Old Dominion Freight Line (ODFL) 5 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Jack Atkins	executive
Kevin Freeman	executive
Adam Satterfield	executive
Jason Seidl	analyst
Jordan Alliger	analyst
Christian Wetherbee	analyst
Jonathan Chappell	analyst
Daniel Imbro	analyst
Eric Morgan	analyst
Brian Ossenbeck	analyst
Ariel Rosa	analyst
Ken Hoexter	analyst
Scott Group	analyst
J. Bruce Chan	analyst
Bascome Majors	analyst
Ravi Shanker	analyst
Joseph Lawrence Hafling	analyst

Call transcript

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Operator

Welcome to [ OD ] Freight Line Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Jack Atkins, Director, Finance and Investor Relations. Please go ahead.

Jack Atkins

Betsy. you, Thank and Call everyone, the Quarter Fourth Good Old welcome Dominion Conference for Freight XXXX morning, to Line. X(XXX)XXX-XXXX, XX, Today's call replay by February for be will XXXXXXX. dialing XXXX is being beginning recorded today and access code available through also The accessed days for website. be replay company's webcast the XX the of may on

Old statements performance. call Act payments including of forward-looking meaning Dominion's financial the operating in regarding and expected conference This contain Private of XXXX, among the may Securities Reform others, Litigation

this during to call are For Without this similar made purpose, intended identify fact believes, deemed statements statements expressions forward-looking be limiting words to historical and forward-looking be that of plans, the any not statements. expects statements. anticipates, are the may foregoing, forward-looking

may by Dominion's factors, in in consequently, You set forth with others, filings this the The And important or as Exchange are in that morning's of from results be hereby statements, cautioned Commission Old whether information, among the actual Securities these a the and no materially update and forward-looking discussed statements publicly release. events future and news undertakes to company affected new may results differ any operations statements. otherwise. result forward-looking the obligation

period conference that [ adjusted share share note on stock per split. today's ] X-for-X prior Please reflect our discussed call data been also XXXX have and to March

queue. limit As a you one today, to yourself final to that note before ask just the we before begin. questions We welcome but your question returning

remarks, I Marty, Officer, the Freeman. for like Mr. opening to Executive sir. company's conference go this At Chief over ahead, please turn and time would to the President call Marty

Kevin Freeman

And some more on the softness in quarter fourth Satterfield, brief our remarks, continued economy. to call. quarter domestic reflect call our your than results to Old take happy me Adam be welcome questions. Dominion's financial With and morning, the Good we'll today is after fourth CFO. conference

customer relationships. a continue in remained While revenue our declined while to relatively our we consistent, to our in due share quarter, volumes, strengthen X.X% decrease our the market

fourth [ a our continued $X.XX compared despite operating lower quarter represents a of same Although share ago. service deliver to period how also team diluted while year proud decrease of from ] headwinds the XX% efficiently very density. I'm earnings superior per to our

have OD committed remained proven the have to unwavering when sluggish with of long-term would elements I few dedication macroeconomic for employees continued challenges environment priorities. to has our been core and the us our anticipated. we of full than far most our industry, strategic especially of family Through years key like this, that our to plan, past The would have all of longer of thank strategic

we and efficiencies service, can While in have disciplined providing customer minimizing spending. by control, maximizing discretionary our our pricing focused our controlling on we approach and what to superior cost our remaining operating

years. people balance our and the our The of continued We share a our have in technology win sheet our long-term economic to our also to we the us through key network, ability through strengthen our has been the and share cycle downs remain opportunities. consistency ups to of execution on element allows in market invest as market

help our they cargo once quarter on a in case the their be their on-time again, to claims proud know and rely fourth can I'm keep X.X%. we for that, with and customers ratio report them Our customers. us as the to to service XX% provided them there boundaries customers below

challenging customer operate on has value preserve turn the demand business, long-term costs pricing, in to to consistent our we inflation by are to adding which our as supports for customers face environment, our of initiatives investments designed our team our and and their focuses looking best-in-class and profitability possible. is providing control capacity individual ways In future to in our hard which support help approach our worked this yield technology. as management consistently our efficiently offset profitability with to By service, cost

expenses continued a as of direct network over shows X our costs years, our inflation. declined the have the our network past our as direct and levels. team cost density well a percentage our the This headwinds operating commitment as of As entire flexibility to business result, operating of from revenue lower to match despite

We in Importantly, in invest spent we We capital capital to continuing business include in 'XX XXXX. These executed control $XXX prevented us quickly X figures other have once also to which our facilities we service on $XXX our invested in supports long construction open million, the that opened nearly in our efforts can centers follows XXXX, service costs million expenditures of over the and term. or from not environment X-year the have demand under $XXX ongoing the in new for it. million center we several expansion we period network. spending complete have

are them excess have created we grow depreciation in capacity to over can a quickly due XX% that costs our service we they will ongoing change. expenses That investments technology years and with while are to capacity overhead our in term the short in we headwinds customers short-term to We some but the the have our require so these to incur the market said, willing ahead. position in know and support center higher cost. network, how

OD hard start family fiscal cautiously optimistic as of the the dedication we and year. new our to employees, work Thanks of I'm

an what are will environment predict when we see materializes. positioned to While respond it well cannot in the inflection we improved demand, to operating we in

commitment carrier. past allowed and the other to our share win has execution Dominion Over superior service Old to consistent LTL market more any decade, than

increased to continuing our continue market shareholders win long to strategic We drive to are confident the value positioned proven term. over and share by for plan, are implement our we that

now joining Adam will detail. morning, greater discuss I and appreciate us fourth in you our quarter this Adam?

