and the ended June should

weren't to that is were the costs in May comment that handle. about X,XXX the that to because we run had able make truck, not able June and of various we that floods us would other handle floods loads I The to

Justin Long

here get to to And sounds like like then environment we're you see something this in that need we're in target? of that see to target environment to bid to if is from do Or said this where intermodal. exiting, achievable the low-single-digit pricing season? year won't continue exiting an pricing But we we acceleration next happen circling XXXX. XX% back on you think margin it the XX% Dave, in

David Mee

to ready like. guess, second so don't -- be And year that next guidance one looks I'm I to yet answer I what and yet. would their haven't have the the do given that Justin, for for I plan seen know wait either, to not And I thing is that. and That see

Operator

And moving is our line question, caller next your to being unmuted.

Brian Ossenbeck

It's afternoon. Brian Ossenbeck from Good Morgan. JP

through of But loads if that's to transactions to question the you on see us two-thirds ask per a folks. marketplace, excluding of the more to can think getting seeing, maybe function down you through start in second sense want what and up. a But Shelley, type a what spending us when to headcount, I'm extra benefits of and IT on give you're a maybe And ICS little the maybe that the IT headcounts that they'll up marketplace. are sense benefits even and surprised that you're continue which another line more on significantly climb. employee pushed as to seeing, to flow maybe item? adding can you leaving the give So

Shelley Simpson

the experience new is mix the and in marketplace going are their with on we carriers But So LTL add sure build spending change we're our more time investment taking of that did does those also marketplace, part time to and top trying further truckload as making because forward. is employee systems our coming notch. volumes, board, that more as customers

Difficulty] it not the to this year really So as [Technical to invest automation, is we move into trying really and we to us move automated XXXX inside and start thinking about reviewing need things our that's do we're that everything that automation. in

we of and impacts probably is platform. the through And the get data data then that the that very the thing us lastly, much level the the of granularity

can that from see on on are immediately digital or softer board, a all spoke side authors We many back. what are I the space inside platform the what are earlier supply what how come board, So peers percent of lanes harder. are doing, becoming

-- result. as our share comps those a see the next allowing push come better of get to the of better at serving as end we And and really up gains year being LTL our come was that customers. quarter at pricing, we us are against here towards moving that think into fourth year pieces better have to market All we'll we'll

Brian Ossenbeck

the just last all for it you. the Can on Shelley. for active And, you got quick pretty follow-up optimization. thanks details, was the Okay, left like you quarter, a program? still us buyback Looks Dave, some remind of this

us sense last this and the quarter from give you be the to rest to you what maybe as a allocation of active expect standpoint so you're year? can it So just capital why throughout doing a

John Roberts

if cash, cash, cash the were will. the EBITDA use reasons our mean, the as you mean, revolver I of I as to one active we our debt in indicator. had definitely ratio quarter. a or typically Well, We we

we had we thought frankly, attractive. And So, availability. price was the

would always we we've an So said opportunistic be buyer.

that I that on go approach a continue basis. would forward we think

so, And our additional if another up and price again attractive or debt ability, we the room end the either seeing happening we have have EBITDA the we see future, future. we participate in in we'll something where ratio to probably on

Operator

next line is to your Moving our caller unmuted. question,

Ravi Shankar

from everyone. Thanks, Morgan Ravi Stanley. Shankar

in what decision can related was Just us And you an clarify the details was decline any DCS that on customers? by charge? if to couple and and questions just drove give that that big of DCS. that charge, more Can salaries in-sourcing on wages you

John Roberts

it decision was was workers' -- inside in an level. by the it it works. that that everybody certain because way adjustment customer. they just a a more the insurance of accrual DCS, of to frankly came compensation participated simply lot back No, not policy a and showed more got people was policy in-sourcing materially But It up

So, was more as the material back units benefit, a DCS and business effect. went they got a to just it

Ravi Shankar

$XX in do reserve the think, potential for future? I a result comment know wouldn't probably quarters. you million, three any But BNSF each you on your results last a include the just follow-up. mean, And arbitration. verdict or I had or I charge

that in So taking like quarter a $XX for guided results? you are million the

John Roberts

my other I there's they And argue additional been We were that that, do have haven't to don't could since to conclusion. asked they was should If have to People them. commented do any nothing that say on that inside to past, information frankly, to has Ravi, give I the inappropriate their response do that. models. in

Operator

is our unmuted. to caller next Moving line caller, your

Amit Mehrotra

month, on action half? Thanks the impact Berkshire Bank. the significant around Amit Thanks, quite PSR on on taking Mehrotra Pacific the how publicly in appointment. from update the Brad, about over months. Union commentary taking And second believe has volumes, Terry, outlook Deutsche intermodal the for and is few Chicago for the this openly any congrats talked question. I last here PSR may

not about the you're second as a So updated Thank maybe on being volumes thoughts half? PSR any or how on thinking you. the in headwind

