Q4 2024 Proficient Auto Logistics Inc Earnings Call
Participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press star one one of your telephone you was inherent automated message advising your hand. This race to withdraw your question. Please press star one again.
Please be advised that today's conference is being recorded.
Brad Wright: I'd now like to hand, the conference over to your Speaker today, Brad Wright Chief Financial Officer. Please go ahead.
Brad Wright: Good afternoon, everyone I'm, Brad Wright, Chief Financial Officer of proficient model logistics. Thank you for joining us on <unk> fourth quarter 2024 earnings call.
Brad Wright: Under SEC rules, our Form 10-K, covering the three and 12 month periods ending December 31, 2024 will include financial statements for both the predecessor accounting entity.
Yeah.
Good day, and thank you for standing by.
Brad Wright: Proficient auto transport and the successor entity proficient proficient auto logistics, Inc. We are not required to provide in the Form 10-K will not contain pro forma financial data for the combined companies. However, our earnings release provides comparative summary, combined financial information for the fourth quarter.
Welcome to the proficient auto logistics fourth quarter financial information Conference call.
At this time all participants are in a listen only mode.
The speaker's presentation, there will be a question and answer session.
To ask a question during the session you will need to press star one wanting a telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one again.
Brad Wright: In the 12 months ended December 31 for the combined companies note that these results are preliminary as our financial audit for 2024 is not yet complete.
Please be advised that today's conference is being recorded.
I'd now like to hand, the conference over to your Speaker today, Brad Wright Chief Financial Officer. Please go ahead.
Good afternoon, everyone I'm, Brad Wright, Chief Financial Officer of proficient model logistics. Thank you for joining us on proficient as fourth quarter of 2024 earnings call.
Brad Wright: Our earnings release can be found under the Investor Relations section of our website at proficient auto logistics Dot com.
Brad Wright: Our 10-K when filed can also be found under the Investor Relations section of our website.
Under FCC rules, our Form 10-K, covering the three and 12 month periods ending December 31 2024.
Brad Wright: During this call we will be discussing certain forward looking information. This information is based on our current expectations and is not a guarantee of future performance and I encourage you to review the cautionary statement in our earnings release, describing factors that could cause actual results to differ from those expressed by the forward looking statements.
Include financial statements for both the predecessor Academy.
Proficient auto transport and the successor entity official proficient auto Logistics, Inc.
We are not required to provide in the Form 10-K will not contain pro forma financial data for the combined companies. However, our earnings release right Comparative summary, combined financial information for the fourth quarter and the 12 months ended December 31 for the combined company note that these results are preliminary.
Brad Wright: Further information can be found in our SEC filings. During this call. We may also refer to measures that include adjusted operating income adjusted operating ratio EBITDA and adjusted EBITDA.
Brad Wright: Please refer to the portions of our earnings release to provide reconciliations of those profitability measures to GAAP measures such as operating earnings and earnings before income taxes.
As our financial audit for 2024 is not yet complete.
Our earnings release can be found under the Investor Relations section of our website at proficient huddle logistics Dotcom, our 10-K when filed and also be found under the Investor Relations section of our website.
Rick Odell: Joining me on today's call are Rick Odell sufficient as chairman and Chief Executive Officer, and Amy Rice, our President and Chief operating Officer.
Rick Odell: We will provide a company update as well as an overview of the company's combined results for the fourth quarter. After our prepared prepared remarks, we will open the call to questions. During the Q&A. Please limit yourself to one question plus one follow up you may get back into the queue. If you have additional questions now I would like to introduce.
During this call we will be discussing certain forward looking information.
This information is based on our current expectations and is not a guarantee of future performance and I encourage you to review the cautionary statement in our earnings release, describing the factors that could cause actual results to differ from those expressed by the forward looking statements.
Rick Odell: Rick O'dell, who will provide the company update.
Further information can be found in our SEC filings. During this call. We may also refer to measures that include adjusted operating income adjusted operating ratio EBITDA and adjusted EBITDA.
Rick O'Dell: Thank you Brad and good afternoon, everyone.
I'll start out with an overview of our operations during the fourth quarter and some trends that provide insight into our expectations as we entered 2025 <unk>.
Please refer to the portions of our earnings release to provide reconciliations of those profitability measures to GAAP measures such as operating earnings and earnings before income taxes.
Rick O'Dell: The macro auto industry environment in the fourth quarter were largely a continuation of the weakness we described in the third quarter.