Adam Satterfield

morning. X.X% XXXX, Marty, for billion prior from a and Thank was fourth quarter the you, the of Dominion's year. $X.XX good totaled which revenue decrease Old

LTL revenue Our per hundredweight. in in decrease X.X% day decrease revenue results reflect X.X% tons and per an LTL a

to X quarter XXXX. We workday also as had compared extra of the fourth

LTL the X.X%. basis, our for with day XXXX, X.X% shipments per per X.X% day sequential fourth third compared of On when quarter day decreased per decreasing and revenue the tons to quarter decreasing LTL a

comparison, X.X% For December. November these to metrics September. and compared The X decrease to per XX-year October, October fourth as average is day. these compared November. a sequential of ] the were sequential as a follows: per LTL respective in of November increase change October includes average day December a -- X.X% increased of The decreased the X.X% X.X% of during and [ in an X.X% as for to changes decrease in months X.X% tons compared quarter change monthly LTL in for shipments as decreased XX-year decrease

revenue offset compared decreased X.X% of revenue day increased January X.X% January. LTL due an when in day our X.X% our LTL LTL excluding per was per in partially fuel surcharges, decrease XXXX our by January, per per hundredweight. increase that by For in hundredweight, tons to a to revenue

points property operating increased ratio increase XXX many XX.X% miscellaneous equipment to to quarter fourth expenses our operating revenue. quarter as revenue of cost X.X% increased lower miscellaneous during expenses revenue. our approximately which had of in of basis and XXXX. a the XXX deleveraging decrease expenses primarily We average of basis effect Our during the overhead contributed quarter to percent a disposal XXX of the on The fourth due points point in basis percent XXXX. gains of to revenue a the our expect overhead recorded our for a our of our on as approximately Within cost, generally

were more XXXX. these quarter costs fourth So the normalized in of

$X.X $XXX.X were totaled respectively, represents quarterly the cost relation fourth for $XX.X our million share while and million direct claims. while that adjustment to our the quarter fourth tight XXXX. and expenditures over when due paid also the the quarterly We maintaining of revenue as We of to compared insurance claims our the direct operating quarter from for and quarter $XXX.X dividend program for cash primarily repurchase increase our Board to in share changes review otherwise million year, cash a pleased a was dividends recorded which the dividend annual Directors fourth compared the for spending. $XXX.X point operations flow percent variable and a of control cash of for approved for were Contributing Dominion's increase with $XXX.X while periods. accident which were nature, billion expenses $XXX.X to actual our first a million year, the quarter basis Our the percent in of current same operating million million business levels, revenue, XXXX, during in costs, Old increase control cash in increased our expense totaled generally of as team's third-party a X.X% XXX same $XXX.X XXXX. which of and utilized also per the We million discretionary for to $X.XX are first pleased the was effort of our the to quarter and capital of respectively, periods. in

Our effective the our to quarter quarter to XX.X% tax effective XX.X% XXXX rate tax currently in expect XX.X% was as XXXX. first for quarter the compared of the XXXX. rate of fourth We be for fourth of

at remarks to our concludes for Operator, this prepared This this happy time. open morning. the floor be questions we'll

Operator

Instructions]. [Operator

Jason question Seidl first Cowens. comes from with today The TD

Jason Seidl

the frankly, was the the Should in winter about you, conditions bit we talked quite going aren't Thank news it's bad country as a should obviously impacted? Marty, January, that prepared being team, parts we here of how about weather little operator. forward of really weather time think throughout the for that and the that, move we but down appreciate today. much over expect X.X% How weather. tonnage winter all get I Marty to guys bad in tonnage Or number better? you about sort quarter? been

Kevin Freeman

in are carriers we couple bad pick February, comes days. seems usually a of when weather we because down back that in go every can't January it And closed up. my it bad of the revenue career. back It and customers weather like most get due through Well, to

to comes weather depend what But live, it it going forward. some full back we've but South like a of the over seen full in be to unusual most dot. where cold question, that that. never to truckload shippers here of had the Some temperatures the build from and is We answer moved if they're load we could able would upon weather your

weather standpoint. of a with that don't forward couple to be from going look a have We big a issue I us for snows,

It optimistic of woods. so we're the here And almost yesterday. XX degrees I'm was out

love So we that.