Terrence Matthews

us into should better ability PSR Union get turn about with Pacific. believe which the over. service, I to times. get PSR derailment. talked don't the the We've from us benefit freight should be give It always able we the move Well, give is they use But better more fixture a that obviously should highway to that of we sometimes

waiting Sometimes they're crews to play catch They as up. have extra don't quite resilient. not around

there out is watch that regards to with PSR. So a

regards we're seeing EP things to should is what don't some we But I come see is that out in see we've to should been anything I in BNSF, the doing. be of with in how that the the react and With what of half maybe ordinary that year of second going this the think they're past, and what the about they're we they're of the doing doing. pause what don't terms the forward. public regards

Amit Mehrotra

thank I the intermodal, And Okay, sticking just you with cadence if could for that. pricing. follow-up as and a on just for

been coming for You rates contract the and talked pricing, been rates top year. of call a pretty obviously about spot expectations while at truck earlier over and have negative last down the low-single-digits the have this consistently up pretty for

you've back in trucking lot that of yields of weaker, on turn but you the a the you negative what of in year least context. half the positive of getting half in volume to-date, in yield year? are the the positive volume might you at about around negotiations Just comfort the the just have in the can the based the expectation If done risks have talk the that environment the either outlook or in contract year, side? back context the half back Terry,

Terrence Matthews

in I'd year, would that than that's the be I and true. higher and thought I truck that stay think previous intermodal calls throughout been unfold Yes, mentioned pricing the pricing think we conference

our And around results bid in. to know is for don't we all. and know are are, that what And next negative couple at with is results over mentioned, the forward I we those see going with what cycle regards the path quarters I As of the pricing. moving moving

Operator

for Moving your to our question caller final now, is line unmuted.

David Vernon

the that could Dave, in a you And the bit little might the be of fall-off investment able the David talk from P&L some J.B. Hi, to little about through OpEx how lines course bit the over a going hopefully, into better. several for software? Bernstein. when, Hunt years, much XXX next expect is development you today? Vernon

David Mee

Shelly. the OpEx we extra What an quarter inside got $X.X in we said at of spend $X.X million, million got or was we looking I'm were ICS.

Shelley Simpson

Incremental…

David Mee

It's incremental.

Shelley Simpson

Correct.

David Mee

base, off to so it's $X up our $X.X million. million Basis of

Shelley Simpson

Roughly.

David Mee

million and of we're Roughly, million up was prior. okay, yes, $X off $X so -- it of so off

spending quarter So $XX a marketplace of for million we're the development in ICS, primarily XXX.

intelligence Now, also development systems further through if the also doing they're to pieces the have there's capacity, and expand harden to capacity, other stuff. pieces the handle inside you that, the available because

not platform. for but the is of marketplace part all XXX it's just So XXX it the

I to little three When next a out we're the have the to to in our over seeing I of out Do do answer capitalizing spend thing? revenue see starting that years. side? don't to it yet, to we generation How see the get now. do we on probably development? I be to what revenue would trickle David. two bit plays think that the we where more we're point expect that this know I much further realize maximum mean,

David Vernon

thought the color. One can than seasoning The us that a impact Final we question qualitative on the and in contracts. separate perspective is you stronger follow-up give the I obviously, that just Mile for segment. some on margin DCS lot Thanks business. if were from some that results a wondering prior of commentary of was

also So on last Final you I'm margin some wondering are you've gain that that acquired just getting year. Mile

Terrence Matthews

minus target about Final DCS to our is business say, of go. middle So talked on. of we want Mile right early just would the range The I in hitting as Dave where

their portion of acquisitions improvement. hit and it's And is hitting we're pipeline, adjustment, The that Mile, onetime there. very out our sales well. there is coming are incremental So you making our along sales strong. to DCS going take EBITDA expectations doing Final on continuing We're if the targets.

well. integrations The is going it So, are very going all well.

we're margins. So, way. Final margins of with not level how But Mile progressing the that's the in the pleased are right very the on at and moving

So on of going this non-asset. the it's non-asset, mix David, stuff because actually lot diluted,

Operator

in unmuted. couple come a more questions have did we And as is well. Caller, your line

Dave Ross

improved given expand on the Ross you the Could I segment? Dave some to due it dig segment. overall afternoon. Good specifically initiatives. truck like expected internal truck wanted those what helped from market, the the XQ truckload you comments into in Stifel. than and in here margin soft the the quarter looks and as profitability Better to to

