J.B. Hunt Transport Services (JBHT) 20 Jan 212020 Q4 Earnings call transcript

Company Profile

Participants

Brad Delco	Vice President of Finance and IR
John Roberts	Chief Executive Officer
John Kuhlow	Chief Financial Officer
Shelley Simpson	Chief Commercial Officer and EVP of People and Human Resources
Nick Hobbs	Chief Operating Officer and President, Contract Services
Darren Field	President, Intermodal
Brad Hicks	President, Highway Services
Chris Wetherbee	Citibank
Jon Chappell	Evercore ISI
Brian Ossenbeck	JPMorgan
Tom Wadewitz	UBS
Allison Landry	Credit Suisse
Scott Group	Wolfe Research
Amit Mehrotra	Deutsche Bank
Justin Long	Stephens
Ken Hoexter	Bank of America
Brandon Oglenski	Barclays
Todd Fowler	KeyBanc Capital Markets

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the J.B. Hunt Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker for today, Mr. of Investor President Vice Delco, Finance Relations. and Brad you, sir. Thank Please ahead. go

Brad Delco

and good joining and Catherine, thanks afternoon, Thanks, everyone, for us.

This disclosures Before estimates I some forward-looking these statements and similar J.B. some take forward-looking and intended Act expressions meaning identify statements. on Litigation intends, uncertainties plans of XXXX. like would to contain are the statements. within to be regarding Private the introduce the anticipates, time Words and speakers, future to such Hunt's statements risks those materially current cause or different forward-looking I expects, the activities expectations call forward-looking statements. may in results These Reform Securities involve based to could from are of provide that forth set and as

please regarding with and reports refer J.B. information and Form Commission. Hunt's filings on more risk Exchange annual XX-K and to report For other the Securities factors,

Operating Officer our Hicks, of At John Mr. Field, opening President Services; and some Contract comments. the Brad by our This to turn Services. and call. speakers Human of like today's would would People and this Kuhlow; to John of of Highway I Resources; Officer like CFO, our CEO, Darren our time, Intermodal; CEO, to I our President Chief and call Shelley Simpson, EVP President Hobbs, Chief introduce the Now Commercial on our our joined John Roberts, Nick I'm afternoon, Roberts; for

John Roberts

of dealing drivers our a that XXXX, XXXX is aside, have that new all and XXXX us a community Well, as a our intended of ahead Brad. We bid we but crisis. The more that to farewell the nature than have change model we committed affirmed providers kidding through enter continue ever-present the are the to invest we demand XXXX. also of challenging lessons, we with again provide of past customers. and revealed not create taught you, Thank to capable with and confidence. All will journey. year to dynamic essential employees, least very many experienced each chapter good thankful and which again to you and look we XXXX we are riddance. and beyond other differentiated services the We of in businesses and complement for start

During traditional quarter, consistent the services cycles West These customers with needs challenges, all the on fourth some were import holiday activities. we unusual with experienced very Coast. demand coupled restocking across and particularly inventory from

well, ways contract substantially Our fleet quarter highway to the up we discovered reliable Intermodal, year. across and during we held customers the in integrate new commitments all and coverage our capacity, and the In meet assets did businesses and presented accounts.

as we provide the Most report the real capacity particular struggled repositioning. to equipment to of been off the network no empty have in increase However, inability search container we imbalance, in our of driven and lack achieve past. a timely Coast do West fleet was in to able Intermodal meaningful incremental by

as we our improve and challenges forward. all pricing go rail our We customers network providers are of to with working on managers, these teams,

placement platforms encouraging. this Our for XX% positive and JBT Mile fourth presented and channel. Services, and our XXX Final of demand the our Highway for to growth customers quarter market growth continues and at reveal at made in benefit for XXXX in carriers. XX% attributes the ICS reveals the is progress with The Also, good

and to It some time. reality in our results the our key to has meaningful been to while related that a margin new Anticipating systems targets questions the cross ways inputs general, to over have about since have we submit updates internally which given Additionally, found those our plans. during goals, me achieving we let expect changed we these year, is continue. utilize stated

have not goal now. we that for several Intermodal, met acknowledge For years our margin we

this fleet our driver based we comments the these well to will in target do evolved remain Clearly, or how apply Intermodal velocity, our expense, cost wage container recover we We margin can to our target relating purchase reaction. EBIT primarily will on increases Intermodal. we -- only to expect structure. bid to range business either will model, rail rail to on have utilization monitor confirm fundamental season and conditions in way overall transportation or shall to costs. we One XX in expectations for XX our These customer see customers' reset overall inform year's another, not margins expectations behavior, that certain

also end the for appropriate, aware, These stated time the target the deemed review are if targets we will the and, quarter. for high JBI. range you changes any outperformed we under of along seventh segment same consecutive DCS our for announce the update as frame have As in are

to X% updating this customer stated under review been very XX%, later and into for of a date. segment being also coming closely has our All Finally, rate JBT plan margin is a account range we'll this be model. on asset-light targets basis fully movement more months to for the comprehensive monitoring Accordingly, that which our on the continued the said, doesn't over a market reaction. take at

our to the for As reinvest capital can we needed are returns and requirements to margin investments needs in our meet that a for grow support reminder, purely to our shareholders customers. goals the to so of business continue established on

we which needs allow As going fourth quarter, previously several changes we areas. key the the made announced, during Company's leadership believe in forward several

me that Let we the excited about say changes able were are just we make. all to

is bench Our strong. very

that with excited inclusion, head with the the and right We're conference. over our John? Officer, and XXXX see have beyond call about diversity Arkansas. Financial experience direction. for take into in announcements John Chief our to we us momentum recent now and opportunities the the supporting made appointed newly will turn also and sustainability have I'll confidence We of Kuhlow, University to investments his

John Kuhlow

the now? hear on those us call. John, you, Comments the David. you and sorry, Thank -- joining on Okay. me to fourth good Can afternoon

COVID good call there. I'll a fourth had you, And their or and of the us little quarter Thank cover to notable also higher in -- update train drivers to higher that. higher group division afternoon with and in technical in John. and capacity-constrained of operations were difficulty those increased the me, costs and as provide I the costs. excuse costs on joining freight us pressures today. primarily network demand, consolidated Highway fourth morning you and then to -- environment, the driver about this Overall, from Sorry good units pleased costs A quick tightness quarter related we couple as in revenue on let of achievements from growth quarter incurred perspective dedicated. Cost due well medical we a with attract comments labor to segments. the a the congestion are on across business quarter. a the

and off of approximately employees COVID the We that a to due total COVID million concerns, as year-to-date. $X continue our million offer quarantined to time incurred costs $XX in of for to are to we approximately paid quarter designated specific

for near I work will case term. believe PTO facility counts complete, the over costs the level a our be given While is and to headwind us current we likely COVID continue of expect

