Great. Thanks, Zach, and good morning, everyone.
we fourth of clearer. consistent, line not Our last to results became quarter had likewise trends into cycles. normal call. freight the the we pandemic from Then this lot year notably at the We and impact as clearer demand a COVID-XX implications discussed rate expected XXXX the seasonality the had are were in to year was look of continued XXXX pressure like expect our in and were January carryover, business with but February, first fourth and of our levels quarter earnings better team, quarter than our focus, came
protocols result our our While was viruses XXX-year there enterprise in perform arc of arrangements flood guessed risk through never of have decisively. experience to response in remote We flood emergency relocation was assessment annually. and would such impact, just XXXX respond anticipate would planning the the and our emergency required able the had no way and and the team fully the year, a last This work and application. that capably we to overnight we communication direct that relevant immediate have assets, response, was of
trying our those customers order communities, constituencies has the of was our communicating with been and Our and highest priority safety during this of business. and time team, health first
And have local, all guidelines creative cleaning We Organization where efforts get and We immediate for followed protect eliminated remote We centers some We operate. most Health to travel. team. outside We work We cleaning to moving groups and to state employee and guidelines to frequency to facilities. sanitizers church masks, sourcing commissioned deep amazing get masks. quarantines. took made federal World facilities. We gloves while our the disallowed at our disease visitors, health we drivers for related and local developed consistently hand and policies enhanced had even following action of to employees. manufacture recommendations, the increased prevention, control to
weekly thank Additionally, assessing our driver planning. weekly to we issues. drivers daily times COVID-XX send unanticipated calls assess to amazing, this and I The our shifted has time country have concerns. their who of return-to-work and vital And efforts. especially host our as our efforts and to recognize and have now want have employees. to teams. COVID-related our updates and inspiring devoted all efforts been team to These with driver X meets We families coworkers, questions the exec answer support been their amazing history. our They in during for products drivers and services, provide
We had only chosen and suspected. where pandemic cases have we followed who protocols a of drive in to not recommended small exposure drivers the concerns, a have those have number result of as was quarantine
few of So world to important offer some in updates on in-depth light we things. a events, think it's
the dynamics, optics customer monthly performance. and within our quarter the segment First,
we Second, our going And ongoing see transformational how things finally, initiatives. forward.
a preparedness customers to conversations the when for and universe, With and our thought to part before of with financial pandemic. into things that February, a regarding determined quasi-essential global into to respect categories, scope did first was during and ago, we exposures Officer Chief contingency monthly as dynamics to Commercial discount was be our needed exercise, did that our customer broader plan board, related supply interruptions. X potential the help stores our of on scan diversification customer had short the Then customer at we broadened, chain essential came bifurcate the virus the we their base of us optics, retailers. point largest into nonessential dollar one and diversification our and the of understand February, COVID-XX to understand long-term concern, we pandemic in as all and market years
safety welcome through strategy, stability on executed have provided source it has and crisis. We this that and frankly, a of
categories. we essential over that of fits of as and XX% this volume quasi-essential and analysis So customer the types, our into just determined nonessential perform essential we customer
duration, customer understanding a could our Given more to allowed and move that decisively. the case prolonged has that, we strong generating positive our in expect we That gain continue base, through of even of despite the EBITDA track potential our to and us in downside complexion cycle. analysis forward strength record confidence
I categories this we But X the surge about spike let's weeks moved within earlier. looked We'll into ancient normal. optics since seasonally February and subsided. mentioned in So and back pandemic-driven step now history and the a moment, like January feels had as now. we move But demand quasi-essential of to for monthly has March, That customer the in essential quarter.
Our of volume first XX% dropped levels are today. the nonessential customer where category from they week March to
While possible, normal us, up are ramp of to that soon customers makes our freight up to working only demand it we is and as overall about with as XX% volumes. important customer
results ended of burst a last that than up with the points we've of XX-month So XXX month of seen best basis OR. better since being consolidated our rolling demand, March full average March,
good a So pretty month.