Jason Seidl

us give the terms of getting that down terminals in Could you a in us better the weather January we're had prior close to bad guys numbers to of you versus amount here. guys up Well, feel? give maybe the any January,

Adam Satterfield

service think I sport. we get said, We detail, always we that don't we had about Jason. centers as and -- that into obviously Marty think disrupted, outdoor of level But normally trucking were

to we going so there's so bad built we pleased And averages, XX-year -- be at But look our when had averages things like like were those forth. last performed in and pretty year. in with to relative weather how in we there what And December. we volumes and our look overall to weather. that's XX-year in January January bad

December the forward. points at January X-year we Our used We a about We little XX-year in X-year points, average look by we average basis under. underperformed average by the average at tonnage about in going the December was and and X-year usually bit in January. basis outperformed XXX and XXX

tonnage January and in average in X.X%. about over XX-year up would March average So the senior be be February would X.X% then

hearing would obviously, the the So translate things month and normal. we XX see really see seen then increased acceleration optimism look Do see [ how just like what perform to give ]. of business do over into and last you things be I would key update And the we otherwise throughout years. ISM, XX above going levels and we from business typically the or and our see customers this those February. that mid-quarter finally we're levels as have And continue build we'll think

Jason Seidl

Well, my for crossed I Appreciate Yes. time. you the got fingers guys.

Operator

Goldman Jordan The next comes question from with Sachs. Alliger

Jordan Alliger

and how operating little tonnage on the I putting you're trends takes to guess tonnage in on makes XQ together and about ratio the all seasonality maybe a sense XQ talked about we ask January, bit to puts and since of OR? sort thinking with

Adam Satterfield

fourth an -- expect about From ratio normally, XXX the quarter Yes. XXX basis standpoint, point relative to operating to sequential in the and first fourth. we'd increase

some to see revenue costs should we release, quarter. press I'd of the in out relative those to be those this fourth. basis expecting that up insurance of For kind called as percent was that revenue year, got be in probably about to quarter XX of in expect up first costs be And the in flat I'm flat, the we've improvement points to X.X% we'll that first the a closer

So that kind normal we'd of see. otherwise would sequential increase that that offset

we're little in flat think we yet bit terms a And of so revenue there. kind of quite still of I -- got risk XX. that up to not

a we've We where quarter. on haven't full a had period for seasonality been that

as as transpires discretionary our little expenses bit And core otherwise would controlling higher and our So a and if to overhead is efficiencies quarter. the we tight think managing go what we as dictated rest op line this be operating that to have that the we'll can also there basis, than But through continuing see underperformance that us to puts a have a what focus little as revenue normal every just seasonality that a we the I keep will belts in and more a what I'm continue been a we cost. little spending. of there. despite pressure supplies bit on expecting have our percent on that top on of testament for in day our team our

control cost and had that more robust until really some of very environment. So quarter good first continue we performance would that XQ we'll I a back here of to the expect through and get revenue into see

Operator

from question Chris Wetherbee with next Wells Fargo. The comes

Christian Wetherbee

at maybe XQ, sort you're from in a of can of going pricing bit on a a ask per little seeing sense it understand kind revenue in little an like what's could get a I environment. quarter you're sounds bit of you Fourth but and came us perspective, how seeing good if reasonably of pricing, on Maybe what hundredweight maybe help it? the acceleration

Adam Satterfield

We're getting hundredweight up was we price quarter. for pretty line much still came that excluding in with range The fourth surcharge. gave Yes. increases. per revenue right that good the It X.X%,

that first a little the bit are with Hopefully, kind that line would being that'd seasonality see. of economic with we environment. right X.X%, thus normal that's we'll a thought in at -- in somewhat helped we January quarter the point improving seasonality be standpoint, beginning we've good we to shape saw in We but in what seen quarter, And of normal -- where X.X% out of go thus X% through starting quarter, up January more from from be the about we'd far we'd as seasonality we'll shipment be up so that expect a yes, kind standpoint. seen an what of see But through that of this and of that from we far a at drop wafer metric. into we've accelerate December January the normal outperforming range kind in be indicative so

Operator

Jon from comes with Evercore question next ISI. The Chappell

Jonathan Chappell

Marty his Thank construction under or completion. remarks, several other are you. in near that mentioned prepared service centers

capacity close be the it to are you'd spare where do on get you many pretty think year, keep quickly inflection the half we outlook if to centers the year, that for we the centers service or kind about the to expect bring less in not inflection be. this customer XXXX. do for we optimism seems maybe As for yet, point, can that on identifying pretty service And X of how of second like

Adam Satterfield

that Yes. to Marty we of at demand A John. driven, the of execute really like CapEx plan mentioned. last is our today. XXX We're of long-term service be to lot And over on centers balance continue the couple years, going

XX% of as standpoint. year, And this so year. And a we're overall little we from openings X look had capacity excess north we out last an

not to to decision or an any the on would the opening. making there's cost unless with hand-in-hand that new a in may So really of not but finish dictates, a we costs. And that have themselves, regard, cost and operations will. goes at we and we center open and that demand operationally turn location don't other them diligent the facility looking all be whether we properties plan that want It's that in lot working and the service it's operational you if into just of on, incremental line-haul impact construction

to would whether into we factored decision those want the not to all be will of as open. So or

think are more. got that we think I near and we've several would have completion, But several I

that in So here XXXX. we finish could

we're open people that can dictated, the long-term strong we've growth of we incremental what ahead curve. anticipated fact, to is, do, been, going a and return that's ready decisions. those in at And continued to -- we margins. plan very investments that demand number to share. think network ahead the prepared and volumes in making to that those when But but opportunities should say make could if we've We're many sure our prudent our contemplating done and our be for to what us with market continued to return execute our we mentioned, want that you be making So according just has I

that those business a right So now continue we'll and that's projects, lot -- evaluate but great to but we're and we prepared. in something handle to for want can of we shape be

back to think cumulative over that of billion You X-year quickly XXXX, revenue put XXXX, in how things $X change period. on we

go I from So standpoint a a that network economic revenue. we on in through strong could robust put good great of spot lot and expansion a a we're think