replacement. and changing a a normal normal encouraged buybacks somewhat resulting in but our ended to under XXXX. continue capital consider quarter year credit with million we found collections. buyback the with within early $XXX one-time of year landscape approach in customer million, ended $X are net the and 'XX. enter to debt period. roughly cash, net approximately respect We one-third quarter of opportunity which what growth quarter as less just quarter that ratio approximately We fourth back working was at anticipate in the the into our still billion. of half $XXX experienced our stock the with finish CapEx with resumed quarter We then fourth in our would We and staying but anticipate continuing in with the fell blackout and target close CapEx the split $XXX to EBITDA We We million range to new of leverage two-third closely metrics as we I monitor be

our approximately we're transportation million technology expenditures XXXX million investment be $XXX system. million, management core revenue today, our in which net includes to year of $XX As to equipment of $XXX as well full forecasting capital approximately as

thus We this XXXX more going and with live XXXX. systems in in depreciable continued becoming technology development of

bring For perspective, we systems into of we incremental these operations. expect approximately as depreciation $XX million

we Finally, the quarter, ending items in discrete the year full rate which of fourth had a tax effective some lowered rate, with XX%. XXXX our

the changes. turn That's XX%, in As it of all for new I'll our XX% to continue and over today, to administration I but rate XXXX range be have effective expecting prepared of now Shelly. today, watch to to we're we'll

Shelley Simpson

J.B. pressures to congestion the on transportation and pressure have to to this and driving house. these this how protocols, time our driving customer in of many and to have the ability culture this challenges businesses little the result and as contributing been massive also that that in The pandemic a however, tremendous drivers. general and a customers These pressure drug inflationary afternoon our position a a and, ports, market economy rebuild. and of keep Combined the It rates and had alcohol expectations supply escalating demand in rail recent afternoon. up investment the pandemic XXXX in to Import on costs The retirements, warehouses in capacity. markets our have precarious heroes will inventory have has a put clearing from dynamic chains challenging rates, drive shift inflationary industry John, by and uncertainty in and the our and challenges supply with the limitations quarantine good addition on freight us across chain to organization that will with to our take qualified good insurance support my you, update for professionals career. for impacted to of continued market schools, at and one services felt in will are is put available Hunt's put anticipating, our impact The on is most on inefficient innovative use commercial was XXXX XXXX. cost of surge, how amount further is as customers' terminals of and created help levels capacity will Thank supply necessary needs. was time global doubt our trained Unfortunately, trends, inability supply levels chain. directly investment. with are solve dwell to focus our My continue that

to investment requirements to generate rates desire as both these equipment made returns appropriate already at on We in this network increase demand the this our both and investment. turn have our our in our to commitment for where ability in support a of These our areas XXXbox. service our confidence for view capacity we We effectively. and and appropriate have are earmarked investments to Intermodal

We areas built investment optionality our also support Western capacity that to our particular, bid in we network. Intermodal in have in of results network, other the but further experienced expand through season the if

always being able I at what the capacity challenges really what our in organization in in to toughest solve an our amazing highlight environment job While the customers' done extremely fourth challenges our is exist of was want tight has business, to some quarter.

by our are J.B. our As operate, marketplace ability of constrained by platform, for assets by or to aware but Hunt the is digital now, capacity I source physical not number through the our we think own organization XXX. you

yes customers' to You of problems, us fourth platform, demonstration the leveraging to serves physical ability our assets had dynamic and and they capacity our as physical to digital asset-based ICS own and assets in of our capacity. for record-setting many other solve enable see performance as to accelerate able for But blending need deliver a capacity. providers solve The quarter our JBT we perfect for our when our customers. this were by a the constraints

and XQ almost for power example, it's proud I of the our it's of solve the that our company-owned power highest X,XXX diversified fewer less am by scroll, XX% It's for with period. an JBT delivered or platform. As the since team's In customers. yes our closing, of the revenue offering trucks and power versus its of to XXXX ability

customers' this think lean support we challenging needs. commitments which customers to strategy during to and time, maintain our our long-term us honor a focus serving into Our continues on

our believe to organization's I better to industry. and the of more more efficient and will that mission what deliver value network platform drive more create I'll is for us innovation continue and I'd expanded has forward, innovation, term. our in opportunities It around my the predicting it visibility to to to on spending elements to our by on company time more. is enterprise in drives role of data America just turn price transportation the to be most now in focusing I to Our the organization, speaking across leveraging be critical what will leverage near how what be our do in in strategy North can And the will both to we customers. to come moving value Nick. the over deliver and say like and

Nick Hobbs

minutes a Dedicated Final Thank also light you, Shelley, I'd both and afternoon. like our discussing some views and few of performance Mile some high-level and on to pipeline good shed our on spend the and outlook.

current that solution them as their customers build realization capital customers. compares continues our history. who which flexibility with in Dedicated quarter sold for does we who quarter. Dedicated September for of up Demand professional outsourced have And insurance negatively we that the fleet rising customer through with a to XXX been serve and diversified revenue DCS, in own customers customers our the private challenges to operations not year-to-date delivered the to have benefits recruiting income retaining of flexibility workforce, of fleet results. trucks the discussed on trucks our have our ended costs, fourth the quarter needed back of while been the our and and and First, X,XXX and to able selling base XXXX scaling highest by us another driving with the our state provide are impacted professional economy. had greater faced end deliver solid for the allowed of previously the have tied in We potential segment operating customers

the will in As in our of see and expect will we we wages and on growth working of added a quarter Also, continue drivers the environment. the and driver can to some to consistency enjoy stats, costs performance to in which and be start-up eye face the trucks terms has start-up costs, you keeping near the our fleet and best monitor industry the of fourth a wage, we We expect we have the sequentially, for some quarter we and returning did the close pressure XXX of fleet believe industry it. professional would impact who business midterm. dedicated of pages in

Final by $XXX record X,XXX to deliver Finally, million returnto greater previously This we expect Final growth year. a to Mile or was selling -- Services. contracted was to do trucks the throughout business Mile or by $XXX acquisitions. stated of of range previous able XXXX than XX% and On revenue driven record all-time quarter. new XXX primarily an the set last supplemented

fact, was and progress performance very in Mile of new team's of sales our throughout to XXXX. contracted similar track million I and the business $XX In proud DCS, we Final selling

channel about movement. opportunities continuing our and robust exercise are portfolio our most growth see out We to equipment of are strength for excited and across mass with acquisition building further recent the

ensure in our service critical as investments these to customers. make Going home this the we service, We of our goods met and chain. forward, inside part the supply the rapidly of satisfaction in safety product standards of growing believe are and will investments are critical continue highest deliver we customers' and offering to

I how learned COO, in As thought a I future. greater product, forward and remarks, result leverage drive our these the thing efficiencies leverage across density what investments. high-level turn and share think over the providing the it returns If business to manage concludes look I'll while benefit tremendous would flexibility a our assets our it's see be still and I years, markets all desire future on one to platform across assets provides I to in enterprise. efficiently now. us own early operations. these some platform, investments customers as of for across to can that role the to opportunity the the near over updates differentiated Also, to and enterprise to our the and having my our we in so more in our appropriate thoughts we'll of I focusing in support provide on service new That DCS Darren

