FWRD - Earnings call transcript Q4 2019

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Operator

Thank you for joining Forward Air Corporation's Fourth Quarter 2019 Earnings Release Conference.

Before we begin, I'd like to point out that both the press release and the webcast presentation for this call are accessible on the Investor Relations section of Forward Air's website at www.forwardaircorp.com.

With us this morning are CEO, Tom Schmitt; and CFO, Mike Morris. By now, you should have received a press releasing announcing our fourth quarter of 2019 results, which was furnished to the SEC on Form 8-K on the wire yesterday after the market closed.

Please be aware that during this conference call, we will be making forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding the company's outlook for the first quarter and fiscal year of 2020, the expected impact of growth and strategic initiatives, the expected impact of organizational restructuring, the expected impact of the FSA, OST and Linn Star acquisitions and those forward-looking statements identified in the presentation.

on and based current are statements current our information expectations. These

from risks they and factors materially in are such, and forward-looking results results statements. the subject differ operations As actual to other discussed cause that to the may

risks information whether Commission undertakes refer Exchange to factors, additional a this company statements, press the any obligation release with For to or events presentation and Securities earnings relating The filings to the please of result new no update these concerning future as and and our and webcast forward-looking call. information, otherwise.

the And now I'll Schmitt, over turn call Air. of CEO Forward Tom to

Thomas Schmitt

you, Thank good of all you to on Justin, call. and the morning

environment. moves year, on-boarding a quarter robust stretch just We are the journey. tough in and in also have throughout as business and very approaching a X made very also, peak, the And integrating we a fourth conscious We've were we on choppy new clear seen both acquisitions.

and the medium-term double-double X, with margin, the X% quite the an So not environment growth, and the moves result full yet. is X together, those X% a year for

With towards there and precision very will I'm confident, results. we with confuse getting not efforts though, are we execution, I'm confident pretty working actually

processes our everything that a very, it, and precise both double-double in that we we confidence? which that drive unveiled What gives resulting margins. destination growth strategy with a and We on do When and to in teammates. with was it with Investor bigger operations precision back, June. look matters, my organically Air behind also it's box strategy, commercial sure wanted and very double-digit XXXX inorganically the double-digit clear, let in make execution me Well, we first we lineup. me And my medium-term Forward year in forward, than up York revenue think New very this full did clear in Day set

strategy. One most X the in customers. our Mile, was acquisitions our executing Inorganically, met acquisitions Baltimore, companies and, the in of there OST growth in Linn of of also. eyes the first-class what businesses, many I heck importantly, team, out see, Final did year the and throughout to eyes truly with we Then X FSA have my our Intermodal, I Logistics Star, acquisition teammates got and in in great in

we XXXX In that with in X now of Final over a rate markets Mile, run went to a XX business from million. has $XXX markets

say year. you more several So written if no that do times where did shall you a acquisitions two remember, it's I that than

are inorganically. So we accelerating

a growth, also decision strong our double-digit have year-over-year in growth business, and driven And onboard which very, in a hurt us long Organically, for show number very fact, term, conscious new Solutions term. made the business, we new setting and locations approaching where peak could did to improved. pool, in as short higher, also in very, pool, up that we it's our the we were open we up lot well profit very

We pool. are stretching

in we expectations other businesses. We same in that the high have as have business all

acquisition of which in to the And is core new within addition business showed verticals, a business core growth our us. FSA. core fruit, in LTL incremental XPLs, Airport-to-Airport bear after to always important in to Final go-forward also organic our our We showing Mile remarkably customers, be notably, strong initiative starting will

the maximum we our and synergy, Freight visibly segment. And happening of then finally, for creation with that's Expedited did most line up

much Over LTL the collaborating road, commercially are Truckload tightly, operationally. and and more

final-mile piece way or backhaul the to the are locally, selling LTL routing. are starting We the LTL delivery and pickup on other also And we between outbound to drive around. Truckload the synergies and

nail in product a new in with the be And very business segment. that's key very, exactly much way product, margin those for between we us to way the in of it's that potential those rigor sync. what the Expedited drives will So we hold double-digit synergies as route X Freight that

in are of and gives that very a of execution we stretch we very me our rigorous tons said, are, journey position our I fact, clarity of a game a journey. tough As on that very, plan towards And clear that double-double. confidence robust robust in very,

