Q1 2024 Saia Inc Earnings Call

Operator: Good morning, and welcome to Saia's first quarter 2024 earnings conference call. All participants are in a listen-only mode.

Good morning, and welcome to <unk> first quarter 'twenty 'twenty four earnings conference call.

All participants are in a listen only mode.

Operator: After the speaker's remarks, we will conduct a question and answer session. To ask a question at that time, please press star followed by the number one on your telephone keypad. As a reminder, today's conference is being recorded. I would now like to turn the call over to Doug Cole, Executive Vice President and Chief Financial Officer. Please go ahead.

After the Speakers' remarks, we will conduct a question and answer session.

To ask a question at that time. Please press star followed by the number one on your telephone keypad.

As a reminder, today's conference is being recorded.

I would now like to turn the call over to Doug Col Executive Vice President and Chief Financial Officer. Please go ahead.

Douglas L. Col: Thank you. Good morning, everyone. Welcome to Saia's first quarter 2024 conference call. With me for today's call is SAIA's President and Chief Executive Officer, Fritz Holzgreif. Before we begin, you should know that during this call, we may make some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all other statements that might be made on this call that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially.

Douglas L. Col: Thank you good morning, everyone welcome to <unk> first quarter 2024 conference call.

Douglas L. Col: With me for today's call are sized president and Chief Executive Officer Fritz Wolf.

Douglas L. Col: Before we begin you should know that during this call. We may make some forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095.

Douglas L. Col: These forward looking statements and all other statements that might be made on this call that are not historical facts are subject to a number of risks and uncertainties and actual results may differ materially.

Douglas L. Col: We refer you to our press release and our SEC filings for more information on the exact risk factors that could cause actual results to differ. I'll now turn the call over to Fritz for some opening comments.

Douglas L. Col: We refer you to our press release, and our SEC filings for more information on the exact risk factors that could cause actual results to differ I'll now turn the call over to Fritz for some opening comments.

Frederick J. Holzgrefe: Good morning, and thank you for joining us to discuss Saia's first quarter results. While underlying macro trends remain lackluster in our view, our year-over-year results in the first quarter reflected tremendous share gains made since last summer. In the quarter, we averaged approximately 33,000 shipments per day compared to approximately 28,500 per day last year, or an increase of nearly 16%.

Frederick J. Holzgrefe: Thank you for joining us to discuss size first quarter results.

Frederick J. Holzgrefe: While underlying macro trade trends remain lackluster in our view our year over year results in the first quarter reflected tremendous share gains made since last summer in the quarter. We averaged approximately 33000 shipments per day compared to approximately 28500 per day last year or increase of nearly 16%.

Frederick J. Holzgrefe: We've opened seven new locations in the past 12 months, and our employee count has grown significantly, allowing us to staff the new locations and enabling us to handle the growth in volumes while still providing our customers with excellent service. I'm particularly pleased to see all of our key service and performance indicators continue to trend positively as we continue our expansion. Our first quarter revenue of $754.8 million increased from last year's first quarter by 14.3% and is a record for any first quarter in our company's history.

Frederick J. Holzgrefe: We've opened seven new locations in the past 12 months and our employee count has grown significantly, allowing us to staff, the new locations and enabling us to handle the growth in volumes, while still providing our customers with excellent service and particularly pleased to see all of our key service.

Frederick J. Holzgrefe: Performance indicators continue to trend positively as we continue our expansion our first quarter revenue of $754 8 million increase from last year's first quarter by 14, 3% and is a record for any first quarter in our company's history yield or revenue per hundred weight, excluding fuel surcharge.

Frederick J. Holzgrefe: Yield, or revenue per hundredweight, excluding fuel surcharge, increased 10.5%, reflecting a constructive pricing backdrop despite a subdued demand environment in a traditionally slower period in our business. Revenue per shipment, excluding fuel surcharge, increased 1.4% despite a headwind from weight per shipment, which was down 8.2% in the quarter, and length of haul also down modestly by 0.4%.

Frederick J. Holzgrefe: <unk> increased 10, 5%, reflecting a constructive pricing backdrop, despite a subdued demand environment in a traditionally slower period in our business revenue per shipment, excluding fuel surcharge increased one 4%. Despite a headwind from wafer shipment, which was down eight 2% in the quarter and length of haul.

Frederick J. Holzgrefe: Also down modestly by 4% our revenue per shipment growth ex fuel surcharge continues to be the result of positive pricing and effective mix management.

Frederick J. Holzgrefe: Our revenue per shipment growth, ex-fuel surcharge, continues to be the result of positive pricing and effective mixed management. With our continuing high service levels, we actively review the performance of all of our accounts and are not shying away from having great discussions when necessary based on profitability, not the calendar. Our first quarter operating ratio of 84.4% improved by 60 basis points compared to our operating ratio of 85% posted in the first quarter last year and matches our best ever Q1 OR posted in 2022.

Frederick J. Holzgrefe: With our continuing high service levels.

Frederick J. Holzgrefe: Actively review the performance of all of our accounts are not shying away from having great discussions with necessary based on profitability not the calendar.

Frederick J. Holzgrefe: Our first quarter operating ratio of 84, 4% improved by 60 basis points compared to our operating ratio of 85% posted in the first quarter of last year and matches, our best ever Q1 or posted in 2022 as we've continued to absorb the growth in volumes compared to prior year, we continued investing in our network to.

Frederick J. Holzgrefe: As we've continued to absorb the growth in volumes compared to the prior year, we've continued investing in our network to maintain our services while also optimizing how we provide the service with our expanding line haul and driving teams. Our plans to open 15 to 20 terminals in total this year remain, and we'll also continue relocating some existing terminals as we've done with four so far this year.

Frederick J. Holzgrefe: Our services, while also optimizing how we provide the service with our expanding line haul and driving teams our plans to open 15 to 20 terminals in total this year remain and we will also continue relocating some existing terminals as we've done with <unk>. So far this year.

Frederick J. Holzgrefe: Relocations are an important part of the story as these relocated terminals often offer us multiple benefits, including a better strategic position in the market and added capacity to better serve existing customers and also perhaps put us in a better position to serve new customers. Our teams are committed to achieving this growth with an eye on always putting the customer first. Our customer-first initiatives have been the cornerstone of our success over the last several years, and included in that is our desire to have more locations through which to serve new and existing customers. The results of Mastio's latest survey highlight a couple of significant achievements for Saia.

Frederick J. Holzgrefe: Relocations are important part of the story as these relocated terminals often offers multiple benefits, including better strategic position in the market and added capacity to better serve existing customers and also perhaps put us in a better position to serve new customers. Our teams are committed to accomplishing this growth with an eye on.

Frederick J. Holzgrefe: He's putting the customer first our customer first initiatives had been the cornerstone of our success over the last several years.

Frederick J. Holzgrefe: Included in that is our desire to have more locations through which to serve new and existing customers. The raw results of mask <unk> latest survey highlighted a couple of significant achievements for <unk>. The scores highlight our continued improvement and positive feedback from our customers are recognizing <unk> ongoing investment in service and expanding.

Frederick J. Holzgrefe: The scores highlight our continued improvement and positive feedback from our customers, who are recognizing Saia's ongoing investment in service and expanding footprint, and customers are viewing us as a leading national LTL provider. We've added 20 new facilities in the last two years, with improving perceived levels of service, which is critical to note. Customers are recognizing our ability to not only improve service but to replicate that improved service in new locations. I'll now turn the call over to Doug for more details on our first quarter results. Thanks for this information.

Frederick J. Holzgrefe: Footprint at customers are viewing us as a leading national <unk> provider. We have added 20, new facilities in the last two years with improving perceived levels of service, which is critical to note customers are recognizing our ability to not only improve service, but to replicate that improved service and new locations I'll now turn the call over to Doug.

For more details from our first quarter results.

Douglas L. Col: Thanks, Rich as I mentioned first quarter revenue increased by $94 2 million to $754 8 million.

Douglas L. Col: As mentioned, first quarter revenue increased by $94.2 million to $754.8 million. Yield excluding fuel surcharge improved by 10.5%, and yield increased by 7.6% including fuel surcharge. Fuel surcharge revenue increased slightly by 0.8% and was 15.7% of total revenue compared to 17.8% a year ago. Revenue per shipment X increased 1.4% to $293.96 compared to $289.87 in the first quarter of 2023. Tonnage increased 6.2%, attributable to a 15.7% shipment increase, partially offset by an 8.2% decrease in our average weight per shipment. However, our length of haul decreased 0.4% to 888 miles.

Douglas L. Col: Yield excluding fuel surcharge improved by 10, 5% and yield increased by seven 6%, including fuel surcharge.

Douglas L. Col: Fuel surcharge revenue increased slightly by <unk>, 8% and was 15, 7% of total revenue compared to 17, 8% a year ago.

Douglas L. Col: Revenue per shipment ex fuel surcharge increased one 4% to $293 96.

Douglas L. Col: Third to $289 87 in the first quarter of 2023.

Douglas L. Col: Tonnage increased six 2% attributable to a 15, 7% shipment increase partially offset by an eight 2% decrease in our average weight per shipment or length of haul decreased 4% to 888 miles.

Douglas L. Col: Shift into the expense side for a few key items of note in the quarter. Salaries, wages, and benefits increased 14.3% from a combination of our employee headcount growth of over 15% year-over-year in response to overall increased volumes during the quarter and also as a result of our July 2023 wage increase, which averaged approximately 4.1%. Purchase transportation expense increased by 12.4% compared to the first quarter of last year and was 7% of total revenue compared to 7.1% in the first quarter of 2023.

Speaker Change: Shifting to the expense side for a few key items of note in the quarter Sam.

Sam: Salaries wages and benefits increased 14, 3% from a combination of our employee head count growth of over 15% year over year in response to an overall increase volumes during the quarter and also the result of our July 2023 wage increase which averaged approximately 4%.

Purchase transportation expense increased by 12, 4% compared to the first quarter last year and was 7% of total revenue compared to seven 1% in the first quarter of 2023 truck and rail PT miles combined were 11, 4% of our total line haul miles in the quarter.

Douglas L. Col: Truck and rail PT miles combined were 11.4% of our total line haul miles in the quarter. Fuel expense increased by 3.7% in the quarter, while company line haul miles increased 10.6% year-over-year as a result of increased shipments and decreased cost of diesel fuel compared to the prior year. Claims and insurance expense increased 24.2% year-over-year and was down 8% or $1.5 million sequentially from the fourth quarter of 2023. The increase compared to the first quarter of 2023 was primarily due to increased activity and a small increase in premiums. The depreciation expense of $48.8 million in the quarter was 13.9% higher year-over-year, primarily due to ongoing investments in revenue, equipment, real estate, and technology.

Sam: Fuel expense increased by three 7% in the quarter, while company line haul miles increased 10, 6% year over year as a result of increased shipments and decreased cost of diesel fuel compared to the prior year.

Sam: Claims and insurance expense increased 24, 2% year over year and was down 8% or $1 5 million sequentially from the fourth quarter of 2023.

Sam: The increase compared to the first quarter of 2023 was primarily due to increased activity and a small increase in premiums.

Sam: Depreciation expense of $48 8 million in the quarter was 13, 9% higher year over year, primarily due to ongoing investments in revenue equipment real estate and technology.

Douglas L. Col: Total operating expenses increased by 13.4% in the quarter, and with the year-over-year revenue increase of 14.3%, our operating ratio improved to 84.4% compared to 85% a year ago. Our tax rate for the first quarter was 23.7% compared to 23.2% in the first quarter last year, and our diluted earnings per share were $3.38 compared to $2.85 in the first quarter of last year. I'll turn the call back over to Fritz for some closing comments.

Sam: Total operating expenses increased by 13, 4% in the quarter and with the year over year revenue increase of 14, 3%, our operating ratio improved to 84, 4% compared to 85% a year ago.

Sam: Our tax rate in the first quarter was 23, 7% compared to 23, 2% in the first quarter last year and our diluted earnings per share were $3 38, compared to $2 80 885 in the first quarter a year ago I will turn the call back over to Fritz for some closing comments. Thanks, Doug our customer first focus continues to deliver.

Douglas L. Col: Thanks, Doug. Our customer-first focus continues to deliver tangible results across our organization. In January, we're excited to close on what we view as the generational opportunity for our company to build our real estate pipeline, and it has developed an opening plan that spans 2024 and 2025. As we stated from the outset of our geographic expansion initiatives in 2017, it is absolutely imperative that we improve while replicating service as we execute this plan.

Frederick J. Holzgrefe: Tangible results across our organization in January were excited to close on what we view as the generational opportunity for our company to build our real estate pipeline and have developed an opening plan that spans 2024 and 2025 as we stated from the outset of our geographic expansion initiatives initiatives in 2017. It is.

Frederick J. Holzgrefe: Absolutely imperative that we improve well, while replicating service as we execute this plan.

Douglas L. Col: As we continue to invest in our network and expand our footprint to better serve our customers, we anticipate capital expenditures for 2024 to be approximately $1 billion. As noted in Doug's comments, we're seeing the impact of depreciation related to this increased capital expenditure over the past couple of years.

Frederick J. Holzgrefe: As we continue to invest in our network and expand our footprint to better serve our customers. We anticipate capital expenditures for 2024 to be approximately $1 billion.

Frederick J. Holzgrefe: As noted in Doug's comments, we are seeing the impact of depreciation related to this increased capital expenditure over the past couple of years. These investments will continue throughout the year as we approach a record amount of investment for the company, which we believe will create value for both our shareholders and our customers over the long term as we continue our expand.

Frederick J. Holzgrefe: These investments will continue throughout the year as we approach a record amount of investment for the company, which we believe will create value for both our shareholders and our customers over the long term. As we continue our expansion plans, we remain focused on measuring our performance for customers. The MassGeo ratings clearly highlight our improved service profile, and our internal service metrics have never been better, yet we continue to emphasize a customer-first focus with a priority on achieving even higher levels of service.

Frederick J. Holzgrefe: And plans, we remain focused on measuring our performance for customers. The Mascio Radian ratings clearly highlight our improved service profile and our internal service metrics have never been better yet we continue to emphasize a customer first focus with a priority on achieving even higher levels of service with a focus on our customers in advance of relocating our.

Frederick J. Holzgrefe: With a focus on our customers in advance of relocating our Laredo facility, we executed a new cross-border agreement with a leading Mexican LTL carrier, Fletez, which will allow us to expand our service both north and southbound. Although we did not see the seasonal pickup that we expected, Q1 was nonetheless a record quarter for Saia. The organization delivered a 14.3% increase in revenue to $754.8 million.

Frederick J. Holzgrefe: Radar facility, we executed a new cross border agreement with a leading Mexican <unk> carrier flipped as which will allow us to expand our service both north and southbound although we do not see the seasonal pickup that we expected Q1 was nonetheless, a record quarter for <unk>. The organization delivered a 14, 3% increase in.

Frederick J. Holzgrefe: Revenue to $754 8 million, while we've made significant investments in the business and in advance of several openings. We still delivered an 18, 9% increase in operating income to $117 9 million as always we remain intently focused on the long term opportunity to answer enhance our service offering and covered.

