Hub (HUBG) 30 Apr 222022 Q1 Earnings call transcript

Company Profile

Participants

Dave Yeager	Chairman & Chief Executive Officer
Phil Yeager	President & Chief Operating Officer
Geoff DeMartino	Executive Vice President & Chief Financial Officer
Todd Fowler	KeyBanc
Scott Group	Wolfe Research
Tom Wadewitz	UBS
Jason Seidl	Cowen
Jon Chappell	Evercore
Bascome Majors	Susquehanna
Justin Long	Stephens
Brian Ossenbeck	JPMorgan
David Zazula	Barclays

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello and welcome to the Hub Group First Quarter 2022 Earnings Conference Call. Dave Yeager, Hub's CEO; Phil Yeager, Hub's President and Chief Operating Officer; and Geoff DeMartino, Hub's CFO, are joining me on the call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. In order for everyone to have an opportunity to participate, please limit your inquiries to one primary and one follow-up question. may statements in the company's the judgment to forward-looking call of best Any future. as contained the or release what Instructions] made course during the good-faith [Operator in happen represent the Statements that by of these project such words words. and be believe, anticipate variations the expect, use as and forward-looking are can identified of review cautionary Please the statements in the release.

filings materially actual refer to these Form those other SEC company's results in disclosures XX-K cause could differ the should regarding in you forward-looking that addition, from In projected to factors and statements.

is reminder, this to recorded. a my As now Dave pleasure host, turn conference over being call It the is Yeager. to your

now begin. may You

Dave Yeager

and earnings afternoon Group's you Hub in first call. Good quarter for thank participating

and to Joining Officer. and record Chief to me the customers today the Phil thank focus Hub's service our are the we Officer; DeMartino, as I'd on Geoff Financial Yeager, hard like President team Operating Hub first XXXX. achieved for Hub's great quarter work of for delivering Chief earnings and

non-asset-based gained There's growth reliable of and delivering the service. as and services units great and a on quarter economical and a they intermodal experienced accelerating customer truck recession. discussion and Our throughout continued focus of looming provide the excellent with on rate brokerage deal late spot been momentum business logistics declines

of to business Dedicated a years. the the last markets, well-positioned capacity that customers the many While consistent slowdown the taking should is of on of well economy. a through growth for securing price. long-term XXXX are advantage will consists a is has strongly I to customer vagaries tight beyond. brokers adopt assist non-asset-based perform capacity through loose in several of agreements and after defenses our today's arbitrage Hub shortages Each that able experiencing and company no XXXX specified of if the that pricing. immune can to downturn, both built capacity an occur. businesses at commit focused Truck to In are believe of Both them into environment, and in economic units

on control business areas, Our that better to focused them with the delivery whether bring allowing or reduced supply to management control for consolidation, home to customers, chains, is all brings our customer. logistics in their value-added technology bringing it's high-growth LTL customers transportation enhanced costs services

the dramatically Lastly, economics intermodal include for the efficiency fuel is advantages, over represents more the than as industry to Xx than and clients Intermodal Hub. of thereby as offers consistent rail growth XX% offering capacity The better advantages road, over revenue. Hub's road, for intermodal service. ESG well engine our the generally significant

in price with positioned at added and to the the of growth fuel well continues, experiencing years. the intermodal truck Hub conversions X,XXX several this boxes XX,XXX driver is fleet is levels very than elevated and containers we've As now in seen year. remains shortage business new more this being

offerings, a significant with excellent have improving review We through enhance I'll on we've growing that, service up our diversifying And set while it investments which operational rail and growth to technology for turn as help discipline over strong a relationships intermodal, our conditions. focused with of sheet, and balance have service ourselves superior continuing our Phil will to market performance. variety the in to company our provider. differentiated made our efficiency partners Through our