Kevin Freeman

to future John, of those will our lower our X hub in a Adam's we're to to cost actually complete that from add linehaul and working facilities on facilities, And standpoint. trying comments, the now which

those and So that completion, are some things on further excited savings us we're give road. will very near that the

Operator

Daniel from The with next Stephens. question Imbro comes

Daniel Imbro

earlier Good morning, guys. follow to up comment Thanks. you maybe And on made. an

seeing you from across network? the that customers encouraging any of inflect look the you typically long muted, your of that typically more do terms your kind Are business Can you did up how to So cycle? moving it for but in in when what earliest return through those of the PMI shipments month. this portfolio? And demand parts see talk just higher remained has are takes about we demand expansion show to

Adam Satterfield

January, industrial is customers time better quarter, enthusiasm our quite it's it the based albeit through and we conversations saw little And little that overall acceleration we're And and Yes. while, in in we XX revenue bit But with that the is threshold. it that's -- from think the felt everyone, today. with in where goes those I our we a the outperformed a it. like kind with think, We for saw I the than didn't in customer of the actually, the December in business customers ISM being hearing that fourth on bust performance cautious business. a retail-related hand-in-hand But bit see actually up being. first industrial-related ended performance. company XX would And break

So to just of I months them ISM Typically, we'll those with that stay we're if we'd coming when a great through, see business lag take customers say, spot when love acceleration they it's continue to think with obviously And our engaged overall. terms with industry in But those couple customers. of the need performance be increased for certainly, there that a I'd we increased us. to the they see and for materialize. shipments industrial-related levels in

Daniel Imbro

color. Thanks lot. a the Appreciate

Operator

from comes Morgan question next Barclays. The Eric with

Eric Morgan

to on I the wanted operating ratio. another ask

pricing there? we year see DNA in see less steady-state drag the cost think macro? you to margin DNA if this you can Or a Do little of do of with And some or year think get you where down. positive this inflection I maybe you CapEx a to are the kind given and trending. you performance improvement need coming of Just you see bit know, don't a

Adam Satterfield

dependent that direct year. a overhead little the full bit we've a revenue. OR improvement We of of of in year revenue degradation line be generated this Well, percent for we on a think that just top slight, past actually in expenses going talked was that's And as a line. I the our but the cost really lot about saw definitely the to

with ability improving I actually to controllable pleased standards. in what our So again was service low-density was really our a control while environment

So handle that's testament this to a our year. they how through team operations manage for and

allocation. inflation but plus or you averaging been through there And with overall, of in that $X overhead those pleased per costs. we quarter go they've million see minus did really the about So million $XXX kind that, when

top got get to line we've to got point back where a some growth. So we've

think if to return some I seasonality we see possible. that that's can certainly then

job improvement see right? you X our if in some back operating you through can of our can cost and certainly total a in run XXXX, our the think do multiyear it kind -- think of going can particular, fourth year, happen story. those year to can trace And manage on our get it's it I where to or to if components. or for incremental a the it's and what's back the if of point, XX%, economy seasonality some a through, I of and get to strong overheads, continue the we for can at does back improvement. really you at year control we think I get back we we revenue I prior type whenever of see kind think go look overall the if the think it's to revenue. possible sense But this between at environment just cost a some quarter, periods of margin X to XX% were year direct you XX% pretty match of math, it's of be for when XX% leverage the And the half revenue, of that XXXX, some going So look an we and cycle growth. that I rebound the like quarters I this And you have to reason, that's called revenue, come is to the the breakdown can to see we nice ratio

of that producing tend us and range below annual that some get should revenue. They've ratio in that basis pendulum our And that that's goal to so where get lower strong XX% swing really are XXX performance operating XX%, we of the we If leverage. an been overhead of can to back we'd XX. our before, see to the expect XX% of trade kind right about towards back most point eventually costs end

Operator

Ossenbeck question next comes with Brian from JPMorgan. The

Brian Ossenbeck

through changes out I to week. want working NMFTA. the class was system. come The last to just So the They're to late proposal back some

come your we've got I time, seen a but already, to I mentioned of your majority but I you to -- know So thoughts now want a that on vast last this freight on shippers the terms are for of implications little broader for forward yourselves, assuming more what you and bit industry, this in the do the the proposal, table as proposed? think goes

Ariel Rosa

Yes. about big think to to because from is it's wanting what a I system cube do personally nothing a they're rating to density a and do class usually really go rating system.