Frederick J. Holzgrefe: While we made significant investments in the business and in advance of several openings, we still delivered an 18.9% increase in operating income to $117.9 million. As always, we remain intently focused on the long-term opportunity to enhance our service offering and coverage for our customers. While delivering significant value to our shareholders, our results included relocating four facilities in Q1. More significantly, we've already opened four new facilities in April alone and will plan to open two and relocate an additional facility before the end of the quarter. We proudly look to our 100-year history as a foundation for our success.

For our customers, while delivering significant value to our shareholders. Our results include relocating four facilities in Q1 more significantly we have already opened four new facilities in April alone and we'll plan to open two and relocated an additional facility before the end of the quarter.

Frederick J. Holzgrefe: We probably look to our 100 year history as a foundation for our success. However, as we continue to build a talented and engaged workforce. We are proving that we are not stagnant, but are instead continuing to build a best in class organization rooted in this 100 year history that can meet and exceed customer expectations as always we remain.

Frederick J. Holzgrefe: However, as we continue to build a talented and engaged workforce, we're proving that we are not stagnant but are instead continuing to build a best-in-class organization rooted in this 100-year history that can meet and exceed customer expectations. As always, we remain flexible with the timing of openings and want to be mindful of the natural cyclicality of our business. After Q2, we expect to open as many as 15 additional new locations this year, the majority of these in Q3, covering additional Great Plains locations. We maintain flexibility in these openings as it's critically important that we replicate our service. We may find it necessary to delay or pause openings, whether due to staffing challenges or other uncertainties.

Frederick J. Holzgrefe: And flexible with the timing of openings want to be mindful of the natural cyclicality of our business. After Q2, we expect to open as many as 15 additional new locations. This year with the majority of these in Q3 covering additional great plains locations. We maintained flexibility of these openings is critically important that we replicate our service we.

Frederick J. Holzgrefe: May find it necessary to delay or pause openings, whether due to staffing challenges or other uncertainties. At this stage. We are excited on the core competency of opening terminals organically that we have developed over the past seven years and will continue to follow that blueprint going forward, establishing a great culture at a terminal is a critical step.

Frederick J. Holzgrefe: At this stage, we are excited about the core competency of opening terminals organically that we have developed over the past seven years and will continue to follow that blueprint going forward. Establishing a great culture in a terminal is a critical step in making sure that it is successful over the long term, and we strive to get that right from day one with all new openings. So as we move forward through 2024, we continue to see macro uncertainty. But at the same time, we continue to see widespread customer acceptance of Saia's now national network.

Frederick J. Holzgrefe: And making sure that terminal is successful over the long term and we strive to get that right from day, one with all new openings. So as we move forward through 2024, we continue to see macro uncertainty at the same time, we can continue to see widespread customer acceptance of size now national network I should highlight that this.

Frederick J. Holzgrefe: I should highlight that this is a national network that will be poised to scale as customers seek to grow with a trusted partner as the macro environment becomes more certain. As a result, we are confident in our ability to continue to execute on our plans to position Saia for long-term success. Before we open the line for questions, I would like to highlight this morning's other Saia press release. Our CFO, Doug Cole, has decided it's time to pursue his next chapter and will be retiring from Saia.

As a national network that will be poised to scale as customers seek to grow the trusted partner as the macro environment becomes more certain as a result, we're confident in our ability to continue to execute on our plans will position <unk> for long term success.

Speaker Change: Before we open the line for questions I would like to highlight this morning's other sire press release, our CFO, Doug coal has decided this time to pursue his next chapter and will be retiring from side as many of you well know Doug has been in and around the transportation space in a variety of roles, but most significantly with <unk> over the past.

Frederick J. Holzgrefe: As many of you know, Doug has been in and around the transportation space in a variety of roles, but most significantly with Saia over the past decade. He has been a big help in setting up our strategic course and communicating with you on Saia's progress. For those of us that have been fortunate enough to work with Doug on a daily basis, we will miss his wisdom and wit.

Speaker Change: Decade, Doug has been a big help with setting up our strategic course, and communicating with you on <unk> progress for those of us that have been fortunate enough to work with Doug on a daily basis, we will miss his wisdom and wit.

Speaker Change: I am personally quite grateful for the opportunity to work with them in.

Speaker Change: And time will named Doug successor, but Doug has built and developed a great team at <unk> and will be with us through the year end to help facilitate any transition with that said we are now open and ready to open the line for questions operator.

Operator: I am personally quite grateful for the opportunity to work with him. In time, we'll name Doug's successor, but Doug has built and developed a great team at Saia and will be with us through the year and will help facilitate any transition. With that said, we're now ready to open the line for questions, Operator. Thank you. If you would like to ask a question, please press star followed by the number one on your telephone keypad. To withdraw any questions, please press star one again. Our first question will come from Scott Group from Wolf Research. Please go ahead.

Speaker Change: Thank you if you would like to ask a question. Please press star followed by the number one on your telephone keypad.

Speaker Change: Any questions. Please press star one again.

Speaker Change: Our first question will come from Scott Group from Wolfe Research. Please go ahead. Your line is open.

Scott H. Group: Hey, Thanks, good morning, and congrats to Doug on a great career.

Scott H. Group: Maybe well maybe let's just start on the monthly tonnage trends in April update and Doug maybe it's helpful.

Scott H. Group: Given given the Q1 revenue maybe it's helpful to give some some revenue thoughts around Q2.

Scott H. Group: Your line is open. Hey, thanks. Good morning and congrats to you, Doug, on a great career. Maybe, just given the Q1 revenue, maybe it's helpful to give some revenue thoughts around Q2, and I know you always give some OR thoughts as well. So maybe just get that out of the way. Okay, buddy.

Scott H. Group: I know you always get some our thoughts as well so maybe just get that out of the way.

Doug: Okay. Thanks.

For the comments to Scott.

Doug: So yes March I think we quoted the March shipments up 16, 8%.

Speaker Change: And tonnage was up five 2%.

Speaker Change: For the months and still reflect in that weight per shipment decline we've been experiencing for the last several months.

Douglas L. Col: Thanks for the comments too, Scott. So yeah, March, I think we quoted March shipments up 16.8%, and tonnage was up 5.2% for the month, so still reflecting that weight per shipment decline we've been experiencing for the last several months. You know, April so far, we've got a few days left here, but April's running up about 17% in terms of per workday shipment growth, which is benefiting a little bit from a Good Friday comparison. Good Friday was in April a year ago, and it's not in April this year either.

Speaker Change: April so far we've got a few days left here, but but April is running up about 17%.

Speaker Change: In terms of per workday shipment growth.

Speaker Change: That's benefiting a little bit from there.

Speaker Change: Good Friday comparison, good Friday was in April a year ago, and it's not in April this year. So that's given that 17% a little bit of a pick up probably a percent or center to our benefit because it's an easy comp there.

Speaker Change: Tonnage per day, so far in April is running about six 5% up.

Speaker Change: Same thing a little bit of a benefit because it's an easy comparison with good Friday night in April this year. So it would be the same thing them a percent and a half or two probably benefit to that tonnage because we don't have that good Friday to deal with this April.

Douglas L. Col: So, you know, that's given that 17%, a little bit of a pickup. It's probably a percent, percent or two of benefit because it's an easy comp there. Tonnage per day so far in April is running about six and a half percent higher. Same thing, a little bit of a benefit because it's an easy comparison with Good Friday not in April this year. So it would be the same thing, a percent and a half or two probably benefit to that tonnage because we don't have that Good Friday to deal with this April. You know, I think, from what we've seen so far in But I, you know, we're not gonna, that doesn't make a quarter as we saw in Q1.

Speaker Change: I think.

From what we've seen so far in April and in the last few days make us feel a little bit better.

Speaker Change: We're not that doesn't make a quarter as we saw in Q1 so.

Speaker Change: <unk>.

Speaker Change: We feel a little bit better about what we're seeing lately, but I don't we're not going to say, it's a longer term trend.

Speaker Change: But based on that I'd say moving from Q1 to Q2.

Speaker Change: We got kind of mid single digit revenue growth.

Speaker Change: I think that would make sense to us.

Speaker Change: Historically, we usually get better quite a bit better in Q2, and an operating ratio from an operating ratio standpoint, 250 to 300 is probably our history.

Speaker Change: You take out the Covid years.

Douglas L. Col: So, you know, we feel a little bit better about what we're seeing lately. But I don't, we're not going to say it's a longer-term trend, you know, but based on that, I'd say moving from Q1 to Q2, you know, if we got kind of mid-single-digit revenue growth, you know, I think that would make sense to us and, you know, historically, we usually get better, quite a bit better in Q2 on an operating ratio. From an No, but that's probably not going to be achievable this year, though.

Speaker Change: No.

Speaker Change: That's not going to probably be giftable this year, though.

Speaker Change: As Fritz mentioned a lot of activity so far in preparation of openings and relocations that have already occurred more openings to come so youre going to see that some of that cost coming in advance of the revenue.

Speaker Change: Already saw in Q1.

Speaker Change: Youll, probably have a depreciation step up from Q1 to Q2 of another $5 million or so and maybe maybe in the following quarter. You did another large step out before that starts to flatline. So we've got depreciation will you do some of the hiring before you open a terminal things like that so for us this year, if we could improve.

Speaker Change: <unk> 150 to 200 basis points, maybe with mid single digit revenue growth I think I think we'd consider that.

Douglas L. Col: It's, you know, as Fritz mentioned, a lot of activity so far in preparation for openings, some relocations that have already occurred, more openings to come, so you're going to see some of that cost coming in advance of revenue, like you already saw in Q1. You know, you'll probably have a depreciation step up from Q1 to Q2 of another 5 million or so, and maybe in the following quarter, you'll get another little step out before that starts to flatten.

Speaker Change: Progress in and if you did that if you just pencil that in.

Speaker Change: The year over year comparisons probably end up looking pretty good again, if we can hit that you'd still be talking about.

Speaker Change: Something with a teen name on it for revenue growth as we did that year over year.

Speaker Change: Operating income up a little better than that if we hit those goals.

Speaker Change: And we're doing that in this environment.

Speaker Change: I think we knew it was going to be a growth year lot of activity lot of amount of people, but I'm real pleased with how we manage costs over the last few months I mean, we geared up for bigger volumes and margin when they didn't come through when they didn't come through.

Douglas L. Col: So, you know, we've got depreciation, you do some of the hiring before you open a terminal, things like that. So, for us this year, if we could improve by 150 to 200 basis points, maybe, with mid single-digit revenue growth, I think we'd consider that, you know, progress. And if you do that, if you just pencil that in, the year over year comparisons probably end up looking pretty good again if we can hit that.

Speaker Change: You're staffed up for hiring drivers in advance of your seasonal expectations Youre hiring dock workers.

Speaker Change: As the volumes didn't come through in March we did a good job on the cost side blown PTO and things like that things that could controls.

Speaker Change: It's.

Speaker Change: It's good to draw it up in a spreadsheet, but to manage the business. The variables are changing every day, so I've been pleased but thats, our Q2 outlook.

Douglas L. Col: I mean, you'd still be talking about something with a team name on it for revenue growth if we did that year over year and, you know, operating income up a little better than that if we hit those goals. So, I mean, you know, to be doing that in this environment, you know. I think we knew it was going to be a growth year, a lot of activity, a lot of people, but I'm really pleased with how we've managed costs over the last few months. I mean, we geared up for bigger volumes in March, but they didn't come through.

Speaker Change: And I would still I mean, we don't give we don't give any.

Speaker Change: We won't get into Q3 or Q4, yet, but when we look at the numbers and what we just put out in Q1, we still think 100 to 150 basis points improvement as well this year and we'll see what the macro deals with us.

Speaker Change: Things could get worse from here or something but.

Speaker Change: We did in Q1 did knock us off a path to improve the or this year. So.

Speaker Change: That's our view today.

Speaker Change: Yes.

Speaker Change: The 150 to 200.

Douglas L. Col: When they didn't come through, you know, you're staffed up for it. You're hiring drivers in advance of your seasonal expectations. You're hiring dock workers. And, you know, I mean, as the volumes didn't come through in March, we did a good job on the cost side. You know, pulling PT out, things like that, things we could control. So, you know, it's. It's good to draw it up in a spreadsheet, but to manage a business, the variables are changing every day.

Speaker Change: Sequential margin improvement correct Q1 to Q2.

It looks possible again, I've got that depreciation step up staring in the face.

Speaker Change: Make these investments and put people in place and train them.

Speaker Change: We don't open them until we're ready to go so that's always fluid, but we're real pleased these first.

Speaker Change: These first six openings this year.

Douglas L. Col: So, I've been pleased, but that's our Q2 outlook. And I'd still say, I mean, we don't give up, we don't give in, you know, we won't get into Q3 or Q4 yet, but when we look at the numbers and what we just put up in Q1, we still think 100 to 150 basis points improvement is achievable this year, and we'll see what the macro deals us. I mean, things could get worse from here or something, but, you know, we didn't, Q1 didn't knock us off a path to improve the OR this year.

Speaker Change: We're really pleased that five of those are going to be staffed with sigh of people and we transfer that culture out there and focus on the employ in our non union or nonunion employees and our customer we want all of that stuff to be consistent. So we're real pleased we're gonna be able open most of them the <unk> people.

Speaker Change: And spread that customer focus and employee message into the new new terminal. So it's going well, it's just the kind of shaky macros still on the freight side.

Speaker Change: And then maybe just lastly, Fred maybe just talk about pricing I don't know if you gave the renewals number may be sure that and just overall what you are.

Douglas L. Col: That's our view today. The 150 to 200, that's sequential margin improvement, correct? Q1 to Q2, that's what, you know, looks possible. Again, I got that depreciation step up staring me in the face. And, you know, we make these investments and put people in place and train them. And, you know, we don't open them until we're ready to go.

Fred: Pricing getting harder or not.

Speaker Change: And Elisa.

Speaker Change: Say ongoing.

Fred: The pricing environment is something we're intently focused on our contractual noodles in the.

Fred: Quarter were nine 2%.

Fred: Which we're pleased with that number but we're not satisfied with that number meaning that we've got.

Fred: The service levels, we're providing deserve to be compensated.

Douglas L. Col: So, you know, that's always fluid, but we're really pleased. These first, these first six openings this year, we're really pleased that five of those are going to be staffed with Saia people. And we transfer that culture up there and focus on the employee and our non-union employees, I mean, our non-union employees and our customer. We want all that stuff to be consistent.

Fred: So that is ongoing focus as we.

Fred: C.

Fred: Opportunities or issues with the mix of business that we have we continue very conscious of that and pursue that we haven't certainly customers don't like a rate increase but I think youre in a lot stronger position to get the rate increase when you are in a position to point to the service levels of the customers are getting in an expanding network.

Douglas L. Col: So we're really pleased we're going to be able to open most of them with Saia people and spread that customer focus and employee message into the new terminals. So it's going well. It's just a kind of shaky macro still on the freight side.

Speaker Change: Alright. Thank you guys for the time appreciate it.

Speaker Change: Thanks Scott.

Speaker Change: Our next question comes from Amit Mehrotra from Deutsche Bank. Please go ahead. Your line is open.

