FWRD - Earnings call transcript Q4 2024

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Operator

Welcome to the Forward Air Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Tony Carreno, Senior Vice President of Treasury and Investor Relations. Please go ahead.

Tony Carreno

Thank you, operator, and good afternoon, everyone. Welcome to Forward Air's Fourth Quarter and Year-end 2024 Earnings Conference Call. are Financial Chief Officer. afternoon Jamie Officer; this Chief Pearson, us Shawn Executive Stewart, and With

which to By press Air's results, release you announcing also now, should Forward Fourth have quarter Form SEC on the received a was X-K. furnished XXXX

filed this also outlining presentation on section Investor call any are slide earnings release and of fourth the Relations website update. accessible Both a press XXXX at Forward slide highlights have We quarter business presentation forwardair.com. Air's for the

other that in the statements and year which are regarding events future Litigation the statements earnings the matters based regarding include announcement aware company's XXXX. be call Please not Securities conference and company's certain This and anticipated forward-looking that facts, release historical the Reform our expectations, statements, are of Private are on fiscal including intentions projections meaning performance, XXXX. this Act trends within statements on or of

to and not are cause a statements such subject from that to factors and actual These unknown those future results could implied differ guarantee performance risks, forward-looking or by other materially uncertainties are known expressed of statements. and

risks information our with and refer Securities please For concerning filings relating Commission and and the earnings and to Exchange slide release call. additional the press presentation these this factors, to

obligation required of cautioned of or otherwise, any to update result as this future statements, by date events the place as undertakes to law. only not whether are speak of no Listeners The undue information, forward-looking reliance these unless forward-looking which on new a call. statements, company

to GAAP. to manage uses metrics may of there non-GAAP measures accounting principles also or discussion call, Management financial During accepted that conform do not generally a U.S. internally understand, the be slide operating most comparable and and business non-GAAP today's to and measures measures of make their these press GAAP are release directly in presentation. decisions. Definitions included evaluate reconciliations and our

the over to turn now will Shawn. call I

Shawn Stewart

interest your I transformational and joining in thanks on. the the and appreciate everyone, call journey for afternoon, we Forward Good today. are Air

scale As case and there is but the are usually always future. with this size, about along we no remain way, excited with bumps quarter was exception, this and complexity, much and resolute our turnarounds the

X cover. that want to Today, I there topics main are

First, I XXXX. in key some of the review will achievements

thoughts I and XXXX will an Second, share with fourth our will of close quarter priorities, some the on I overview performance.

year months reported the efforts For million consolidated the very Omni January, the stabilizing $XXX top and at transaction I successfully a XX million, we quickly closing am EBITDA with last just is $XXX We company noisy out million. X the on to the which year full began near our of ago. centered of XXXX, we closed moved. and guidance which closed that range the integrating $XXX the our of networks, the after and busy rigor and company, I pleased with the joined pace transaction months of

footprint. team, focused and value capabilities customer the leveraging both the on put global providing our first solutions, a props. known most company Air the we as to get and Over legacy we lead out out experience also the unite know-how companies the the the team their both only most course into future leadership them of year, not to that has industry these built our and but X Forward combined individual year Above first Omni's of the and importantly, best-in-class combined in of

have remain We their relied to providing years customers, committed our legacy the capabilities global continuing for freight are service and while to and same especially truckload Omni on and intermodal of leveraging offerings. forwarding on the customers We our their businesses. grow expedited entities LTL strengths award-winning including building with domestic individual the they

unique solutions supply of as an view mind. undisputed and ownership their we possibilities them dedication, peace growth, deliver With chain of shipments. We customer that take with for ourselves a just our than most challenges moving innovation more importantly, solving

cost circled synergies delivered million integration of that savings $XX were targeted out on of at the We and the the transaction. onset

pace on the to and full phase end springboard of at serve a complete at are XXXX. entering. quarter remain employee are target network of footprint initiatives the the real schedule as to count the These the rate run and initial be we We at transformational integration and savings exceed first estate and the of head for

expenses $XX fourth in our of per savings and more XXXX than executed annum, our quarters on vendors. company million including use annualized satisfaction. to and direct by financially while second of efficient took operating third-party workforce, we operating To the cost-out to approximately customer steps we high additional and In a in the of reducing reductions incremental synergies $XXX level more million date, from have contributing actions maintaining expenses

