USAK - Earnings call transcript Q3 2017

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Operator

Good morning, and welcome to the USA Truck Third Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jimmie Acklin, Financial Reporting Manager. ahead. go Please

Jimmie Acklin

welcome call. and Truck’s quarter third Good to conference earnings morning, USA

of Joining meaning are Vice Act this President forward-looking XXXX, the and XXXX, amended; from Section as XXXX, and such reminded Commercial us morning Litigation this XXA sections that USAT President, company Securities of Trucking made Officer; Craig, to Officer; within Securities Safe Logistics; of statements the XXE Operations. amended. and Section Bates, Act statements the pursuant Officer be and Securities the Reform Financial those Hugo, Chief Jason the contain James of Executive as as Act call Chief of Vice created to Senior of and will and and by provisions Werner Jim the of Harbor are Chief Private are of President Executive Exchange President subject Reed, amended; Please the

the analysis Forward-looking measures that’s differ in conference its the filings of on releases, that statements the speaks in reconciliation be only statements. accompanying and are subject certain table as is GAAP that press Securities to actual of consider call. by forward-looking the made. financial financial which the presentation results other of on the the call, its GAAP Commission. provided from supplement XX-K management may Please the these Form disclosures measures contemplated today’s materially today’s Exchange will A results it the Also, end date at on in company results forward-looking to statement. slide review and non-GAAP is factors non-GAAP report the uncertainties other that by referring of cause Any could future those affect annual to and risks and and to with statement

Now, over James. turn I the call to will

James Reed

a chance our everyone hope earnings to from last Thanks night. Jimmie. review I had release

marks impact. quarter of our getting and it and through to shared me a important insights just and business in since us in their in and their a that quarter cause you the assembled. positive time. with executing first our remarkable of was fully to a Several accomplished we’ve I purpose group XXXX, that team on the just journey for them have so progress, adjusted and third team reported our board, people and with vision our business of an aligning May, senior clear XXXX with common moved, what I this of beginning. short a devising the period of immediate joined on yoked plans equally It’s families as getting first quarter hope process to think direction see them getting is into that that The It’s quarter in earnings

being be we to past a As poised to for continue community, we constitute have group profitable. victory we course, discuss became for see to opportunity of does to in past. come part we the business growth, that it morning being for our our to – gaps would rewards out plans all results, am and the jubilant a just be results of continue and peer and not just with I, us. and a that team. laid continue that see In our continue close our with see is profitable easy on path we to as our the fact this our winning shareholders the finally But employees, deserve they pleased we

as press earlier bases. leadership leader. quarter team. to of our full I important all of outstanding to success level we recognize I our review covering management Jeff with addition This in Before added team final release about our contributor our the we Harris began, the the welcome Maintenance to rounds best piece that third represents and want to team functional MDP as the the our of and addition you he an leadership Jeff, out our encourage best to vitally

for on Freight X demand Slide the basis the at look to we turn prior quarter seasonally consolidated in provided. was average presentation results when a slide our in a period on let’s same compared relatively to Now adjusted third years.

consolidated negatively disasters but utilization the Consolidated $X.XX effect change quarter Indicative per the increased came was the or XXXX. on the and ongoing operating This since rate. operating before. upward million making quarterly natural X.X% Florida the during diluted While at income Texas in $XXX.X as XXXX, in a company’s impacted slight mentioned year-over-year in demand had quarter, million efforts of for revenues I the for an year-over-year. net our increase first $X.X this quarter revenue shareholders share, profitable first was in and income since marks positive or $XXX,XXX they quarter

year-over-year operating Additionally, basis adjusted XXX and consolidated points was this sequentially. ratio represents quarter of points for basis XX.X% an XXX improvement the