I'm So also segment, having out said with a our our new turn double-click CFO, to colorful this, more, to Expedited going Mike? it to Morris a especially picture that on paint over Mike Freight. bit

Michael Morris

Thanks, Tom.

to reporting like Freight. new segment we Expedited to comment on called Q&A, go Before I would our

operations, our on During our we opening Tom XX, call were deeper and described mentioned Truckload which in third quarter his we LTL between October earnings remarks. a synergy that exploring

concluded we combined decision, fleet. these the and leadership this X and progressed, most To As LTL as place the makes to we quarter that and continued implement sales and operational new merged Truckload put business this sense best in it effectively units. run analysis

complement organic build which help cost It This our also drive purchase linehaul density within into enhance our terminal and growth, Mile Final further to LTL delivery strategy plan network. density. will integrate will and pickup our LTL operations, will lower transportation and

Final have for integrations help leverage. operating costs greatest Truckload at lower the unit Mile Overall, LTL, opportunity and continued both the of will where we

are result these these segment running the is since of to have this a as how changes, As report we business. operations decided X we

X we disclosures To have expedited help user, enhanced for the financial statement freight. provided

billion Star. showing detail Linn are of a now since the is $X following acquisition revenue greater segment First, this we

Second, The LTL and gross also operating different a segment. metric time, providing improve integrations a will profile over we're Truckload but margin Mile operating network for new will leverage margin create called and new margin. this Final gross

leverage purchase our which is our Network asset-light core provider an leverage operating gross as transportation, showing biggest are leverage opportunity. we by the on getting margin preserve intends to into visibility LTL

LTL in quarter period. of see gross operations Page margin points. of and X segment prior can FSA, basis was leverage in Expedited the Freight our is margin which network driven by acquisition the generated XXX in not our gross As release, consolidated earnings on by margin you The improved fourth reduction our this the in and gross the

Investor information we our will and going in been on historical Relations new to reporting Finally, modified website this has provide forward. customarily this maintained reflect segment manner be the

for line the Q&A. open let's Justin, that, With

Operator

Instructions]. [Operator

line of Our comes Markets. Todd question from first KeyBanc of Capital Fowler the

Todd Fowler

Great. persisting? year? Tom, or as approaching as to growth you Just start back about the remarks, laid get interim mentioned guess, you double-digit growth. of of prepared you that revenue the to that's kind a the back of and timing as soft that's think pushed how think out can see softness that expectation think in kind kind when XXXX? I you've you profit the of in through when to just long right more out you Or Do kind into think half start, double-digit the what for of get attainable Obviously, trying maybe now. this patch And move something you of -- the about you does targets? the

Thomas Schmitt

Todd, about Yes. it's talked the growth, a couple is When it margins. a of double-digit and in we One New double-digit York, things. just a double-double is clarification. annual

So that's what we were referring to.

about also the we term. medium -- We talked always

going disruptions, economy, experiencing in now, a we it of economy, it's one it's to precision as global, hard a right illustrate actually, kind just of tailwind fast can coming U.S. whether predict the have whether right to coronavirus. having freight not kind or the actually we think the headwind. into hard with have medium time call why way. perfect economy the you results will be now market, to translate the execution I it's now, as It's know Right how the we're like that because It's to a headwind term. predict we're we our

it's -- at and look for the me very, that confident that growth at to it's we second say segments, Intermodal look to going are What happening, be to very when going ball the that XXXX, I quality XXXX. I into with So or what we I Todd in, is know. of Mile crystal do the drayage, the quality way if be I precision of the Final acquiring say, our it's hard businesses and organic are of we at am execution and growth, look in half looking

calibrate I'm this establish actions that we in and timing track both starting possible. and it, just those, can result those hard where record is will well. we're to believe -- tailwinds based can what Investor on that's guess the So we to and I headwinds articulated that I again, Day. the and equally you part of the on The probably, source And because, say, is even confident is what really