Smith as [ as recently, most year, During made several ], Chief as and our to leadership Pearson Officer; Financial Chief Chief Supply the Doug Jessica Officer; Chain People Eric including Experience Commercial we key Officer, additions Solutions team, and Customer as Officer. Brandt Jamie Heron

addition, more In largely the Tim our America assumed industry experience and talent complete, excited operations. team all all about for With ground could bring. responsibility I they North ] Osborne [ management the not be

to the As we look made benefit investments changes XXXX in ahead, XXXX and and expected foundational are beyond.

customers, synergistic higher which to more by driving profitable offerings expanding in and for a long-term will revenue. profitable turn lead Our include our priorities service growth

focused we to data decision-making. the our operationally, our IT officially integration much improving of turning strategy, transformation parallel, systems a our efforts from and quality are on the broader rationalizing In completing

also global back-office standing a us are up services managing our organization shared and to assist We in operations. integrating

understanding newly are in business. grow we He the seasoned joining revenue team, deep our January logistics our global a aligned chain leading Eric leader with of is a supply across to global excited company sales worldwide and With in management.

in has future existing tenure knowledge first-hand path set and and Given base relationship with and growth. his the our space, for a experience has customer he already the our

that will integrated. not office impact transformation legacy make companies Forward transformation, plus led management up is previously and by being Air XX the Regarding it were Omni our that

and rationalized is that into continuing with we XXXX more ERP a systems away appropriate move XXXX, for from network company. some TMS to multiple IT plan work unified to singular and HRIS During a

these changes and organization. expect to efficiencies We redundancies enhance across the reduce

Working that synergies we over targeted on as gives delivered be confidence and -- call integration with fourth in then just the X,XXX that the few executing on successful with will quarter turn professionals me the the the to Jamie. a comments

solid actions cost announced driven previously reported were with additional Logistics Those performance Our further $XX for to approximately best the the segment results EBITDA the quarter the annualized Omni in equate consistent results another on segment an at transaction. yet achieving were quarterly that enhanced and its since Intermodal quarter result million reduction round basis. of by

from put other The Expedited the market at than prior that operations the strategy large on our Freight pricing the on ago the declined segment, to did compared year due expectations a to a decrease in line to and profitability. and not income in primarily transaction growth meet volumes with hand, more in place focus

Freight volume the which in in Expedited remain line by is noted, The continues slowdown freight market, decrease to generally As LTL the the with fundamentals environment. in impacted intact. the segment be prolonged

in of expedited both service we forward. be one be growth going the the the America all in driver providers North provide -- of in customer to performance claims best retention ultimate will ratio of on-time continue service and and We

profitable customers. discussed the most not as was pricing The the growth issue and remedy strategy shift last is we from freight dense understood single historical then and of the it in a quarter. What may our class-based be how change takes that largest pricing our mix actions. change long subsequent The to was mix in in freight

know, tariffs less poor months As takes class-rated and everyone profitable than you decision. tariffs to our traditional knows, density are as pricing it a single rectify rated

earnings pricing on expectations. we actions improvement with news good started the our the aligns calls, our during quarter corrective previously and is that are covered As fourth seeing implementing

full All we and the a of We the result. poorly expect a being actions to expect else equal, priced our and corrective also improvement from by beyond. to February the system yield in end to as the quarter some second commensurate of impact shed expect freight see see

Our integrity will our remains quality provide. intact. class-based our we to ensure reiterate or of and reflect density-based of pricing I want network you and value strategy, whether the service the

forward, expect volume to is our cost to our monitor profitably mirror to impacted how actions the run and closely take appropriate change Going network. we

go With results that, to I the Jamie the quarter. through will over call the to now turn from

Jamie Pierson

driven GAAP Omni Shawn, reporting an increase afternoon, the was basis, good increase everyone. by it required year fourth year. was beginning the and as Thanks, prior the for the with and to Getting and it Revenue quarter $XXX was over right transaction. quarter a compared prior fourth on of The million the million the or XX% $XXX largely to quarter results.