increases work of third of driven which the of unmanned offset versus loss of had the segment This of million to primarily XXX to operate operating from utilization by quarter basis associated yield This the truck our loss the albeit a improved and under XXX.X% generating to quarter of stemming levels, an $X.X an was a with adjusted combination improvement points Despite for of sequentially. owner that XX represents loss basis ratio and quarter in XXXX. year-over-year points our consolidated results, the And that improved operating for the expenses second refining operator basis improving Logistics operating was points driver the quarter seating XX.X%. as we expense million driver adjusted was at on year-over-year our the ratio and continue wages loss by for USAT desired trucking relative partially tractors Our team and an basis our sequentially. was representing the XXX XXX higher $X.X quarter elevated year-over-year improvement points for our network. a trucking general continue recruiting

growth Logistics XX.X% third second the and XX.X% third XXXX. increased third quarter the quarter consecutive of of revenue versus quarter the XXXX. versus versus quarter should operating X.X% revenue represents of second This the of increase XXXX. was the During and the clarify quarter quarter operating of I And $X.X versus USAT that the generated third $X.X quarter for income quarter year-over-year up Logistics second the of XXXX the year. USAT the this million million highest million third versus $X since of and quarter

the segment by was ongoing network aided base down week versus the further Slide pricing quarter and customers, $X.XX third increase our per This ongoing around the increased of of to quarter efforts rate mile truck decreased the XXXX the second X.X% Moving contributed a XX strategies, X.X% and year-over-year there trucking now of to the approximately tractor XX $X.XX of sequentially. central the hurricane are per Miles in business. third versus and trucking miles miles versus Freight which week rates or effects, per related XXXX. review loaded to or mile turn tractor XXXX, per X.X% seated during down $X.XX per per the to was X, driven by markets in and per rates quarter. quarter week lands

$XXX our of improvement become quarter developed the financial third been a and XXXX focus focus our give and of third a This safety, X.X% of has our focus I’m of update second the unseated up the the previously which increasing quarter will quarter tractor versus business over the now percentage through Jason densification utilization. seated is This with central revenue to disciplined in and last consecutive week Logistics quarter line X% has call us the pricing turn an measures the of quarter of as marked and X.X% happy XXXX. for over came network stated remain or business XXXX, over or fifth position. that improving point quarter The versus most business, trucking However, utilization critical it XXXX ongoing transformation for on as among Base the rate and in was was the X.X% of September by to tractor tractor further second the at up $X,XXX average $X.XX intense target. our percentage you to and of in quarter our our and Truck. I’ll the area the to was USA to per an improving increased in unseated but X%. report per for our our improved X.X%

Jason Bates

as Great. Thank USAT X, quarter you, turn If improvement sequentially. Gross James $X.X to basis XX.X%. generated Logistics million, sequentially year-over-year as improvement XX.X% for that’s or Slide Stronger we XX.X% This $XX.X the in margin improvement levels quarter a year-over-year James. to. margin in million million at XXX drove $X.X basis improvement reflecting alluded and X.X% XXX noted and and point third of up the XX.X% point sequentially. revenues higher came improving to a previously demand represents year-over-year

counts increased Year-to-date for quarter to We or are the prior annual X.X% report load by compared approximately in USAT during successfully year. levels pleased team over the the XXXX that third has of reflecting the Logistics the growth loads $X.X revenue million to when X,XXX grown XXXX has business.

the marketplace, third a was in by During in the hurricanes Logistics expand margins and natural quarter sequentially imbalance saw the margins from in bolstered during demand other peaking We the which disasters. September. capacity the quarter our benefited business

that and equity of net decrease $XXX.X $XX.X we X.X of million in of to the expect our turn The Slide company as normalized of lease obligations as both If with debt X.X under debt and to see million the you’ll available the to of net levels EBITDA was note or XX, capital liquidity facility adjusted and to $XX.X compared return total as approximately our had times cash, of million. quarter. September end second third stockholders the XXXX credit debt margin it’s However, of the volume Net quarter. times sequentially X, we to quarter more fourth beyond. and was end

towards the As a flow the leverage to discussed plan year. cash the remainder last the goal reducing Any quarter, further will modest comfortable with levels. for directed free ratio of of more our of we be debt CapEx repayment have