Todd Fowler

here reporting for Okay. of Yes. term. and what's segment near No, business? for short into new that's some you for much so how OR right do that individual term, the the Expedited there, that the you helpful pieces margin context that of Mike, good Maybe, kind that of forward that that's the then, the rolled And think the about margin mix the in are kind Maybe of makes you've What's But medium profile we've sense. all that the for and now historical going and about said, segment profiles in of -- those kind Expedited had new I the And the some historical not realistic in for with that. on Freight. -- think data together? or now combined OR assumption segments, pieces but as up freight information Freight? thinking appreciate the you term, so as about

Michael Morris

Final think, we space, what going lift direction the XX%. lay that a that is when we reflecting think that in have see I bit IR of and is to to in will the think Tom lay CST Mile then pressure said much When put goodness if you in probably Final Deep the of this Truckload, operational part because acquisitions integrations can OR. this from trade inside, you XX% might for moving mile the during double in the operations would LTL final how an called Godfather be striving of the the to about Well, generate second day. zone be, I in And redone up. that to including on double-double, it, back we just that we'll X, be Mile, you

XX% greater Intermodal your inside, when they another we've margin on when integrated, acquisitions, a range. would is profile you talked about I -- be another but acquisition to XX% acquisitions, OR. the have or layer to The CST, XX% growth, XX%. Similar into long segment, until to short answer But as they're that you it margin push kind short the be the that's tend do answer a of acquisition, historically, for question. the dilutive that's than can you

Todd Fowler

I And is in could know but seeing still kind 'XX, for was the that that the against environment? yield the what like a kind right, fourth the get that a could couple then, for comparisons remain helpful. of the tonnages If bit most questions. revenue that -- it really pressure? looks and about sense. as maybe of that in little just fourth That's I saw a weight was per shorter-term about difficult of got it of expectations you talk you where positive just comp. makes seeing be kind but helpful? I've you're first part XXX of into you No, Okay. And quarter all in quarter, guess, of Can you're the of challenge, pricing you talk then if what

Michael Morris

Tom, counsel yields Todd, markets, clear just some we'll So about and actually, is some if the density. the pursue to math. is, shipments just denser philosophy. talk given -- what's as on the we think, why that grow appreciate don't necessarily to me organically in you starting to type market I you And lower happen, more XPL about, then in heavier, be go because the have yield I going want first which industrial on to of very on had on

initial XPL of We that organically and in an a have on of lot had is success. yield. a effect having lot our growth And

-- yield, So the see if it, actually you the door-to-door X.X%, a but numbers but system up the sorry, it the X% call up back X%, mix down was door-to-door in Airport-to-Airport to X.X%, to was from pushed in I'm ex our perspective, up, release. kind growth X.X%, on was fuel, growth of

quarter core no bit the of was real shift it's environment. soft Airport-to-Airport just organically the a in door-to-door as that's that's an relatively a Airport-to-Airport for -- actions of kind past to in in price, So higher. math on, mix in we reduce grow the -- was There's going

Thomas Schmitt

are So I companies when for a pricing. more little extremely the about just to feel bit philosophy great around it to add, color vocal disciplined comes pricing, very perhaps,

we. are So

this us -- gotten having in, Now execution said intelligent precision much we gotten not. have comes more that, about is and customers good what's and business where our what's we've for

volumes a and long, or, matter, forwards domestic work been lanes for growth that including you in lines, time, with for because you core damages, XPLs, our the more segment So When time. discount them for when and customers identify are long we telling that low earn good good on volume very where we high we for with who for volume closely, more our us. with that for are them, fastest can them, have are that's we

So we are disciplined. extremely

extremely also surgical. are We

you you for good specific more but business So to customer spend news earn can for us. for more us, them know it a is be a as as and that we with

Todd Fowler

great That's I'm not listen like advice. to people color. to having used And my

of you I So appreciate that listened all through one.