encouraging. Looking generally Trucking improvement on segment was few different at the our plan self-help towards continued performance a it segment progress quarter, vectors. within the The
we front, maintenance be cost near- newly our expect densified couldn't in impacts so positive it. we in and closed facility move to longer-term cost effort lower, our our to which we manage costs network, operating have the The the shutter and Arkansas quarter, to our decision outside operation, Buren, as made to a and business. sits regional Van cost-justified the to facility we our On continuing
that us also in we about first quarter. in had We decision earnings cut proved our to headcount be entering that X%, call into quarter and noted prepared that lean a QX serendipitous XXXX the by
XX% Our headcount down now about right overall is year-over-year.
and I'd like in the have in to and X great X online in we of third leaders regionalization. to have quarter centers We and now made place to up our toward have Next is the initiative the coming of our our expect regional regionalize plan operations thing operating running, fourth out discuss the we -- business the quarter. progress each
lower We over-the-road revenue efficiency that regionally us lower costs. expect and driver will turnover, yield operating improved scores and allow maintenance better engagement
our We We a that OR dedicated group, and at roster to rate. to turning which Transfer Next positively is quasi-dedicated, its We strategy. in are our over results The strong standpoint, industry by have similar months, the expected. we've characterize possible trucks last growing was truly this expect and dedicated our Davis best year. market Davis as and better dedicated The retention. affected environment possible. positive, dedicated protracted of regionalized we everything year, cohorts XX%. even recurring give The of made evidence retention in there and even given we Davis Davis that has performed and last analyzed dedicated a changes challenging discuss tenure and thus, and what are business, it identified of our XX were the Trucking operations despite and a performance specific to the In March, grown is our year-over-year ability to business. the has Davis further. is bit our drivers driver why operations, as credence is XX% comparable as the maintained great and business add our Late happy informed businesses. consistent quickly I'd skating the months presence, are for our we the this the more produce repeat to unexpected in low-XXs focus a dedicated great through and the a tough consistently results over last acquisition to a affecting we like over believe dedicated the driver From growing retention been high businesses for segment was in toward factors March. business XX cohort on report model, that
predominantly XX% cohort. retention that improved operational Our in XX% has the year-over-year, driver sequentially improvement by and driven X by
margin pushed to the the Now just in percentages of and quarter, the with quarter the seen since turn to we continued as March I'd Logistics like have throughout that XXXX. in segment. lower our the second wrestle in was to The of focus quarter dynamic Logistics January mostly quarter showed of improving looked volume February the similar pandemic type into tough January a fundamentals. and margins. brokerage cycle then for a was the trough and different and year, margins, business back reasons, improving prior improved February continuation lower had a
basis an environment and Logistics volume adequate term, in the are the goal create profitable in in to growth for is short fixed future. Our cover our to where the providing margin costs while
accomplished highest ever were we the one the and margins second August March as growth had volumes ever. we actually produced fact, In since lower of still hoped. were -- XXXX, notable highest we highest volumes than But
As environment, lower and refined and TMS lower of a with We are grow we that, our right squarely the don't growing calls, appears for think to in in to into partnered margin volumes thus, leader are logistics, on path have investments that's our to we have have business And system drive costs. gross in than outside at all we transactional not over the and drive costs. focused years last X or in a said business. past a historical we lower. volumes on just efficiency loss transactional margin because responsible our processes what as to made new firms technology to costs us and dollars in be We
investments, sequentially those per business employee a were fiscal for by in that XX% load sequentially. when More team and result. up we quarter and in about that environment. load second revenue tough our costs XX% is commend employee execution improved for XX% cycle. the trends. and margin to well an in believe This revenue year-over-year of a will and that this in come result Similarly, per fitness We we per I bode year-over-year increase operational talk quarter significantly, and lowered was and a on XX% improving both logistics remarkable, count As decreasing sequentially I and environment, able to year-over-year
things ongoing quarter. going move and brief April on our and to into update initiatives including we dynamics forward, quarter. insight within the some how now the that's transformational the I'll the second see So
in see Most truck are miles transformational of As this even count, quarter, our to increased we despite down, loaded truck tough aware initiatives our Zach by available a business on it's miles take here. operational X%, efforts about today. low unseated call mentioned, environment the a first empty and we as lower continue were had per hold,
many self-help done to We results. story, can company's financial with believe have market are this it or often without things yet continue have and called many a improving there we we tailwinds we because do
acquisition costs, to have aggressively, fleet. facilities, market close lowered transaction expanded manage the leverage improvements We've we this lowered managed dedicated our We completed the face. We have down the our regionalize of we've cost and per in we've business, is we positioned of headcount whatever age cost well high these Davis maintenance in logistics. company business, the believe
of return out While trajectory a come online. economy-wide some of will consumers inevitably market at are sorts These the point, positive the all and to USA of market unknowable, expect all come will productive the is recovery capacity we for Truck. factors have capacity to
in quarter profitable growth. per to We are irrespective we utilization, The tractor, available and are revenue challenges. drive of improve ahead XXXX focused logistics on load initiatives ways count market the increase last outlined moving
increasing is initiative existing utilization fleet. first The on
As utilization improvement, a that further. on and we're miles raising we X% XX was intent reported, up sequentially,
is and increasing our second team presence The utilization.