Darren Field

New what and in Intermodal would Thank Year, were Nick. The for my that the balance quarter, last you, Happy focus similar we This the that communicated then and presented quarter pricing similar our on demand our focus environment, want fluidity occur network and to expected we network presented on challenges fluidity call. talk third afternoon, to our balance, year. will comments this for in I about XXXX everyone.

flat quarter. the our on productivity in in challenges plus minus congestion were X% X% volumes heavy fleet weighed in and our and during October, container December. November provider Rail terminal First, velocity

a the were start all of our we top we we challenges. of the our communicated in able priorities to accomplish honoring customers. capacity drive since rail pull efforts to included much move have capacity to our the to quarter, containers assist While Throughout congestion that the to higher productivity we commitments one available to us, terminals and pandemic, the network. in of volume weren't percentage from the utilized outsourced is to dredge able through an that This the the effort

We costs of volume Phoenix, and over the operation moved results terminal. California also the the significant are reflected Arizona from quarter. California drayage origin in that rerouted Southern have a Stockton, would higher of These rail normally

providing with that the revenue those help participated revenue fell to that cover costs, activity. margin seen without incremental would same what we customers short Our but as of have

on the all some fourth we certainly locations as the labor faced and previous earnings certainly can during challenges rail the our faced where that commented comments California future, that during We network better primarily than we the at we facing address the highlight challenges providers we difficult at in are particularly I believe on the deliver improve of the we have calls. We quarter expect better quarter. labor move experienced in what and was out in terminals these the pandemic pandemic. to conditions the and rail make will quarter. productivity we believe

January, increased serve front. we on fronts, on. in and us all our believe our rail business. year that have margin fast increases in demand the demand our will Rail complement our and volume present more our now, cost also balanced very of will for dray, in encouraging. remains expect cover all XXXX, goes the We congestion and velocity the pricing continue market. in far results So percentage reflects find price challenges and but serve bid pace increasing improved far experiencing must for current rail in Costs network cost early a Year pricing has this XXXX to will and to to on productivity extremely presents into that that structural customers while at and network. achieved, opportunities to as thus make remains opportunity the our cost strong, opportunities those progress costs growth benefits We small to at are come this pricing elevated. New nature impact velocity and that provide fully core the The We cycle us are labor are

are support that customers our at confident that We with capacity want prices expansion. to grow in investment us

and ordered be manufactured containers X,XXX containers will in we flexibility on how XXXX, have and be when over We have out. rolled will those that

confidence of our We the the in ability consume network to growth, particularly have in East. strong

in velocity market. our the not better in BNSF solution reflect to prices also that simply challenges and find for together grow Hunt those and solutions key cost will containers have we significant working adding and still J.B. and capacity are customers, California, efforts. to our only We Southern is that capacity recognize required

in season, progress my culture the turn if comments, and have conviction additional Importantly, order base am That honor backbone the so conviction, XXXX, over I that container prepared to our the Hicks. we been and completes I XXXX. for Brad will it we our now employee so support our into our performance to our as to for have believe I for thankful do market through employees to capacity. made dynamics commitments that our will we financial benefits to of returns translate Throughout customers. bid our opportunities we need increase

Brad Hicks

how ICS, Thank share just businesses, performance Integrated in how how for Highway includes in this new you, is the to the Capacity afternoon. both honored and organization Darren, on Shelly which deliver the very to be I'd our like Solutions, to able there also am a of and, good from comments we to yes ICS and Services of prior and XX% trucks. afternoon role and or solve both alluded, segments were this able in much our I My will excitement growth which focus was sequentially $XXX was dynamic the over customers for capacity XX% the the growth or in quarter. environment million deliver it third revenue as for year, of quarter.

calls quarter. to enabling play As and to us our technology this lens referenced, a out we business, the previous around scale have able have of in were and in see investments people the dynamic been

As the million disproportionate scaling a profit able every operating $XX operating being increase and $XX deliver and talked translates XX% dollar into in gross a profit. of gross gross margin which business, sequential been revenue about We income, grow at on we million a were corresponding improvement incremental to to able rate on profit costs. of our focus has to

revenue we to achieved for million -- versus fewer delivering opening XX% to going returning for that were we of the just was remarks, third mentioned in did the is track to have period. the trucks In the to me, able quarter. that us or segment view have investment excuse profitability growth this and 'XX, expectation. company-owned highest And we million. revenue truck, $X.X had expectations Shelley to in quarter segment deliver quarter Speaking the her seasonal time stand since the as XX% on in approximately of effects fourth and in ICS the 'XX, that operating achieved dynamics is income on while $XXX This of fourth our highest year-over-year some JBT a play in which, keep second there deliver half of quarter, plus continued lot shared in of positive by are unique by expect as we

And power and scale for the to customers their see, beginning platform capacity. that needs. to allows the you're and our both need As the was in quarter, for solve of with JBT fourth ICS to

looking As ability an contractors customers Hunt for J.B. trailing of platform. an asset-light mean hauled able best waste would shifted that drop our This system. is capacity be To equipment, platform the what to was flexible by and like capacity JBT most how the who offering. a by in hook quarter option to out eliminates to our owned power-only delivering customer Services options. This has needs have comments, the to independent to for meet capacity capacity solution. or in close us sourced customers model, the our to the XXX the I through provide powered my efficient just the greater more And gives may by we best, that I by the of is Highway options choose is reiterate

solutions it's in to which continue into investments to customers the the see between to will whether I'd platform, our activity Delco. it capacity and Highway continue program. like Brad XXX within support in Services turn over to We back our strong or marketplace

Brad Delco

at remind you. Brad. the the we're in folks audience, one length the just questions. question like of this Thanks ready And Catherine, Thank please follow-up. queue, one the given to point, I for

Operator

line the first your question of Citibank. with Wetherbee from Instructions] Chris comes [Operator And

Chris Wetherbee

have like of kind a where timing margin is right curious forward. your give more of little year to what bit on Can thought And of can the comments Intermodal you XX% sort is It around a to that? I maybe whether on of sounds color. need you if decision a start give color the more on number opportunity opening I John's was sort little going margins. comments you questioning a see you 'XX the around the just just process? I'm to of expansion. guess about could Maybe to us some see sort make the XX% I wondering bit

Darren Field

So I'm going Chris, this with is to Darren. that. start

we our the time Intermodal through comments; at several would exactly over highlighted performance that time would highlight, progress. us we now just agree to when know to margin a that right change, to some what's in make And talk like about We have just I to exactly fully with XXXX need to release need try it's question a when market rather around public that talk years that. and we the think what we year pricing -- XXXX, wanted hey, call. going of feels on a is do John in we the be than the on those

And thing other is why that other was talk John wanted the commentary that alone, business enterprise I the highlighting aren't Intermodal about relative think and think about comments to that. The he and highlighted margin that's I units. John to