Phil Yeager

Dave. our team for you, to America across all experience. on world-class delivering thanking North and constant effort start of by a customer wanted members Thank I their focus

wanted a service performance, line our change reporting. I to I begin discussing to our Before highlight

as revenue business gross density asset-based our asset-based reporting unit, believe margin line in appropriately Intermodal improve percentage performance in performance we basis our as Given point our the the Solutions. this one sales. as of Transportation our and a to Transportation drivers, the and operations the integration and we've will discuss systems, a future for our our of in our improvement of Intermodal Solutions organization We XXX reflect and continue quarter discuss intermodal I'll equipment XX% dedicated quarter. of operations adjusted and service utilization leverage resources. to increased our now the all with in

offset by revenue revenue dedicated was revenue decline volume Our increase in unit despite growth XX% driven per was in per growth per X% and day. which revenue a intermodal improvement an in a partially truck by

a year-over-year bid pipeline to performance our sequentially as by strong onboardings but the strong points and and the anticipate growth was decline grew in a staffing, by X% a partially street dedicated year-over-year West, chassis current positive increased to new improving across moved improvement of year-over-year, Transcon slight intermodal rail We've both driving intermodal and make we all Despite onboarding. partners Gross congestion. and in improvement thus end this executed increased sales as XX%, continued Local as year-over-year into and seen of We of transportation. one availability revenue in and in Our very as dwell as basis driven rail well, progress seen and East as a a a pricing XXX due headwinds, service quarter customer of enhancements final in large customers. mix terminal our sequential driven management we yield continued as volumes well those our utilization mile have in will Local which great execution in increase Logistics experienced managed and far and supported to we on-time per at strength offerings. in revenue X%. unit percentage well by declined trends consolidation, X% season our be margin new as

year-over-year, great XXX% mostly declined savings XXX driven improved revenue growth basis in will due have and revenue organic remainder Choptank of a as LTL strong which increase the Brokerage XX% as unit improvement see acquisition continuous improvement, is quarter. first sales technology of supply quarter offering. brought of resonating and our we leading in by of as to as chain proposition and with customers value higher year. on well pipeline service, and of margin our throughout Our our wins continue a spot the XX% points a load, to of per the to volume revenue year-over-year Gross percentage the we volume in XX% in executed comprised shipments and truckload coal in the per

synergies. We of see well integration on in continue our performing to our and success Choptank are cross-selling

our large identifying We hand I strength wins it scale our performance. ways in will and we bid this With are discuss continually to Geoff will in drive that, generating anticipate leverage over which season service line. to increased ongoing financial to

Geoff DeMartino

Phil. you, Thank

with featured all quarterly strong record profitability. lines and which Revenue QX grew XX% are our business. revenue results with of pleased We growth across

to yield focus income gross of Our revenue management, and operating operating efficiency margin on and of recovery led XX.X% of X.X%. margin cost efforts

year. were higher We expenses down acquired recent incentive higher last continue from the to leverage to of from slightly up our against gains gross G&A offset transportation X.X% which X.X% were was and of increased the our expenses related revenue, well our due by operating margin higher compensation to benefits expense. business. as Salaries performance as equipment as acquisition sale

generated our share per business invest additional $XXX over cash have and $XXX is quarter X, we for million earnings We capital the diluted net which year. of strategic With prior Xx of Our substantial quarter. in flexibility in was through close and over to the leverage million expenditures $X.XX of acquisitions. EBITDA to the

inventory to consumer from continue We revising a XXXX levels. spending growth have demand strong for low We bullish upward. are our customers, driven and see and in by outlook guidance further trends, our macro

lead chain supply will expect efficiencies earnings. will be and conditions management We yield that in constrained continue further to our growth and operational to

of outlook towards XXXX, are year. end For becomes that less clear provide USDXX USDX the of expecting we a the the between range which diluted wider and typically as would we EPS is

billion We expect to to revenue our our XXXX. to of goal to billion, by well revenue of over $X $X.X putting billion way achieving grow us on $X.X

offset for volumes year, We XX.X% costs expect third-party throughout XXXX, of of revenues accessorial driver We higher and as transportation, to a supported service. surcharges rail per intermodal percent and by XX.X% revenue container to and our rail deliveries increases, gross wages. rate margin as improving forecast drayage grow

million year, the expenses to expect million. and For of $XXX $XXX we cost

the that yields In be the transportation be seasonal in will costs. We to expect QX of strength expect year, QX. similar rising we by will our earnings offset for half back of

Our forecast expenditure capital million to essentially is million. $XXX unchanged at $XXX