on more that quarter. flat, point, basis. we'll a year-over-year sequential million Omni the fourth and relatively in make Omni did for million consolidated revenue to this focus our decreasing it or we last $XXX million $XX the comparisons difficult To meaningful of quarter not from X.X% so to remained a a on is comparative Since own quarter XXXX, sequential comparison, $XXX segment basis,

segments, surcharge in Intermodal the X.X% a million $XX at million decrease $XXX X.X% decline primarily million. per Expedited fuel $XXX by decreased at X.X% to tonnage Looking hundredweight, our or Freight revenue Omni expedited X previous decrease a in The day. comparable from freight, year's including reporting per was and of quarter revenue driven Logistics and

the the The and million $XX of the flat or year's the a to XXXX, quarter XXXX. trade quarter was an quarter sequential million was X.X% reported revenue revenue by number the the On third offset the which Omni revenue fourth compared previous in X.X% of was of Logistics $XXX and decreased comparable of was million a of X.X%. per segment, compared Intermodal $X segment from the in in of increase not basis, shipment million. Omni included to At at $XXX fourth quarter in full shipments increase revenue decrease

made goodwill Omni X-year as includes expect income we X-year reported purchase record now to do goodwill period million any a $XX impairments related to We closed. rules operations not an impacted accounting in that following be as favorably our retrospectively is This adjustment For XXXX the adjustments the further the segment quarter. fourth Accounting adjusted acquisition. adjustments $XX in the from window of of require impairment million. to continuing consolidated Logistics quarter,

an or margin. the quarter agreement Consolidated was EBITDA, as credit defined for our XX% million $XX fourth in

As the full margin Shawn, year the for you near year full range. guidance the top XXXX, reported $XXX XX%. was our we end approximately heard of from for The million,

the reported the would December the improve cost the for EBITDA in our previous prior these be to have of quarters, occurred. and structure. requires in EBITDA inclusion savings allows consolidated consolidated a the took for and from we've they the agreement actions to unrealized Regarding expense The forma credit time we which actions period to that in historical back included adjusted X amounts by in pro the be spread

adjusted we such, the reflect As savings. of prior amounts the quarters cost to

presentation would, updated X to actions. you we the able of you If and past Page most the reference recent out be slide forma issued will and reported cost today, the and in see please pro what for

quarter incurred the demonstrably the up improve noise a will quarter transparency, in XXXX of on XXXX. in results to cleaner of of that Again, On the detailed build Given basis, we and quarters, to presentation. of fourth much used anticipate EBITDA and so transaction the first expenses XX the second first ensuing year-over-year to XXXX the have in quality the information the consolidated than on. we the first of earnings the quarter Page 'XX be the in

the $XX Turning million. quarter Cash liquidity. to in from fourth cash operations used and was

in the cash covered of in $XX with in was of is we half compared operations $XX reported back provided provided third And the by second the of used positive the fourth quarter half cash million to XXXX. the call, earnings inflecting quarter, we the absolutely operating $XX year. cash in As of quarter, Combined to first flow inflecting net to point, the positive. in by cash that Definitionally, million that activities operations million. discussed

revolver with quarter. in conjunction of million result quarter $XX million liquidity, in a fourth quarter interest for $XX by the expense in decrease under million amendment, the million made which $XXX was As the for $XX million. of million $XXX use the in million fourth predominantly size and the $XXX cash The and a a during ended with $XX total impacted payments of a availability in reduction to $XXX we sequential million, facility credit cash, was third the

with and a my And as would of usual, past for like you the practice, to few I commensurate with quarter. points life leave

of literally less to like benefit should credit months us feel the news is is time ago, it and it we may X negotiations for months The first our The of that than X which amendment, amended a while the was come. preparation long great facility. ago years

things alleviate the which, with additional we a all trade $XX size take of the headroom. a very considered, the as ended a will good covenant $XX this As facility million financial in you in turn, was not we immediate X us in treated future Most should refresher, reduction But me, our with us focus reduction to for know flexibility year in who for onetime million significant a over no executing concerns cushion years of covenant it liquidity allow transformation. on as lightly. do

involved. owe have debt of We of incredibly a appreciation gratitude the fortunate to are all which for lenders those I and to support of our

the cash the consumed by In our the And company. expenses, the $XXX and which balance and are legacy the debt million. of continued ended a Point cash $XX year transaction significant integration calls we to than little our paydown liquidity. again, focus principal 'XX, results saw these importantly, costs, second half on X the items, was reduction contributed in is first we with a much of more conversion, equivalents which of liquidity half benefited In and increase cash year, none an we seeing. cash, cash our in by in million other less of on