cost a lot be little specific I'll you're turn on any costs that cost thinking earnings acquisition. quarter it the the kind of depressed kind as over. I'll of be the Can first the lift from guidance, the flow-through. out it over? either -- recurring, wouldn't Just maybe like in pressures balance to revenue about of doesn't -- that -- my you the last turn obviously, and then kind might the that how start of in first through and year, you're or Mike, move of But might one, bit then you, feel through It a quarter walk getting the XQ,

Michael Morris

Sure.

the So of in it this we FSA mid-January last the quarter, have a quarter optically, closed Linn in because of lapping first full Star in which And are we year. acquisition, of nearly April year. closed

we and an growth opportunity revenue Mile. growth to Linn some, a We're with or over the FSA grab growth kick with it, took general driven distraction the good to more and integrating course job in Star, integrate last call But but is being going this organic year. the of of hardcore got some FSA So to we've additional kind Final year doing acquisitive transaction Star integration by is around acquisition. in some Linn closing starting

a a of from Final anticipating lot went million Mile span of rate player $XXX-plus run than run Final $XX a a not in but growth, this year, off less we're the rate excited we're of in So very drop revenue that to rate we million Mile.

are quarter, more we're We It peak terms last particularly outlook. of some than the feel being cautious overall Truckload Frankly, the tailwinds, a little market. markets. the in market, there's in freight in and overestimated more pressure our headwinds anticipating we in does Intermodal like

occurs, earlier wish a the to comment. is grow I Everyone's to half. expect portfolio. continue kind it pretty So ball. well with that taken we're second pressure, to be going we pointing the the going had I crystal to positioned to of Whenever actions we've the

Thomas Schmitt

even benefits months, OST whether eaten at surgical, it, costs. or know Todd,, this We the an is summer it help. have look was when we term integration where revenue fairly Star, and I FSA well, if in now acquisition, in few first XXXX, again precision execution Linn lot, in consciously the initial do early get by a sometimes the up you more again, and and being the do use

be mean said, you short-term as I Mike, that, the way good that quarter. gains. something for experiencing is in a the long-term we're that first in So payments going to

the see typical add in fourth the quarter So the pool we in will were a peak on fourth as the new now see for first business quarter softness typical suppressed lot and lot that And first profitability you of quarter. that the quarter. then we -- we a pool a approaching in did, that the against in business,

headwinds structure I fourth executing strategy then of of in do go a be short the to some taking because that, call, pool us our inorganic, Final organic, what you business effect effects it, little adding back new so of that up the in the in you terms call Mike, to less acquisition totality set the So know of the that to term. do, onboarding our for whatever and in that's that again, realistic but this a integrating inspiring are we than is quarter, want the somewhat, have when to to up Mile guidance talked at just we we remarks and or we exactly want latest about, quarter, in we well, you're bit the surgically being first my opening are right in of actions now to but compounding very of

Operator

line Stephens. And Atkins the Jack have next queue, with in of we

Thomas Schmitt

Jack?

Jack Atkins

margin So expedited is of kind what the with about of let combine coming think moving I a and transportation mean last of me mile kind pieces recent trying is run adjust the to a Mike, when get business? you base you of these acquisitions. start TL, current us just is your there with feel here together, pro you the current kind that? forma I'm acquisition? all XX% what up the way rate help -- when the for to about kind within what currently, for I'm with Can LTL consolidate the for

Michael Morris

Yes, sure question. sure. I I just make want to understand the

you saying you the question? Is doing? LTL, if that what's are into So it peer core

Jack Atkins

no. you're reporting And X expedited mean No, now you've my got... right? segment, question I is,

Michael Morris

Yes.