So that that the go have to to have choice that doesn't they shippers mean a to overnight. necessarily if They do that want.

see big lot shipments, a the of the gives for don't of nothing and because will but it's I system rate to towards I hype a deal So that being like that we that better shipments it carriers Certainly, work the cost would think to how and carriers. being. time over a probably affect the

Operator

The with next Ken question Bank of comes America. Hoexter from

Ken Hoexter

versus a think market, in Can share saying maintaining [ you this then, down deceleration quick maintain market you mid-single pickup and were downturn, just a sounds you're I your upturns. the quarter. you you're if maybe the share, in real X% And Adam, at in it about last digits get talk usually point clarification. the more volumes that only the you ] just like X%, Just maybe talking

XXX to XX up OR $XXX mentioned normal $XXX. mentioned you last think was I thought points. the XQ time had you to basis seasonality I

to historical looking historical changed there? trends? you're mean update trend any Or beat the or does has So that

Adam Satterfield

Yes.

sure clarify that. me I Let make

expense ratio should XXX points XXX increase to around basis part XX normal that I of fourth points. claims the back to we up quarter. in quarter. operating that basis expect X.X% And the flat to was revenue of was and of in in be revert reported that is the insurance that benefit is X.X% the first from the So that fourth we to the And saying quarter,

the then some XXX that points But there. is right, earlier. increases average of increase benefit to XXX I mentioned had So normal basis there got you and an you're some

the to been was We're of at the share look your share looking I traded lot that years. thing to of we've overall, publicly comparing regards just think there at that last commentary, carrier. obviously, market couple disruption the of In trying a over

universe the we've of get we that So more private to includes at look had some that and carriers entire overall. to the try data

expansionary management yield be We've target that so points, in get, we well, see market again. weaker share, in regards have will. by the doing in want market share, as it that's looks like And and we from discipline effectively maintain 'XX would economic all and we to We and period. at say a information anywhere 'XX if to I philosophy the in what as that's a And the our we maintain when growing think from with to the you maintained well public continue spot start to XXX carriers our XXX does market then good markets. you outperformed the -- to least basis what

where overall play tell to freight how And to versus will down the were that probably we XXXX, others and in only XXXX. volumes in the about with and XX% see terms will, that again. capacity, reshuffle of if improve are able I when So the time out industry think are back the market continues we'll you comes

over So about capacity all who of $X think it control created can this type we cumulatively out and billion that's that's I that some will revenue but put and there, of be without 'XX it but of I 'XX earlier, drilling period. referenced any on pain,

top carrier growth. just a So putting on revenue a of least team be and proven would if 'XX I execute XX it significant we've and got organically and put that what a amount in 'XX. can think on out That at go a did we

Operator

with Group from comes question Research. Wolfe next The Scott

Scott Group

reaccelerate don't more don't I'm know this comment revenue a Or Or Adam, of that I if mix outperform is again? of QX. revenue last around January a about you understand sort then that the of quarter, thought little outcomes. accelerating to bit know similar to starting like sort is sort have the pricing starting trying point? in QX. just ex if seasonality? just Is to gave And of yields is range us you versus if QX OR starting the I a for a is are dynamic? sounds fuel QX.

Adam Satterfield

Yes.

-- and So relative of in okay, XX up quarter. first at if better were. But kind gave be I averages -- the side, underperform the the fourth And perform all-in if in we we fourth then bit would fourth of than same that third would did pace quarter little quarter, XQ we what a we XX-year this look quarter of first was $X.XX like? I we in billion seasonality underperformed fourth if end and the revenue revenue year of had we'd think And if we the in this seasonality, But the we what range that quarter, perform seasonality But $X.XX revenue did kind like at of if lower that billion. quarter I of XQ guess in the in gave, in to day quarter, our first first like. other quarter, of what we've kind less first got quarter we revenue then way look the be days I start, X quarter I the for operating that to that would X framed last XX creating, versus did last year. on year the the

normal like XQ. more seasonality said somewhere maybe would underperformance kind to had $X.XX of $X.XX put billion in somewhere in us billion, So consistent succinctly, range we

in it's think then revenue March. a in saying typically, you I acceleration here starts of earlier, acceleration we've just kind a in big that's -- and big February was And see like that, I

we going felt seasonal in ago to we'll to be felt the we still sitting see year when increase. that turn the were like I And say, like determined here, We're so to that's if cautiously that of type see sense were things we positive. we would optimistic, a yet

to for before So get line about ahead the want definitely we're too but far see operating talking might top ourselves otherwise it, preparing ratio and diligent being and we of be. the terms transpiring it we of what in

Unknown Executive

yield what up follow ex hundredweight to would would question to Yes, I I said seasonality that asked, think imply fuel up kind be per you that revenue it's that The X.X%. X.X% to on of earlier, just X%. normal

December from our a in to January. of bit weight little shipment a was it dropoff per So

well. put per kind like naturally mentioned rather get that bit earlier, and I'd a mix shipment So that offset then I yield also to of see -- increasing management little long-term weight philosophies number continue our on but of and thing increases to designed executing help are just us and achieve number. that But But our our pressure of we continue see at in us as in because service better and account our enhance profitability do economy investments both getting that better, that our efficiencies individual you to to will sign we service ultimately and if the should will, of that our into be would that the follow and more technologies weight that back allow is support that shipment customers. with looking ultimately velocity on trying or improve costs through on new operating to customer centers new range, a and terms serve