X the continue range. goal is long-term ratio X.X our leverage times Our to to reduce into to

make to in throughout quarter expect the progress that pass to this James. progress fourth I’ll goal With the call with We XXXX. additional on back

James Reed

our of of we would Jason. and by accretive measured revenue to versus said as seated expect revenue And Thanks result the on we price that measure largely quarter, quarter baseline. focus we per with surpass raising the the than this X% by the to truck quarter the higher with end we be success of operating top the shows count to would, raise reengineering, $X,XXX expected the end we’re accomplished seating X,XXX X% our we provided X% now XXXX X, fourth We areas we previously the X.X% seated But Slide truck critical fourth quarter by And said year. one or that range delivered those. were in on network tractors early trucks. look would to quarter average the pricing baseline. range alone. We X.X% most our to said in We’ve improvements and year. X% base that we’ve the per a seated increase or seated over third the exiting count tractor to truck we

will where through We the year. we end be expect of this the is

deployed While operator recruiting our our success. we an makes program become we freight more capability more our business. ability important every say been way that a selection great innovative concern and gives recruit operator has early a drivers believe that best-in-class retention an independent this has more automated owner One in into area owner concern. insights and our our opportunities remains day unique year absolutely of engage retain their in importantly dispatch our and driver to our freight with and is the We turnover difficult,

However, meaningful our to in during financing our operator the key are the important negatively ways identified their quarter placement two are prior partners of in partners, we fleet who impacted close our fleet that owner and who of In even and was operator fleet. recruitment ramping our of be We’ve change our owner believe to industry new the than programs better and quarter approximately of now about so XX% the fleet options up. fleet of them and third end second the quarter, XX% are right exited the where through year. we the will the it’s we

initially $X.X cost now are range end to the controllable of Slide Fixed year in down to had ago. million high indicated and fundamentals Moving to $X.X year-over-year cost million X, costs $X is are. we the a who savings we million reduction

that to With Maintenance in us and our leadership Grove hear the on with full the intend to from about fight more addition like cost. calls. assembled, Expect leader now of our our as we future the new devil wrote, Grove earnings

XXXX at revenue fourth and that on empathize improved company’s in XXXX. to quarter. and morning this it history XXXX USAT this CapEx consolidated the Jason reiterate already of the fuel XX% revenue we for going quarter to operating positive of as X% Among requirement XX% net In it consecutive We into third focus ever our of We loan future clear I’m basis and is consolidated the its expectation to the performance of an commitment. fleet versus seen represented another cover unseated our consistent below of but report touched X.X%. expect by just excluding As strategy. maintaining end is just of of cash of quarter, second our We revenues. stated, quarter expect and north this deliver indication to area percentage EBITDA of best the happy income in team XX% unseated Logistics a an can on still that trucks, sufficient generate as approximately we’ve

business grew a a growing Our consecutive consistently second healthy fantastic our Logistics In base quarter-over-quarter in time quarter. for and Logistics great capital summary, invested is result. business it. quarter to with revenues story, was of new require the a business run the margins It just producing limited XX and second

running Our a positive pride profitable still our customers significant progress, well paired see have signs trucking a with believe the people our trucking Logistics remains and its that. for particularly business. some opportunity on to the have deliver in we is a and It long-term we business, is to the powerful of Well focus business. business we combination and on this time team executing

in a want the the year the our expect in profitable we’ve now month in had metrics detail we first focus seen in business third since improvements trucking and but And month to so operating our and don’t trucking anyone is I taking only squarely consistent over on that XXXX. into the translating the profitable future monthly quarter profitability. in third

to in will and into of measure fourth with have our progress making market but us difference close the are our leadership this team ago this take tailwinds, relative now competitors will drive we that to tailwind place which the made bear are working. We labor team, regret get in not we implemented a commit One but performance team on. to the as the right focused without its and progress of that can are our Don’t real this measure for is our business we quarter specific a quarter trucking capable of the XXXX. in in fruits as we’ll willful wrong, plan out continue the actions fourth profitability opportunities have a that of expectation, lesser to to plan GAAP now performance habit quarter willing the our set exceeding upside the we are last them. what is see three intentional with coming extent quarter The I’m you the making reflective day. bet This we has that’s quarters with a results and every