But noted, this linear. and size, turnarounds not complexity ultimately, as of Shawn magnitude are

was than the us case certainly others, quarters for in Some are quarter. that fourth better and the

performed have fourth the beyond. it and to stability the the made service in the and in changes business growth foundation we in could that While quarter, we financially killed better absolutely should in XXXX we 'XX transformational of

time. fruit, lag is that there can pivotal company's a very the cultural bear knows, from that was DNA forward period and that much combined a are time deliver they time a I'm 'XX everyone to as and the of As and injected changes we company. looking always what into

Finally, strategic regarding announced last alternatives that review we the month.

developments progressing we where release, disclose do we that as than process further As to in related that disclosure indicated determines appropriate both it to to is Board expected. and the this necessary, is say press intend other that not until

your As such, process. we our any we on respectfully focused keep ask you as earnings sharing information to not will questions be and the about

for before closing the Q&A. back over pass mic now to will I Shawn comments

Shawn Stewart

our beyond. and know am delivering. more Thank for you, Jamie. achieve as accomplished have we the do the results XXXX team to We XXXX end to offense springboard I by proud we a work what year, of serving of of capable in know and we XXXX. play in defense playing a to transitioned more are the of We started lot

I the strategy, and Our and world company our as associates our execute to am around ability value. confident enhance one, came the grow shareholder in together

occurs. will the when customers' it investments We rebound making environment benefit that needs will necessary us on remain focused in our to any from meeting and freight the allow are

to now take operator Operator? turn questions. the will I to the call over

Operator

[Operator from Stifel. Chan with first Instructions] question Bruce coming is Our

Andrew Baxter Cox

for Jamie, on Andrew and is this Bruce. Shawn Cox

Just to keep hard tariff being trade the and at on But these up trade news Omni. the kind cognizant mean tariff wanted that I potentially touch days. of with it's would be to anticipating? to get are you just or for planning helpful. and how be here perspective like the would customer your on that on preparing color discussions the changes changes Any may you disruptions

Shawn Stewart

Thanks it's for Andrew, the Shawn. question.

to vast of be quarters, you think are said project in these it's the the freight it said, how we not the I revenue Asian difficult China. and in As from tariffs impacted many really just might pretty countries, I've volumes previous

ex lower the single China into U.S. digit So today we're a

those be absorbed other or the that and trade of tariffs may reposition out countries. will have So customers to continue

closer impact business is home, will. not commodities the and We've see as don't mentioned, you a that time probably kind we commodities though, So XX-day the out of that regarding major Mexico our alcohol, food there, to But energy, if time, such the same in Canada. got were fuel, network. at period,

we there So as impact well. see major a don't

commodities. right we as as So change. business. We're But pretty as not we the major our staying it subject always to risk see of as a potential everybody other good, to to feel it's now, else close

Andrew Baxter Cox

rumors follow-up, Okay. whether a And it that's helpful. of. we've be Shawn, as or -- some rumblings heard

peers you competition of and up networks to A with A potential standing all.

see just becoming on get kind market want happening, in over market how time? more potentially you whether the could So to we competitive processes of whether to this compete perspective changing you planning a it's your be impacting date and to or that's

Shawn Stewart

I sure. love question. Yes, this

to would trying strategy years So a of we in lot, a difference real while same true wish the is that and stay it's we our life. are There's up the competitors, playing here visibility differentiate the and in service like is time, consolidation unmatched, our say, focused and them a tool. I heavy you at worked network. keeps competitors. in are best. a the setting truly network, technology, stand we've It's lanes that whom what I sharp especially offer and up haul many people ourselves through And people ourselves there for on But with we got to with respect also

truly service place isn't value do, our rate offering what lasts industry, meaningful day-on-day we're truly putting best-in-class and we we going tactics offer, more to and only stay we what offer what to continuing low they're so are. is So in what because the in But for long. that doing improve best-in-class and steadfast and what just people we

Andrew Baxter Cox

the competitors Okay. I'll to it back pass sharp. to us keep

Operator

with Bascome question next Majors our Susquehanna. take We'll from

Bascome Majors

payment? this X, positive the tops X to flow sheet little flow. look can forward thoughts think months? went you bond cash in be you Do of any we next the as other in cash on on business quarter talk seasonality kind down without a flow bit And Jim, balance the cash the

Jamie Pierson

the of whatever Bascome, always the to and we Yes. senior year secured the I you like to say have of and guidance, into get in between respectfully and other pass, the to which give loan million undrawn I love way notes term than me guys the a $XXX politely will interest trying payments about portion RCF.