XXXX and to we introduced receiving containers fleet or grow XX% and expect our have X,XXX In been year. our margin revenue targets. by our We XXXX, this long-term

for our our with business, back recent the investments strong fleet to adding are make service will and CaseStack Our closing introducing cross-sell new significant investments in scale of the in we while illustrative you of strategic also types offerings remarks. Dave, Choptank, of acquisitions potential. NSD and

Dave Yeager

forward as remainder this well we've any very our thus big performance the We're to deliver seen with pleased We results Geoff. for questions. this open far. of solid and quarter you, first At continuing and the our for as results, look time, line XXXX. to up we'll into the results April year Thank

Operator

[Operator Instructions] Fowler KeyBanc. And question first from our Todd from comes

Todd Fowler

big in wants driving big relative low maybe differences where the around confidence take February of the know the for here were up don't end this you the XXXX, of into the we I play high to framework outlook pricing of the guidance. step-up the what's the have to that some and step going year your probably could to some around the guess, if of between some how and the in with who but I put kind wins visibility the you is out, in contract and

Phil Yeager

quarter. halfway awarded we just this was as volumes. strong are bid very convert reference do to intermodal. then point to to seeing XX% I on volume feel high very We've guidance. a we teens about We'll We've QX. the The truckload We're it, in mid- season in volumes the the well XX% growth with done updated about in is quarter confident back second in start through cadence performed in XX% third seen see done season far. as pricing, renewal thus call and think and

the So good really outlook. about feeling very demand

looking couple in over are up for really think, them of years. past capacity. lock We've to stepped I customers, Our the

great so to And we're to continue opportunities drive growth. some seeing

an service product service. I continually in we're rail momentum that's think think as seeing We improving well, going with help hopefully really us. to some

as sustainability are, that's at well. supporting a think look prices our opportunities which look customers and we for where to You I their tailwind continue are to enhance goals fuel

from the happens imports I with is think unknown China. what

I think way a where, going think, bubble once and, as congestion is with actually demand that's in us that put to eases of again, hopefully that half cross-selling impact position our press a and release investments back fleet, in a the in positive what freight customers, doing we're sets making get we've to the on in remarks. trajectory the our a us to the that hit in good deeper out we're with I laid

Todd Fowler

a as range. this of just it. a helpful. And in like Got going how I'm operating think forward? That's It's do guidance sustainability of implies we the X% the into the of follow-up, some overview. good about margins kind backing

You've about X.X% your XXXX target. to X% in talked

do environment around the sustainability how obviously just at about of we of run think taking we of limited understand some that visibility the So, this forward, rate the there's that consideration into going kind margins this off the level? economic but

Dave Yeager

Yes.

forecast guide for is strong. periods revenue encompass internal to We which give when which going don't by long-term So due we outlook in guide in the to upped meant quarterly exceeded clearly the in primarily just guidance profitability, really gave and to both think QX. We for the stay we yields the saw We times based was just well but XXXX as we're have intermodal. driven of we as the on well. softer strength strength to as it our strength was continue

expected by are businesses intermodal. other performing The but outperformance we saw an as really

for foreseeable expect We continue future. the will that

Phil Yeager

And I'd Todd. just add in,

We're done in the I lot remarks diversifying it have of lot a deeper our of own on really that think offerings, job of really hit getting Dave our in-sourcing on with customers. a we in more product a momentum we've tailwinds drayage, nice well seeing his prepared intermodal.

a positioned I see so, to you'll in point, that to conditions feel momentum. well Dave's variety I market and think, we're of continue as And though

Todd Fowler

add would have $XX we up years back, taken My number. several model goes to to a

So, congratulations.

Operator

comes Wolfe from Group next Scott from question our And Research.