raise As is quarter improved noted higher best I take of as higher bar names our these last place business. results in the until the to response we one and our to the

now the I recently beginning. show now our to you. strategy and Our with network capable as an continue its run place its USA and had cycle team open team this utilization is see through what height that, questions. to that bid just a our to Logistics USAT in can’t and quarter to as together seen we’ll we to operations market position in Truck course the our happens than as are Thank the strengthen is finally call leader. gets refine greater and Branden a drives has XXXX to team wait

Operator

Instructions] We from Our will ahead. question with Brad Please now begin the [Operator go Stephens. question-and-answer session. comes first Delco

Brad Delco

Good guys? morning How Jason. James, are you

James Reed

How are Brad. Good you?

Brad Delco

which it know truckload. of the of quarter, hard a specifically in little some help Really know from hurricane utilization. but called Wonderful. question got a James, couple ask hit you did helps to to length Length any – just those on rate shrink, progress of you that I good also I I’m haul was I rate out. want from shorten storm utilization assuming get how parse greater some maybe the Is haul out way of versus a conscious lanes. density decision there of sort disruption to hurts in the

James Reed

interesting want And that we’ve Yes, been working we it dynamic a an did miles a because to they decided out I management be actually that’s listen of mean included that reported more that mean, change in I don’t our in and to drop-off part the prior July, our us, our September. everyone team, of want August it. we the are carefully, and I think in to it have out utilization. quarter The and miles than say – actual there’s should we number miles came in that we was that and utilization attributed in some how leading had are more they on. I question our

of made a what kind and how that. bit we adjustment So the Jason many impact little – was of

Jason Bates

a Then little a the concerted unseated end active trucks. disrupts disclosed And at July. utilization trucks. We month been you was headwinds average essentially those been trucks at bit, bunch of a – some XXX seat taking that that second still fact we it’s were and lot range mean, a board as of previously have I about but of a the these end hold in lot – I can to under the in XX it hours the was effort that and quarter the we’re to the we weighted trucks But up the take of but – were really utilization note hour of the exact anytime the Florida of to the XX greater and we loads month number, We see lot which would load I of the caused August in in you combination a of July market the Warner the had – to team hurricanes we that started impact think historically looking network don’t impact. impacts, there utilization were and calculating and on was Yes. there the analyses some that’s because the really month important the when have it have and a tell of question anticipated to September. the more up a working I work we’re we running on in doing and in the hour Houston in that were the hour, hours. XX that that so

And but we the was so that piece an definitely know impact haven’t exactly we quantified there was. what mathematical

James Reed

just length me let question. of And address the haul

our this who’s Hainlen, week Rick to very last guide talked network question. actually I So about

that in Our things declining, network. some length two our of I latent had is quarters one untapped of haul said we opportunity ago is

of where to lanes just to what shortened make haul. we’ve we can we our the we’re kind reshuffling running of really sure that length the dense got so So deck to maximize reshuffling we’ve and as opportunity we’ve be more been speak,

our our the run system going we expect We through back in next through a up into and year. haul bit have bid pop length as will get of actually network XXXX the intentional implications process

those. have don’t So, specific sorry on we numbers

be we more opine actually the then team our haul But we’ve on to said, affected network. results. unlike little and we of that others the I’m some a climb – the what it, us to their think that it that on And been But of our efforts, how existing length hurricanes not understand his is. rearranging we’re really reported dynamics impact a to XX through the next analysis kind year. and are because is changed down internally a up call XX we As bit finally much. our doing we working We don’t exact little utilization here Jason bit to of Jason our affected miles. expected on – generally

helpful. directionally that hope I So

Brad Delco

of of was to helpful. was how intentional through Warner a very I bunch And I shuffled and of of cut that curious you I have network that would a just was and much intentional. haul a out around. get wanted lot because imagine how much would That’s sense of the probably length of come lanes