Operator

question with from Stifel. Chan Bruce Next comes

J. Bruce Chan

dynamic announced on big at but get last a spin-off competitive competitor Yes. if year Thanks, that a some that enough see opportunity that operator, maybe just of with there's the recovery? how around was good pretty the increasing maybe affecting the and I everybody give margins you on you it's Maybe the for end if there's know or morning, long everyone. runway potential could confident that, cycle on year, us the you're thoughts to color

Adam Satterfield

Yes.

think I to years. But for we've company. that company, for that another speak competing with mean been not I

be light, and change to a might if their there something of so to keep think we'll and is see discipline new I when us to you -- nonunion otherwise, compared each there. And But look larger companies. that to brighter we've on But to see expect have strategy business, I any continue national continued a of got our would that stand-alone at I think maybe the as what watch it. go-to-market shining

in You terms look total and deliver Mastio the our service, won of we've and but in that We as Quality value a Mastio continue there on. for to years stay better surveys, the can we that's industry XX something we that on to focus row leader yet to the ultimate Award customers. the want

than into forward. proposition positioned share else more the to it's value going over We've share look won the think I than out better market years, we we last anyone keep so than really win And share XX gives think anyone else as that more anyone the we're that and -- future. us to opportunity market

we've I just opportunity their that opportunity grow industry. to time than effectively. there's grow. the time with to been to the I And able And believe for like we've there been again, we're very compete us think capacity-constrained other a But that have still more is industry, said and competing business, for been we've for trying and carriers years

industry commonly that's I something XXXX. that's savings understood I constrained was time. in think think daylight our it was like And almost that capacity

that there's half end the And the doesn't because X of more to it's carriers about industry, had the doesn't blanket can't a other You give when selling in longer a their the and of the just and logos have a blanket. on taking reallocated exited capacity old off you it been actually -- the only centers less. carrier door on business blanket the mean saying service other you inches

when think opportunities, taking that of itself see to So freight normalize e-commerce movement. and advantage start actually I we opportunities again and the near-shoring growing lends TL volumes

market. I entire to start more share industry think than our the grow when you'll winning of and see the us that's again

Operator

Bascome question comes next The Susquehanna. with from Majors

Bascome Majors

while? yellow share a that are talked data about for some of You the Esty were market private and all in the out losing now of looking talk earlier from of that the you your the Can kind share set, comps the think and redeployment noise gaining settled market from a you at of segments what including carriers. we've about cyberattack broader

Adam Satterfield

we of get get hard parse operating us detail we but and continue kind mean through of consistent regions. And XX for related think. somewhat the months, below I and to been of think of we've out had ISM seen, had was in industrial the weakness And market. 'XX lot industry, to throughout outperforming I in a XX I performance our been Yes. each that for the it's and detail see some don't cases, to the of that granular retail

that our and But been relationships, we've couple all, in reflected we call, in really to we've So as of over the not we've see retail customer any allowed the that tender to that's to business side. It's on maintain had customer But shipments levels fewer able years. talked each have maybe last us. probably just saw all accounts. that lost our customers I on better major performance us think to

see As you business up back we that again. forward, though, should go I our picking start industrial think

business We couple it's last is business per increase shipment third-party And as those over have the -- well. by quarters. -- companies. also already an XPL in seen logistics of we've with That performing started managed that's seeing better with weight customers

of where that improving So It consolidation maybe about about we some and is were we've in shippers like talked the moved truckload world mentioned truckload. rates the before bit of environment capacity and feel seems little and advantage was there into have it, loads probably really Marty rate that a like, the environment the low. taking

some And back so that right we'd of freight swing should expect into LTL.

substitution use market and opportunities. the got we've competitors is think LTL -- industry linehaul lot our strengthening create of an But other awful for overall it growth create also, multiple a be our it better opportunities, XPLs, to I truckload should or gets advantage strengthening, going So that's their that structural we've network. volume fronts continued that competitors. got industrial Many truckload the against of some --

will environment And rate that so their increasing, be increasing. when starts costs

us environment. of typically type they raise So in that rates to have much higher than

to for think us create some I opportunities that's going well. volume So as

Bascome Majors

as brief of in the retain player could months. do for new as ask looking next stand-alone sure And XX-plus business the you they if a make over leadership? the A focus a How talent become on you lot your space they're follow-up. largest I

Kevin Freeman

I'll think question. answer I that

that's treat pay in think way. our culture. OD and done that reps same for employees, overly We very concerned maintain thing going incentives, that's have we've that sales We not I us They affect our the them to to family well. doing well. you quarterly have that years, I'm and any

Operator

comes question from Tom UBS. Wadewitz next The with

Unknown Analyst

This Tom. is Mike Triano for on

in is think shipment? about shipment. it's revenue as of of view that. revenue wafer not XX% increase potential of So shipment we but thumb how you the equal, per I there one-for-one just you impact improvement or imagine say we how macro, per thinking do impact, rule about to a increasing where the higher be in a else XX% through flows All weight wondering the should on

Adam Satterfield

shipment. think, we increased spreading in Yes. But when X leads shipments hard weight answer speaking, I the That's see to that generally over it obviously, a per per per day. XX,XXX you're improvement shipment to revenue

the bottom if same. for there's things the the a all we might to better I to that that's generally, it's handle it's so But widgets a cost -- that necessarily if on considered, pallet, few stay know one-for-one just cost, can share. going every relationship more be And the line, will, you don't