Shelley Simpson

unusual last I and with that might note have we our if the even between you Chris, And of look years, years at three activity five pandemic. relationship the railroads also a

to the appropriate will with margin work bid our be the why new we customers. put will that's conversation a get to that to when range. going on We through behalf we're to then initial determine the equipment certainly, year us inside So comes returns for up have believe settled targets. that want it our each in, through XXXX our order to And we be split do around and customer more of process

Chris Wetherbee

Okay.

rate a Okay. color to That's a helpful. you think able in quarter rate then speaking perspective be appreciate are terms what from you Any 'XX? can bit looking talk I it. Intermodal about fourth achieve And in the helpful? be you follow-up, on the what a might magnitude like of through you little maybe would growth give can for negotiations about Intermodal,

John Kuhlow

Sure.

frankly, that, placeholder seen. double what's markets us, lot cycle, there. did We general the in And would pretty translate to network. pricing the how think a where for double digits. costs I digits. be where remains substantially I good think the going say third single it's it's pretty will elements to that will on higher network a than digits said certainly, higher are still quarter our I think good I our for on But for the is be different single low call, I network think look it high pockets be and that to remains be and a our pricing I in still West in placeholder. at Eastern a certainly to challenge network double-digit or area. there think high bid that There that. say, Coast When capacity of, of say key And about are absolutely has to I

Operator

Your the next Jon comes Chappell line with question Evercore from of ISI.

Jon Chappell

of and slowdown seems improve Darren, next reprieve to New actually your couple -- in like going see Chinese weeks the into is meet schedules hard the running this ability be there's level a significant confidence seems very in port to to post-peak to without be it Year in like slowdown? any ship your next of season in imbalance the months. on the the to second ability there going just months. volumes rail's quarter in out fluidity based are it couple The that and the of to February type the What's activity, change little first Chinese year and continue quarter typical

Darren Field

with Well, in out think, Yes. provider rail our way communicate confident I'm the look, I we West.

and demand do of solves in ability West. the And a have drive little capacity seems some momentum the on to to to network. be for truckload impacts We also out try capacity the some may to that, are parcel our in capacity aligned on in the I terms way think reprieve other out Intermodal drive rail full obviously, there. organization our in there challenges. our confident enterprise efforts I'm

customers like out felt going So mean in for in as many a the moving doesn't that have the move. quarter be West. quarter first moving we the as forward the position around we'll better of fourth early us part would to think we'll I empties That than

velocity first quarter challenge, I potential the think fourth So has experienced 'XX but the present for congestion in slowdown been the -- velocity and a better of what does than QX. we

Jon Chappell

been the your East And the to briefly congestion in that, Coast? in you'd then just the going you Are the in on a West Coast. the in just to the similar what's And seeing imbalances mentioned as shift Coast, part is direct West freight East network the the in significant eastern given opportunity of the challenges kind of to Coast? follow-up

Darren Field

network implementing So with solutions, during we the in equipment serve the implementing in delaying some opportunity customers while business on the customers we to some those the West fourth the fourth for that there highway new our was quarter serving East were had during We Eastern was quarter meaningful consumed but Intermodal. our in Coast. delay us

business As not Coast rerouting been the and different East conversion that feel through through available us customers be some the we growth back us. growth available That we now the highway experienced has go that have confident continue to time to first of quarter, will of tied is that, last for for in That's imports. to to already year. half

as 'XX strategy. continue we'll solutions themselves. We continues. customers see the and improvements provide about gradual whole than of in look those quarter, in network import to some are, more believe at are expect that fourth Eastern certainly their to the altering are fluidly We'll their talking aware certainly West, what we present opportunities the as we network plans We moves what the experienced had but fully

Shelley Simpson

might that Eastern a just on growth I network. in well, as make the the note

our now, could us enterprise, for grow data the look the fourth to activity, confidence. the our as the should that it in be seeing shipments that recognized throughout are saw the moving gives Intermodal then actually of or even customers up year substantially in our well. platform number of number needs We into their at benefits across more us asking we've solve we accelerated year-over-year you total. And If our sales quarter, so and that

platform So Eastern our in the should highway combination activity be us help in network. plan over in of with that along see more actually our those confidence really moved moving intermodal, the that two we the pieces in we the what

Operator

Brian comes the next Ossenbeck JPMorgan. line Your of with question from

Brian Ossenbeck

talk in that the appeared, you Maybe you've just on of around that loads. about a you the the on XX like follow-up started see moving impaired X progress you for million that It delayed said off network. to In that made sounds the some convert highway? or in see high can getting you maybe the some you, think do challenges, to feel the about East. you Shelly, Can past, where commentary be service million last XX should think you just as freight as million, there as is And to of it's really the some is conversion? you have opportunity they've

Shelley Simpson

to for we unplanned opportunity great fourth the similar capacity across Company Darren activity in Brian, across into which of quarter, job a demand our customers about, so the solving the but talked the is work coming customers. for the not market, matching our from did there pressure to also what and was just here us enterprise, available the certainly level felt from we the

is and our could And the and answer customers in fluidity opportunity the go back motion. significant our still that huge into that was with. to service what objective, think We highway we applied is is moving more I shipments there really the ability that own convert what do are and on But we to with our platform. what need, that the number in could their really really It that the we best should work a see source customer a so get think on price business. more at network to of based capacity intermodal. in of the more then really Brian, Intermodal

a customer we across If pallet to entire in moves, one that look can whether our handle organization, America. it's now you North everything

efficient we're to the there North recognizing certainly, to transportation the is in solve America, efficient for so mission most into most create our And customers, constraints. our are Intermodal. But statement to move trying network

customers And working are closely just with our intense so to do we that.

Brian Ossenbeck

But it productivity the the well. you're a votes and half look on way performance the year-over-year, strong a per were profitability I second employee there's the sequentially or follow-up in some up it it Okay. rather. at was still having a think mixed that were looks comments sticking ICS impact Maybe trend with quarter, clearly as like very the

you one-time? still a going maybe just kind what happened quarter, seasonally, after quite bit target hit which little evolve here a So were result? is And that between you from this that more what think such the bridge was strong same do in difference is Or to can maybe strong? to of before just you the you're going

John Roberts

get But the comment were quarter reality second really abnormal fourth in And into we you, the question 'XX with our pretty no maintain there's of that did the profitability some the of the was would things fourth Yes. that have half in quarter we Thank that Brian. generated The year. is that that profits still anticipated this that question. drove incremental way. volume that

answer yes But and of every are each reevaluating their what one customers. what As that find Shelly them for to and makeup now mix our to say ability be our network mentioned, is XXXX. just carrier for of and their going

of that And needs. the this that the in as we with rapid would and bit QX that tech we in we satisfied component rapid it unusual predict of with is on say just very So be still out that, makes we customer first platform for will there's do as I that growth incredibly into have to somewhat XXXX. move as us about of What a half are hard in think we that the investments performs how pressure investment work a drag to our so little close

our have Shelly, a to add anything don't us you to we it does to so level that? want if previous the right we're that confidence high expectations. know reiterate And track, and I on tell