Frederick J. Holzgrefe: And then maybe just lastly, Fritz, maybe just talk about pricing. I don't know if you gave the renewals number, maybe share that and just, you know, overall, is pricing getting harder or not? Listen, that's an ongoing pricing environment. That's something we're intently focused on. Our contractual annuals in the quarter were 9.2 percent, and we're pleased with that number.

Amit Singh Mehrotra: Thanks, Good morning, Doug Congrats it's been a remarkable career. So I wish you the best in whatever you're going to do down the road.

Amit Singh Mehrotra: I wanted to ask maybe a couple of quick questions. The first one you guys opened up a couple of important facilities recently.

Amit Singh Mehrotra: Garland and Trenton, I know Theres, a couple of other more but those are the kind of I think probably more important there are bigger ones.

Frederick J. Holzgrefe: But, you know, we're not satisfied with that number, meaning that, you know, we have got, we, the service levels that we're providing deserve to be compensated. And so that is an ongoing focus as we see opportunities or issues with the mix of business that we have. We continue, we're very conscious of that, and we pursue that. We haven't, you know, certainly customers don't like a rate increase, but I think you're in a much stronger position to get the rate increase when you're in a position to point to the service levels that customers are getting and an expanding network. Alright, thank you guys for the time. I appreciate it.

Amit Singh Mehrotra: First can you just how have those gone I mean, when you opened up the one in Buford middle of last year.

Amit Singh Mehrotra: That obviously had very very quick positive impact can you just talk about what youre seeing from those two terminals in terms of barrels per day, or however, you want to talk about what benefits, they're giving you on the network.

Speaker Change: Yes, thanks submit.

Speaker Change: You've highlighted two important ones and we've got some more import facilities were opening this quarter as well.

Speaker Change: Trenton.

Trenton: It's early but it is certainly making a positive impact for us.

Operator: Thanks, Scott. Our next question comes from Amit Mehrotra from Deutsche Bank. Please go ahead, your line is open.

Trenton: Particularly on the service side.

Trenton: We were trying to service that market from Newark, and Philadelphia, both so that was expensive and we werent, whereas responsive for our customers wed like to be so early indications out of the gate thats going to be a great investment for us. So we're really pleased and it's important to note I mean, I know, there's sometimes it comes up but.

Amit Singh Mehrotra: Thanks, morning. Doug, congrats. It's been a remarkable career.

Amit Singh Mehrotra: So I wish you the best in whatever you're going to do down the road. I wanted to ask maybe a couple quick questions. So the first one, you guys opened up a couple important facilities recently, Garland and Trenton. I know there's a couple other more, but those are kind of, probably more important or bigger ones. Fritz, can you just tell me how those have gone?

Trenton: That's being led by our site experience sire terminal manager from the start so we when we moved into that terminal we were ready to go with replicating Si culture and <unk> service. So that's really excited early early results would indicate that.

Frederick J. Holzgrefe: I mean, when you opened up the one in Buford in the middle of last year, that obviously had a very, very quick positive impact. Can you just talk about what you're seeing from those two terminals in terms of bills per day or whatever you want to talk about, you know, what benefits they're giving you on the network? Yeah, thanks, Amit.

Trenton: As well the second big facility that we opened was in the Dallas Metroplex, which is arguably <unk> strongest market.

Frederick J. Holzgrefe: Yeah, you've highlighted two important ones. And we've got some more important facilities we're opening this quarter as well. Trenton, it's early, but it's certainly making a positive impact for us, particularly on the service side. We were trying to service that market from Newark and Philadelphia both, so that was expensive, and we weren't able to be as responsive to our customers as we'd like to be. So early indications out of the gate are that it's going to be a great investment for us, so we're really pleased. And it's important to note, I mean, I know sometimes it comes up, but, you know, that's being led by an experienced Saia terminal manager from the start.

Trenton: We opened a facility there that also staffed by longtime <unk> experienced people. So they know exactly what it means to provide sized service. So we're thrilled with the early results need to let it develop before I can give you any better I mean, we're only a couple of weeks into this but customer acceptance, particularly.

Trenton: The girl of facilities because of its proximity to some important accounts for us has been great to see.

Trenton: You are easy to do business with and you do it well and they are talking to somebody that they've historically worked with.

Trenton: That's a great great opportunity for us so we're thrilled with both of those investments.

Frederick J. Holzgrefe: So when we moved into that terminal, we were ready to go with replicating Saia culture and Saia service, so that's really exciting. Early results would indicate that as well. The second big facility that we opened was in the Dallas Metroplex, which is arguably Saia's strongest market. We opened a facility there that was also staffed by longtime Saia employees, so they know exactly what it means to provide Saia service. So we're thrilled with the early results. But I need to let it develop before I give you any better.

Speaker Change: Okay and then just for my follow up question I wanted to double click on the pricing discussions and really focusing on revenue per shipment ex fuel.

Speaker Change: Because the story has been over the last six seven months.

Speaker Change: That that there is a big pricing opportunity and.

Speaker Change: And obviously, you're going to lean into the service and sell the service.

Speaker Change: But when I look at revenue per shipment ex fuel that was actually down sequentially versus the fourth quarter, which is somewhat surprising, but then profit per shipment was up nicely as well. So it doesn't feel like there is a a.

Amit Singh Mehrotra: I mean, we're only a couple weeks into this, but customer acceptance, particularly at the Garland facilities, because of its proximity to some important accounts for us, has been great to see. You know, you're easy to do business with and you do it well, and they're talking to somebody that they've historically worked with; that's a great, great opportunity for us. So we're thrilled with both of those investments. Okay, and then just for my follow-up question, I wanted to double-click on, you know, the pricing discussions and really focus in on revenue per shipment x fuel.

Speaker Change: Negative read on pricing when I look at kind of whats underneath the surface, but can you just help us because they are.

Speaker Change: Understand what's happening on revenue per bill ex fuel in and give us a little bit of comfort that the strategy around leaning into price is actually working.

Speaker Change: Despite this key metric thats moving in the wrong direction.

Amit Singh Mehrotra: Because, you know, the story has been for the last, you know, six, seven months that there's a big pricing opportunity. And obviously, you're going to lean into the service and sell the service. But when I look at revenue per shipment x fuel, that was actually down sequentially versus the fourth quarter, which is somewhat surprising. But then profit per shipment was up, you know, nicely as well. So it doesn't feel like there's a negative read on pricing when I look at kind of what's underneath the surface.

Speaker Change: Yes.

Speaker Change: Probably tag team this one.

Speaker Change: Revenue per shipment despite the lighter weight still up year over year, the sequential trend I mean, I think it's primarily explained by mix.

The direction matters of freight can weigh the same per pallet and the length of haul can be the same but.

Some of our national account customers are really sophisticated and they optimize the use of the carriers and their and their rolodex.

Speaker Change: Shipment from Atlanta, Miami is one right in the same shipment Miami back to Atlanta can be a different rate, but you highlighted if I'm getting some economies on the cost side. So when I go to pick up with one of these larger accounts instead of getting two or three bills I'm getting five or six.

Douglas L. Col: But can you just help us understand what's happening on revenue per bill x fuel and give us, you know, a little bit of comfort that, you know, the strategy around leaning into price is actually working, despite this key metric that's moving in the wrong direction? Yeah, first of all, I'll probably tag team this one.

Speaker Change: Or maybe you know that I've got more trailers and my fleet. If I can leave a national account customer trailer for the day and they give me 10 shipments I get really good cost economies. There. So revenue per shipment was down sequentially Q4 to Q1, but cost per ship wound down more so my margin picked up so we're managing through it I mean, we're not going to sit on our hands.

Douglas L. Col: Revenue per shipment, despite the lighter weight, is still up year over year. The sequential trend, I mean, I think it's primarily explained by mix. You know, the direction matters, the freight can weigh the same per pallet, and the length of haul can be the same, but, you know, some of our national account customers are really sophisticated, and they optimize the use of the carriers in their Rolodex. And, you know, a shipment from Atlanta to Miami is one rate, and the same shipment, from Miami back to Atlanta, can be a different rate, but you highlighted that.

Speaker Change: Just like you saw in Q4, we pulled a lot of discussions forward and we will do that again this quarter and just because we talked in the fourth quarter. If we're looking at that business will be and optimize it and it's not working for US we'll go back and try to get some more rate but.

Speaker Change: I said on the last call I thought that.

Speaker Change: With the capacity has come out of our industry and with the focus on profitability.

Speaker Change: Top to bottom across our industry, we're really seeing it from our major competitors.

Speaker Change: I think everyone in RV used to hold the line on pricing, but if you give us a stronger macro backdrop I still say on watching this stuff a long time.

Douglas L. Col: If I'm getting some economies on the cost side, so when I go to pick up with one of these larger accounts, instead of getting two or three bills, I'm getting five or six, or maybe now that I've got more trailers in my fleet, if I can leave the national account customer a trailer for the day, and they give me 10 shipments, I get really good, you know, cost economies there, so revenue per shipment was down sequentially, Q4 to Q1, but cost per shipment was down more, so my margin picked up, so we're managing through it, I mean, we're not going to sit on our hands, and just like you saw in Q4, we pulled a lot of discussions forward, and we'll do that again this quarter, and just because we talked in the fourth quarter, if we're looking at that business, and we're being optimized, and it's not working for us, we'll go back and try to get some more rate, but, you know, I said on the last call, I thought, you know, with the capacity that's come out of our industry, and with the focus on profitability, you know, top to bottom across our industry, we're really seeing it from our major competitors, I think, you know, everyone in our view is still holding the line on pricing, but if you give us a stronger macro backdrop, I still say, and I've been watching this stuff a long time, you know, you're going to see another leg up in this pricing, it's not getting any cheaper to do what all of us do, so, you know, ask our truckload friends, I mean, it's hard to go get price sometimes, and when the freight picks up, you know, we'll all go get some more price. And I think I would add to that, Amit, a couple of points.

Speaker Change: Youre going to see another leg up in this pricing is not getting any cheaper to do it all of us to do so.

Speaker Change: Ask our truckload trends I mean, it's hard to go get price, sometimes and when the freight picks up.

Speaker Change: I'll go get some get some more price glyn.

Speaker Change: I think I would add to that.

Speaker Change: Couple of points I mean, if you go back to when the disruption really started last summer we talked a lot about how we would see.

Speaker Change: Kind of that mix of freight bounce around a little bit.

Speaker Change: Competitor to competitor as that got absorbed by the industry I think youre seeing a little bit of that.

Speaker Change: I see Youre also seeing an intense focus by us to continue to deliver on service and pricing at the same time, so that services and inexpensive to deliver so we make sure. We go after that but I would point out that there is a nuance here that hopefully doesn't get lost as <unk> develops that sort of network maturity we start.

Speaker Change: Getting into some of the scale and cost leverage debt.

Speaker Change: You saw from Q4 to Q1, you noted the cost per shipment changes.

Speaker Change: With that I would.

Speaker Change: Unique to our sort of situation as we develop the maturity in our business, we have an opportunity to.

Speaker Change: Buildout route density build density around the line haul network.

Speaker Change: And it's some pretty good execution underneath that in a turbulent environment. So.

Speaker Change: Those are important value creators over time.

Speaker Change: Okay very helpful. Thank you guys appreciate it.

Speaker Change: Thanks, Matt.

Speaker Change: Our next question comes from Bruce Chan from Stifel. Please go ahead. Your line is open.

Douglas L. Col: I mean, if you go back to when the disruption really started last summer, we talked a lot about how we would see, You know, kind of that mix of freight bounce around a little bit from competitor to competitor as that got absorbed by the industry. I think you're seeing a little bit of that. You're also seeing an intense focus by us to continue to deliver on service and pricing at the same time so that service isn't inexpensive to deliver.

Jizong Chan: Hey, Good morning. This is Matt My Alaska entrepreneurs, we would echo congratulations to Doug as well.

Jizong Chan: Curious to get your thoughts on the overall competitive environment within the <unk> industry.

Jizong Chan: Thats evolving early this year.

Jizong Chan: Yes.

Jizong Chan: I don't think were seeing any any change we're not really seeing it in competitors' results, who have put up numbers so far.

Jizong Chan: A lot of <unk>.

Jizong Chan: A lot of consolidation item in there is a lot of capacity that's on the sidelines because there hasnt been an interest in it since the yellow auction and Theres a lot of capacity that has been acquired.

Frederick J. Holzgrefe: So we make sure we go after that. But I would point out there's a nuance here that hopefully doesn't get lost. As Saia develops that sort of network maturity, we start getting some of the scale and cost leverage that you saw from Q4 to Q1. You noted the cost per shipment changes. You know, that's unique to our sort of situation as we develop the maturity of our business. We have an opportunity to, you know, build that route density, build density around the line haul network. And there's some pretty good execution underneath that in a turbulent environment. So, you know, those are important value creators over time. Okay, very helpful, thank you guys, I appreciate it. Thanks, man.

Jizong Chan: Mothball until till people are ready to open terminal so.

Jizong Chan: I don't think were seeing any change other than like <unk> said I mean.

Jizong Chan: Right now in freight trends are softer the shippers got options right. So.

Jizong Chan: <unk>.

Jizong Chan: They are not as stressed because their need is and is great, but if demand picks up seasonally or the macro tailwind develops. We'll then it becomes a little tighter and then they want to commitments and they werent really high service standards. So.

Jizong Chan: Until we get a little bit of that I think <unk> said continue to see people try and this carrier for a while so <unk> try this carrier.

Jizong Chan: I think that's probably going on but I don't think theres competitive actions on going on out there that are negative.

Jizong Chan: Yes.

Speaker Change: Okay fair enough. Thanks for that and secondly, how are you thinking about shipment growth in the back half of this year really as you start to anniversary some of the loss share gains.

Operator: Our next question comes from Bruce Chan from Stiefel. Please go ahead, your line is open. Hey, good morning. This is Matt Mylasko for Bruce.

Speaker Change: Well I mean look the.

Speaker Change: The comps are going to step up and start to get difficult for all of us in July, especially in August and then after that but.

Jizong Chan: We'd echo congratulations to Doug as well. I'm curious to get your thoughts on the overall competitive environment within the LTL industry and sort of how you think that's evolving early this year. Yeah, I mean, I don't think we're seeing any change. We're not really seeing it in the results of competitors who have put up numbers so far. You know, a lot of consolidation, right? I mean, there's a lot of capacity that's on the sidelines because there hasn't been an interest in it since the yellow auction.

Speaker Change: <unk> got that idiosyncratic growth from these new terminal openings in the world.

Speaker Change: Putting up terminals in markets, we haven't been before and folks like our service and they've used us in other parts of the country and I hear about the new service options and that'll be a little bit of a tailwind for us but in terms of forecasting our back half and what the macro is going to look like.

Speaker Change: Going to take our shot at that others have tried.

Speaker Change: And we're not ready to call the turnaround in like that.

I mean, we have showed I mean, as Doug pointed out and we're not in a spot where we can really point to what we think the number would be but I think we've shown that we know how to execute on an opening deliver the service and we're going to get growth out of.

Douglas L. Col: And there's a lot of capacity that, you know, has been acquired that's kind of mothballed until people are ready to open terminals. So, you know, I don't think we're seeing any change other than as Fred said. I mean, you know, right now when freight trends are softer, shippers have options, right? So, you know, if they're not as stressed because their need isn't as great.