Scott Group

first on half So, you're we this earnings half long that saying. lower staying just second and based expect? something guidance the of sort not Is would would you lower make just in the than just, year the seeing on how we're and -- imply, the what should the that guess, that knows sure, who of so of I and not Is good it's it what we're second year half? half lasts you're hey, first implied of

Dave Yeager

probably will be we would that, to I expect similar Sure. QX. again, say QX

and wanted flexibility. sequentially profitability the higher In of to yields like some And at be kind just roughly going it year EPS QX. just expect based year. this, to We other year. don't costs be on the going upper the have throughout things be at so, the that the kind now. costs lower when end of rail other back we're the range at the but going don't towards the stays up build of what in upper We we get it. know in half have are range, even it levels we we be the do expect end see of did the end words, like at of we look are for the year. right range -- implies of to end quarters offset. to we we'd the Typically expect if We full Certainly would an the would the transportation They will of

have So that rising the half. the weigh on slightly we could do costs transportation in back margins

Scott Group

And -- do visibility cost you are higher this have -- than that later this come normal increases year? year rail those

Dave Yeager

They're what we're expecting. in line with

Scott Group

which to want understand going point, which worst about at I just were, now? margins you now can best changed margins question the just on if performing best the to businesses operating And rank for back just directionally that X%, business you've I of what's doing your to -- are the a bunch. and right then, last us

Dave Yeager

yes, Obviously, of are think highest our Solutions customized followed non-asset and the But generating, then, Intermodal I in would operating managed obviously somewhat solutions, scale build non-asset asset good completely I probably we're by a Logistics That think, do and the You a positive. the the believe And been Transportation margin there we is we're investment intensity. business. Reaper mean, return a really we final from our we into based full in be very and demanding with competitive yielding be perspective, highest the is to which consolidation, of profile. would but sort space yield last, in have position space. Choptank higher more think, moving trans mile and which fully brokerage made that most profile the continuing including truckload,

a of enough with advantages to our drop Choptank there. have that and we We our brokerage great customers quite think on business top is in seeing probably of hold. I that something we win gives haven't of the fact which that runway out and XX% of is And think, a us, highlighted acquisition variety we're the take with go ways

would ranking So, the unit. business about progress each And once again, good that the in very be though. I feel

Scott Group

give And and this trends revenue right? just still going really us structure, trends intermodal reporting with going to yield and you're new quick, forward, volume

Dave Yeager

Correct.

Operator

Tom from And our from comes UBS. next question Wadewitz

Tom Wadewitz

the on earnings. results. remarkably congratulations And Obviously strong

The pretty see. charts Let's number per also revenue big. is load off the

of progression in in that get growth said about pretty the How the or the they off should to the thoughts that I probably be do fall comps demurrage you you I that? XQ. and you you're get think through? how of of accessorials through intermodal unit. -- of unit coming or about XX% think about get revenue they think we or year per like mean, you the may pieces kind whatever I hard assume know But -- some intermodal. some wanted contract thinking Just that persist assume do them just think how you per I pricing on do get -- you through revenue

Dave Yeager

or have comparable somewhat revenue off that just get They the search obviously, comps higher to revenue your a start later a dipping year. be surcharges Yes. the be do to or accessorial tougher will feeling But off. of capacity will the from per not perspective do moving in a unit, solutions point, more we The base. or

we are pricing. but very -- So strong seeing still

you pricing, think, differential still look I intermodal there. at of gap truckload versus large the there's a

a an there business level. clients to intermodal. lot continue You elevated convert well factor at as to prices then There's value for of in to fuel out

convert So, of the about continue lot pricing think business. to runway and we're I a to feeling good opportunity very there's

that in of will it to pricing we're So cost our be and excess inflation.

Tom Wadewitz

Okay.

revenue perspective, off sequentially from wouldn't of expect kind year? to in an load the per So absolute you later fall like

Dave Yeager

no. No,

Tom Wadewitz

are how I service what was and think in rail you about the about XQ turns maybe Okay. thinking How on to you're you or container comment fleet. mean, a turns for know -- then I opportunity expanding the improve?

confidence So turns in that you improve? gives much quarter you the from some can and volume were they have start. how I guess, But, where growth the

Dave Yeager

Sure.