Shelley Simpson

inside huge us. I That out is say, focus our convert can efficient that that we would ICS hope to organization. for I into just ways more of a the Brian do business

working way were efficient activities over that we are long make Having customers. move the sure making for grow. We and don't to recognize with and unplanned share on to very that, necessarily continue an there focused said we costs term. are that goods market still that taking our We

quarter from highest and year of some marks with and ending gain our our ratings the Our customers customers. are very on board, favorable from we did customers the throughout

to solve was excellent. ability our So

we to overall for Eastern of network that to those start. for this is We things we're that's channels. some an to solve on benefit of the platform Now referencing. converted the I to cost Brad to business can We know And for create Intermodal. is the we want our customers. trying new some think so place start get into want us our can to grow for continue work in customers where easy then And

Operator

UBS. next Your Tom the comes question from Wadewitz line of with

Tom Wadewitz

look congratulations results the the that kind and earlier move on I some into what the of be. I believe would in profitability on longer-term far Good considering John of brokerage And ICS. A strong Yes. call schedule. is see think, to so ahead points question, in made the that of

last formal been volume outlook the seems -- than that your years target, know that the What Is it's down you have about I the might couple You implied come outlook? Intermodal. a but margin It maybe of couple in for don't Intermodal lower on history. the think like XXXX. in setup volume we've we you the great compared seen the have kind But to what past? a volume of should how or about last multiyear just of growth years Intermodal look something

Brad Delco

Intermodal anyone let market Tom, add to mean we is think and what I is else still has it. to I'll our respond growth historically, that, Delco. the been has I'll Darren this characteristics. message Brad or secular

and Intermodal the the solve for than our able outpace ability And customers' serve needs, and of and industry. our industry. size to Intermodal given volumes expect scale growth general transportation our grow be our to faster to expect We to we

But mean audience. view. when I'll that that. I it we'll I to clearly, at in is Darren just it add so And over sure that. areas, been constrained capacity I clear leave our make mean our the perform-- that's that's message. was want we'll overperform. anything pass underperform else to long-term to or to And to

Darren Field

feel that we there the made. on. significantly than mean more we particularly challenges taking with understand when already time have handle a that back perspective, in from And highlight right capacity the certainly, were were mentioned able question on we're fourth at quarter, Intermodal it doesn't market Shelley around the the the was based we've that away customers strongly. going commitment looking from to to Well, That velocity available. what bringing And volume available volume I still on on we we're capacity a on us

As we go about, containers. ordered talk we 'XX, into did more we've

ago, assets. to five system velocity was then slower We when those rail or that to as investment to today pricing is going years what pricing than in is four is we contemplate it have expect about long-term accommodate. more think Potentially if structurally our

that's to desire we're the that we're because highlight for did And buy we that this but year equipment a so service. us, customers' big focus confident in buying

capacity and Coast. the weighting where the provider strong at highlighted West conversations least difficult So we're back for and think forward, we change capacity be West. we where in do were as mentioned, half volumes as look to the and that relative how of the I where we're can as we available. we in coming we last both And is is to us do particularly expect we on operations demands Brad a do the in believe industry. -- then going to in with out more there, that a out efficiency was in And I years drive moving west. network challenge mean, grow Intermodal have markets year capacity to engaged the efficient to And the grow rail and do as

Tom Wadewitz

the not saying you're like about So view at that the What -- you it sounds look not you're reviewing for historical... margin view. are volume we're but reviewing Intermodal,

Darren Field

in expand will and margin. volume going to do both. to and support market both, grow we're going want We to We XXXX, the -- we're no. to need No, grow

Tom Wadewitz

year for you for Intermodal to the just historical Right. of Do What Intermodal. maybe in in terms Intermodal historically, think, performance you segment? better like have a think XXX of pretty a I follow-up basis improvement seem my a do It chance would stronger in in is margin performance margin XXXX. formula be, there's 'XX points, does good XXX kind margin than

John Roberts

-- that. and that guidance, too of to specific Tom. think going avoid We'll that leave I don't say. early it's we're just We answering give to so I'll

Operator

line comes question Credit Landry with Allison from of Suisse. next Your the

Allison Landry

to on response Tom's the some question. in following made you of Darren, up just comments

You needs there to be said about something pricing, contemplation rail that. of maybe some

more today? more John, your in think I rail you mean, sit wanted And to sort I where so obviously, you, going alluding remarks, of Is my broadly sort to to you're question, discussions my all you bit I your be maybe as become can something on ask structural talking opening with to so on do second that topic network? of that this your about count think to of of TL up if next few more with season then In the bid the rails, part thoughts go than part share there in rates? could to the great. you rates on little sort your traffic any accommodative the Intermodal need Does a would follow-up. topics wanting onto they're So months costs. And the those about the significantly on mean more rates that their when grow. drive willingness you

Darren Field

in happening. answer the last I'll cost. not waiting for There's no, I'll to Sure. railroad wait not the question that's lower line a call on -- first. that phone

Allison Landry

so. think Didn't

Darren Field

There are price outpace are markets Intermodal truckload Intermodal there markets market maybe changes. to below where even truckload where, yes, do probably need can at, rates. prices But the prices be

need make truckload will. network. are pockets I they bit rates little I a key some don't think think entire throughout will rates. And do. don't to a it's where, outpace absolutely But So Intermodal our there think yes, I they statement that they broad to necessarily

Operator

Your next of question line the Research. from Scott comes Wolfe with Group

Scott Group

you. couple a Darren, I got for

any volume have on to far continued perspective to allow And side, first do December growth Has in volumes think to any the And about you the can share? accelerate? changed to volume you So start so thoughts quarter? the how on, quarter? the what in first that first

Darren Field

Yes.

it to reprieve December little out better reposition in small as on, bit the quarter and showed West, empties than a I quarter. up earlier went the was had in in think there our that a ability

But certainly, has Some network far is of fluid. more to so been we it January expected demand a frankly. that and weakness -- been XXXX, strong, it has December what been has might to of be, in and our be related

Scott Group

try Okay. want And I the then on margin more to one side.

a the improved function it, but that think you just but Intermodal the said part don't get you're think in I cycle? -- I I tougher this, you part not think I warning then is the last I of sure in Or you done margins margins, reality margins a that of years mean, the range XX% know We're suggest XX? the you good more -- cycle? in the this make want plus what know margins longer-term what the forward. expect First, it part we to the of of revisit guidance just to the it, more to the may And to to you us, giving not couple past hey, we about the on as heard trying have is to trying this is. of get to the other the is guidance year. are Are of

Darren Field

anybody to think get. trying don't is I

Scott Group

ahead. go Okay,

Darren Field

charges do. the commitments to fall using coming topic our as middle suggest Okay, to the on from stability. a highlighted turbulent ready and gosh, We're years, some But hiring in We pandemic. Intermodal The market The acknowledge Scott, investors been arbitration. anything Shelley to behind a and extremely increases, our a had we we've think that price is honored I'm And I those of trying that, for to than period. the I us. want we cautious primary strong difficult. certainly customers. three will got see very certainly, time. can challenges market not to -- challenges. going has other margin that we expectation driver what We've a we'll support go hopeful outsourced for for of through is don't lot XXXX, are we're out be have of We're

was. to of that is that. message And like been what the the stable evaluate a that's our year that's think we'd I really more bulk message

John Roberts

of on this. availability I got John, to The PSR. outputs are that Scott. today. hope and like like Driver of is some just Nick, you've add, year day the talking things I'll that some behind, Craig there Yes. this pandemic arbitration earlier, a place -- that in are of has I are is items we new are a was -- number This been know,

year place that so a to think the hope more settled Shelley, be, evolution in I'd to changes we're to the settled think believe term, to our expectations. that help changed with environment. get for to We rates structure And I our we're And cost go going by haven't we while -- deal we market and the back way. like being clear this will in very have we a clear duty solidify we because to I be should

not It's current the of it's a ongoing sort smooth Now state. environment.