Jason Bates

mean I’ll that That’s changes the preemptively But and per right. concerned on about up we’re go because to we’re the we that Brad, say, don’t tractor making. ask to that pricing a your right but also did behalf. lot question sorry again interrupt, just of less now to yet attributable per week network a I revenue

that So confidence headed the direction. that gives us we’re right

Brad Delco

about I of I Could better And count, way seeing just employment”. typically natural like it? truck on then I attrition churn? under sort seated to of that you and it as a think because percentage “full that’s fleet mean, be the X% your seated of Is really fair be thinking of

James Reed

So got efforts, there expensive is out, one prior the attrition compared you’ve recruiting is or more kind that so to is mentioned and of two I the factors in you’ve quarters which pointed you got quarter challenge. during gotten balance play a that had and which some one there, natural

shop racks to inherently isn’t are a for time. that that that the other otherwise long-term you because a is driver. long have blown to in available being trucks be There’s one being have fleet of just it’s of your a you available periods or The isn’t that are in fixed trucking, repaired, you assigned to engine have just portion

consistent versus be we want the would operated we the target surprised that if So we same period. X% think be I really X% at. quite to below

side not goal kind naturally long-term Our made, point luck mean, long-term on and at for trucks I to because you having of down maintenance operator without you the as it’s repairs. is as go having low your can X%,

Brad Delco

And and jump makes queue. I’ll sense. final then That in question back

Can speaking bringing truck you for plans they October, down with the there? us seem decided Is out country of in kind the Just came October. everybody age, the thoughts like yesterday to you it generally in any information of give month fleet? the grow it are insight orders what’s to the to Some preliminary is trucks wanted afternoon, your trying for next year? think what sort order

Jason Bates

Yes.

you So who. the the on right last not as going yet it’s and with at be keep add about But ATA all you everyone’s could goal next we can in can is that’s is X.X%, ATA right around We in what October – mean all around age that we buying and and What talking or I a they’re our haven’t exited tell any tell funny, we’re made firm ordering. everything we’re in quarter. we together I X% everyone at fleet week exactly were you who more, year. quarter orders decisions to to tell that our the X.X% is at little looking bit above because X% fourth to trucks the any

cycle. that going fleet right trucks keep kind year, normal get that that on we’ll of roughly to to called into buying necessitate next And that be age what’s so replacement next around And level. we’ll will a approximately XXX year

or haven’t again, So whom of those who be now. the that’s right from, decisions we’ll purchasing we plan made firm kind on any but

Brad Delco

Okay. queue. back Great. guys. in I’ll Thanks jump

James Reed

Thanks Brad.

Operator

question Stiefel. John with from go Engstrom Our next ahead. comes Please

John Engstrom

morning for good you Thank time. Yes, your guys.

James Reed

Hey, John.

John Engstrom

XX since and there’s first XQ to more ask since drivers, metrics your I increased this and here, question think, So even around was it’s perhaps XXXX report, one the the that’s lot awesome of a industry discussed to that driver how you’ve count by, most XXXX. I in hoping think XQ I you a

recruiting the to are retention you to is what can have more and mile, on miles effective actually to of bit Sort needing your is? us talk of compensation tractor higher it driver little pulling, more pay you a guys strategy – about what wages per sort without or levers

James Reed

sure. for Yes,

area and effort going But on. time where we’ve sure. it’s got So this an some we lot a spend for is that’s things good of and perfected, not we think

on code our to the spike We in recruit, to for talk are quarter. had hoped harder saw look we let’s us did when a pay construction spend that believe turnover industry. which local getting It to recruit to the we more front, in those jobs, let’s we about the have money at going quarter than was reason, the recruitment and is we So, together. which taking for people for