So, sequentially it we've far actually rail in moving the in and more throughout QX better seen a deterioration utilization. saw but some we We slight a into quarter actually service sequential saw got very improvement, our thus pleased story that. to of product. eastern our to in see I to portion And talk think particular, improving sequential go about service network in to great customers that the and a it's we're improvement rail

customer the turn We're and Street going where job think progress. that's we drivers. the get in to times. On we improvement doing improvement helped continue that nice And overall that's us an sequentially side, really saw really adding a to

we but not work year, to as the our again are get that I seeing either drivers rail continues we're there. fleet. we am customers add once still progress back of improvements more of Our those, to home we're Not hopeful improve fluid on to do service lot the nonetheless. of continue back that into starting anything to have about to write a some to but to half

and less think the and times. will there get is our unlock latent their better that that congestion I we even customers volume to turn capacity warehouses Our faster. turn there's And at staffing better fleet see

improve. to hard So we're bullish but working

Tom Wadewitz

you the quarters? sequential reasonable in like at utilization next look when few improvement think you So is

Dave Yeager

in start levels also by partner our this of Western that will quarter. their enhancements the see some Absolutely. service yes. end do to Yes, believe I

Operator

from comes question from Next Jason Seidl Cowen.

Jason Seidl

you put here. going last year, the sort that? last time taking the chain lessons appreciate if on the the piggybacking supply X.X we sort from had in even I that there of last I'm better meltdown that's bottom I terms in congestion could of guys question. your just of into to What's curious year? go do time you in like of of we this that half in, baked back learned you sort are of the or than something the is range towards mean,

Dave Yeager

to with incremental congestion, have before that, which the a cost we offer as add it for bottom can the although that, well customers what that has add we think We experienced pricing Yes. can solutions and to line that our strong incremental flow-through power us.

though our So, enhanced more being take able that to made the we've really did up commitments our place, customers be be that would long-term. would the if estimate benefit. thing for pricing we're we even And to feel would All going as power that have utilize to important that's we well. to as a live and that to our said,

actions market-based could and know return I up would of that would on add So, rate as making. sort we investment don't we're ensure things renewal, if getting come anything we're Geoff that that. for be a our to taking to

Geoff DeMartino

in that negotiation. No. bubble Coast our now bit to To hit water the China, the in of showing little West We and up a are soon of freight of your that time be right for a into think that there's Jason, planning. point, be just we'll sort we is in going port lot factoring a

the the in second certainly cards So, for half.

Jason Seidl

of I actually in of And in do the been have just think and you favor? interesting railroads to their they've extent of sort you your curious, dragged this? all service about nonetheless. chastised been sort that, on plan talked the that front work rail STB service, the that publicly could Also, mean, guys to be about Should

Phil Yeager

Sure.

product that quite hard partners service working some we our for know been have on So, very time now. rail their

you heard partners their think, on of the I emphasis both it. -- of on calls focus both calls that our and

really it's including And resources is across-the-board and capital effort, bringing place. contractors more investments, think I right in on for sort a while. congestion been a it there getting and the terminal of

here it with an do heard on going is the we're opportunity to hope that's So, on it momentum our have I time think run some for to think level and a show, customers that to we to get both of that we to something rate focus real is are taken that there convert they metrics service calls and detail we continue. seeing hey, going right. those improvement And more. it's And I probably and think, but you

truck. so, we're those daily, on garner sharing And weekly and hoping basis to statistics from a volume more

So, feel improvement and plans effort coming. that's very about the and good

Dave Yeager

Once are, times, to we're And as make earlier just working add to so as to a our partners turn it -- in improve Phil of that outlined lot makes putting the with efforts, interim, the in for again, our our more better, fleet fluid. their on fact, just to in on service, rail that, us had to unload clients working faster.

this time. rails the in So, that are point we think I at improving, are also

Phil Yeager

Yes.

that's think really a I good point.

be Our a on-time performance think year-over-year the to was the in second full we our that up And into basis. significantly will quarter pretty for quarter on has year. customers and the better continued

Operator

from Chappell Evercore. Next question Jon comes from

Jon Chappell

Phil, mentioned quarter. had in I'm under that the looking first to guessing the customers you was capacity. of premise lock

we've incredibly in supply in tunnel? a willingness from proactively? you light also, And the chain to see contract what's momentum As at one of as we pricing April been the the seen slowing Have any we've and an the to kind maybe have bottlenecks, trend of so durations to of on capacity gone lock little eased into rest that the bit. tight the end and speak, gotten

Phil Yeager

Yes, sure.