So running take true-ups, the from earnouts, the all flow working to we a we had a cash we all plus basics it it be expenses take that get the business, of the back all just through deal to doesn't lot. doesn't to plus consultants capital lot free Once plus Omni positive. can legacy the transaction get If pay. really our

We the said you think And it's this cash actually flow demonstrated and second was second it in or -- that in of the if I the half we'll inflecting be year, think in quarters, we what exactly fourth quarter of the third last that call this third positive I year. did. most third of quarter, combining about the

asset-light So year. much. business we to it's Since keep CapEx executing The And just need only $XXX a about what model, amounts an cost biggest is we have is isn't it's it fixed to be. interest. million that again,

Bascome Majors

think and segments? a what anything their representative I particularly there and as different the flow cash EBITDA? business think could the basis, the sum-of-the-parts we if worth is of EBITDA free unlevered just about is cash it in be across segments the your to different And to on through want generating relative potential

Jamie Pierson

Bascome. heard Can I'm I that so you you word say every sorry, said. again?

Bascome Majors

Understood. Yes.

flow segments on debt we those of there's their an representative generates their the from the generating potential, and unlevered support if as to free I the about unique potential at business the we're basis, looking want is payment. generating if basis? your anything just think flow to cash understand where businesses So cash EBITDA sum-of-the-parts cash a of

Jamie Pierson

Yes, got you. Yes.

expedited piece free that said, to the almost of forwarding I'd on and I and So and good LTL is between delivery business a the say matter. what different even out that cash tandem pickup aspect is bit warehouse and former flow. the different news the to in not for unlevered our intermodal relative the VAS little EBITDA it's of

from given very fact asset-light the CapEx. are on year, have lines technology. that have the we plus even we in be really In that million $XX given don't latter, on we independent the revenue the year. along we fact the $X forwarding segment, are spent CapEx the more we the billion any centric, a of and The around only On given have on side expedited do we that much contractor that would

that we or we're when the operated the conversion lower start is on good not the expedite do between a then cash So next tractors cash piece bit solid news what beyond. terminals, different but forklifts strong Pretty to two, that stood given which in and the bacon and pretty trailers, for and quarter focusing appropriately. the flow conversion, up on going little

Operator

[Operator our take Instructions] Moore And from Stephanie we with question can Jefferies. next

Joseph Lawrence Hafling

Jefferies at Hafling to Moore. freight maybe for on on wanted Joe Stephanie per I the in is This expedited drill shipments day.

we've in what when seen broader talked perspective. with had the a both, consistent fears about to a and LTL, you volume lot sequentially with fairly mentioned of lot customers guess, year-over-year I started, transaction. the space customers You Shawn, a on your and on quite leaving you forward of

much that thought. I really had in the want you've customers? to they Was macro? that conversations X% there lately, any of if you? can what movement any yield? I back to unpack with have any shipments telling there wanted been And just movement how day, with come maybe just unpack we changes if down maybe that I don't is customers to know in Is all per that. just

Shawn Stewart

Joe. Sure,

daily. need segment So on ability onset, continue I player and own. they're the to to density you your to your do out Expedited your entrepreneurs yes, have they're they legacy to build you where run me I got going what want can't build our where on coming you continual said, that forward business. And of to for on in obviously, talk freight be that. Freight And trusted forward, to and obviously, I'll them customers, to the to lanes,

we still see so that. And

business market. them, with conversations our our much pretty in us, the In down, everyone just tell else they is like

we're to I them, customers, the a just with And ultimately, it's legacy those across very me we're that face. not the like So of told to is in well. my place maybe because think and with volume continue down down. is them. them is board, some where haven't volume service everyone's we confidence good But extremely they losing overall,

Joseph Lawrence Hafling

Got Freight control perspective, a with about Expedited a drove to XQ guess lot XXX was it. we it degradation? focus points operating the the And of then guess, cost and focus on of XQ, talk on deteriorated pricing, from margin sequential because kind I basis maybe what margin essentially

Shawn Stewart

Yes.