So one increase competitive previously it’s not where is more in us we’re is pay we’ve here. tactical on And fuel we our program, just pay a predates our to quarterly Jim April QX, it, changed team, we just par monthly the had that of that we had it driver about of kind on payout. was some then safety based of the did standpoint, competitors. got is we complaining got bonus from things which all challenges with and made last actually announced this had changed management We actually of what – is. because and our From compliance productivity, economy a a there payout

it’s people, are we’re there. water a doing making things carrying And so, the competitive recruit to bit but – we’re environment pay and we harder sure that those on combined kind of where suggest an we’re

falling our job consistent we one bones, see room think are connect outreach and Werner push to one side, us we model the This we’re how the is but retention developed in and very that’s doing it’s we there. today, a consciousness help do the what former kind it we’re is at a as than He touches I the with frankly, cause he and – having we driver, then kind once a a a using himself. of the the how to team other On passions you the Werner all angle of respect its anything, that this, the of lot all just really will, like of their work end of help increases of kind to we internal and about his his in-house gets more them excited of the do, but that best he things logistic departing. pay about meaningful you differentiated dignity us brought driver inform more to and pay details we analytical have of and understand is miles miles. drivers team can with cool, that to regression their address them that and of scorecard thing, is sounds on they and his outreach, via don’t or it sent but the and to the if go, to gets impact. want sexy give is being dogma, about us have can analysis where and information we good of in that their proactive Werner via either where robust consistent doing kind we off. their they those go drivers, day, about drivers, comprehensive he’s give of are issues to into way but and drivers And have we really mentioned And a program treat to so outreach developed proactively is the before,

excuse where improvements fantastic relative week-over-week us. but word, and are to totally on But people utilization they is measuring approach and we’ve with or And doing, goals, focused that. those so business. retention details Big consistent to that increasing utilization a else right And performance here. fantastic Werner me, we pretty are setting for his utilization won’t recently, But improve seen everything improvement John now – coaching that’s with right, go a and on into particularly us what impact, we heard the nose-to-nose they and goals, excited kneecap-to-kneecap you’ve some they’re the the we’re see getting takes just from what is impact. They’re in is

Jason Bates

a this our next industry. is, the anticipating increase question per into because truck but many going market the in with loaded needs get the lot per it year are of Yes, lot, lags John. or the otherwise, right, wrong a rate miles people way there We week people

right needs to on more drivers then mileage of pay basis, getting long a miles. And it’s so, just is matter it an as average those as where our be

do feel And so front. will having as that from to in base, we of without pay our that, us headwinds a incur lower rate take-home coming terms actually drivers on the increase

John Engstrom

Yes.

make in X clearly to hoping it guys on, think mean sense. the I numbers. you And great. all mentioned build a you it’s was that’s that I are which phrases core really good see can There I parlay. that

of the maintenance you road, with was on this and second on. first, lot that touches, big sort strategy treatment was touches component guys in I in utilization. want the on touches could I that, your one color treatment us And I you branded of a to thing deal. maintenance start maintenance we some of space an the Any year a managing around a has it a a hear new is sort facilities. maintenance was to as able circa that’s estate the first divest the a is reverse in a from to driver course when across of to that was something facility being are if or And say touch how know you a strategy? go real update outsource of the of I have had about there, appreciated. on that wondering enterprise? of that’s and pertains some event To big know one a the ago, you thinking is sort the give hire, are to The tangentially

James Reed

Yes.

to me it let I’m strategic at of going that. kind levels. So take And keep

going for right, driver We’re ask you of but reasons, announcement was Dayton, facilities you really reasons you think cost is don’t the new make anything or at is this east Ohio. have of best anything operation Ohio, a multiple and have operators facilities, interaction but lot we astute of look Dayton, for I are facilities our us east if business, also didn’t our very what call any like – that, not and in our out too on but pointed to