Shelley Simpson

to move inside we change of in dedicated rest the forward. those our that did of the And business a of group Well, trucks In of did trucks an year some contract independent of variable services we number to into and and benefit total, us of total. moving for truckload, planned continuing space. more we to are contractors owned the transition increase more asset we our compensation this as that percentage continued of That company mix move inside light is so model. model

And think we that the segment. in some then just talked about we cutting of I better have that inside cost We management. did yield job measures a

our more Just with that the we move of freight the and had we quarter well. their that with committed we customers, freight we relationships helped that that customers, our with trucks move and trust into type moved what the product those as

David Ross

in there the right going used truck now? And are then seeing any you markets, what change on

John Roberts

the week. remember can't They exact in dealers have Their that that the down additional of in the order or I'm still working happened value way any is the actually term They of last the do I increase weren't to delivery the placements they new through now. depending at new expect, frankly, the order well-known its does the Obviously, change it's bids they but right inventory are see one ultimate considerably, the with on backlog a -- We system. what seeing that truck was an our nor deceleration. used truck view used use in stabilized, they prices it's said. going had market of quote OEMs would

October, more [Technical worried Robert, I'm their know, I conversation they're at that next about month, it's them. talking looking to Difficulty] believe the John course, with he

October the what really think they they then do were to trying I next date was out do. that figure

So not. level at in order is to stay or productivity this at

I truck mode still So, that search not way any material one immediate they're used in the change, they or pricing, have other. seen think the but

Operator

caller for to line being Moving your now, final is our unmuted.

Scott Group

from How Wolfe. It's you? Scott Group are

John Roberts

We're where just was wondering worried… were. you I

Scott Group

to get hitting wrong numbers I was the the call. in I think

John Roberts

the all time that not do that's a problem. I myself

Scott Group

do The monthly from loads gave. good bad you you just or a per that progression? year ago we have understand this those is so day can Dave, a that

David Mee

A year ago?

Scott Group

Yes.

David Mee

Well, XX. yes, April about you're talking

Scott Group

Yes, X,XXX… that X,XXX to so

David Mee

horrible technology. know with I I'm that.

that know, I to don't stack will.. So, the have paper but I here.

Scott Group

don't, keep okay. you maybe going for you -- if hear I'll I there, you Oh, want.

David Mee

And June got was X,XXX. May April, 'XX was X,XXX. No, I've X,XXXand was

Scott Group

perfect. Okay,

David Mee

-- at I mentioned it's a And said, level. like lower as we've

Scott Group

think not Okay. it in is think to What volume XX% or are XX%, ability volume price? factors? you maybe keep When getting XX% about growth? on swing XX% we margin to XXXX. and bigger do pricing is risk bigger positive? Or the there it the that Where to Is the

John Roberts

I'll let Terry answer that question.

Terrence Matthews

the biggest think I on into control. to 'XX the locked cost get then pricing is volume try Yes, benefits to pretty and well

Scott Group

thinking… was I

Terrence Matthews

ahead. My apologies go please

Scott Group

XXXX and XX% the to the ability next year. XX% Sorry, thinking to to I get was about

John Roberts

yet. of impact haven't Well, the point, any price would happen that happening, the at biggest seen don't see that we that apart have if that this obviously, falls of But above.

Operator

are questions no line. And on there with further that, the

John Roberts

this one will be as last then call. Well,

there's will couple Thank sure we you twice. minutes I'm of you it. catch all. I'm Appreciate So up. going once, And where going Brad. find sure to if here know and

Operator

questioner someone take have already We to asked who's you come one that? question. in a from Would like

John Roberts

ahead. Fine, go

it through. Let

Operator

Caller, your is unmuted. line

Scott Group

again, you about Scott, from what's the volumes? talk on other for on LTL that? big gross And in this. what's Hey, sorry the ICS. Can the My drop the question causing was impact just margins

Shelley Simpson

to I'm it. so Yes, this sure you were not able mentioned hear I've earlier, if

in system, we mainframe completed business. we in that to cloud moving system with As our of to had that based customers new the business not and part the had the work some LTL, the development into of needed off exit system we're we our really

do customers those with this roadmap on our the needed is done that tone it. of the change, set complete have we to we work again So was intentional customers the onboard really and that year to we've on some

Scott Group

explain that some the big drop big of And, the Shelley, margin in drop in does percentages, LTL? gross

Shelley Simpson

change quarter But that material that gross more a dollar overall a Well, business would as impact it's percentage say load. publish was margin and of the margin higher a mix LTL. I lower the was progressed. gross Certainly, accelerated per margin new that our LTL happened greater on, the has came because of percent. in gross there's or

Operator

more are questions. there no Okay with that,

John Roberts

Thank All it. Thanks very everyone. you right, much. Appreciate Viju.

Operator

Thank you disconnect. for using Conferencing. And may AT&T now Event you

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.