Rick O'Dell: <unk> volumes were relatively strong up approximately 6% versus the same month in 2023, but by mid November the pace of volumes.
Joining me on today's call are Rick O'dell for fishing is chairman and Chief Executive Officer, and Amy Rice, our President and Chief operating Officer.
Rick O'Dell: Ending down 4% for the quarter versus the fourth quarter of 2023.
We will provide a company update as well as an overview of the company's combined results for the fourth quarter. After our prepared prepared remarks, we will open the call to questions. During the Q&A. Please limit yourself to one question plus one follow up.
Rick O'Dell: As in the third quarter, a larger issue was unit prices of slack transportation capacity and relatively high dealer inventory resulted in ongoing limited spot opportunities.
May get back into the queue. If you have additional questions now I would like to introduce Rick O'dell, who will provide the company update.
Rick O'Dell: Persistent downward pressure on spot pricing when opportunities present.
Rick O'Dell: A weak demand for dedicated fleet services.
Thank you Brad and good afternoon, everyone.
Rick O'Dell: Our dedicated fleet service generated revenue of $3 7 million during the fourth quarter compared to $14 2 million in the fourth quarter of 2023.
I'll start out with an overview of our operations during the fourth quarter and some trends that provide insight into our expectations as we entered 2025.
Rick O'Dell: Our revenue from spot buy opportunities during the quarter comprised.
The macro auto industry environment in the fourth quarter was largely a continuation of the weakness we described in the third quarter.
Rick O'Dell: 5% of total revenue versus 14% a year ago.
Total volumes were relatively strong up approximately 6% versus the same month in 2023, but by mid November the pace of volume slow ending down 4% for the quarter versus the fourth quarter of 2023.
Rick O'Dell: Revenue per unit from spot buys fell by 57% year over year in the spot premium over contract pricing was 16% in the fourth quarter compared to over 100% during the first two quarters of this year.
In the third quarter, a larger issue was unit prices slash transportation capacity and relatively high dealer inventory.
Rick O'Dell: Pass through while we believe the current spot market to be unusually weak. We also do not expect to return to the levels a year ago.
So that ongoing limited spot opportunities.
Rick O'Dell: As the post Covid through early 2024 time period was marked by a unique industry supply chain dislocation that drove transportation premiums well above typical market.
There's some downward pressure on spot pricing when opportunities present, and a weak demand for dedicated fleet services. Our dedicated fleet service generated revenue of $3 7 million during the fourth quarter compared to $14 2 million.
Rick O'Dell: Seasonally adjusted annual sales rates or SAR increased over the course of the fourth quarter with industry estimates for all three months above 16 million units.
Fourth quarter 2023.
Our revenue from spot buy opportunities during the quarter comprised 5% of total revenue versus 14% a year ago, our revenue per unit for spot buys fell by 57% year over year in the spot premium over contract pricing was 16% in the fourth quarter compared.
Rick O'Dell: At $16 8 million in December the.
Rick O'Dell: Increased sales, particularly in the second half of the quarter. However came through a combination of reduction in dealer inventory and.
Rick O'Dell: And new shipments into dealer lot average days sales and dealer inventory ended 2024 at approximately 46 days down from 58 days at the end of November and between 60, and 90 days throughout the third quarter, while the lower level of yearend inventory would be more promising for replenishment.
Over 100% during the first two quarters of this year.
This past year, while we believe the current spot market to be unusually weak. We also do not expect to return to the levels a year ago.
Rick O'Dell: Demand was sustained step with sustained sales momentum in January and January Saar decline to $15 6 million units.
As the post Covid through early 2024 time period was marked by a unique industry supply chain dislocation.
Rove transportation premiums well above typical mark.
Rick O'Dell: Despite these various industry headwinds proficient achieved approximately 4% growth in both units delivered and total revenue during the fourth quarter versus the third quarter of 2024. We also continued to strengthen the foundations that will set the stage for future growth and profitability at proficient.
Seasonally adjusted annual sales rates or SAR increased over the course of the fourth quarter with industry estimates for all three months about 16 million units.
Peaking at $16 8 million in December.
The increased sales, particularly in the second half of the quarter. However.
Rick O'Dell: Improving adjusted operating ratio by 50 basis points during a period of persistent.
Through a combination of reduction in dealer inventory.
And new shipments into deal or what.
Rick O'Dell: Weak revenues.