remained So, duration mostly similar, contracts. long very has year

vast year. the customers large haven't but are RFPs running don't totally want to in do They we customers but say some seen six rates. I month are uncommon majority locking That's be would organizations. not Our to constant say market the of and people in pulling of lot remainder going of that's at recently a happened I are the spot think what's to that looking kind one year. don't be for the

to in challenging the Southern last the potential challenges disruption pending the it peak right is California, and a labor two really once again season costs and years going to thing. thinking, that think in that China be especially everybody I lead and all a locking with also the after the in that to is some understands now, around capacity incremental smart everybody bottlenecks going those. drivers that hiring who bring system think, I providers are are rail commit and coming And into costs will

been so, on supply with discussions stay very would And continued mitigate capacity make active lock everyone to my in I having pretty our customers. we've And much I risk how do focused in chain. say, sure has and

Jon Chappell

That environment was track EPS cash sense. $X Okay. to pretty of good to And that When to little logistics Do more complete this focus given brokerage generated or then, annually, a talking and out record at and an that accretive business, in make a type coming. maybe still all throws makes recently second, probably a the range $XX look that acquisition changed of way growth two cash on this looking you've to truck like the continue you're you that that a bit what's I to and didn't know right about of grow buffer? good more do your the you have as now? valuations organic off business

Phil Yeager

Yes. growth would Great be about our and targets summer, acquisition. half we last said half long-term that John. we When question, organic through that announced

brokerage. to that potential. able going looking cross-sell far we in high logistics we our both lines business to have for in example market. Choptank adding those up acquisitions. our to plans the base. very our new for of was transportation continue our were refrigerated to of service, platform, look around acquisitions add successful the then capital things terms We're centered the types and think of non-asset So, We deployment assets has been that building so parts and to on that to intermodal customer do scale a cross-selling great that in that And of in frankly to to capability your are point, past were lacking and a adding of

several we're We complete I've we least I'm And at pursuing. seen have that that we're get at opportunities mean, in active to probably Hub. acquisition have time one hopeful most the in going I pipeline done here my XXXX.

Jon Chappell

looks you're It that year. organic in growth like one it. all Got getting

Operator

our Bascome Majors And question from from next Susquehanna. comes

Bascome Majors

from translate bit a free talk range you cash would EPS Could to a the flow about perspective? what

Phil Yeager

Yes. Sure.

million -- tax So is $XX in to EBITDA that with around interest going $XXX-or-so have is bear -- one EBITDA We lot range. million. of probably moment a of in me cash range cost result don't and the

all We our the pretty CapEx much are financed. majority our of is -- financing of

Bascome Majors

All right.

So the, that call it, flow in $XXX free something to million, would $XXX at million translate cash least?

Dave Yeager

yes. Correct,

Bascome Majors

type XXXX how we're does And that? mitigate you XXXX, can if get that guidance What All to 'XX how XXXX you. in And to in you of cycle next downside do just other businesses obviously year. walk just that of shift, us do year, a like shift even of hurt? if what raised scenario the when we change, question side environment ask 'XX to through well a this 'XX the or lot I look fourth yours, you how walk But mean, hate of there's right. to about the Thank about forward you I stress if XX% for doing the test timeframe? your that the like are month concern really does model the the you in of

Phil Yeager

Sure.

state. didn't think and planning that, in really costs XXXX We downturn in do our reduce is, lot we're this costs to that up in able yet. a on is do just as through a I take we some the to haven't there. we in those into so, out I and why gone We we here; lot which We way have cushion far we in part a of leverage frankly, going downturn, did event we're a what think we're permanent were cost XXXX cost think, now. But cost seeing of in the out of a did to the play need anticipation took one We of happen. reasons didn't early XXXX the we add think operating it of what thinking of such attractive

of is going on last have strong thing contractual, business our almost a We yields. through benefiting do But, a being a potential which Our from watch all did downturn. is our price that's our look, -- us carefully. we we're time tailwind do carrying into we're having the same have impact intermodal line we'll -- model in with to bottom

was also kind beverage big in away business business, adding transactional of brokerage We acquisition the pretty pure logistics some to side, side. the diversify food the moves and that's have made acquisitions And serving there even the customers. type in some a

mitigate will So, those think downturn by to price. any two we driven factors help also