an is a on teams what we're Our success, the making utilization. operation this but hoped. we had team intentionally focus of as their for pairing And slow some initiative. means but pandemic decision health, the to had progress of in of we've own to abundance We caution out not made a increase the
focus, to brokered backfill Next but is caused volume network network network optimization. the pandemic network This hurts The to with fallouts shortfalls the freight. a remains related us balance.
in now network, and yield. exist to how find rationalization pairing harvest back and network the didn't our We've to We it. previously, centers to determining profit currently which we're maximize performing highest are built
the business. dedicated Growing
as next count. in And said up, we Turnover levels should profitable reported, is and title say really initiative. We're daily. we this industry load doing This used quarter's I finally, do. load this but ahead logistics The last are We line slides. in would driver retention. year-over-year. count we is is is of the on driving driving schedule what count, critical improving logistics that Tractor with XX%
so August, was the time and that it's X for it. was we're to March a any years. premature, And highest logistics consistency, higher, the in last in than but But count since going load even higher we've achieved volume little keep April
in slowdowns shipping that as demand are high pandemic-driven in outlook, April to after XXXX overall, last April. all And customer initial to despite customers our of realization our higher now recent subsided monitor So we March. the freight percentages customer continued across we've behavior than closely throughout the move in week demand slightly
volume noted customer are nonessential like that As appliances from they and XX% others, should businesses freight gets to return, here, this tough earlier, nonessential freight retailers, quite optimistic for to, our decreased us. worse clothing be and so we're about imagine customers is and in that good it manufacturing, is starting
close and up Our can in and home begins beginning customers their in volumes days, with essential events to next freight them. ramp inbound retail doing and who starting improvement We are moving patterns traditional with are freight few retail up starting deeply back own mid increased up contact for month. we their remain all to again affected have when call first in very be customers been the
is load spot has would had market were up results move trucking freight than we've keep we continued but as trucks count and challenge, May, utilization, to that this to freight more at volumes, customer fairly adequate essential continued consistent move a with and steady moving normally. into April to
with more freight, to contract later should replace we better the return trucking market spot year. which will patterns, result normalized segment customers traditional results in freight in As diligently
paid XXXX, high quarter Logistics the in call and have this normal. the the through to gained volume output first I has has All groundwork momentum engine. We a been year laid volume off. now late of a would what resurgence
to similar range. business we seen in so in April And in off percent May. that second start quarter, have a the had margins Logistics the far, robust and is a low-teens return to
We moves on that quarter. broader final are hopeful tail market this the continue. will the tell But will
customer last from market a April All and profitable operating consolidated we notwithstanding income March August, capacity year things several things have time marketplace, there optimistic in, performance Spot that of still a XXXX That's and some quarter, gain the been, There since elements week, are We positive in we've is a as are accomplished rates lows of are April's the our September Last complete plan, control. first out standpoint. of freight But true. is traction. trend. it year. was And has is come excess that this X-year fell our to aspects rampant within the to our the always many control. the said our stop. about strategic back-to-back in plan of
profitable have regionalization the average ahead This our and profitable productivity initiatives headcount here Davis locations, our producing are going our team a that and has by in the expanded the hope company initiative dynamics lows highs fleet, business age and making load things in added the on Trucking our contextualizing We how logistics network, quarter, all-time we've the is opened ongoing at that is every progress shuttered see transformational within regional helpful our employee outlined. proactively segment, detail underperforming count we launched in we of within lowered We all-time and dedicated moving and business managed costs. XX%, forward. provided facilities transactional fit and the
for open with to to we'll questions. it So Danielle, over turn it that, you up