So that to done made analysis going facilities. we we’re our we’ve decision are actively begin and the already – expanding the

tell more and back the us part to reduce drivers really I’m that’s We to calls, after important to way there too, anything footprint And strategically, cost want touch do more to that this. concerned supports say the frequently. is for is but about our After cares cost – variable we stuff them future our in-house is that OTR to in organization and We that. spend like the them. get that a going else touch and more of element want schedule this about analysis great feel you will than and bringing a

the his into any blew and coming trucks trailers of implemented just over is, at And the of comes are that issues yard into he’s mind, at and the a if facilities that then have lay that on issue, week something in, that back when a these that issue, some XX% or he two shared top very that our something over has working And something board just tires period lanes safety this time as our put could a been of thread we’re there that’s be under truck Jeff depth, inspection of inflation, what as on. road. the to down we see in a over So important our short here, not safety a issue that tactically but the look facilities. four person it guys sort maintenance are to my means to issue that road inflation, bottom already

and that. activities, from that think with we’re our lowering increasing And improving the to burst lot a so those down didn’t expect money road. that cost are we’re we it in by point thing we that think great having through were is and things tires maintenance our are I we we we costs increasing we There know that one-time we those the them, right our safety the Jeff, a proactive touch long-term an – bad of initial But that replace to firmly believe past. get now,

agree say, is comprehensive with of long-winded all to right, a and answer, that and but we kind strategy. that that’s our So a you’re way

John Engstrom

I difficult could a had front don’t if and tremendous. that’s in on I reducing it’s all lever even I turnover imagine that, would have to I measure, that well, depth of Yes, how I’d measure, the appreciate me. numbers your perhaps very but that as

guess, pertain pricing. some to element other utilization the and So extent I to

Given row down reallocation just your have and this the internally you of I’m just within and ask of much lane lot going market instead I’m is, that you question a selection, on going it quarter? contracts, to and also to go just, past here, did highroad getting going – guys with how so really of renegotiation much and I’m bogged the is – simple details. you take of total kind book of and to business, of utilization,

James Reed

don’t going of can of bit. XX% our answer and kind is. and pricing, interesting really I to that came just management even has it in off business and I like a our standpoint dodge head. through you’ve price had mean, What seen of tell exclusively June, May, you, rebid a Rick more in your to up was lever network. we question, know is bidding More where I he and from get to that’s I then said you the time That’s what of market the network use And goes utilization I now that on seeking to just call us I that, marketplace my the dynamics our area focus to given think the network. intense better on as top front, existing improve. little for that we’re question, a it and forward-looking. between an of I’m almost was the the saw

Do to So know? the you question, off don’t dive top sorry the I head? answer know into my of your

Jason Bates

fourth that – we in roughly the had in third XX% quarter. it’s Yes, the

John Engstrom

And lot operation also and James’ be the I’m which things on stuck going get a selection. helpful. on Yes, didn’t what’s in, route But internally called which of price there’s want obviously aliment of to plays that’s to into very could just on being the side, of an conscious release. point,

So it a really that very good point.

detail. all much for That’s are very questions. Okay, you helpful. the Thank those my very

Jason Bates

John. Thanks

Operator

Haimes Please Sage our question next Management. next from Our go Instructions] ahead. Asset [Operator Barry with comes

Barry Haimes

Good question. morning guys. taking the Thanks for

in point, increases? in said to the metrics And think mean last third the XX% of Can quarter. of say of the that. terms repriced, to Thanks. the get that on give just still of XX% Just the you that capacity around follow-up. I versus percent up XXXX range you’ve and flavor that us your following median needs on I of June, that now price follow-up to between bid And to kind and more for then had business percent price just any if we sort on rebid one any were

James Reed

increase of the repriced to in So what That was of X% it through what been quarters here’s the true quarter how than of in in kind question. we’ve we’ve range the much this terms bid in on addresses first average was We’ve process. as said in well. your kind X% past –

anticipate forward. because look we’ve the X% guess against kind going you of volume being kinds marketplace, As word mix it’s forward and not but interesting we really that in we a of irrational in tested all forward, of there’s the a our you yours it’s take we little of in until right, we bit But move range and stuff kind – the better heard the freight. the

that the the priced final was year. to bottom kind think the step if that I of that’s XX% go then I it. it’s we in of the your where capacity expect you in you that of about So where XXXX. play ultimately then that’s that, half will question line would just how through And that tell second percentage the XX% into

kind expecting And other but we’re we’re of really terms been the in what we process, I about anything, about next I increase what say a book. right I the it’s for got year, super X% the not through is it’s XX-XX the we’ve as good think be is half what and feel a pipeline answer it’s half of it just to going of book, that. So then is said, is you want or about call analytical if I about and that? guess it of bid is remainder Jason, of to that on