Dave Yeager

add, our productivity We're just operation. I basis. would there nice a really in add drayage I getting getting And and momentum a we a think lot on week-to-week of lot have a driver more

back also a to only rail partners Our so in our other can our we're retention compete some turnover that continue come highlight would we in-source conditions serious numbers in of and so variety think a on line make can of thing The year-over-year we've intermodal with effectively. percentage we down dray. align contracts and able that a basis. progress I significantly of is, on in And that is done lot to have work more

conditions. as that is have prior market in a so, be look out we I didn't say, would something, And change would in something we

Bascome Majors

mentioned side. you -- the that asked rail You cost on

commitments of have because at customer are this this you capacity-constrained extending On any any commitments and customer do do the are XXXX have railroads, you side, point? situation that that beyond

Phil Yeager

for in tell look are But, we yes, as with engagements. the multiyear, those do of of pricing -- dedicated, clients with long you, five place. volume the then, on multiyear do, have And customers. intermodal, some years selectively we we as as So it as majority business, on And in well so in We sort right? commitments that's I and right those at vast logistics our yes. both, contracts would you

So, put an a point strategies something and we're good that on great to our right really a question marketing continuing is and now. emphasis in

Operator

next [Operator Instructions] Our Justin Stephens. question comes from from Long

Justin Long

is impact I ask us Obviously big pricing color and a think and provide to a wanted number ex-fuel revenue but talked more any per bit that surcharges accessorials? unpack that maybe XX%. any there increase and on about load, about you from there number up can to help the way that little about and you

Dave Yeager

yes. Sure,

mix basis the is in you XX% Steel -- XX%, a increase load rest. big was accessorial frankly. XXX the was really points, for price, kind maybe that was driver, per surcharge not revenue will. account of quarter core if were of the would So, The assessorial

Justin Long

Okay.

Phil Yeager

for pricing. I would engine We moat think we to a a if that Transcon has a just see change in truckload growth be mix-wise, continues wider add, us.

Justin Long

I Okay. wanted Helpful the that trends next of and the into it comps a earlier pricing high kind baked bit but tougher What's of bid season? my are thoughts. the get getting teens first Phil, leads half you've through that bid mid to in me the half seen into guidance season, you to know question. back just pricing. for your of said

Phil Yeager

the expecting us. We're the is with year-over-year. of impact half, of positive the picture two for of low repricing first digits XX% But in our still in not end the last meaningful or single certainly quarter year, that by done the the is overall

Dave Yeager

strong for to probably that Yes, say us business. that proposition continue looking to our push We're right saving [ph] and I at customers' is have murphier converting the would truckload going in value pricing money we on and conservatism. a picture,

Justin Long

me intermodal one volumes. is Great. last on And quick for

first Anything the for for X% the in the you remainder quarter. volumes can share guidance reflected So, the on of growth year? in what's intermodal

Dave Yeager

as as improvements well for year-over-year sequential mid-single improvements. expecting the we're We're year. full modeling Yes,

Justin Long

to the that back cadence it's up is would consistent? half. pretty And guess, significantly I going pick in

any you provide? on color can that So,

Phil Yeager

the pick in It yes. half, up does back

would from expect year-over-year the low QX in point a So to be of the we the year perspective. X%

Operator

question Brian next from comes Ossenbeck from Our JPMorgan.

Brian Ossenbeck

more potential Can little elaborate ESG of ones left or kind side. really whether is Is any a as of these for you the down this some the break there it that capacity can buckets, of on demand it to constraints does call? happening type contract, bit Are on of you ESG time that it into is it the customer, additional sort our of because the is just opposed the times driven? happen? type sound and way you've a network first like actually mentioned you conversions that different to the back emphasized is Maybe because a truckload the factor few on playing by it's the

Phil Yeager

piece look Yes. been revenues truckload customers -- with on. both as a brought in focused sustainability seeing We're are, putting those products-driven of capacity lot in that of continued there is and have growth things. retailers. improving the a up have be both we production it I now progress. somewhat the in with of fuel to for our for bid typically service mitigated a we consumer is can capacity think high mentioned prices And that's I on product earlier majority I couple but drivers overall of the attracting would new of would and of groups what is earlier been tractors trailers momentum the both and portion assurances say, makes which that season well more of right hopefully as some would and rail vast say, as a as I intermodal being they say, have

sustainability stable, to Only days that I factor, somewhat are as couple that other a get savings know the is I a factor. so, can is, thing advantage transit more highlight tolerate And don't there. transportation of take it's inventories more would a while deciding of chain those do supply

think, a but mitigate of customers, of I make sure their a chain. there are risk think, supply that they So, factors lot looking to multitude in I