Drivers schools driver at okay? are around as a all out we retiring, was schools are and though. are and pressure. putting to think, Driver That's puts going availability, things look just new under that; I PSR referencing. drivers. be ongoing Let's The settled. arbitration, duress, more That unique are

have unique, and the whole think that Intermodal take to team large and the has see to his which to do we And we've enjoyed the we things we it, we and willing that Hunt going market, to want So look things that conversations keep where all XX%, that's and opening They're return how to present need answer I'm provide, to business we've and all going sure margins, we in needs to and get with by both. year been can If provide the in also of and got Darren that past. that returns achieve support, can But the way, that to make the outlook the that this do at for it. but to having we if us it's in to decisions question go rates. fleet, to in their serve, say, what go around the and award need We back we're just margins got for we And answer us remarks to communicate are there customer providing my do of get breath is dray, through company purely they was XX% the to that we've and really and going have part able team sales to to can't then with to presence we've to that where that Shelley past. and we important a a that still we're deep to a are. that. early indications I J.B. company those the to optimism assets customer really it's pay it's to not that not purpose

on are assets fourth and returns only We with we to as present term also contract. in we for to steady, at, the need sure set business. price for the steady to look split at we're truckload of the again, that we're out, quarter. is need not look where what we customers that at that Because a we And saying, for business, dedicated we need true hey, to our required we in business looking footing make of business. establish we you terms we growth hey, but can expectations, place the to as here as there's We're experienced our the Same

nuances to just And to different might by thoughts we're conversation of profile. to around we in Truckload that And a be supported capital trying with as margin that the some one-time experimenting one-off. remodel trailers, event, that a might not be able able be our I'm coordinate a

we're expectations. evaluate has that. calling I duty think we're do to a And going year out this is the Company that its the to

a And be you to progress reports be I there'll clarity pay give it. the able think or along way. think with lot we'll I of

Shelley Simpson

we confidence about from talk And he might Nick Intermodal that highly we note, pipeline orders I services. both for lot view, the a have placed and customer heard of a in has. the just you

So our demand customers' is high.

that, back then honor to have and to the customers. reiterated cost like care I sure and commitments, our XXXX XXXX, we walk We reiterate understand, that what think a is have is ordering came took We up for more I honored in that will improve should the ordered we launching to pandemic up in on that bid take we And did season see to what to And confidence than just be our now. to customers with want us Darren of what appetite right much and what what But That's through already. to commitments. that our We we want you, will we'll through expect don't more price. are And we're to committed. XXXX see able our appropriate that. customers structurally all we already We there now bid make XXXX. customers matched our we what on our get season past tell it through we more can that from but that towards. if already we've entire We stance us our margins and we from we want equipment Intermodal. that said, XXXX? change we've through would than returns to of We very planning establish set in

Operator

question the of next Your Deutsche from comes Amit line Mehrotra with Bank.

Amit Mehrotra

high. on I've have Intermodal, business. following lower target return high in you Just And the up capital that beat the long-term dead but always we've not but can But on known OR margins, business returns very can Final with a to the capital on Mile, as be horse. considered invested very

of Or allows maybe the correspond the it I business just of adjust about, retain margins business? will has thinking adjust ratio was so you return now of the as in the And that margins expectation structurally maybe the even are any the anything though business, expectations possibly lower? in that guys operating or the Intermodal ROIC is the that long-term to happening on book directly book to to capital there earnings the change change

Brad Hicks

there ROIC dollar and and per Hey, stays and a per you similar about Amit, on if percent, or can say. if capital on contribution contribution the focused revenue a margin. load cost improves, the which required this achieve basis what think same, community is Brad. to unit really just very consistent the on focused it, or is John basis load and even in though up that dollar degradation on, I revenue to you're is think I'll when generate goes margin going the I add let up, Darren investment you or in is But per remains

I there is focus So know so margin percent. much on

the the and done that all be inputs. community -- and look will going this year think we're I is, communicate work transparent at that be And going of fact, with based make going to the that margin we'll to investment on returns appropriate is upon to we deem sure the that investment. what what And analysis. we're our generating update are, be output just in to we we're

So that's anything that? if more Darren want my you comment, John, or to to add

Darren Field

think about highlighted measuring stick. now we we've our approach are it. have that care to our said Well, to do been I years many way going I'm to presenting return what And we're that's first how me our that, our Brad, holds return strong for mean, our in And to is about that's successful really, I quite think a profile. And find return. managing accountable the that improvements certain the assets, John That's profile we you investments in is. enough we in

So in that's 'XX. our focus

John Roberts

on made with one proper present we If support -- And our customer services And I investment. we a expect customers bit. to little demand says, the but earlier, and return we've hey, I a the that. can't comments I provide of the actually we currently that don't and -- want that seen

period where service the that only required expense the and for supported related we were and mentioned was were in there margins to that company final the assets, You model, market. not a

kind very and it. and Star for aren't North run we and And offering. great present a a able to taken that long off offer about returns different at well, said. growth Darren path a today, can expect seen to and as time, our us capital still the that abandon we've profile different of we've been we it That's of So margins serves being that

bid says, So work, this hey, we if it achieve we that XX. get can't back results XX from

Okay, to how do then would fleet return what we profile to That service? better that's look margins, up in even How our do performance. we do approaches different at we're consider that at similar do offer And how lower going next? it. we and to end

Amit Mehrotra

Yes.

talked of the not can it to Like, right depending ROIC the right? quality is is point, the you're OR that's business, the going think really you've what on ROIC measure, measure I -- from about. the and bifurcate

when year, or fire turns ask trailers since will service you wanted good would know to you're growth. pre-COVID congestion? But well are could. it's just past seen impacting this cost? box the if So this congestion which just that? if -- I how if imagined that, and where talk that's at the Intermodal lower know look much But reason so than significant a way would And not we at box address can was the here. volume how I I this you we're I help look that's point, least if vis-à-vis have coming congestion with there's up question turns, at And it, follow-up, yes. Darren, I only where holding it, because to have you business rail I could is in still it we're because about time The is this I all I and more ask all the adding