GBP XXXX, has Overall, good pretty it wafer obviously X,XXX. and thing a will periods, XXXX and X,XXX been the low January, in back be type GBP we've in shipment around our suffering we've expansionary been at we been were prior

of things weight. there's a weight that per with that come efficiencies efficiency. that -- better higher It a translates There's just into of And lot in lot so shipment. linehaul the that good come with

watch. overall. a economy well. increased certainly shipments customers will that's I with we an mentioned improving sign will lead that something earlier, it's usually typically good And And to continue So like on as into

to of a all standpoint. our works just leverage so And from kind advantage

Operator

from comes Ari question next The with Rosa Citigroup.

Ariel Rosa

just where obviously, line wanted or inflationary employees, first structural the anything pressures. kind to I sounds a here of with the regard from make a pressure can senior and sufficient seeing heard of just it just you cost maybe kind carriers culture you that a confident of they're whether wanted clauses I confidence that quarter, item. have? of a if could you're you little but the that saw of fourth in cost about number Or there, function any or you And in ask to inflationary kind lot we've is salespeople? the about of particularly management a goes retain talent you comp Maybe being that quarter, sure then And Bascome pricing? to that which what on standpoint, a question. it seeing question, I So noncompete of insurance like no insurance, from you're like clarifying pressures, you're discuss that talk the are understand get level board, bit could, a across in on back could seeing to there just I of step-up back

Adam Satterfield

Yes.

couple would everything be expectations years of after be up a to closer I a with me about from thought where Let from that core last back term anticipated But to we inflationary if inflation. standpoint, revert we'd we that of We things range. cost per keep of the an see there. see X% shipment had end long we up cost would can X.X% our in kind increases year

it that a So kind higher of bit see 'XX kind to Thinking well. overall more as inflation type were to and little in we X.X% be in of of a of may expect little cost that north X% range.

little But So something longer-term care I seeing that on, been to items, would just we'll a many continue a expect that's inflation average. bit overall, increase we've obviously. north to of benefit see that But health little cost in cost, work there. fringe

place. large bit asked maintain that premium to try manage a It's frequency like done has have. cost ratios industry taken where carriers great little well. always have had and LTL been maintain particular, money to coverage legal the increased of well. probably truckload we as a insurance the it for at are range of to mitigate something difficult you it's in incredibly the the trucks past lot been a as we transportation more try for industry self-insured driving and to that's equipment obviously in about, safe that's We've And accidents, to we on and people years X that invest hits to to well but in on But invest in we awful best. practices. probably double-digit something challenge lot insurance training an But as the large risk we The levels our our years, taken that an all-time entire think team, specifically do the job that accident insurance our able companies I in for through to in a that's the our and and be risk continue for

to country. that's a definitely I challenge something we some carriers that happen cases just foundation But read think And can there. for of some in the kind success. it's that's about a point to the of be that that can -- of until crazy, to So out happened tort is some you that at key got reform have it's see to something this it's our continues has

Kevin Freeman

price, a And And or most salespeople, service our and turnover, seek management. than to it's proud to you we're they're competitors that to our salespeople other are have to And and sell is and value, to staff or our answer that not of for of not operations year. comes unusual us question fact. into smart X% that less trained for do because from retirements promotions that

to salespeople. pay at again, our well. So on treat and because They we them hang them love working Old fair Dominion we

leaving my the our a that's concerns competitor. of is So salespeople to least

Operator

Shanker question next Ravi The Morgan Stanley. with from comes

Ravi Shanker

said back for back Are seen lot earlier that you reduction Is have a third-party yellow that you that, do how that's some there organic that can on maybe you do would you pointed yet much out and year backfill so up, offset last net balance follow to not also deployment also quick the think, I only of question. And the Adam, of that's in-house? capacity, come with might inflation in more kind just over come that that internally to Maybe quickly the concerned sort industry the but do in standpoint out a of insurance online there you a growth online? maxed capacity of insurers. half maybe more to into the and you anything from capacity sheet guys volume a of Or and follow-up of come you can have XXXX.

Adam Satterfield

is being how but that we attention comes share that nice grow market done But about going from of something more I on add said, in going close Well, I cycle we'll the up value to pay watch And job are think going knowing able be obviously, not prove. it's continue something anything, like our industry. This lot to what's it's an and our we've to how What than that, staying it's only chains. the from really to going point a can think take to and a their we've conversations the we levels and to first that capacity growth front I hearing in are that heard is back in customers, forward of business customer and that their other wanting can adding carriers are they're of in career, XXXX, to to story supply revenue strategies going pretty be forward. changing. over. or grow to recall my their obviously time I've confidence

growing our confident so markets don't the key always And we're add we're we that's and strategy. that a to where been part until going we're in capacity expanding, be expansion of

potential like. But talk I share change about into back up in So I in industry then when that look where let's what is volume that's looking XXXX. market probably And our that the the what don't now industry XXXX, had we forward any is be capacity terms versus might to see of place cycle. get easiest be versus our think answer the to thinking we going in

tremendous we So of like and feel we've out long amount for there got runway us. ahead growth of opportunity a

insurance think question, a the really job. to I we've nice regards in done And

what take and if we XX on of a of limits going you mentioned insurance we are. and risk of our take will, over the with through X, something of And legal income and evaluating terms been looking kind the our planning last When self-insured pretty claims, teams statement. we of much It's if exposure tower. insurance look retention build on at that as and we out you X.X% I you at in increased do In from to look some had to revenue spend to and time it's those insurance of like X.X% anywhere something back lot managing years, type have costs. to that that's terms risk want our what

strategy in that. behind obviously, lot And And there's so no there's perfect that a goes of answer.