Jack Atkins

we couple -- you only of a large historicals X/X have just there's made And and acquisitions. of

trying margin So mean for XX%, like a go-forward a XX% current what XX%? is transportation? run to to long-term understand to so Is over where on as rate understand how trying is of your Is that sort I'm less is there goal the expedited And because I'm move just try of are it like that? much what than it on we margin? we the about I the upside now? you basis to kind have business is,

Michael Morris

Yes.

down integrations it introduction knocked it'll and And near-term think a Mile that kick large the it the It'll is historically you've couple lift in, part margin because of Final just of seasonality of up. I margin. then comment. big probably That's revenue. the a kind follow LTL of of largely LTL a Truckload will follow still seen up points a for amount as of the that

obviously, peak in you're So here.

pretty feels XX% so, good. And

might quarters to then couple If clarity. that you walk start see over You and your seasonally, next gives some the softness back you some up. of way additional

Jack Atkins

me the to you're expecting way. transaction? from acquired get Well, it that is maybe, What let of revenue this Star Linn ask that out

Michael Morris

is the What well. a Star a we've to has rate. Final million the for then is said of in run quarter about of expect the builds we kind $XX seasonality it through And at as softer our it This to it run course some Linn and Mile, announcement year.

Jack Atkins

got Okay, there. me helps you. That get

let integration of you question. sort for help ask and opportunities But LTL office terms really are months? expect those you you me take realized? the any know Expedited back When TL, take immediate? about is on think there just be Or of it think kind there? a And synergy opportunities about us synergies, I transportation would similar force of there's side. will long synergies? So the Is -- it purchased Expedited there of about can benefit it in how sales XX to the to

Michael Morris

I already it so think pieces. -- take we're in let me

I we're going here. side. operationally, start Jack. office on to I'm already a think There's Truckload of back lot not seeing the benefits

office service offer routes gain cost where benefits force. they're linehaul is diversity opportunities, fleet; driver costs, fleet; the centralized force in assets Truckload better in to retention to sales lower center terms the side, mile; overall increased shared in -- LTL per trailers; our you you just running; largely better obvious, what that larger your recruiting as these back quickly, the to more their very described, of of usage like X lower Our better the Tennessee. you're better are the density; just sales what like recruitment, recruitment have driving Tom Truckload But very revenue became on

it. about a And was you when team like our way remember is big Con-way do that what doing Jack, I pretty that CFI. the bought lift. So really

Jack Atkins

Sure.

Michael Morris

business too Freight is here. didn't And opposite that business of treat the nicely the kind The after Truckload acquisition. happening

are Truckload We revenue opportunities. pursuing

that couldn't very And sides And revenue before afraid With I where lower and there's mile. that's lanes simultaneously going creating the to are opened synergies powerful because think they the both back run of being empty. those cost coming same up, vigor, it, were opportunities. lanes we're drive creating per these pursuing revenue we're while operational be we are LTL to an

talked Truckload a more and of in also That's nor offer applications. starting mile is pickup the That with its that's is push to secret a respect generate will to out the integration delivery we're the the a little model, at but market, get going doing to The delivery a and we'll prior clearly also little take pickup us And fruit and about is to prior going into final largely sauce longer, of us was time. we're install for with integrated Difficulty] LTL recruit, to best freight, Final synergy kind That most calls, respect driver dedicated able as Mile sooner. there in we've of the take that to good its freight. and this. being helps revenue period, helps the claims. wasn't in [Technical and

you them expense, their creating And the when of as claims current bring so period, well. optics usual in put and some you inflation in that's

we first on quarter, regarding I do, on the the and for it's mean, our this Star, than quarter that similar bring And from effect, the above not continued business, a respect we -- know as the problem results. headwinds reserves. in predicting prior with companies. some in is are Linn period, we our self-insured show SIR. we trucking this in as comes inflation have towers first carriers expecting will are you growth better in, so premiums And that the to With up the it I

Jack Atkins

sort things million quarter, right of about? So kind the But some call about? are kind that forward there of it, can that impact that, of of Obviously, going quarterly rate run think and ballpark to is a think is swing around that new kind to the that $XX-ish quarter-to-quarter. that is

Michael Morris

Yes, that feels fair.