Darren Field

with was time fleet the little Well, to period they saw pricing of and periods we bought that are had periods was think storage in time pre-COVID, our -- to when I a velocity to leading at have challenged you and significant weaker similar up bit been supporting in COVID, existed were that. had congestion box deal of what that capacity of but amounts in turns XXXX.We in were grown terms returns

anticipated came it of our on was large we our and not yet was. had were we around terms not XXXX, size fleet where would volume how As into our fleet, built based be the

were in anticipating right the were pandemic. we that XXXX, improvements up and experiencing and we until So velocity

in and June, the everything off starting bit. really, So demand down slowed a charts, went

year not I to own relevant amount so a seeing change or improve is today improve velocity do accommodate it -- loads and will any And either that's how view time in we're customer. for asset of say this that, Intermodal of on ago. that's We would time load to QX. I was this to year going for congestion transit should kind it And the travel you're that was congestion will that longer a order in the 'XX. And gradually the trends. in it for should or longer we improve to system a it. the longer takes reflect in amount And that have expect expect container the to to yes, our has to pricing in bad we expect year how But significant than impacted of

Amit Mehrotra

box implying volume? right? Because more turns is you them improved and this if you're between what and yield and more commensurately in balanced volumes a improve, So then, yield a year then loads maybe your get balanced dynamic

Darren Field

year is in our got is else. more We've expand to than I that to confident it price that. but are our Well, acquisitions order equipment think anything our ability do we the margins, making actually to this with we're in lean

Operator

Stephens. question Long next of Justin the Your line with from comes

Justin Long

the help Intermodal around last pre-pandemic and Maybe X%? curious been impact of levels, that back tens velocity to the around in XXX front? issues. about margin that out? provide the If there think on up would service follow have to margins magnitude where we've basis seen were points, if back so that Darren, way margin if is that, half shake of just it's you question on I'm any service to a basis XXXX, that's of to there get rail Is can points.

Darren Field

there, that this, in quarter, I quarantine. specific too of our just the the did We front. employees Justin. get can't probably I own look had we when you significant at of was drayage fourth the outsourcing on know amount

costs to capacity going open by to bringing mentioned PTO we're much Kuhlow that our that elevated COVID the replacing had XXXX. Yet, how employees. for employee spent John that, the was in related on present time the significantly Company going think I market were outsourced and to

drivers And back to so to component half were in of velocity of a had Service challenges and increases But and that's the go quarter, drayage year, some as market quarter. we the fourth fourth of margin really the significant. it. cost is the of outsourced the particularly last major in in

Justin Long

been there where on the expect Okay. and sit follow-up, season how ICS. of progress cadence to the And update to the us should Can repriced we business in my Intermodal ask help a I wanted as you if today quarterly and what's contractual basis? the terms just in both any of you of repricing bid in with just percentage remainder was

Shelley Simpson

Sure.

how XX% similar start business trends. Intermodal XX% business our more move that typically, and QX, that, been for XX% in impacted segment. who or we forward, -- part, implemented. different we've awarded is period, priced the little priced far. little we the in implemented. business. is what season follows Company a has out Intermodal kind particularly so you has is of as so bid much that's in in the mid-teens putting and about at Intermodal most very of So start has our XX% in been Intermodal Of our look But a on if in little has starts But somewhere A as about the you time bit of their bids our between as more of already just deem and

QX, XX%; with you XX%. It's around just range, this it look of like around customers and to come think XX%; depending out QX, want on around that in Intermodal, actual QX, QX, around bids. XX%; when at If our

about the that's but right changes, that Sometimes, timing.

Justin Long

Okay, correct? great. are And implemented, when those are Those all numbers. percentages

Shelley Simpson

Correct. Yes.

Operator

question comes the America. Bank Ken of next Your Hoexter line with of from

Ken Hoexter

into and and fluid loads. up earlier and we're mentioned Chinese talk you see to the through Can Year ports see 'XX XXX% how trending segment of expected at that January you working going low overall demand thoughts? or the in New kind inventories. the early Darren in and about maybe saw spot ICS Intermodal seems market the Brad, network, on spot a like It Shelley we is

Shelley Simpson

Yes.

But is a and are trying will from there get a deployed. We really than here to days. from the to volume. us be in of And last challenges, inbound particularly our half containers going labor still year. the through do way into the the Chinese New happening all restock Year, continue out XX that been import we think come do the on port issue. import bit to see say for we're back would our to customers' anticipated an you when first at the view, I'm much forecast backlog of trying an considering that to side. total from that X and So in inventory I to look turn a actually what's customers is puts not particularly coming And how the sure line, see it's little slower of the slowdown

over I fallen still and XX a push think move the out from in seen what's happening perspective, will would X from perspective, into will Coast last of a demand what we norm and would lull. say to tighter rest a a come be general than half. forward but will the market. of anything is has think what seasonality West truckload I We usual that days the that price first in spot be matching I that, anticipate as think typically do forward into the we've stronger-than-normal don't the

Ken Hoexter

or was that Just any the in days? the business to Was what last just little overall? clarify, slower seven traffic particular

Shelley Simpson

an I import just perspective. our would customers say across throughput the to board, trying get from

Ken Hoexter

Got it. the And mentioned then in Dedicated, Nick, in you margins mid-teens. the now

sold to Dedicated. Maybe XXX Is going new forward rates? noted bit that talk -- new business you trucks. could X,XXX thoughts confident about you that your at Is little You you've and you're on committed? that on a

Nick Hobbs

our Final both Yes. stronger in pipeline and on -- January in year. January, that, is pipeline last business than based Dedicated our pipeline That is our of Mile

we our feel and good numbers. pipeline about very So those

X,XXX XXX based not the signed year. how new we next flows, very So pipeline feel our yet, on to it's confident in trucks but deals

Brad Hicks

XXX trucks Dedicated Granted, to trying XXXX. of the was, remember He the expectation of think, just I we're in comments XXX sold X,XXX. Brad. context some to return Yes, to target And sort of of hit the pandemic. if Nick's the to X,XXX long-term Ken, in That's Nick to just midst thought pandemic, going the that this -- XXX. to you because he is provided lowered

Operator

next Brandon line from comes with Your question Oglenski of Barclays. the

Brandon Oglenski

XXX business leverage, I you And segment, Is guess guys as year. there you more brokerage the part more incremental the the thinking are by be rely the well the so on transiting half then the your headcount profitable as still business digital on ICS new how what putting in And in world? in of the platform? existing still onto efficient platform. that about turn do transactions strategy of repurpose second strategy the division to rely or outlook to profitability that a that on