So Joe, say class-based the started in little in bit, And that's talked tariff I that the mid-XXXX. and we mix we but mix, in in actions pricing. the to aspect, QX density-based QX, in think, really between a I started called the -- and the shift tariff when when out difference

mainly something should what network. done It this wrong, was happening our customers, not that they did the us. type be of we me are reduced clear, it's our And in tariff extremely that we So what wrong. have important is let XPLs. We XPLs had was class-based astronomically tariffs did to nothing and class-based

happening that's So what was is door-to-door true a service.

our at States, look door-to-door ZIP codes not good it a XX% you open when So situation. United with was the in

early enact put lot then February November effect into of the first, And not roughly at to that's majority the went with impact the got say, what them I'll had to the of we XXXX. end of trade So XX% tariffs of adjusted a remaining of December. and

We do the those as QX. strong XPLs with But So the continue on we've our network to -- volume with can't we keep of class-based to for say, much start to, traditional time, stated, that we same business as actions see practice. to in I like at some in a tariff. will feel QX in impact impact extremely full taken as and that we in a practice

We have margins. to our make

it. really And so that's

traditional have We a our customers at forwarder density-based degradation freight from not all. seen

Joseph Lawrence Hafling

All right. That's helpful. really Understood.

are squeeze change, And thinking any there the leadership, are past that? kind double in like way what achieve about I of to how there you does that is Maybe is is with thinking With for you guys you a of question. want of this kind change sorry, how this in margin maybe are look business, segment? the more segment bogey. that in in type under in kind looking one of XX% to of prior what any Or guys kind fundamentally change margin that change can and on this guys at looking

Jamie Pierson

Yes, would go you and it Joe. what we to trying it is to X give quarters say the Again, double if back was love guidance. last I basically ] look, potentially the [ is almost breadcrumbs now. What just

go back give You presentation. very point data XXXX, mid-teens. where in you the Page to to I'm relative on of going ended salient we XX a

You'll quarter our down kind just margin. the if ended mid-teens you fourth at then see X.X%. ended almost And go XX% we the where of EBITDA quarter, peers to the you're in

a with lower And can I spent at as this time respect mean LTL having I as muster long much a service provided carrier.

those is peers. to. those And of service than Our ratio claims better And peers. is network is just our our better than those I better spoke level peers that than

you where we're better. and peers you should think to I should think of terms said what in I'm it So look not think I it tell like. our and I tell you going was what where -- it are, what like, look I'll

Operator

And Kuhn with we'll from today Christopher the take last Benchmark Company. question our

Christopher Kuhn

year? talk the maybe quarter? And in should the it some the think Did you next all about import volumes of omni we for about of business Can from saw? benefit how it that drivers in we the at surge

Jamie Pierson

in jump let and Shawn Chris, up. Yes. I'll then there, clean

environment the good has that, both some what's candidly, also the those that very I So verticals. knocking increase a by is pricing offset see soft operation Omni ball. did to pretty tech to I'd just did are in a But ocean X literally exposure in clients volume, things. VAS off add see an that of an and pretty in strong warehouse and volume, increase say you customers. air a in One, cover

of rating a is little want by offset ocean a strong but of pretty environment, This across slightly of great different that I'd volume say X you Chris, by if VAS is little softer invest net good bit damn It's to bit of you But space. by transportation operations. the air, it's and offset terms spectrum exposure investment, services. in portfolio warehouse in want supported a a also the a

Shawn Stewart

to continue the our Omni did networks, Chris, of is for capabilities as truckload than we teammates would in a and And of how there's legacy both what lot different of would I Yes. thinking I say LTL. in prior I mean And that we've much they to. ways add, to best integrated more the by know forward use

well. in a So some solution uptick logistics ocean big and penetrating contract as there's see well our we both in and segment, regards selling, did the in omni operations solutions extremely and there high-tech But did for customers an space that segments from uptick Jamie sure. air their to right. Very on is

Jamie Pierson

to of just kind Chris, quarter. Omni's the the of performance I'd And of by improved you Slide points material the of acquisition. single Yes. since It's progression hundred follow couple actually a point every XX and basis

-- they're I Omni. there's opinion, my think at by and the I've on the unsolicited least market there's the that heard market in checks misperception way, in a

couple at performing within best the a basis of competitors in points of well, this very you If some hundred it the look is of page, space.