Speaker Change: Out of these new facilities are the question is what the sort of legacy might or might look like or what those opportunities might be I mean, we saw it.

Speaker Change: It was not what we thought it was going to be in the first quarter, but at the same time, we we've delivered some pretty pretty solid results in light in light of that kind of core execution. Despite the challenges are in the marketplace.

Douglas L. Col: But if demand picks up seasonally or the macro tailwind develops, well, then it becomes a little tighter. And then they want commitments, and they want really high service standards. So, until we get a little bit of that, I think you're going to, like Fred said, continue to see people try this carrier for a while. See if it works, try this carrier.

Speaker Change: Feel pretty good about the rest of the year at our core execution of what we'd like to potentially do.

Speaker Change: Thanks.

Speaker Change: Our next question comes from Tom Waterworks from UBS. Please go ahead. Your line is open.

Thomas Richard Wadewitz: Yes, good morning and.

Thomas Richard Wadewitz: Doug Congratulations to you as well you've been obviously one of the key meters and a great growth story with <unk> over the years. So congratulations to you.

Douglas L. Col: And I think that's probably going on. But I don't think there are competitive actions going on out there that are bad. Fair enough. Thanks for that.

Thomas Richard Wadewitz: Let's see.

Jizong Chan: And secondly, how are you thinking about shipment growth in the back half of this year, really, as you start to anniversary some of the yellow share game? Well, I mean, look, I mean, the comps are going to step up and start to get difficult for all of us in July, especially in August, and then after that, but, you know, Saia's got that idiosyncratic growth from these new terminal openings. I mean, we're putting up terminals in markets we haven't been before, and folks like our service, and they've used us in other parts of the country, and they hear about the new service options, and that'll be a little bit of a tailwind for us, but in terms of forecasting the back half and what the macro is going to look like, you know, we're not going to take our shot at that.

Thomas Richard Wadewitz: I wanted to I guess get your thoughts on how you think about the pace of that capacity opening.

Thomas Richard Wadewitz: It sounds like a lot of it is kind of already setup with people how much.

Thomas Richard Wadewitz: How much of that would you if you have a flat freight market, which seems to be what youre seeing in maybe a little less than normal seasonality.

Thomas Richard Wadewitz: You ease up on some of that that might be in second half.

Thomas Richard Wadewitz: And does that affect what the margin outlook is or is it just kind of like.

Thomas Richard Wadewitz: Maybe I'll open it but your staff it with fewer people how do we think about that dynamic and pace of openings and also kind of how the margin wood.

Thomas Richard Wadewitz: Would be affected if you do ease up on the pace of openings looking out of way is obviously not second quarter.

Thomas Richard Wadewitz: I mean, we have shown, as Doug pointed out, and we're not in a spot where we can really point to what we think the number would be, but I think we've shown that we know how to execute on an opening, deliver the service, and we're going to get growth out of these new facilities. And the question is what that sort of legacy might look like or what those opportunities might be.

Speaker Change: Yes, Thanks, Tom I think the key thing for all of these openings.

Speaker Change: Was never an intent for Scioto opened these as it to impact 2024, this quarter or next quarter. We view these as long term investments.

Speaker Change: <unk> returned 10 year sort of horizon.

Thomas Richard Wadewitz: I mean, we saw, you know, it was not what we thought it was going to be in the first quarter, but, you know, at the same time, we've delivered some pretty solid results in light of that kind of core execution despite, you know, the challenges that are in the marketplace. So, you know, I feel pretty good about the rest of the year and our core execution and what we might potentially do. Thanks. Our next question comes from Tom Wadewitz from UBS. Please go ahead, your line is open. Yeah, good morning.

Speaker Change: The Trenton.

Speaker Change: Garland facilities that we opened this quarter are ones that are simply in markets that we.

Speaker Change: Already are serving it to some extent.

Speaker Change: That.

Speaker Change: We're doing it inefficiently. So those are ones that we opened.

Speaker Change: Cadence of opening made sense to us because first of all as an immediate service lift for our customers, there's going to be some incremental business and there is also going to be able to cost savings those are big facilities for us in kind of our opening cadence.

Thomas Richard Wadewitz: And, you know, Doug, congratulations to you as well. You've obviously been one of the key leaders in that, you know, great growth story with Saia over the years. So congratulations to you. Let's see. I wanted to, I guess, get your thoughts on how you think about the pace of that capacity opening. You know, it sounds like a lot of it's kind of, you know, already set up with people. How much of that would you, if you have a flat freight market, which seems to be what you're seeing, and maybe a little less normal seasonality, do you ease up on some of that that might be in the second half?

Speaker Change: Great Plains facilities will open those.

Speaker Change: The remaining ones, we've opened two Missoula, Montana in St. George Utah already but we will open the remaining ones are those in August and we will do that.

Speaker Change: Actually July August and September we will do that purposely because for us. It's a there is some efficiency and opening those nearby each other in terms of timing to minimize SOR.

Speaker Change: The inefficiency of having part of our line haul network put together so we're.

Speaker Change: We're going to go ahead with those.

Speaker Change: There is a customer of customer demand for all of those are in Missoula, Montana.

Thomas Richard Wadewitz: And does that affect what the margin outlook is? Or is it just kind of like, you know, maybe you open it, but you staff it with fewer people? How do we think about that dynamic and pace of openings? And also kind of how the margin would be affected if you do ease up on the pace of openings? Looking out a ways, obviously not in the second quarter.

Speaker Change: And opening that is.

The entire.

Speaker Change: Si business is I would say not material, but it has far exceeded our initial expectations and thats simply you have customers that know what they're experiencing with us and they like.

Speaker Change: Dealing with cider and we're really pleased with the early results. There. So we look at that and we say all right then it's worthwhile to go after the remaining.

Frederick J. Holzgrefe: Yeah, thanks, Tom. I think the key thing for all of these openings is that there was never an intent for Saia to open these as impact 2024 or this quarter or next quarter. We view these as long-term investments, multi-year returns, you know, 10 years sort of horizon. The Trenton and Garland facilities that we opened this quarter are ones that are simply markets that we already are serving to some extent, but we're doing it inefficiently.

Speaker Change: Great Plains States St. George Utah is another one of these these are small markets, but there are ones that customers value that consistent service that maybe they weren't getting before.

Speaker Change: So that makes a ton of sense for us to open up now they may not be.

Speaker Change: A big lift on the or the balance of the year, but I think there are ones that are there.

Speaker Change: Really important investments to make and I think we can minimize the sort of cost to them, but the same time, if you're if we're really focused on the customer and on the long term opportunity of those business. Those are the investments we need to be making so we're going to continue on that pace, we're going to obviously look for places that would be mid.

Frederick J. Holzgrefe: So those are ones that the cadence of opening made sense to us because, first of all, as an immediate service lift for our customers, there's going to be some incremental business in there, and there's also going to be a little cost savings. Those are big facilities for us and kind of our opening. You know, the Great Plains facilities, we'll open those. The remaining ones we've opened in Missoula, Montana and St. George, Utah already. But we'll open the remaining ones of those in August, and we'll do that Actually, July and August in September.

Speaker Change: <unk> inefficiency or embedded cost.

Speaker Change: We could avoid absolutely, but there's just too much value of these not to continue to pursue them.

Speaker Change: So that having been said if you assumed a flat freight market how much would the service center openings give you on shipments per day are tonnage is it like a couple of points just thinking when you gave me.

Frederick J. Holzgrefe: We'll do that purposely because for us, there's some efficiency in opening those nearby each other in terms of timing to minimize sort of the inefficiency of having part of a line haul network put together. So we're gonna go ahead with those. There's a customer demand for all those. I mean Missoula, Montana. It's an opening that is, you know, for the entire Saia business, I would say, not material, but it has far exceeded our initial expectations, and that's simply because you have customers that know what they're experiencing with us, and they like, you know, dealing with Saia, and we're really pleased with the early results there. So we look at that, and we say, all right, St. George, Utah, is another one.

Speaker Change: Yes.

Speaker Change: Yes, its tough its tough to say Missoula, Montana, Montana is not as big as Trenton, New Jersey, or Garland for that matter. So it.

Speaker Change: I think thats positive for us the balance of the year I am not in a position to really call the macro freight market.

Speaker Change: I think its probably mixed but I think size any occurrence synchronic story is pretty important to remember we've shown what we can do.

Speaker Change: And with these openings and we've been able to execute in markets even in slower times.

Speaker Change: Okay Alright, great.

Speaker Change: Thanks, Doug.

Frederick J. Holzgrefe: These are small markets, but there are ones that customers value, that consistent service that maybe they weren't getting before. So that makes a ton of sense for us to open them. Now, they may not be, you know, a big lift on the OR for the balance of the year, but I think they're ones that are really important investments to make, and I think we can minimize the sort of cost of them. But, at the same time, if we're really focused on the customer and on the long-term opportunity of this business, those are the investments we need to be making.

Doug: Thanks, Tom.

Doug: Our next question comes from Eric Morgan from Barclays. Please go ahead. Your line is open.

Eric Morgan: Hey, good morning, Thanks for taking my question and congrats to Doug as well.

Eric Morgan: I guess I wanted to ask another on volumes.

Eric Morgan: Coming in below our expectations in the quarter, just given the pretty strong renewals number you gave earlier or would you say your push on price this year as having any kind of outsized impact there or is it really just more of a broader market demand story.

Eric Morgan: I mean, I tickets, probably a broader market, but listen following side over time, and we're focused on generating value to our customer and generating returns for our shareholders. So we don't state fixated on volume numbers, we stay fixated on making sure we meet those first two expectation so.

Frederick J. Holzgrefe: So we're going to continue at that pace. We're going to, you know, obviously look for places that would minimize inefficiency or embedded costs that are, you know, that we could absolutely avoid, absolutely, but there's just too much value in these not to continue to pursue them. So that having been said, if you assumed a flat freight market, how much would the service center openings give you on shipments per day or tonnage? Is it like a couple points? I'm just thinking of the anniversary of the yellow and black. Yeah, it's tough to say. Missoula, Montana is not as big as Trenton, New Jersey or Garland, for that matter.

Eric Morgan: We'll continue to push our the service level and our expansion thing because I think there are incremental opportunities for that but that's only going to work. If we keep the keep working on pricing and mix of business.

Eric Morgan: We're committed to that.

Speaker Change: I appreciate that and just a quick follow up on revenue per shipment.

Thomas Richard Wadewitz: So I think that's positive for us, the balance of the year. I'm not in a position to really call it the macro freight market, but I think it's probably mixed, but I think Saia's idiocratic story is pretty important to remember.

Speaker Change: Do you think that 3% to 4% is still a good benchmark for the full year ex fuel.

Speaker Change: So there are some of the mix changes can have an impact on that.

Thomas Richard Wadewitz: And we've shown what we can do with these openings, and we've been able to execute in markets even in slower times. Okay. All right. Great. Thank you, Prince.

Speaker Change: Yes, I mean after what we saw in Q1.

Speaker Change: Probably.

Speaker Change: Without a crystal ball on the macro I am not as not as confident in that but like I said, what I did like is the spread.

Operator: Thanks, Doug. Thanks, Tom. Our next question comes from Eric Morgan from Barclays; please go ahead, your line is open. Hey, good morning, thanks for taking my question and congratulations to Doug as well. I guess I wanted to ask another question on volumes, you know, coming in below expectations in the quarter, just given the pretty strong renewals number you gave earlier, would you say your push on price this year is having any kind of outsized impact there, or is it really just more of a broader market demand story?

Speaker Change: Right. So I didn't get as much revenue per shipment as I had hoped.

Speaker Change: Mix issue, we will work on pricing at every turn the customer accounts non operating profit.

Profitably will pull that discussion.

Speaker Change: Under the table right now, but we're doing a good job managing the cost side. So that's why I was able to get the margin pickup and that's why I think we can still get the 100 to 150 basis points for the full year.

Speaker Change: There's moving parts here. So if that's the kind of volume, but when I go there I guess some economies on the cost side and it works for me on the margin side I mean, that's what we're trying to do we're growing the business and we're growing profitability more than that I think that's what you're kind of on the business.

Operator: I think it's probably a broader market, but listen, following Saia over time, and we're focused on generating value for our customers and generating returns for our shareholders, we don't stay fixated on volume numbers; we stay fixated on making sure we meet those first two expectations. So, you know, we'll continue to push the service level and our expansion thing, because I think there are incremental opportunities for that, but that's I appreciate that.

Speaker Change: And on the volume side I mean, yes.

Speaker Change: For us and for the other transport I've heard report March didn't seem to come together like most expected, but we still had shipment growth in the quarter up.

Speaker Change: 87%.

Speaker Change: I don't know how many others are doing that so we kind of think we're on the right track and we'll work through this cyclicality thats inherent in our business.

Speaker Change: I appreciate it.

Speaker Change: Sure.

Speaker Change: Our next question comes from Jordan <unk> from Goldman Sachs. Please go ahead. Your line is open.

Eric Morgan: And just a quick follow-up on revenue per shipment, do you think that 3 to 4 percent is still a good benchmark for the full year, ex-fuel, or is some of the mixed? is going to have an impact on that. Yeah, I mean, after what we saw in Q1, I'm probably..., without a crystal ball in the macro, I'm not as confident in that.

Jordan: Just a quick question curious with the expansion plans that you.

Jordan: You have at this point.

Jordan: What are you seeing in terms of the ability to get the folks that you need but from a driver perspective and terminal back then and is there much cost inflation in line in terms of attracting it's Bob.

Speaker Change: That's a good question.

Eric Morgan: But like I said, what I did like was the spread improvement, right? So I didn't get as much revenue per shipment as I had hoped. It's a mixed issue.

Speaker Change: One of the exciting things about.

Bob: What we've got going in <unk>.

Bob: As we add these facilities and this coverage footprint.

Douglas L. Col: We'll work on pricing at every turn. If the customer accounts are not operating profitably, we'll pull that discussion off the table right now. But we're doing a good job managing the cost side. So that's why I was able to get the margin pickup. And that's why I think we can still get 100 to 150 basis points for the full year. I mean, there are moving parts here.

Bob: We've always felt really good about our team and one of the things that we've seen is that adding new facilities provides career track to a lot of our.

Bob: High performers in the balance of the company and so as we've as we've looked to open facilities, we've been able to SaaS key leadership roles in those facilities from.

Bob: The balance the experience part of our company. So that's been great that helps set the tone sets. The culture right and then when you get into the market of recruiting drivers other staff to fill these facilities.

Douglas L. Col: So if that's the kind of volume, but when I go there, I get some economies on the cost side, then it works for me on the margin side. I mean, that's what we're trying to do. We're growing the business, and we're growing profitability more than that. I think that's what you kind of want in a business. You know, and on the volume side, I mean, yeah, I mean, for us and for the other transports, I've heard reports, March didn't seem to come together like most expected. But, you know, we still had shipment growth in the quarter up, you know, 15.7%. I don't know how many others are doing that.

Bob: <unk> got first of all the folks that are doing the recruiting and.

Bob: They know what <unk> is and what our culture is so that's important part of the recruiting effort and.

Bob: As always when we're recruiting folks we've got to stay market competitive.

Bob: You've got a growing company great place to work right.

Bob: Culture.