say, was we did things the in hindsight You and result. look okay, this, at and here

I we existing think last bit just do of took expect up going for those will, we claims. that's the year, quarter go in the adjust bigger -- to insurance we X.X% if the to mentioned. larger closer little actuarial assessment step X.X% year, up This you But reserves completed averaged I revenue in claims. probably to on about a and fourth to existing think had of annual I that and like And the a entry, we terms

job So done our we've little our a very cost in managing all we'll a I But think see of there. more for inflation program. all, insurance effective

the well where thing what we've rounds that over for about well. and fourth in prevention down that we're essentially as got of. but achievement it proud goes The talked in had It of X.X said to claims the other did takes to X.X claims-free. lot our we years were on-time for about our and X.X. line but And and ratio, claims That's there quarter. percent this our team term you've training as and be below improvement claims-free. proud to cargo that seen interesting talked We something -- it want execution, and generated that improve we auto claims accident cargo how we've insurance and And that ratio. And for We're off as claims claims of investment the is quarter, really in line. long it's actually a balance

Ravi Shanker

to ask but can get want than for if you better the X.X, time. thanks you I

Operator

with Moore Jefferies. question comes Stephanie The from next

Joseph Lawrence Hafling

This here. Moore a the for thematic question. Joe Maybe at on Hafling end more of Stephanie is Great.

of Old relation You onshore curveball and or you potentially the a front. up look How been your we've production view guys so mentioned focused of Dominion maybe service that anything of growth maybe sort in in there terms short guys as you an the on standpoint Is but from question, you nearshoring. the offerings? would the tailwind do And to maybe network excite future at of organic M&A near beefing manufacturing facilities? LTL

Adam Satterfield

priority Yes. been M&A a hasn't for us.

was acquisition XXXX. last Our

we've like really feel able with just to been organically return invested on we grow strong capital. So

the again, I go and our XXX certainly, being quality like proposition And we the a we earlier, I've be throughout that the said industry. that can we in we service benefit for best, opportunity focused a do and lot quality And likely feel there's will think what given And is which unmatched end, the our like got service transportation the of we've the on of to of so as most U.S. LTL industry. forward, that's our centers most focus value network,

manufacturing plants awful the so We opportunity. all expanded U.S. the can LTL it. It on outbound or forth, all got location. take network. opportunity finished wherever parts the ZIP leverage might to And the at So as a side process. drop opportunity cover all an and material be. and on creates for points hauling LTL of get codes centers distribution where base and side goods built U.S., They the customer it are to a those being we raw then And allow and locations, our to fill shipper or our to lot chemicals it's customer through network the seamless around their so the and we've inbound pieces we're inputs in creates trailer

coming from Mexico for nearshoring in in to pulled being railcar we the opportunity within or port, an it's U.S. on the get potential and as even or of come they being of we both goods of middle instead hands see more into Canada a country and border goods network our if get versus outbound more across So we LTL whatnot, patient a on is freight inbound in them the lot those the that to and the it. more stay would a standpoint, before can get get there could we maybe manufacturing a the likely part as or cross-border

more all a opportunity bit little across So creates just fronts. it

Joseph Lawrence Hafling

Got revenue it. cross-border of as guys? is much you for this a just me. Could how on And you topic, remind percent

Adam Satterfield

Yes. than It's a less overall, percentage small X%. pretty

Operator

from comes with question Tyler Brown Raymond The James. next

Unknown Analyst

in covered for out an used to I or west, the cost use your You an of -- functional LTL triples. ATA industry them be the broader think but opportunity. could think that a linehauls but the of you really lot. that do the sizable broader a it's guys know do the revisit largest you administration little bucket. off-the-wall probably bit like obviously Surmised question, Marty, that seems opportunity a But you change

Kevin Freeman

Yes.

positive Tyler, of it things new I down administration. I to be other seen think some that's than But the is Northwest, think new for triples, the road to yet administration. as Taxes that, unseen. do by the them. that's Pacific I be yet one to relates

to easy they ATA. I sure will how about do. talk something I'm not all be think the that that's time that

we're But areas But to future. able on doubles hub Turnpike, think the in other would from in the that aspect. hopefully, of see now is One Rocky that building areas. I in our earlier out jury I to less which will for will I the centers the that congested be haul mentioned linehaul the still like some of triples Mountain help

Operator

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

Kevin Freeman

didn't Thank to call, you, today your we'll we feel guys We And much very it. the cover and anything today. appreciate to for after questions. please be free answer a give glad us call

good you, thank a week. and So have

Operator

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

disconnect. You may now

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