Operationally, of amount fair just The that the very a So time finding of back well. we're operations. operationally, it's the its really thing it's only stride. office spending on integration is performing

Christopher Kuhn

more to Great. as talk pricing? pretty limited get mean, can business in how we And case, Freight margins should the don't that and and if the growth guidance, I pricing you think strategy, about about weak? want the I And Expedited the if are then know buying much you think Okay. that's too about but volumes we

Jamie Pierson

isolate to you Well, expedited. it

think And I we very especially will go I Our network, expedited it remarks, think, his are man, network. volume. I on negative said unprofitable a -- to see in shedding and year, that yield I know comparative to don't a freight don't We of well, need that What is be need improvement Shawn, some our carrying said -- we Shawn have or expectations margin are practice. don't on just pricing basis. Shawn our as protective the we we prepared very throughout

the from be would yes, almost volume also has the X, reasonable opposite when on yield true. some yield of you away by implemented pushed already to and decline, So those of historically that can think and granted happened in We're seeing what it weeks in see you is being terms in it total. X benefit push the areas, but the pricing way

network got on tell. I terms of We've bottom of in the agree would yield rightsizing with too to early line, it's but the focus terms So softer to you in volumes. and higher

Shawn Stewart

that mean, our that high But -- a I expectation we of team. by don't Chris, growth doesn't have

replacing what in So whether that's XXXX. keeping going do volume the the it's or to we're volume,

the have to the to But focus. our have So we have forced for ability. be that's ability. don't take the We but do. we to got out have don't volumes, we of can that's I and cost it, If to I to the network, what want want we do not grow, sure.

Operator

on Bascome question follow-up a from Majors the take we'll And line with Susquehanna.

Bascome Majors

how it of your exposures the or level to now a services ownership, of ocean comments the you warehousing the really profits into value-added businesses of high and some and some almost we're Just transactional earlier and generates transactional about brokerage? that customs some Omni, on year different between within can talk

Jamie Pierson

and then I'm let where me correct again, jump in there Shawn Yes. wrong. I'll

that As pretty we've stop said, saying it to companies of this and XX is individual collection best going positions in strong verticals. their is a going have we're very soon,

got warehouse, value-added In forwarding, of you've brokerage generating you've terms the air got and customs forwarding, got got services. profits, you've you've the ocean

like So it earlier, it's is I the to of a great portfolio space. -- said exposure

do for growth of when to months. then second we networks the in start first 'XX, I mean place. we one to went I the the quarter actually to how to immediate their in think exponentially, this in. 'XX would softer was up We'll at I a stepped mean that's of value have the And a and out half integrated it you basis, 'XX go would the to through in real you year. volumes X% the to come first really of to by once me that foundation from in that expect negative XXXX, 'XX, volumes, some saw I quarter. astute of come. I going is an positive of expect I end in end when expect that's X as hey, 'XX kicking a to the you longer-term investment recover very said, correcting 'XX. very the future. is terms Shawn of start more going literally performance On X the

Shawn Stewart

way, multitude So job. those XX offerings Bascome, Those a and in have good I'll Jamie of say it this a did companies them.

So we entities. segments, spent entities most XXXX closing moving of and them rolling certain into

coming a and in out ocean really date team segments. speak you you at guys we but I So because in XXXX, then air contract for at brokerage won't want his guys to and Jamie ground start later to logistics report that date. custom a to can I later

and cetera. of guys really an you understanding the in what's this not well market, on So side et doing so well line maybe doing that is and have with what's

come, more So Bascome, that. to on

Bascome Majors

That's if Officer, him driving early the been said helpful, what you've your your And would but last to Eric forward on look thoughts integration offense, he's months, like a I is to to think we few on here volume, to don't really as seeing X.X opportunities call, any point Commercial know to love and from see about that. hear times move today? he I

Shawn Stewart

the he in around Bascome, room top But have a in date in from him surely the he's a room if the the doing America on his Well, come warranted. later headquarters strategy. here session go-to-market leadership but sales to actually happy our that's strategy is top new with and reps not at on North

want of are. and all us they them where exactly that's to that's be, where So

in early as more So stages. yes, share going this happy he really gets to here

Jamie Pierson

would never expose this we process. that Bascome, new someone guys you to in

Operator

this turn time. back the for I'll questions any on are remarks. the Mr. at there further program Stewart to And line final no

Shawn Stewart

you for much, to XXXX, Listen, of I to look I right. each guys everyone, All connecting you forward soon. so look joining really to want today. with and forward thank

If you have Take great any follow-up Tony. questions, care. Have a out please reach to one.

Operator

conclude time, a Please Fourth Full XXXX This day. and at Year Quarter Earnings line Conference disconnect Air today's have and wonderful Forward this Call. your does

Forward Air (FWRD) 26 Feb 252024 Q4 Earnings call transcript