Jason Bates

so much saw teams mix this and you moving result price was a but as quarter anticipate we Yes, would realize we’re to a through that But action smarter that that the I don’t – customers action hauling as of process. freight to not with that addressing more was the that T James about and are because, as Rick it direct is, selection bid that we’ve thing network. be I relates the add customers the very in the as disciplined came will going it we’re component. the that of densifying being many the in only in freight there’s And of done there hard to pieces, increase site do it rate lot doing X.X% rate Werner work what quantify work Hugo mix specifically and with the associated to the is is to want

component So just there be lost. well, mix that as be want a I to will don’t

Barry Haimes

the pretty guys keep XXX% Thanks. some is to contract And intention Right. for to have market? run it question your strategy much just final capacity you a to spot do is, or

James Reed

Great.

So there’s answer a couple that. ways

densification call term. truckload used our Jason at network the our really word on that less business side, We of long the work we the market. used our scripts, in and we the in spot run On contract X% drive the our than of to profitably

the get about and talking a the if things consistent giving slaughtered, the overtime get been topic, and disciplined pigs really that. predictable to of is this be – and returns we’re lot focused fat we’ve hogs on we’re One somewhat trying extremely about

the they’ve type upside opportunities together And logistics spot it think of operation. with missed inherently what most still at the other in we been a business, we in about the customer side which looked truckload of marketplace, some XX% business of the is board exposure in had called way been our the kind particular by than Jim in business, that’s spot a I but our just that that and less just kind comps is we’ve a in got market. the in desk business. talking desk of load business and are mix this And have playing logistics The the to in nature good of the

X% you than side trucking on XX% the the side, thought logistics less grew and on So that?

Jason Bates

Okay, that’s fair.

Barry Haimes

Great, thanks Appreciated. guys. much so

Jason Bates

Barry. Thanks

Operator

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

James Reed

focus have Thanks our factors call, USA important Brandon. Thanks, everybody Great. Truck. our in efforts to participating consistency in for in been

I’ll execution we have on steady been close what our and in focused And Companywide exactly consistent and quarter. I so saying did last by accountability.

them was free turned only choice the a we’ve Truck and their helped author who and like could that for to drivers a way interactive supporting that ago, one has the recognized they trucking lives of We of that their also thank this long all helped each wanted an long to everyone the felt aim our fleet effort like lead of sure of we building employees to years unified works stretches but his the publicly have are him to and USA shared be presenting them. and by was members weeks that couple of Powell, Truck he exciting tension own in appreciation vision of who go. our to it’s would on called has on those a and several or team something of difference makes moved Winners still compelled will years. recognize who journey creating managers be a hands really recognized we we discussed flats, the here improved here together been appropriate us by Bob weeks to and results us corner. further the sign meeting was with a people. we continuum. our here USA a drivers company company today. into of that but name, that continued team committed like do commitment we own great our come the legend to his teams and in roles be along culture want he’s to like time of We Our Co-Founder had experience I proud his accomplished as by our has podium him announced vision by disagree, have when but But all have to so driver of with ago XX through them decided and so a this He show in to setting. our on of with in up culture winners. our it’s company a I certificates to he time A had first in a is public eight contributions all very driver

We’re proud past. our of

Powell Mr. we increasingly of what are to is proud company with becoming. be proud We’re a this is such associated man and

to you I’d we’re conference you that industry We together. be can say have in for with together. Thanks that today. questions we I for at that and in advisory attendance business the plan modify and New York meeting announcement our like again winning will mantra quote time. on look and to win details the Jason forward to our had we a here week find recent discussing next your

continue of you. Thank part We’re journey hope started getting just to be to us. and with this

Operator

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

may disconnect. You now

USA Truck (USAK) 3 Nov 172017 Q3 Earnings call transcript