Eric Morgan: So we kind of think we're on the right track, and we'll work through this cyclicality that's inherent in our business. I appreciate it.

Bob: A company that's very focused on culture, those recruiting advantages you throw that in there with a very.

Operator: Sure. Our next question comes from Jordan Alliger from Goldman Sachs. Please go ahead.

Bob: Very competitive pay and benefits package and we've had success staffing and staffing with people that understand our core values and kind of what we're trying to do so we've been real pleased with what we've been able to do on that front.

Jordan Robert Alliger: Your line is open. Yeah, just a quick question. Curious about the expansion plans that you have at this point. What do you see in terms of the ability to get the folks that you need, both from a driver perspective and terminal perspective? And is there much cost inflation in terms of attracting these folks? That's a good question.

Bob: So that's going to be an important part of our growth story going forward.

Thank you.

Bob: Our.

Bob: Next question comes from Jonathan Chappell from Evercore ISI. Please go ahead. Your line is open.

Frederick J. Holzgrefe: One of the exciting things about what we've got going at Saia is that, you know, as we add these facilities and this coverage footprint, we've always felt really good about our team. And one of the things that we've seen is that adding new facilities provides a career track to a lot of our, you know, high performers in the balance of the company. And so as we've looked to open facilities, we've been able to staff key leadership roles in those facilities from the experience part of our company.

Jonathan B. Chappell: Thank you good morning.

Jonathan B. Chappell: So you took up a lot of new customers over the last 12 months, obviously with the type of shipment growth you've been putting up as it comes around to these pricing discussions with them. Obviously, there is a vast array of different customers and different types of freight, but how these customers been receptive to some of the pricing discussions to try to get the value for your service.

Frederick J. Holzgrefe: So that's been great. That helps set the tone, sets the culture, right? And then when you get into the market of recruiting drivers or other staff to fill these facilities, you've got, first of all, the folks that are doing the recruiting, and they know what Saia is and what our culture is, so that's important as part of the recruiting effort. And you know what?

Speaker Change: Yes, so Jonathan will Doug ill double up on this answer right. So one of the things that just keep in mind is that one of the things that we benefited from early on with the disruption is in many cases, we had shared some of the national account customers with.

Jonathan B. Chappell: With yellow so they were people that were familiar with us. So we picked up there was some pickup economies that kind of came along with that as we picked up that new business.

Frederick J. Holzgrefe: As always, when we're recruiting folks, we've got to stay market competitive. You've got a growing company, a great place to work, a great culture, a company that's very focused on culture. Those are recruiting advantages.

Jonathan B. Chappell: As we have developed the further developed our relationship with these customers we have a better understanding of what the freight mix is and what the impacts are and we've been very focused.

Frederick J. Holzgrefe: You throw that in there with a very competitive pay and benefits package, and we've had success staffing and recruiting people that understand our core values and kind of what we're trying to do. So we've been really pleased with what we've been able to do on that front. So that's going to be an important part of our growth story going forward. Thank you. Our next question comes from Jonathan Chappell from Evercore ISI. Please go ahead; your line is open. Thank you. Good morning.

Jonathan B. Chappell: In Q3, Q4 and into Q1 around continued work around pricing to make sure the.

Jonathan B. Chappell: The customers that understand and value the service that they're getting that.

Sure.

Jonathan B. Chappell: Being appropriately compensated for that and we've cycled through some of these customers as a result of decided that maybe this we prefer something else and they are pursuing other options. So you see a bit of that.

Jonathan B. Chappell: So you took up a lot of new customers over the last 12 months, obviously, with the type of shipment growth you've been putting up. As it comes around to these pricing discussions with them, obviously, there's a vast array of different customers and different types of freight, but how have these customers been receptive to some of the pricing discussions to try to get value for your service? Yes, so Jonathan, well, Doug, and I'll double up on this answer.

Jonathan B. Chappell: But I think what you also see in the part of the traction that you see in our results is the customers are starting to value more what they're getting from us and there's a little bit of stickiness. There. So we like that.

Jonathan B. Chappell: I think that speaks to some long term opportunity for us.

Speaker Change: Okay. Thanks, and then just a follow up Doug I don't want to put too fine tune on 10 on this but.

Jonathan B. Chappell: So one of the things I just keep in mind is that one of the things that we benefited from early on with the disruption is that, in many cases, we had shared some of the national account customers with Yellow. So they were people that were familiar with us.

Speaker Change: Keeping the full year or guide first quarter was aligned and sorry, our track like you said, but it sounds like second quarter is going to be about 100 basis points lower than typical seasonality does that mean that we get better than seasonality in the back half of the year. That's like a front end loading of cost type thing in the second quarter. I mean, you know how this business works people focus on the real short term here, but if it doesn't throw the track.

Frederick J. Holzgrefe: So we picked up, there were some picking economies that kind of came along with that as we picked up that new business. As we have further developed our relationship with these customers, we have a better understanding of what the freight mix is and what the impacts are. And we've been very focused in Q3, Q4, and into Q1 around continued work around pricing to make sure the customers that understand and value the service that they're getting, that they're that we're being appropriately compensated for that.

Speaker Change: Because even if the second quarter is maybe a lower starting point I guess thats, probably a key takeaway that we'd like to hear.

Speaker Change: Yes.

Speaker Change: Q1 was on the <unk> side.

Frederick J. Holzgrefe: And, you know, we've cycled through some of these customers that have decided, hey, you know, that maybe this, you know, we prefer something else, and they're pursuing other options. So you see a bit of that, but I think what you also see in part of the traction that you see in our results is that customers are starting to value more what they're getting from us, and there's a little bit of stickiness there. So we like that.

Speaker Change: We're in the range I mean, we all wanted to be better without a big strong March and it didn't get there for Q1 was kind of in the range.

Speaker Change: Yes.

Speaker Change: This will be below normal historic seasonality, but the momentum on the volume side and starting to cover some of these fixed costs as shipments grow in these terminals were opening today, we opened a day I have all the costs in advance of the opening I believe that all the calls on day, one and I have zero revenue so they build momentum throughout the year, we absolute.

Douglas L. Col: I think that speaks to some long-term opportunity for us. And then just to follow up, Doug, I don't want to put too much of a pin on this, but you've kept the full year OR guide, you know, first quarter was in line, didn't throw you off track like you said, but it sounds like second quarter is going to be about 100 basis points lower than typical seasonality. Does that mean that we get better than seasonality in the second half of the year?

Speaker Change: We expect a pickup to.

Speaker Change: Come from that quarter to quarter three quarter four out after the opening so.

Speaker Change: There is some of that but.

Speaker Change: Yeah.

Speaker Change: I think you have to you have to think about too. So we've highlighted for you were opening.

Speaker Change: We just opened Trenton, we've just opened.

Speaker Change: Harlan we're going to open Laredo in June we've got a block of.

Speaker Change: Great Plains facilities, we're going to open today that freight often gets handed off so that freight becomes a 100% <unk> revenue. So thats a pickup into the second half of the year.

Douglas L. Col: Is this like a front-end loading of cost type thing for the second quarter? I mean, you know how this business works. People focus on the real short term here, but if it doesn't throw the track off, even if the second quarter is maybe a little lower starting point, I guess that's probably a key takeaway that we'd like to hear. Yeah, I'm ready.

Speaker Change: And we know what we're going to get service wise.

Speaker Change: When it travels on our equipment of 100% of the time and I think that's a real value opportunity for our customers and it certainly from a revenue perspective for size. Good so thats, what youre seeing and kind of what we think about the full year result.

Douglas L. Col: You know, Q1 was, you know, on the OR side, you know, we were in the range. I mean, we all wanted it to be better without a big, strong march; it didn't get there, but Q1 was kind of in the range. And yeah, I mean, this would be below normal historic seasonality, but the momentum on the volume side and starting to cover some of these fixed costs as shipments grow in these terminals we're opening today. We open them today. I have all the costs in advance of the opening, I've got all the costs on day one, and I have zero revenue.

Speaker Change: Okay. That's very helpful. Thanks, Brett Thanks, Doug.

Speaker Change: Our next question comes from Daniel Enbrel from Stephens. Please go ahead. Your line is open.

Daniel Enbrel: Yeah, Hey, good morning, guys. Thanks for taking the questions and congrats on retirement.

Daniel Enbrel: To start on the freight mix when we think about the destiny you've added in the capacity Youre still adding how much are you leaning on third party brokers to find freight and as that mix impacting the reported revenue per shipment our yield metrics in that.

Daniel Enbrel: So how long would it take to transition that towards first party right.

Douglas L. Col: So as they build momentum throughout the year, we absolutely expect a pickup, you know, to come from that quarter two, quarter three, you know, quarter four out after the opening. So there's some of that, but I think you have to you have to think about too.

Daniel Enbrel: And as new markets.

Daniel Enbrel: Yes, certainly in some new markets.

Daniel Enbrel: Broker sort of that part of the mix of business is helpful to get started but the nice thing that we have right now and a lot of this is driven by our own sort of network maturity and business maturity is that there are a lot of what's going to fuel the growth in the markets that we're growing in our customers that we're already doing business with.

Douglas L. Col: So we've highlighted for you, we're opening. We just opened Trenton, we've just opened Garland, we're going to open Laredo in June, we've got a block of Great Plains facilities we're going to open. Today, that freight often gets handed off, so that freight becomes 100% Saia revenue. So that's a pickup into the second half of the year.

Daniel Enbrel: And.

Daniel Enbrel: That's what's really exciting if you can if you can go to a customer and you can now offer full great plains coverage granted those are not the biggest markets, but if we go do a pickup in Dallas, Texas, where we can cover the great plains for the customer and also go to Trenton, and also go to Laredo, and maybe even into Mexico customer needs that.

Douglas L. Col: And we know what we're going to get service-wise when it travels on our equipment 100% of the time. And I think that's a real value opportunity for our customers, and it's certainly, from a revenue perspective, for Saia, it's good. So that's what you're seeing in kind of what we think about the full-year results. Okay, that's very helpful.

Daniel Enbrel: Youre now, having an opportunity to move up on the priority list with with that customer where Europe much more strategic LCL partner with them and because frankly, we can do more for them.

Daniel Enbrel: And we've proven.

Daniel Enbrel: That day.

Jonathan B. Chappell: Thanks, Chris. Thanks, Doug. Our next question comes from Daniel Imbro from Stevens. Please go ahead.

Daniel Enbrel: They can count on us to replicate service. So I think the exciting part about this it's not going to be a mixed transition per se, it's going to be more of further penetration with customers that already know who we are and in customers that have held back.

Daniel Robert Imbro: Your line is open. Yeah, hey, good morning, guys. Thanks for taking the questions and, Doug, congrats on the retirement. I want to start on the freight mix.

Daniel Enbrel: Doing business with us because you guys quite don't have the coverage ready now, we do and or we'll have and that's really part of the interesting value here for us.

Frederick J. Holzgrefe: When we think about the density you've added and the capacity you're still adding, how much are you leaning on third parties or brokers to find freight? And is that mix impacting reported revenue per shipment or yield metrics? And then, if so, how long would it take to transition that towards first party freight as you stay in those new markets? Yeah, certainly in some new markets, the broker, sort of that part of the mix of businesses, it's helpful to get started.

Speaker Change: That's helpful and then for.

Speaker Change: Longer term one I know you mentioned no one have a great crystal ball right now, but on the industry outlook market has to offer obviously got to lap yellows headline growth moderate you mentioned you feel good about your ability to grow tonnage and price. How do you think the industry first of all do you think I think as.

Speaker Change: Others, maybe get more price competitive as their headline growth flows and just curious your broader thoughts as we lap yellow how if at all of that changes kind of the growth trajectory.

Frederick J. Holzgrefe: But the nice thing that we have right now, and a lot of this is driven by our own sort of network maturity and business maturity, is that, you know, a lot of what's going to fuel the growth in the markets that we're growing in our customers that we're already doing business with. And that's really exciting. You know, if you can, if you can go to a customer, and you can now offer full Great Plains coverage.

Speaker Change: I think that this business and if you look across the landscape of the business I think the industry understands a couple of things that are really important one is that.

Speaker Change: Underlying the surface of the businesses are inflationary business right and it's a business that.

Frederick J. Holzgrefe: Now, granted, those are not the biggest markets. But if we go do a pickup in Dallas, Texas, and we can cover the Great Plains for the customer, and also go to Trenton, and also go to Laredo, maybe even to Mexico, if the customer needs that, you're now having an opportunity to move up on the priority list with that customer, where you're a much more strategic LTL partner with them. And because, frankly, we can do more for them.

Speaker Change: Driver cost employee cost equipment costs, all of those things real estate, all those things are inflationary and.

Speaker Change: No.

Speaker Change: So that's a fundamental there the other fundamental is that more volume at a lower price does not create incremental profitability. So that's another element of this business. So I think that does that discipline across the landscape now.

Speaker Change: We feel confident with our own sort of on the things that we can control because we see what our team's doing around providing service to customers that we think is a differentiator for us.

Daniel Robert Imbro: And we've proven that they they can count on us to replicate service. So I think the exciting part about this is, it's not going to be a mixed transition, per se; it's going to be more of further penetration with customers that already know who we are. And then customers that have held back doing business with us because they say, you know, you guys don't quite have the coverage I need. Now we do, or will have, and that's really part of the interesting value here for us. That's helpful.

Speaker Change: As we expand the footprint.

Speaker Change: I think that that's where we will benefit.

Speaker Change: But I think overall the industry.

Speaker Change: Price led or price concession strategy I don't know that that is a value driver for.

Speaker Change: For anybody in this space so.

Speaker Change: The discipline to remain.

Frederick J. Holzgrefe: And then for the longer term one, I know you mentioned no one has a great crystal ball right now, maybe, but on the industry outlook, markets to offer, obviously, we'll have to lap yellow, so headline growth at a lot of rates. You mentioned you feel good about your ability to grow tonnage and price. How do you think the industry will respond to you? Do you think or think there's a risk others maybe get more price competitive as their headline growth slows? And just curious, your broader thoughts as we lap yellow, how, if at all, that changes the growth trajectory?

Speaker Change: Great I appreciate the color best of luck.

Speaker Change: Our next question comes from Brian Ashton back from J P. Morgan. Please go ahead. Your line is open.

Brian Ashton: Hey, good morning, Thanks for taking my question and congrats.

Brian Ashton: Congratulations and all the best with whatever scope next for you.

Brian Ashton: Just wanted to ask a bit about the broader competitive dynamic obviously the.

Brian Ashton: Truckload market has been in the freight market John has been lower for longer here.

The disruption of yellow help that <unk>, but do you think the truck market given it has surprised all those carriers have downside do you think that's encroaching a bit more on what you would consider sort of the core <unk> business and so therefore, when that tightens up maybe you get a little bit better snapback.

Frederick J. Holzgrefe: You know, I think that this business, if you look across the landscape of the business, I think the industry understands a couple things that are really important. One is that, you know, underlying the surface of the business, it's an inflationary business, right? And it's a business where driver costs, employee costs, equipment costs, all those things, real estate, all those things are inflationary.

Brian Ashton: Than you would otherwise think and is that specific secured network that you might see any of those leading indicators as.

Brian Ashton: As we progress hopefully for the rest of the year this year.