Average days sales and dealer inventory ended 2024 at approximately 46 days down from 58 days at the end of November and between 60, and 90 days throughout the third quarter, while the lower level of yearend inventory would be more promising for punishment demand was sustained staff sustained.
Rick O'Dell: There's recently been a significant amount of media attention regarding disruption in the auto hauling landscape and speculation about the impact to proficient and others in our industry.
Rick O'Dell: As a matter of policy and to adhere to confidence yet reality around OEM carrier relationships proficient, we'll not comment about specific competitors or customers.
Sales momentum in January and January sorry declined to $15 6 million units.
Rick O'Dell: That being said the weak external environment has been challenging for our industry segment.
Despite these various industry headwinds proficient achieved approximately 4% growth in both units delivered and total revenue during the fourth quarter versus the third quarter of 25. Four we also continue to strengthen the foundations that will set the stage for future growth and profitability and profession.
Rick O'Dell: Reported closure of a top five carrier where reduced near term capacity and.
Rick O'Dell: And likely have widespread impact in the industry, we remain confident that with our service capabilities and the related value proposition will be able to do more for our OEM customers and expect to benefit over time through market share gains.
<unk> adjusted operating ratio by 50 basis points during a period of persistent.
Rick O'Dell: Also we should note that in addition to some of the reported auto haul disruption in the media there are several Oems in the midst of scheduled regional or national bid processes.
Week revenues.
There's recently been a significant amount of media attention regarding disruption in the auto Hollywood landscape and speculation about the impact of the profession and others in our industry.
Rick O'Dell: That said a meaningful amount of new vehicle volume transportation as being decision across the OEM landscape. This year.
As a matter of policy and to adhere to comprehend reality around OEM area of relationships proficient, we'll not comment about specific.
Rick O'Dell: <unk> is positioning itself and competing for incremental market share that should be sustainable and accretive to our portfolio over the long term.
Patterns or customers.
That being said the weak external environment has been challenging for our industry segment.
Rick O'Dell: With regard to major integration and strategic initiatives, we continue to progress nicely on the technology front all of our operating companies are now using magnetic technologies transportation management system. The.
Reported closure of a top five carrier will reduce near term capacity.
And likelihood of widespread impact in industry we.
Rick O'Dell: The data captured in this common system is providing key insights into our customer base operational efficiency and profitability metrics. We continue to advance integration efforts to back office systems and tools, including a common accounting platform.
We remain confident that with our service capabilities and their related value proposition will be able to do more for our OEM customers and expect to benefit over time through market share gains.
Also we should note that in addition to solve the reported auto haul disruption in the media there are several Oems in the midst of scheduled regional or national bid processes.
Rick O'Dell: Cohesive HRS platform and cost accounting methodology.
Rick O'Dell: For example.
Rick O'Dell: Particularly in a weaker market through consistent though consistent with our strategic objective, we prioritize company driver efficiency and net and have a pipeline of backhaul target precise identified and being worked in both new vehicle in the secondary market.
Meaningful amount of new vehicle volume transportation as being decisions across the OEM landscape this year.
Fishing is positioning itself and competing for incremental market share that should be sustainable and accretive to our portfolio over the long term.
Rick O'Dell: To capture these opportunities.
With regard to major integration and strategic initiatives, we continue to progress nicely on the technology front all of our operating companies are now using Magnus technologies Transportation management system.
Rick O'Dell: National procurement efforts continue with signed contracts being fully implemented and a broader set of smaller target areas identified to drive ongoing incremental cost savings.
Rick O'Dell: That said, we have some inflationary and structural headwinds to offset this as well with items, such as insurance cost and expanded coverage.
Data capture and that's common system is providing key insights into our customer base operational efficiency and profitability metrics. We continue to advance integration efforts to back office systems and tools, including a common accounting platform.
Rick O'Dell: Driving some unfavorable near term variance in that cost line.
Brad Wright: I'll now turn it back to Brad to cover some key financial highlights.
Brad Wright: Thank you Rick I'll start with a few summary statistics all prior year comparisons are for the combined companies operating revenue of $95 1 million in the quarter was up 4% from last quarter, but down 15, 9% from the prior year.
Cohesive HRS platform and cost accounting methodology.
For example.
Particularly in a weaker market.
That was consistent with our strategic objective, we've prioritized company driver efficiency and mix and have a pipeline of backhaul target for states identified and being worked and both new vehicle and the secondary market.