Jack Atkins

I want we've in Star with that sure Maybe, our to calibrated Or model? -- even? got make just Linn higher correctly

Michael Morris

quarter. a of initiatives. our that's in a think safety I Yes, our of is lot initiatives, slower terms starting point. terms It fair operational a We're in doing

starting would we don't But just in we buy SIR. kind And above our of claims expense. coverage to where have coming the fair that's relief see expect any a do to markets we So have point. less

Thomas Schmitt

theater here, Jack, needs me add the manage to coping is because that just the do the watching obviously reality piece we're But a one with. want keeping I hoping to that's fingers one a audience happy everybody out, in seats, our movie thing crossed play thing with we and movie X not emphasize, in -- there's and let sitting ending. a industry and

We last of things right? our So between LTL things, take when you TL pickup labor a are at close directors in take, these the EBIT-wise Mile, very own if we if between and kick costs on of to actually and these Even if and had elsewhere, and peak, -- cost, insurance in business because some XXXX, about see compensate challenging to locations happening synergies take came movie, to reserve just these them and very, that's the fourth take you when kits talked need the we we we delivery look in you that so LTL, that added right? we that quarter XXXX. we and excess we on the year, in additional still Final we

need a actually so real. where you that's They these hurt up commercially we reality those. have They look make we to that and for are make them So and and then compensate things. for for operationally to synergies

So I victim our we're not that's of want the actually here. emphasize, -- the movie. to We're director

Operator

of Hartford Ben of line the have we Baird. queue, in Next

Benjamin Hartford

airfreight provided I the it number, terms Lunar you just lead like in level, in Mike. that on from Lunar at obviously New or Chinese the coronavirus January, high in it what's of maybe volumes kind going think, shutdown little was in a into understand soft a of a of heart But broader we then sounded start of Year January, Year, Tom, the the the And this got moment. And developing. we've with to we're that's a begin perspective. then New from situation

broader it provide could a that's factory provide airfreight going about that core perspective? a kicked back time? commentary Airport-to-Airport you from this specific the quickly bit And about obviously come up of on a a could volume kind can of, point legacy, perspective, being little like Because macro, So sort any how out. what's in you at output sounds maybe of from context Tom,

any be perspective there would So helpful.

Thomas Schmitt

the Yes. papers, mean not and real. -- I so big lot mean, Ben, that's stopped they cases a starting most only of the America. that's Hong is, and just things. things are Commercial both a more North between obviously I, before literally couple China, that January, China, we Chief I reading and call. week, just operating airlines The Matt Jewell, this One Officer, our than flights are that of talked in And I Mainland and in perhaps there's this noticeable. also Kong you

the it's next speak. So same time I similar sit as we would the we the and via that's obviously impact the here I coming slowdown some a would airfreight, delay, expect but over of traditional because as expect just several traffic see a we something weeks. on happening side ocean

first out, of have foremost everything in we very the and confidence have I here. an January, healthy of sure of then people and sit stand less as last working the that So obligation, making done to piece that and real is get is the mean, being just issue obviously figuring form extremely things one I kind in And -- quickly to possible is people this as hard, better as including possible. help some

and will of from down obviously one we're to to need there's to virus, we tackle thing that advantage or and need be past take we when at of slowing So there this opportunities is, hard because positive catch-up and and weeks airfreight. we look Ben The we need graduate even also an perspective, halt to talking that's opportunity months, as say. a it's -- whether

will shipments. vessel even ocean of be catch-up. or point, halt down slowing There's At some there

be people Now fast opportunities when like should catch-up, you going expedited are business. after us talk who about in the for who it's

ways hope not our but work even, mets I up possible look to the closely to then where painful take the kicking all hopefully, that customers with up agencies, catch for it's very, start this So different concerted to way. in. the very today, And efforts of perhaps weeks, us months, may is industries in, all to

Benjamin Hartford

that bit you initiatives in regard end recruitment? a from that as do you've at network that volumes potentially that time moment, the been little at owner-operator of network a sits service guess talk about obviously expedite the a point And from think like I into the with rankle [indiscernible] point back but you the There's underway bit year today the can you got it's a you of overhang. sounds the some think had toward about stayed And with perspective. to How in coming vein, of view? maybe an

You've to got I before that pretty the preparation But there? about that protecting talk you some a is and improve sure think the from bit positioned you straightforward. can making are network and insurance continues service that, little just issue