Frederick J. Holzgrefe: And you know, so that's a fundamental there. The other fundamental is that more volume at a lower price does not create incremental profit. So that's another element of this business. So I think that there's that discipline across the landscape now.

Speaker Change: Yeah I know.

Speaker Change: Some of our competitors speak to this I mean, we don't we don't have a strong opinion about it I guess.

Speaker Change: Our sophisticated national account shippers, probably figuring out ways to move more of their product on truckload and take advantage of the very favorable rate environment on the truckload side now I don't know how much truckload is encroaching on LPL volumes beyond that meeting.

Daniel Robert Imbro: We feel confident with our own sort of on the things that we can control because we see what our team's doing around providing service to customers. That's, we think, is a differentiator for us. And as we expand the footprint, I think that's where we, you know, we will benefit. But I think overall, the industry, that sort of price-led or price concession strategy, I don't know that that is a value driver for anybody in the space. Great. I appreciate the color.

Speaker Change: As a rule of truckload carrier pulls a trailer for customer and they don't handle the frame and.

Speaker Change: And it would be very difficult.

Speaker Change: Broad basis to replicate what an LPL carrier does right. We handle pallets of freight you need different assets to do that you needed adopt workforce and terminal network and things like that but.

Speaker Change: Do think the customer has taken advantage of this longer lower for longer environment, and figuring out ways to consolidate and move more things truckload before they break it down to an individual pallet in movement. So yes that tightens up I expect we will get a benefit primarily from that aspect and then maybe there is some of that other stuff.

Brian Patrick Ossenbeck: Best of luck. Our next question comes from Brian Ossenbeck from J.P. Morgan. Please go ahead, your line is open. Hey, good morning.

Brian Patrick Ossenbeck: Thanks for taking the question. Congratulations and all the best, whatever's up next. I just wanted to ask a bit about the broader competitive dynamic. Obviously, the truckload market has been, and the freight market, in general, been lower for longer here. The disruption of yellow helped out LTL, but do you think the truck market, given Thank you for watching. Yeah, I mean, I know some of our competitors speak to this. I mean, we don't have a strong opinion about it.

Speaker Change: Smaller truckload carrier decides to make multi stops or something but yes, better freight backdrop for all of us.

Speaker Change: Industrial.

Speaker Change: Complex has just been weaker I mean, better who knows in election year, maybe you get a different.

Speaker Change: Regulatory environment around energy or something like that for example over the next couple of years.

Douglas L. Col: I guess, you know, our sophisticated, you know, national count shippers are probably figuring out ways to move more of their product on truckload and take advantage of the very favorable rate environment on the truckload side now. I don't know how much. Truckload is encroaching on LTL volumes beyond that, meaning, you know, as a rule, a truckload carrier pulls a trailer, customer, and they don't handle the freight. And it'd be very difficult on a broad basis to replicate what an LTL carrier does, right? We handle pallets of freight. You need different assets to do that?

Speaker Change: And that's been missing a bit.

Speaker Change: We all benefit.

Speaker Change: Industrial supply chain is full and movement in energy has been missing for example, so.

Speaker Change: And things like that are still out there to be determined.

Speaker Change: Understood. Thanks for that follow up just on the Mexico and the cross border business.

Speaker Change: Maybe you can elaborate on what that partnership is for you.

Speaker Change: I guess in the short term and the longer term does that help kind of fit.

Speaker Change: With the.

The relocation of the radar and it was mentioned in the same in past sandstone, others, where we're tied together and sort of what you think of that partnership and that market in general over the next couple of years, Yes listen we are thrilled with this partnership opportunity.

Douglas L. Col: You need a dock workforce and a terminal network and things like that. But I do think the customer is taking advantage of this lower-for-longer environment and figuring out ways to consolidate and move more things by truckload before they break it down to an individual pallet and move it. So yeah, as that tightens up, I expect we'll get a benefit primarily from that aspect. And then maybe there's some of that other stuff going on where a smaller truckload carrier decides to make multi-stops or something. But yeah, a better freight backdrop would be good for all of us.

Speaker Change: Depending on what your view is on near shoring or re shoring, but if you look at the supply chain certainly cross border into and out of Mexico is continuing to.

Speaker Change: And.

Speaker Change: We're very pleased with the opportunity to partner with a very high quality carrier are familiar with the Mexican market.

Speaker Change: That we think we're in a position that we can seamlessly provide service to our customers North and South bound you just layer that in there with the what we think one of our real key investments that we made as part of the real estate auction.

Douglas L. Col: And you know, the industrial complex has just been weaker. I mean, you know, a better, you know, who knows, in an election year, maybe you get, you know, a different, you know, regulatory environment around energy or something like that, for example, over the next couple years. And that's been missing a bit.

<unk> facility.

Douglas L. Col: You know, we all benefit when the industrial supply chain is full and moving, and energy's missing, for example. So some things like that are still out there to be determined. We'll see.

Speaker Change: That's a really interesting opportunity for us and most significantly for a customer they can see that and now we're a carrier that can provide them with that sort of seamless service at a very high quality level and that makes somewhat supply chain that much more efficient and that's a good place for cider play.

Brian Patrick Ossenbeck: Understood. Thanks for that follow-up. Just on Mexico and the cross-border business, maybe you can elaborate on what that partnership does for you, I guess, in the short term. In the longer term, does that help kind of, fit with the relocation of Laredo and, as I mentioned in passing, I just don't have a. Thank you all for joining us today. Thank you. Thank you.

So we're excited about the opportunity we're excited about how that matches up with our Laredo investment.

Speaker Change: It's part of being a more important part of a customer supply chain.

Speaker Change: Alright, Thanks, guys for the time appreciate it.

Frederick J. Holzgrefe: Yeah, listen, we're thrilled with this partnership opportunity, and, depending on what your view is on nearshoring or reshoring, but if you look at the supply chain, certainly cross-border, into and out of Mexico is continuing to grow. And We're very pleased with the opportunity to partner with a very high-quality carrier familiar with the Mexican market. We think, you know, we're in a position that we can seamlessly provide service to our customers north and southbound.

Speaker Change: Our next question comes from Ravi Shanker from Morgan Stanley. Please go ahead. Your line is open.

Ravi Shanker: Good morning, everyone.

Ravi Shanker: I appreciate it.

Ravi Shanker: The message that hey.

Ravi Shanker: Time to add the resources, bringing the new facilities on and Thats going to be a drag to operating leverage in the near term, but is there a risk that even if the cycle kicks in later on.

Frederick J. Holzgrefe: You layer that in there with one of our real key investments that we made as part of the real estate auction, the Laredo facility. That's a really interesting opportunity for us and, most importantly, for a customer. They can see that, and now we're, you know, a carrier that can provide them with that sort of seamless service at a very high quality level. And, you know, that makes someone's supply chain that much more efficient, and that's a good place for Saia to play.

Ravi Shanker: The shock of losing yellow.

Ravi Shanker: Lost a little bit by the time, the industry kind of ramped up to its capacity and kind of get everything in order here and shippers maybe.

Ravi Shanker: Less willing to make big price increases.

Speaker Change: Yes, I mean, I guess, there's always a risk I look at what the <unk> side of the story is with us or with kind of what are idiosyncratic opportunities.

Frederick J. Holzgrefe: So we're excited about the opportunity. We're excited about how that matches up with our Laredo investment and, you know, it's part of being in a more important part of a customer supply chain. Alright, thanks guys for your time. Our next question comes from Ravi Shanker from Morgan Stanley. Please go ahead, your line is open.

Speaker Change: You've followed us for years, you know that.

Speaker Change: Our focus has been around quality and service and making sure that we are paid at an industry.

Speaker Change: History levels are at market levels. However, you want to define that and I think as you look at site and look at our footprint and you look at us as more of a strategic national competitor and there is still a opportunity for us to make sure that <unk> paid at market.

Ravi Shanker: Thanks, everyone. I appreciate the message that, you know, hey, it's going to take some time to add the resources, bring the new facilities on, and that's going to be a drag on operating leverage in the near term. But is there a risk that, you know, even if the cycle kicks in later on, like the shock of losing yellow is kind of lost a little bit by the time the industry kind of ramps up its capacity and kind of gets everything in order here, and shippers may be less willing to take big price increases? I guess there's always a risk.

Speaker Change: There is a valid idiosyncratic value driver for the <unk> shareholder in there and for our customers also going to see a pretty significant opportunity for us to get a high service level partner so.

Speaker Change: Yes, there are.

Speaker Change: There are always macroeconomic situation in the industry and there as you pointed out the yellow is that those assets are are absorbed or exit the industry and I think remains to be seen if all of those assets actually make their way back to the industry.

Frederick J. Holzgrefe: I look at what Saia's story is with this or kind of what our idiosyncratic opportunity is. As you've followed us for years now, you know that our focus has been around quality and service and making sure that we are paid at an industry level, you know, at industry levels or at market levels, however you want to define that. And I think as you look at Saia and look at our footprint, and you look at us as more of a strategic national competitor, and there's still an opportunity for us to make sure that Saia's paid at market, there's an idiosyncratic value driver for the Saia shareholder in there.

Speaker Change: Im not sure that they will.

Speaker Change: I think that the opportunity still remains constructive for us, particularly and I think for the industry I think it's good.

Speaker Change: Perfect and maybe as a follow up on pricing I know you and all your peers have been going up.

Speaker Change: Big price increases.

Frederick J. Holzgrefe: And for our customers, they also go to see a pretty significant opportunity to get a high service level partner. So, you know, yeah, there are certainly macro economic situations in the industry. And there, you know, as you pointed out, the yellow is that those assets are absorbed or leave the industry. And I think it remains to be seen if all those assets actually make their way back into the industry. I'm not sure that they will.

Speaker Change: But.

Speaker Change: And in particular kind of are you hearing any rollback these price increases.

Speaker Change: Taking all of our customers.

Speaker Change: Happy to take them to the new environment.

Speaker Change: Listen I don't think theres, not going to be a customer anyway.

Speaker Change: Sure.

Speaker Change: Positive feedback around rate increases I think that.

Speaker Change: What's critically important and this is what we focus on is if we can maintain this level of service the.

Frederick J. Holzgrefe: I think that the opportunities, it still remains constructive for us, particularly, and I think for the industry, I think it's good. And maybe as a follow-up on pricing, I know you and all your peers have been kind of pushing for some very big price increases. But for your peers, in particular, are you hearing of any rollbacks? I mean, are these price increases sticking? Or are customers kind of, you know, happy to take them just knowing the new environment?

Speaker Change: The justifies the rate increase Thats, where were most successful in.

Speaker Change: That's kind of our focus and if you look across the industry I think people are trying to.

Speaker Change: Similar kind of strategies because.

Speaker Change: Because fundamentally that.

Speaker Change: Additional volume at a lower rate this business doesn't make any sense. So the economics of that don't work. So I think that the industry continues to be very disciplined around this I know that we are and I know that our service levels justify that.

Frederick J. Holzgrefe: Listen, I don't think you know, there's not going to be a customer anyway that has, you know, positive feedback around rate increases. I think that what's critically important, and this is what we focus on, is if we can maintain the level of service that justifies the rate increase, that's where we're most successful. And that's kind of our focus. And if you look across the industry, I think people are trying to adopt similar kinds of strategies. Because fundamentally, additional volume at a lower rate in this business doesn't make any sense, so the economics of that don't work.

Speaker Change: Understood and Doug Congrats and thank you for all your household.

Speaker Change: Thanks Robert.

Speaker Change: Our next question comes from Tyler Brown from Raymond James. Please go ahead. Your line is open.

Tyler Brown: Hey, good morning, guys.

Tyler Brown: Good morning, Tyler.

Tyler Brown: Hey, rich can we just come back to employees. So I'm just curious how frontline turnover is trending I'm assuming that it is easing but my bigger question here is how do you feel about your training programs that are in place and how concerned are you about whether it be productivity our service, taking a step back particularly on the dock.

Frederick J. Holzgrefe: So I think that the industry continues to be very disciplined around this. I know that we are, and I know that our service levels justify that. Understandable. And Doug, congrats and thank you for all your help over the years. Thanks, Ravi.

Tyler Brown: As you go through that sneak season of growth.

Tyler Brown: Tyler Let me make sure you broke up a little bit for me you were asking about turnover on our frontline employees at the beginning of your question.

Ravi Shanker: Our next question comes from Tyler Brown from Raymond James. Please go ahead, your line is open. Hey, good morning, guys. Warrant Guard. Hey, Fritz, can we just come back to employees?

Tyler Brown: No problem, a bad connection, but yes, yes no.

Speaker Change: Interestingly enough.

Speaker Change: We do a lot around employee retention efforts I mean, we're very focused on employee engagement scores.

Tyler Brown: So I'm just curious how frontline turnover is trending. I assume that it is easing, but my bigger question here is how do you feel about your training programs that are in place, and how concerned are you about whether productivity or service are taking a step back, particularly on the dock, just as you go through this big season of growth? Tyler, let me make sure.

Speaker Change: What I've been really pleased to see is that our engaged employee engagement score we measured last fall and it was the highest.

Speaker Change: It's Ben its sai ever.

Speaker Change: And not surprisingly, we've seen our turnover rates.

Speaker Change: At the dock and driver level kind of level out and actually come down from periods of a year or two or three years ago, where we experienced higher levels of turnover. So that's been good.

Tyler Brown: You broke up a little bit for me. You were asking about turnover among our frontline employees at the beginning of your question. Yes, sorry.

Frederick J. Holzgrefe: I'm afraid I have a bad connection, but yes, yes. But, interestingly enough, we do a lot around employee retention efforts. I mean, we're very focused on employee engagement scores. What I've been really pleased to see is that our employee engagement score, which we measured last fall, was the highest it's been at Saia ever. And not surprisingly, we've seen our turnover rates at the dock and driver level kind of level out and actually come down from periods of a year or two, three years ago, where we experienced higher levels of turnover.

Speaker Change: I think that in our.

Speaker Change: Certain spots that you have to deal with it on sort of dark.

Speaker Change: Yes.

Speaker Change: Folks, who you do see a bit of a churn on those.

Speaker Change: Categories.

Speaker Change: Our team simply because it's an.

Speaker Change: In many cases, we're recruiting people new to the industry and I have to learn how does and <unk> work.

Speaker Change: But with that in mind, one of the things that we've been doing is that we have doubled down on leadership training for our frontline supervisors and we do that for a few reasons right. So our most important asset in the company and our people were very focused on keeping high levels of engagement and very focused on maintaining and continuing to lower that turnover because we.

Frederick J. Holzgrefe: So that's been good. I think that in our, you know, certain spots that you have to deal with on sort of doc folks, you do see a bit of a turn in those categories of our team, simply because, in many cases, we're recruiting people new to the industry, and they're having to learn what, okay, well, how does an LTL work? But with that in mind, one of the things that we've been doing is that we have doubled down on leadership training for our frontline supervisors. And we do that for a few reasons, right?

Speaker Change: That helps us drive consistency around product service safety and all those things that we've seen that that's paid off for us.

Speaker Change: Also it gives us a pipeline of.

Speaker Change: Frontline leaders that ultimately are helping US staff these new facilities and continue to maintain that culture. So.