Brian Ossenbeck

it they're less than some opportunities going switching more, business you the And on characterize time? or do a can intermodal you wins to for hang are maybe period business these little of you about longer of think stickier and might keep can of way what way any to sticky feel be forward? and is or reasons that there a when make Or not any like kind you emphasizing

Phil Yeager

want get a great never for and we're to we've growing main give continue get to we the a switch, is, the us. I our -- them opportunities. with to with do reputation especially great performance. with think, they service think, we'll our And if job thing to that reason customers around stick like We I a customers, built

mentioned standard. kind year remained contracted of the earlier, As of commitment I has kind I the one think

with in business locking customers which and And continuing to conversations our active very us helps baseload those but with multiyear balance pursue our are right the We we're is more around agreements. what clients. again, that something once we into network define as

are So focused on we that.

Dave Yeager

that times. intermodal aware think Scope is for of Cummins. you're X with And based several filing, does emissions. an you'll up fact, efficiency sure requirement a of ESG the is you reduction right carbon I conversion fuel which I'm had If, of and just -- that to now lot become SEC upon mentioned in see a

Brian Ossenbeck

if could. clarification, just last One I

terms that's XX%-or-so side, are Where at you play improving. that bottlenecks on plus that's how equipment year? rest drayage the that improvements the also you're looking and to chassis, in you how the to or expected And you're mentioned that there of in-house? On of and get then, out seeing any

Phil Yeager

at and seen XX% improved throughout into drayage sequentially see that of We're the but Yes. should our number QX progress own we year.

have the not more challenges thing any On And to really chassis the side, I seen main the we creates fluidity. turning is that quickly and equipment think, more note.

say I any come wouldn't chassis So, as online. have new better it's in way. it's gotten anything, worse If gotten

getting product of the And so, part we a better. service that's much feel -- so that's

Dave Yeager

this support the loan. you year know, Brian, investing and to in UP terminals as in Yes. $XXX And is million chassis

Operator

Next Barclays. from question Brandon comes Oglenski from

David Zazula

have that in Brandon. risk if been your then, is contract elevated an guess, what quick is the guess, just in dollar brokerage, for I unit Zazula past. that come cycles? I to going it bulk rates forecast relative the I down, are to rates you prior affirmation guidance to for elevated has outsized that your I could kind in with year? relatedly, of remain about David And contract relatively your way brokerage think has of guess, is escalated, a guess, This margin on been our the to the question I assessment rates ask it if compared guess, Phil, the per I contract is it's where

Phil Yeager

Yes.

Once are providers are So to couple them challenging looking contract that have make of going the customers commitments our rates stay throughout supported higher. again, capacity, we do lock-in with to last years. believe

of as contract, most XX% our in XX%, is bid brokerage on very bids our of for similar XX%, So, that cadence well.

made of see mostly I well think, refrigerated in cross-selling much in to So with Choptank. a way we there. trailer through model our earlier, it as drop our XX% we diversified a about that point, don't to have of to be we've space, the strong performed season in bid to We're program. And other the and the risk targets LTL be

again And see confident multiple market All a I in that it our and of us conditions. very rates really to And to fast variety agreements ways to would start think year-long contract of move. in in ability with once to very feel in win markets. either win we're gives customers be

David Zazula

you absolute could just non-driver cleanup. either count? a I Do And the or if count employee a handy then, employee ask in have change

Dave Yeager

Yes, X,XXX. the was non-driver head

Operator

at Dave questions now will further I this to turn no it have over We Yeager. time.

Dave Yeager

you joining Okay, great. the Well, us thank call. for for conference

all questions, much please free Phil for to Geoff, if three call always, you As of further there's Thank very or or us. feel I participating.

Operator

Thank you, concludes and you participating. for This conference. gentlemen. ladies today's Thank

disconnect. now may You

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.