Michael Morris

in Why condition. don't then it give the the I'll miles you I perspective, to very was The prior fleet XX.X% over last turn so Mike. outside point, is a well. To it versus Tom. and of were miles, period. very, that owner-operator in X.X% in put then power, I'll is The to outstanding over quarter you Tom, broker it's turn Ben, data network operating if --

But pretty we're that the the Tom? improvement think So ready well in fleet. a expedited And of very quality I to demand. handle significant

Thomas Schmitt

to those whammy XPLs. many importantly, forwards, our SCM, secondly, know in a how when you them airline and And cost. predominantly customers, our operate it it's work mean on that transportation, and or ICs, We behalf double AirCargo and and most service. have Yes. does -- our with X your just And just our customers, independent larger actually had forwards, to and have know many, actually ago, It purchase obviously of Conference positively. shows our us, of X domestic conferences less international week a contractors, the that I with lowers people who have -- and you

sync. is service but XX and XX service, this you, resulting about that record Now know you of message Mike, love observation probably pointing on the the to same your getting how once message, at that's levels, anecdotally, talked all have you our what in customers to telling work shows on-time scorecards, customers, being just that me that or we from behalf our these being, we're terms points our in ICs your they're on and largest from the that

Benjamin Hartford

data that guess, on yields But weight I I closely per shipment the pounds TAM. the at Mike, greater, in up, with helpful. up side terms LTL this, a on That's me, look per of shipment to but day on progress down some year-over-year, of helpful. per is is weight little kind of down that the expansion the pressured being good. Okay, incremental bit shipments of probably a tail of if

Tom, sales. maybe, some talk, you the can So about of incremental

that during opportunities this But of talked of customer move as as the the integration how and about efforts XPL the should sales some efforts, the set sales interpret You expand traction of we through year the broader the year, to data terms year? you force. some in indicative through

Michael Morris

real just quick. Ben,

in this more clarity to being progress you So was XPL the per XX%. little on on up amount a Tremendous Daily shipment of give the was XXX%. shipments just up made initiative. up Weight folks XX%. daily tonnage like call, our were over

Thomas Schmitt

an And or. is Yes. and, this not an

we do very, clearly, have team, pursuit almost I business. that above going are support traditional want forwarders, we going to more for on their and very as and So emphasize their the they business, are Airport-to-Airport team the frankly, predominantly beyond domestic with be customers on core to

in keep. we're their more we So That's away. core, a putting toolkit. need not tools going That's to

claims, vertical to talked sure we get focus of And would and we ratios you focus more. And through and especially your done happening what's point, that XPLs about have damage more as getting tremendous Ben business fast now we us, type and strides. I that's on we've for they be XPLs. a how and low especially make as on And record logical

XPL our customer a segment is customer XPLs, is customer. Our fastest-growing fastest-growing

talked we years ago X about X.X happening. is what year, So

Benjamin Hartford

in terms That's on then you one, And thoughts good. the any Have have of for frame of last do XXXX? you -- that planning GRI? time a

Thomas Schmitt

roughly next year it's -- which the schedule. happen last be as same always, will year It's Christmas on to and this there the GRI, same and Easter into is they and be year, all and

customers, we're and to importantly, So plan maximum want so for ourselves, they thing. can budget. for doing same provide and predictability We our most

we're it's so -- But the we plan into first slightly GRIs, by year, with our year, not they basis, customer be that cases, to cadence a months. can the or, mode. some different every they customers. they're half if get same the weeks on together different single of So But going in even tend in slightly per contract-specific to are the

you increasingly previous because to and back we Jack you ways of Ben, the And customers with Todd, made for our points are save more. kind there we good can business spend understand for what's for and as us, that

can good us. business we them as the May time, timing into go as same at with same between and last is February applies; and work volume GRI supporting units. customers them discounts for But the business year, surgically we on all the in that's So for and

Operator

in that Please here Earnings conclude on shortly www.forwardaircorp.com be the this Investor Call. XXXX that Forward at webcast Relations remember available further Conference no Fourth website section Forward With of will Air's questions call. this does after Quarter queue, Air's

You now may disconnect.

Forward Air (FWRD) 7 Feb 202019 Q4 Earnings call transcript