Frederick J. Holzgrefe: So our most important asset in the company are people. We're very focused on keeping high levels of engagement and very focused on maintaining and continuing to lower that turnover, because we think that helps us drive consistency around product, service, safety, and all those things, and we've seen that that's paid off for us, front-line leaders that ultimately are helping us staff these new facilities and continue to maintain that culture, so it's a it's an on it's something we we pay attention to on a daily basis simply because it's that important.

Yes.

Speaker Change: It's in on it's something we pay attention to on a daily basis simply because it's that important.

Speaker Change: Yeah, that's great and then just back to Brian's question about Mexico. So if im not mistaken you struck a similar interline deal in Canada, a few years back if I recall.

Speaker Change: Curious how big that Wayne is today is there any reason that this lean couldnt be equally if not larger.

Yes, I think I think the opportunity to cross border in and out of Mexico over time is certainly going to be stronger than Canada, Canada is not important for us.

Frederick J. Holzgrefe: Yeah, no, that's great. And then I just want to go back to Brian's question about Mexico. So, if I'm not mistaken, you struck a similar interline deal in Canada a few years back, if I recall. I'm just kind of curious how big that lane is today. Is there any reason that this lane couldn't be equally, if not larger? Yeah, I think the opportunity to cross the border in and out of Mexico over time is certainly going to be stronger than Canada, not that Canada is not important for us. I'd have to get back to you on what the breakout would be for that, which is Canada, but that's important.

Speaker Change: Breakout.

Speaker Change: I'd have to get back to you on what the breakout would be for that word Cam, which is Canada, but what's important.

Speaker Change: The success that we've had in Canada.

Speaker Change: He has been predicated on the basic concept is the customer it's transparent to the customer and the customer's experience is consistent so they know theyre going northbound on style and it goes into Canada.

Speaker Change: It's a place that is a.

Speaker Change: They see the track and follow their freight and all those things those are all positive we're going to do the same thing in Mexico, and I think what's interesting about Mexico is that with the near shoring the opportunity there is probably materially different over time.

Tyler Brown: The success that we've had in Canada has been predicated on the basic concept that it's transparent to the customer, and the customer's experience is consistent. So they know they're going northbound on Saia, and it goes into Canada, and it's a place where they see the track and follow their freight and all those things. Those are all positive. We're going to do the same thing in Mexico, and I think what's interesting about Mexico is that, with near-shoring, the opportunity there is probably materially different over time than it is in Canada. Simply, it's the state of the supply chain. But it's a larger opportunity. It's north and southbound.

Speaker Change: And then it is into Canada simply it's the state of the supply chain larger opportunity, it's north and southbound so.

Speaker Change: Thus, our excitement about that particularly partnering with an experienced Mexican carrier, where high quality systems high quality focus on quality and service very similar match to how we operate so we're really interested in that opportunity.

Speaker Change: Okay, sorry, if I was breaking up I apologize, but Doug Congrats that an award as Scott.

Bascome Majors: Thus, our excitement about that, particularly partnering with an experienced Mexican carrier with high-quality systems, a high-quality focus on quality and service, a very similar match to how we operate, so we're really interested in that opportunity. Sorry if I was interrupting, I apologize, but Doug, congrats. Our next question comes from Bascome Majors from Susquehanna. Please go ahead, your line is open.

Bascome Majors: Our next question comes from Boscombe majors from Susquehanna. Please go ahead. Your line is open.

Bascome Majors: Yes, Doug could you give us an update on some of the visible cost and maybe cadence three months since the last call on D&A and interest expense now that you're getting further on in the terminal openings and then.

Doug: Just taking a step back why is now the time to move on with this transformational 12 to 18 months ahead for the company and Fritz maybe if you could add some color on the boards timeline strategy thinking on on the kind of person you want to hire to lead the financial side of the business going forward. Thank you.

Douglas L. Col: Doug, could you give us an update on some of the visible costs and maybe the cadence three months since the last call on DNA and interest expense now that you're getting further on in the terminal openings and then, you know, just taking a step back, why is now the time to move on with this transformational 12 to 18 months ahead for the company? And Fritz, maybe if you could add some color on the board's timeline, strategy, and thinking Thank you.

Frederick J. Holzgrefe: Hey, Matt I'll.

Frederick J. Holzgrefe: And I'll give you a little bit more color around the modeling.

Frederick J. Holzgrefe: So on the D&A side like I said, I mean Q1 to Q2, we've already taken delivery of.

Frederick J. Holzgrefe: 3000 units. If you include trailers tractors and forklifts in a year to date and we've got we've got another step up coming more to go we're going to get a lot of that equipment and service in the next few months. So Q1, and Q2 like I mentioned, a 10% step up in depreciation.

Douglas L. Col: Hey Bascom, I'll give you a little bit more color around the modeling, you know, so on the DNA side, like I said, I mean, Q1 to Q2, we've already taken delivery of about 3,000 units, if you include trailers, tractors, and forklifts, kind of year-to-date. And we've got another step-up coming, more to go. We're going to get a lot of that equipment and service in the next few months. So Q1 to Q2, like I mentioned, a 10% step-up in depreciation is probably the right way to think about it, probably another little step-up, maybe less than that, maybe 5% or so in Q3 before it starts to, you know, slow.

Frederick J. Holzgrefe: That's probably the right way to think about it probably another step up maybe less than that maybe 5% or so in Q3 before it starts to.

Frederick J. Holzgrefe: Slow.

Frederick J. Holzgrefe: I want you to think to about for the first time in a long time instead of interest income on our cash we've been setting.

Frederick J. Holzgrefe: We're going to we're going to use our revolver at all but this year and have some.

Frederick J. Holzgrefe: That for the first time and also there'll be an interest component you need to model for the Navy.

Douglas L. Col: I want you to think, too, about, for the first time in a long time, instead of interest income on all the cash we've been sitting on, we're going to use our revolver a little bit this year and have some debt for the first time in a while, so there'll be an interest component you need to model for, too. So maybe, you know, I'm thinking probably 4.5 million in the second quarter, and then it should trend down a little bit after that. We've got seasonally stronger cash flow in the months that follow and are kind of, you know. There is a lot of historical modeling of it.

Frederick J. Holzgrefe: <unk> can probably $4 5 million in the second quarter, and then it should trend down a little bit after that we've got seasonally stronger cash flow in the months that follow in our kind of.

Frederick J. Holzgrefe: Historic modeling of it so little bit of interest expense as we work through all of these deliveries and like I said that depreciation step up.

Speaker Change: Yes, the other things I mean.

Speaker Change: The line on the claims and insurance is a volatile like I've always said if you take if you take the trailing four quarters and maybe put a little inflation on that two or 3% inflation you'd probably get to the right spot and I think you've been right on in Q1.

Douglas L. Col: So a little bit of interest expense as we work through all these deliveries and, like I said, that appreciation step up. The other thing, I mean, the line on the claims and insurance is a volatile line, but like I've always said, if you take the trailing 4 quarters and maybe put a little inflation on that, 2 or 3 percent inflation, you'd probably get to the right spot. I think you'd have been right on the number in Q1 if you'd used that modeling advice.

Speaker Change: That modeling advice.

Speaker Change: So thats about all of the product and Im sure on that but.

Thanks, Britt said, there's cost inflation in the business just because the environment's softer doesn't mean, you're going to be able to take a year off on wage inflation or health care costs things like that.

Speaker Change: I would like to point out that we.

Speaker Change: <unk> been looking at a lot of numbers over the last few days.

Douglas L. Col: So that's about all I'm probably going to share on that, but like Fritz said, there's cost inflation in the business, just because the environment's softer doesn't mean you're going to be able to take a year off from wage inflation or health care costs, things like that. I would like to point out, though, that we've been looking at a lot of numbers over the last few days, and, you know, the reason we're going through this, and maybe it plays to your second question, and what we're building for the long term. We're doing it because we see, you know, what that can be as we build it out.

Speaker Change: The reason, we're going through this and maybe it plays to your second question in what we're building for the long term.

Speaker Change: We're doing it because we see.

Speaker Change: What that can be as we build it out for example, we manage our business across 11 regions.

Speaker Change: In the first quarter seasonally slower quarter with a lot of front loading of expenses for our growth.

Speaker Change: We had a handful of regions of the 11 operated sub 80, and when we look at those regions. We say, what's the common denominator well, it's great coverage. It's our brand has been there for a long time and well received by those customers are our footprints competitive with some of our larger peers and guess, what we get more share than our head.

Douglas L. Col: For example, we manage our business across 11 regions. So in the first quarter, you know, a seasonally slower quarter with a lot of front-loading of expenses for our growth, you know, we had a handful of regions in the 11 that operated sub-80. And when we look at those regions, we say, "What's the common denominator?"

Speaker Change: <unk>, 6% industry share of revenue so.

Speaker Change: Even in a quarter like this we've got regions that are operated in sub 80. So.

Speaker Change: Our goal is build out more of the map to look like those regions and push this whole thing lower into the into the 70, So just something to think about it.

Douglas L. Col: Well, it's great coverage. Our brand has been there for a long time and well-received by those customers. But are our footprints competitive with some of our larger peers? And guess what?

Speaker Change: I would just add I mean, its kind of building on doug's comment I mean.

Speaker Change: One of the things that we've shown that we can do over the opening of the last 50 terminals.

Douglas L. Col: We have more share than our headline 6% industry share of revenue. So, you know, even in a quarter like this, we've got regions that are operating sub-80s. So, you know, our goal is to build out more of the map to look like those regions and push this whole thing lower into the 70s. So, just something to think about.

Speaker Change: We know how to add a terminal to a network and how to approach a market.

Speaker Change: And.

Speaker Change: There is a lot of value that we can create both for our customer and for <unk> at the same time so.

Speaker Change: All of the terminals that we've that we have in our pipeline. This year all ones that we think <unk> got.

Frederick J. Holzgrefe: Yeah, I would just add, I mean, it's kind of building on Doug's comment. One of the things that we've shown that we can do over the opening of the last 50 terminals is that we know how to add a terminal to a network and how to approach a market. And there is a lot of value that we can create both for our customers and for SIA at the same time.

Speaker Change: A decade of opportunity for us so we're pretty excited about them.

Speaker Change: Our next question comes from Jason Seidl from TD Cowen. Please go ahead. Your line is open.

Jason H. Seidl: Thanks, operator, Doug congratulations you're not much older than me so I'm very jealous here talking about retirement I've got a long ways to go.

Jason H. Seidl: I wanted to circle back on a few things one obviously, there's a lot of expansion going on here you are opening up some very key terminals.

Frederick J. Holzgrefe: So all of the terminals that we have in our pipeline this year are all ones that we think have got, you know, a decade of opportunity for us, so we're pretty excited. Our next question comes from Jason Seidl from TD Cowen. Please go ahead.

Jason H. Seidl: Should we think about looking out to 'twenty five in terms of the pace of expansion with more openings and then Doug I wanted to circle back a little bit to the comments.

Jason H. Seidl: Your line is open. Thanks, operator. Doug, congratulations. You're not much older than me, so I'm very jealous that you're talking about retirement.

Jason H. Seidl: Somebody asked the question somebody asked about the truckload marketplace. It seems like you don't think the truckload marketplace has had a significant impact on the LDL space and either tonnage or pricing I just want to make sure that I got your answer correct.

Jason H. Seidl: I've got a long ways to go ahead of me, but I wanted to circle back on a few things. One, you know, obviously there's a lot of expansion going on here. You're opening up some very key terminals.

Frederick J. Holzgrefe: How should we think about looking out to 25 in terms of the pace of expansion with more openings? And then, Doug, I wanted to circle back a little bit to the comments somebody asked or the questions that were asked about the truckload marketplace. It seems like you don't think the truckload marketplace has had a significant impact on the LTL space in either tonnage or pricing. I just want to make sure that I got your answer right.

Doug: That's one guy's opinion, I'm, just saying, it's a different business than ours, but our shippers are sophisticated and they've got.

Doug: Transportation management groups that are very technical and if they're figuring out a way to move more in volume in truckload before it gets down to a shipment type move then that certainly could be going on I. Just don't think personally that there is a lot of multi stop truckload going on I mean, it's different equipment.

Douglas L. Col: Well, that's one guy's opinion. I'm just saying it's a different business than ours, but our shippers are sophisticated, and they've got, you know, transportation management groups that are very technical, and if they're figuring out a way to move more in volume truckload before it gets down to a shipment-type move, then that certainly could be going on. I just don't think, personally, that there's a lot of multi-stop truckload going on. I mean, it's different equipment; a truckload driver is not typically used to handling freight or has the tools to handle freight.

Doug: Truckload drivers not typically used to handling freight or have the tool to handle freight.

I find that personally hard to believe that that is having a big impact but.

Doug: The shipper themselves might be figuring out a way to use the favorable TL rate environment to take advantage of that because they are facing cost inflation too. So.

Speaker Change: In my opinion, but look.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Maybe I'm retiring I don't know what I'm talking about but it seems to me that that makes sense.

Speaker Change: Yes, so on the on the first question about the multiyear or the expansion. So keep a couple of things in mind.

Douglas L. Col: So I find that, personally, hard to believe that that's having a big impact, but the shippers themselves might be figuring out a way to use the favorable TL rate environment to take advantage of that, because they're facing cost inflation, too. So that's just my opinion, but see. Maybe I'm old, maybe I'm retiring because I don't know what I'm talking about, but it seems to me that that makes sense. And so on the first question about the multi-year, or the expansion, keep a couple things in mind.

Speaker Change: We were having this conversation a year ago pre the yellow auction, we would've been telling you about 10% to 15 terminals a year out of our real estate pipeline because we've got we spent a lot of time developing sort of core competency around organic growth and particularly around how do we expand terminals. So we had a pipeline.

Speaker Change: And facilities in there and then we added in the.

Speaker Change: The 28 that came through the yellow auction, which we're excited about we're going to open a number of them. This year that will continue into next year.

Douglas L. Col: If we were having this conversation a year ago, before the Yellow Auction, we would have been telling you about 10 to 15 terminals a year out of our real estate pipeline because we've spent a lot of time developing a sort of core competency around organic growth and particularly around how we expand terminals. So we had a pipeline of facilities in place, and then we added in the 28 that came through the Yellow Auction, which we're excited about; we're going to open a number of them this year, and they will continue in the next year. Next year it could be 10, could be 15, somewhere in there, potential openings, or not; we'll see how that goes.

Speaker Change: Next year it could be 10 could be 15 somewhere in their potential openings or not we'll see how that goes but the pipeline that we have is multi year and once we get through the end of this year I don't think we're going to have the exact.

Speaker Change: On footprint that we think we ultimately need to have.

Speaker Change: I think that Youll see us continue to replace <unk> and.

Speaker Change: And upsize facilities as our network matures and grows.

Frederick J. Holzgrefe: But the pipeline that we have is multi-year, and once we get through the end of this year, I don't think we're going to have the exact full-on footprint that we think we ultimately need to have. I think that you'll see us continue to replace and upsize facilities as our network matures and grows. So I think that that's an important part of our multi-year story here. And I think that there's opportunity for us in the next year around growing facilities. Perfect. That's exactly what I was looking for.

Speaker Change: So I think that that's an important part of our multiyear story here, So I think that the.