Brad Hicks

will people the XX the anticipation forward our what over Yes, to really last of severe through transitioning modest Brandon, been we've months reorganizations be. model in

have a development help the maximize really are fuel so continue think will a customers midsized profitability a know but abnormal a about more tech the -- platform. the little volume. predominantly no we already that where is can the occurred. we with that's have question that earlier about it more to shipper that we activity spot to on to our finalizing bringing So that's on to look small platform We've second at own spend grow bit that as tech has transact the lot 'XX. way of us for we okay, touched momentum volume that that volumes that focused platform. on continue to expect and overall swings the in the and of And level half, activities us our it's There's lot And on of And efficient we and to the of we as really the pivot we back work culmination out. new the efficiencies completion on model to

they QX on again Now get extremely revenue, stock what will the be side, abnormal calling glimpse there. give we just saw high-level it somewhat And of you was amplified when due of us we didn't if a will, in the what to

earlier. that, months, as necessarily months. could hot We over quarters there are stay that But is there. we're not as a one, the these to little few about talking about market, occur it anticipating that day continues bit talking strength a If we're chance not not first

to that deliver our that, reaffirms high that think I So second the ability positive. half has on just confidence

Shelley Simpson

that levels the reorganization. about talked talked throughout a we too, year. people our actually result about up our direct the we that little bit start during resourced of about note, activity earlier the substantially customers. a on I make had me we being of half let a first reorganization. year, And talked to my Brandon, last calling our And That's in comments,

customers focus work portion from has our our for we and segment in ICS continuing in are what spends will that's started platform efficient Brad more and already internal carriers create complete how a we've that of to the benefits been We're a make making to both see our do ongoing. people, business our way really and our So be letting our drive sure on of to us referencing to investments. now is those

the we will actually However, will with of XXX our marry internal resources. externalization the our platform work internal complete that

really So the think shipment, operates will, of belt, to our people where to you automated an problem in of off conveyor Today, that solve. come they'll actually silos. we if need two

then our in what to trying to note the start I'll You'll that. repeating half. see march And returning make quarter happens on fourth the Certainly, second performance inside towards we're that ICS was. leverage to profitability last

on strategy the our continue. earmarked QX scale we to in into given to creating not our do QX, component that up our technology pressure will put future. is we but in and ideas and in more Scale network. that a we so most hope people Remember, we've can is us, continue platform. efficient invest the critical specific for And So can those into but we our continue have ideas could

can focus of pleased those with this through QX, first so we I that outperform be And results. half like if think in And our be the you'll did will year. we

Operator

comes Your the Fowler of Todd Markets. from Capital line with final KeyBanc question

Todd Fowler

the Or to need fully exit a of margin progression improvement think Okay, really news more bids 'XX, year? bid improve be set and some you margin and you is in it the Darren, in first great. service do half year? maybe of comments get guess I for see on good half so on rail to I to guess implemented I'm that run the the a to the the to able the the function margin won't is question be commentary, in of rate probably of timing the that implementation last kind that. the into about margin show the you'll second improvement the or to that

Darren Field

we summer facing of prices still Shelley But slower some very new time, a by certainly Well, some would not think be little I Labor that it still, to moves at continues I pricing when. our I implemented. outlined control would sure given that for we're have can than to influence to elements pandemic there. know we point. implementing maybe like this and it expect I'm are that conditions exactly outside out difficult.

So quarter, back half third of the into the quarter. second

You've fresh the the market on business with should of based of got book and pricing of a your And new substantial be rates conditions representative better percentage that today. the results.

Todd Fowler

how to the growth just That much couple over of out just stronger close kind cost? XXX about beyond of helps. that predicated out coming to years? coming of And base the the of can the XXX, maybe of move you Or lowering expectation you've on see spend really end revenue together that implementation the do revenue Just other think Okay. in and is kind seeing segments? see Shelley, you last And look if it's as versus ICS? of beyond on as then in second growth growth the your XXX through going call. the half how 'XX, you above-market you spend provides the been you

Shelley Simpson

great question. Yes,

things the on platform of really really our do my I'll think customers. focus able one in leverage role So standard do the so of how we to on behalf to in the organization, how be and about we that across

that organization. end report running shipment the earlier you example, one the how just that's get and I've recommendation of That's think if platform of that something. a or instead how mentioned want a across the afterwards, today a the And about front move. of recommending I do actually can clarify sure So the work that that we how more we that shipment should on many in predicting make making but I prescriptive to moving Intermodal, be see the

tech spend. are not our at We the of end

end external will the our our that of work at our platform with connect internal are We platform. internal

as to will We XXX for J.B. see invest accelerator revenue as an Hunt we our perspective. this continue in from organization a

that the work started that I platform, think in you first place the were that we to that JBT able was were to and in the was adjacent our we see that ICS. really It's doing. XXX place logically

see this opening leverage report, and efficient the platform, eliminated to platform number amounts around the assets our the in of or certainly that's to more market, the XXX, Nick our so were you'll I assets we behalf customers. cost on you'll the try see we the own continue efficient in drive reduction. we so And in of the And most see the more the scales, leveraging to we able remarks available benefit platform top comments assets to most finally, why think at but that annual that in will then And that. our our made be millions his from there, to how the cost get our continuing should by see of directly assets

John Roberts

going minute close here a and for over take to this just up bit I'm a So little our time.

of comprehensive don't about And discussion more there's get that about for so So hope we it us the parts. questions. platform, can most thanks a for a question talk I have. in problems we definitely dominates advantages discussion. customers remarks sense get that there's our really that companies solving chance for a I use urgency all patience. to enterprise of got because this say your the really to margin We lot answered to our

the so the question, think think, in we sure revealed important as on volume and are resolved fourth And our systems make I lot, and quarter. in use us get this encouraging it's to we hard is can. But we we're going hear I of as that itself where to a soon work the we for that

don't J.B. look They services. buy for us. get call is, I mindset to think our an investment customers find us that answers. here, to to look They here Hunt an attitude a

a The And good we're term to going that our gives go necessarily in ourselves we're plus Hunt. and to entrepreneurial a out. questions, we new doesn't questions, questions. Intermodal. strong cetera, It find enough answer these as And will -- could where this that longer plus I a we're there. we to J.B. Dedicated the 'XX immediate answer a have of nature. us we we're that think a answer as forward it's the know going answer place excited like important commitment or And into to to is in are whether And We settled we you got equipment not, I'm I figure going nature add to there's help et very the plus plus to allow chance leads. answer position element but Mile in. Highway Intermodal platform, is Final is

will think, over a as Mile there. a place think is customers, a important away. in units exciting. in to stay alone of and market. XXXX. fleet I XXX,XXX Final take that's very thing we be certain services to provider value demands And the expect we This I And The that,

I We're a our like asking Our made questions. the very you is excited pipelines cohesive. energy you really around really We've of can't frankly. all board can't add our And our bit. good guys businesses, see leadership team sit, little is just in shape new just that moved that are from about in We've all And I'm up. but I'd some changes where and that.

continued something I think that's that reveal to itself.

encouraged about both the who, only on closer survive pandemic. that. level to care term. shout-out see team, of of in think And I long the XXXX, We but quarter. that's final We'll were it, we for more Company. a good it, I'm and received, level we people through about we not took in at a pleased how did And very leadership the we and the together we every the at less I'm grew J.B. as a thrived Hunt care actually proud going but this to give quarter.

and you call. wish forward we So, well to next our we'll look today,

Operator

Ladies participation. and thank gentlemen, today's you conference call. for We your concludes this

disconnect. may You now

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