Speaker Change: There is opportunity for us into next year around growing facilities.

Speaker Change: Perfect. That's all I was looking for Doug looking forward to seeing in June and having a bit with you Sir.

Speaker Change: Thanks <unk>.

Speaker Change: Our next question comes from Ken <unk> from Bank of America. Please go ahead. Your line is open.

Ken: Great. Thank you good morning.

Ken: Doug I'll throw out and congrats on your retirement or what we all know is your move to really try to get back to the sell side. So good luck on that.

Jason H. Seidl: Doug, I'm looking forward to seeing you in June and having a beer with you. Thanks. See you then, buddy.

Kenneth Scott Hoexter: Our next question comes from Ken Hoexter from Bank of America. Please go ahead. Your line is open. Great. Thank you. Good morning.

Speaker Change: Okay great.

Speaker Change: And as to stiff there now these days.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Great can you talk about maybe customer engagement in the quarter was I just want to understand what happened on the volume side was due to I don't know edition of large enterprise customer yellow business that kind of came back in and then you kind of re hit on pricing and it fell away I'm just trying to decipher the volume weakness.

Kenneth Scott Hoexter: Doug, I'll throw it in. Congratulations on your retirement or, as we all know, your move to really try to get back to the sales side. So good luck on that. The competition is too stiff there now these days, Ken. I would not survive.

Frederick J. Holzgrefe: Brits, can you talk about maybe customer engagement in the quarter? I just want to understand what happened on the volume side. Was it due to, I don't know, the addition of large enterprise customer yellow business that kind of came back, and then you kind of re-hit on pricing, and it fell away? I'm just trying to decipher the volume weakness, you know, here versus maybe what we see in some parts of the market.

Speaker Change: Here versus maybe what we see.

Speaker Change: In some parts of the market.

Speaker Change: So I would just.

Speaker Change: Kind of highlight the just the macro situation right. So just kind of the GDP report that came out earlier. This week that said Q1 GDP is one 6% I think anybody would say that.

Speaker Change: That's kind of a mixed sort of macro environment, maybe soft macro environment. So I think you have that sort of overhang for the industry and I think you've seen that in other reports that are out there from other modes.

Frederick J. Holzgrefe: So I would just kind of highlight just the macro situation, right, so the GDP report that came out earlier this week that said Q1 GDP was 1.6%, I think anybody would say that that's kind of a mixed... So I think you have that sort of overhang for the industry, and I think you've seen that in other reports that are out there from other modes and, you know, competitors and such.

Speaker Change: <unk> and such so I think there's that going on.

Speaker Change: And I think what you see with <unk>, specifically as you see the impact of our own initiatives around our geographic expansion.

Speaker Change: I think that if.

Speaker Change: Had we had a bit of a stronger.

Speaker Change: Macro environment I think we would have seen a little bit more of a lift in Q1, but actually despite the limited limits of the macro environment I saw our performance is actually really good.

Frederick J. Holzgrefe: So I think there's that going on. And I think what you see with Saia specifically is the impact of our own initiatives around our geographic expansion. I think that, you know, if we had a bit of a stronger macro environment, I think we would have seen a little bit more of a lift in Q1.

Speaker Change: And that's a reflection of kind of already a synchronic story and our ability to deliver service and that kind of environment. So I think what it does is that I mean, I think the takeaway out of that is employed when the macro maybe it becomes it firms up for more certain or people are more comfortable whatever it might be sorry, it's going to be in a position to really take advantage of that.

Kenneth Scott Hoexter: But I actually, despite the limited limits of the macro environment, think our performance is actually really good. And that's a reflection of kind of our idiosyncratic story and our ability to deliver service in that kind of environment. So I think what it does is that, I mean, I think the takeaway from that is that, boy, when the macro, you know, maybe it becomes more certain or people are more comfortable, whatever it might be, Saia's gonna be in a position to really take advantage of that. And because we're doing a good job in the environment we're in now.

Speaker Change: And because we're doing a good job in the environment. We're in now so.

Speaker Change: I like how that sets up for US I think the Q1 situation was as we've highlighted on the call slow macro backdrop, I think it's probably ongoing maybe a little bit of turnaround that we're working on making sure we get the appropriate freight in our in our network, maybe we've shed a little bit there on the on the margins.

Frederick J. Holzgrefe: So I like how that sets up for us. I think the Q1 situation was, you know, as we've highlighted on the call, so the macro backdrop, I think it's probably ongoing, maybe a little bit of churn around that. We're working on making sure we have the appropriate freight in our network. Maybe we shed a little bit there on the margins. But fundamentally, I think what we posted was still really good.

Speaker Change: But fundamentally I think what we what we posted was still really good.

So just to clarify it's not like what you took on was yellow freight or Amazon freight or something like that and then.

Frederick J. Holzgrefe: So just to clarify, it's not like what you took on was Yellow Freight or Amazon Freight or something like that, and then you took that on because it was in the market against a bad macro, and you had to go reprice it. That's not... No, no, no, no.

Speaker Change: You took that on because it was in the market against a bad macro and you have to go re price. It that's not no no no no I think you had as we got we had Yale freights came our way because we had a lot of shared accounts and.

Kenneth Scott Hoexter: I think what you're seeing is we had the yellow freight that came our way because we had a lot of shared accounts, and then in Q4, we were talking about pulling contracts forward, so you saw a little bit of that churn. We had a mix of business changes a little bit, from Q4 to Q1, and we're not giving up on that either. All right, and then for my follow-up, just your thoughts on claims ratio. I don't think you tossed that in the release.

Speaker Change: In Q4, we were talking about Poland contracts forward see saw over to that churn we got mix.

Speaker Change: Mix of business changes, a little bit Q4 to Q1.

Speaker Change: We're not giving up on that either were continuing to make fine that freight that makes the most sense for us to get the pricing right. So.

Speaker Change: Some of that just to get it underlying business and what we deal with on a daily basis.

Speaker Change: Alright, and then for my follow up.

Speaker Change: Thoughts on claims ratio I don't think you talked about in our release and then as tightening flattened out now.

Frederick J. Holzgrefe: And then has tightening flattened out now? You know, that, you know, are we seeing that settle in at this point? Or is it still volatile, given some of those repricings and revisits of contracts? You know, I think it's just kind of ongoing, specifically around your contractual question. I mean, I think we're in a unique spot because we're growing, we're, you know, taking on some new customers, or we're getting a different mix of business as we go.

Speaker Change: Are we seeing that settling at this point or.

Speaker Change: Is it still volatile given some of those repricing and revisit that contract.

Speaker Change: I think it's just kind of ongoing.

Speaker Change: Specifically around your contractual question I mean, I think we're in a unique spot because were growing were.

Speaker Change: Taken on some new customers or we're getting different mix of business as we go.

Frederick J. Holzgrefe: And I think what you'll find with that is that we've got to continue to need to reprice and get the book of business and the margins right and make sure that we're getting paid at sort of market rates.

Speaker Change: And I think what you what you find with that is that we've got to continue need to reprice.

Speaker Change: Get the book of business, the margins right and make sure that we're being paid it's sort of market rates.

Speaker Change: And that's kind of a key so.

Frederick J. Holzgrefe: And that's kind of key. You'll continue to see that from us going forward, in all likelihood. Yeah, I mean, the claims ratio has been hanging in there in the 0.5, 6.6 range for a while.

You'll continue to see that from us going forward in all likelihood.

Speaker Change: And then Youll equivalent claims.

Speaker Change: Okay.

Speaker Change: Yes, I mean, the claims ratio has been hanging in there.

Speaker Change: 566 range for a while very consistent service, even with all the new team members and things like that so I think I think we're hearing good things about our service and as we look forward to rolling it out more market.

Douglas L. Col: Very consistent service, even with all the new team members and things like that. So, you know, I think we're hearing good things about our service, and we look forward to rolling it out in the market. Thank you. Appreciate the thoughts. Our last question today will come from Daphne Moore from Jeffreys. Please go ahead, your line is open. Hi, good morning.

Speaker Change: Appreciate the thoughts.

Speaker Change: Okay.

Speaker Change: Our last question today will come from Daphne Miller from Jefferies. Please go ahead. Your line is open.

Daphne Miller: Hi, good morning, Stephanie warhead with Jefferies.

Stephanie Lynn Benjamin Moore: Stephanie Moore here from Jeffries. I thought you had a new assistant. Me too. No, it's Stephanie.

Daphne Miller: Yes.

Daphne Miller: Thank you Adam.

Daphne Miller: I don't know.

Daphne Miller: Okay.

Speaker Change: Me too.

Stephanie Lynn Benjamin Moore: Sorry about that. It's been a busy week, but I'll be real quick here. Look, I think every short-term and macro question has been asked, so I'm going to ask this a little bit differently. If you take a step back, how would you compare this year, 2024, and your expansion plans? How does this compare to maybe another year in the last, call it seven, when you embarked on this similar, pretty aggressive capacity expansion plan?

Speaker Change: Alright.

Speaker Change: <unk> been a busy week, but our real quick here look I think every short term macro question been asked though and ask this a little bit differently. If you step up if you take a step back how would you compare.

Speaker Change: This year 2024, and your expansion plan how does this compare to maybe another year in the last call. It seven that you've been embarked on this similar pretty aggressive capacity expansion plan. So whether it's by terminals our door count. However, you want to look at it but I'd love to get your perspective is there a similar year that you can kind of point of tier where you are making these investments.

Stephanie Lynn Benjamin Moore: So, whether it's by terminals or door count, however you want to look at it, but I'd love to get your perspective. Is there a similar year that you can kind of point us to where you're making these investments and ultimately see this loaded springboard for when the market eventually turns? I'd love to just hear your perspective.

Speaker Change: And ultimately do you disclose the springboard for when the market eventually turns I'd love to hear your perspective. Thanks.

Frederick J. Holzgrefe: Thanks. Yeah, you know, Stephanie, the interesting thing about, I mean, I hate to give this kind of a tough answer just to say every year is a little bit different, right, in terms of where you are in the expansion. What's really exciting about this one, this year, that maybe differentiates it a bit compared to the others is the kind of range of opportunities we have. So, we've got some really interesting market expansions, Trenton, Laredo, you know, places like Owatonna, Minnesota. This year, we're going to open a facility in Owatonna and then one in Duluth. And in the fall of last year, we opened one just outside of Minneapolis-St. Paul in Wisconsin.

Speaker Change: 70, the interesting thing about I mean, I hate to kind of a tough answer just to say every year is a little bit different right in terms of where you are in the expansion what's really exciting about this one this year that maybe differentiates.

Speaker Change: Compared to the others is the kind of the range of opportunities. We have so we've got some really interesting market expansions Trenton Laredo.

Speaker Change: Places like Owatonna, Minnesota this year, we're going to open a facility in owatonna.

And then one in Duluth and the fall of last year. We opened one just outside of Minneapolis, St. Paul at Wisconsin Society.

Frederick J. Holzgrefe: So, Saia, in a span of less than a year, is going to go from Minnesota being the end of the line to making that sort of a real market for us. So, the openings that we have right now are ones that say these are all about the customer and providing that additional level of service. So, that, to me, is really exciting. And then you've got these, you know, big strategic facilities that we're putting in place.

Speaker Change: Span of less than a year is going to go from being Minnesota being the end of the line to making that sort of a real market for us. So.

Speaker Change: The openings that we have right now are ones that say these are all about the customer and providing that additional level of service. So that that to me is really exciting and then you've got these big strategic facilities.

Frederick J. Holzgrefe: And then you've got facilities across the Great Plains that we're going to add. Now, we're going to be in a position to say to our customer, hey, look, we can go anywhere any of your other national accounts or national LTL players can go, and we know what we can do on a service basis, right? So, that, for us, makes this a really exciting year and one that is probably a little bit different from the others from that perspective.

Speaker Change: That we're putting in place and then then you've got facilities across the great Plains that we're going to add that now we're going to be in a position to say that our customer Hey look we can go anywhere any of your other national account our national LPL players can go and we know what we can do on a service basis right. So it's that that for us.

Speaker Change: Makes this a really exciting year and one that is probably a little bit different than the others.

Speaker Change: From that perspective.

Frederick J. Holzgrefe: And as I've mentioned a few times on the call, organic expansion like this is in our wheelhouse. We know how to do it. And, you know, I've heard, you know, there's been commentary out there that said that, you know, We have established people who have an established culture and all these things, and you know, we just, Well, at Saia, we have an established culture as well. We have an established culture that says, we know how to replicate that over and over again.

Speaker Change: And as I've mentioned, a few times on the call organic expansion like this this is in our wheelhouse, we know how to do this in.

Speaker Change: I've heard there's been commentary out there that said that.

Speaker Change: We have an established people have an established culture and all these things and we just while at <unk>. We have an established culture as well we have an established culture that says we know how to replicate that over and over again people are drawn to that and we know how to continue to build on that in the next 100 employees that we added.

Stephanie Lynn Benjamin Moore: People are drawn to that, and we know how to continue to build on that. And the next 100 employees that we add are an important part of further enhancing that culture and providing that great service to customers. So I'm excited about this range of openings, and I will be about the ones in the next year as well.

Speaker Change: An important part of further enhancing that culture, and providing that great service to customers. So I'm excited about this range of openings and I will be about the ones into next year as well.

Frederick J. Holzgrefe: Got it. Thank you. I guess just from my perspective, I feel like we've seen this movie before, and it almost takes me back to 2019 where, you know, not the best market, but you're investing pretty heavily, and you kind of see that recovery in a meaningful way, and then, you know, as soon as the market does return. So I guess that was my thought. So I appreciate the comment. Yeah. And listen, Stephanie, on that point, I mean, I like the idea of having 210, 215 terminals teed up, ready to go, the established team that when you have macro certainty about what the spring looks like for Saia, like a springboard for Saia. I think that's a fantastic opportunity for us.

Speaker Change: Got it. Thank you I guess just from my perspective, I feel like we've seen this movie before and almost taking you back to 2019 were not the best market that you are investing pretty heavily and you kind of see that hey that recovery.

Speaker Change: Away in that.

Speaker Change: And as the market does return.

Speaker Change: My thoughts.

Speaker Change: Yes, listen Stephanie on that point I mean.

Speaker Change: I like the idea of having 210 215 terminals teed up ready to go the established team that when you have macro certainty what the spring looks like for Sarnia, but springboard for side I think that's that's a fantastic opportunity for us.

Stephanie: Got it thanks, so much.

Speaker Change: Thank you we have no we have no further questions I would like to turn the call back over to <unk>, President and Chief Executive Officer, Greg Roth for closing remarks.

Stephanie Lynn Benjamin Moore: Got it. Thanks so much. We have no further questions. I would like to turn the call back over to Saia's President and Chief Executive Officer, Fritz Holzgrefe, for closing remarks. Thank you, and thank you everybody that called in, and we appreciate the opportunity to talk about the great things happening at SAIA. I really look forward to the next years and continuing to deliver results. So, thank you very much. This concludes today's conference call. Thank you for your participation. You may now disconnect.

Greg Roth: Thank you and thank you everybody that's called in and we appreciate the opportunity to talk about the great things happening aside I really look forward to the next.

Speaker Change: Years and continue to deliver on the results. So thank you much.

Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.

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