Brad Wright: Units delivered 521476 represents a 4% increase over third quarter, but a 4% decline from the fourth quarter of 2023.
Capture these opportunities.
National procurement efforts continue with signed contracts being fully implemented and a broader set of smaller target areas identified to drive ongoing incremental costs at.
Brad Wright: Revenue per unit, excluding fuel surcharge was approximately 169 unchanged from the third quarter, but down approximately 14% from 197 in the fourth quarter of last year.
That said, we have some inflationary and structural headwinds to offset this as well with items debt insurance costs and expanded coverage.
Brad Wright: Company deliveries were 37% of revenue in Q4 versus 39% in the third quarter sub haul deliveries. Therefore was 63% of revenue in Q4 versus 61% in the prior quarter.
Driving some unfavorable near term variance in that cost line.
I'll now turn it back to Brad to cover some key financial highlights.
Thank you Rick I'll start with a few summary statistics all prior year comparisons are for the combined companies operating revenue of $95 1 million in the quarter was up 4% from last quarter, but down 15, 9% from the prior year.
Brad Wright: The company had approximately $15 8 million of cash and equivalents on December 31 2024.
Brad Wright: Aggregate debt balances at quarter end were approximately $82 $4 million or net debt of $66 6 million.
Units delivered a 521476 represents a 4% increase over third quarter, but a 4% decline from the fourth quarter of 2023.
Brad Wright: The increase in net debt from last quarter reflects our financing of fleet growth during the quarter.
Brad Wright: Total common shares outstanding ended the quarter at $27 million, which is unchanged from that disclosed in our third quarter Form 10-Q.
Revenue per unit, excluding fuel surcharge was approximately $169 unchanged from the third quarter, but down approximately 14% from 197 in the fourth quarter of last year.
Looking ahead to the first quarter of 2025 January was challenged by not only a week star months and the typical post year end seasonal volume weakness.
Company deliveries were 37% of revenue in Q4 versus 39% in the third quarter sub haul deliveries. Therefore was 63% of revenue in Q4 versus 61% in the prior quarter.
Brad Wright: Also significant weather events in many areas of the country, such as the northeast Mexico in Oklahoma, Texas, and the Gulf Coast that shutdown local operations for days at a time.
Brad Wright: The fires in southern California also delayed loading into delivery intermittently over a period of a few weeks as a result quarter to date unit volumes and revenue are lower by 17, 5% versus the comparable period of last year.
The company had approximately $15 8 million of cash and equivalents on December 31 2024.
Aggregate debt balances at quarter end or approximately $82 4 million or net debt of $66 6 million.
Brad Wright: However.
Brad Wright: To recover much of the shortfall through the end of the quarter based on the visibility to the near term pipeline such that the full quarter revenue and profitability are likely to be similar to the fourth quarter of 2024.
The increase in net debt from last quarter reflects our financing of fleet growth during the quarter.
Total common shares outstanding ended the quarter at $27 million, which is unchanged from that disclosed in our third quarter Form 10-Q.
Brad Wright: Full year outlook for 2025 remains marked by some large uncertainties in the macro environment, though we do expect sequential momentum as we move into the second quarter and the second half of the year with the expectation of improved full year of 2025 results over 2024.
Looking ahead to the first quarter of 2025 January was challenged by not only a week SAR months and the typical post year end seasonal volume weakness, but also significant weather events in many areas of the country such as the northeast Mexico in Oklahoma, Texas, and the Gulf Coast that shut down low.
Brad Wright: Operator, we will now take questions.
Brad Wright: Thank you as a reminder to ask a question. Please press star one warning your telephone and wait for your name to be announced.
<unk> operations for days at a time.
The wildfires in southern California, also delayed loading and delivery intermittently over a period of a few weeks as a result quarter to date unit volumes and revenue are lower by 17, 5% versus the comparable period of last year.
Brad Wright: Your question. Please press star one again.
Brad Wright: Our first question comes from the line of Bruce Chan with Stifel. Your line is now open.
Speaker Change: Good afternoon team. This is not my last one for Bruce Chan how are you.
However, we expect to recover much of the shortfall to be ended the quarter based on visibility to the near term pipeline such that full quarter revenue and profitability are likely to be similar to the fourth quarter of 2024.
Brad Wright: Good maps good Matt.
Brad Wright: Excellent.
Brad Wright: Just to start off I know there is.
Speaker Change: Likely limited information that you'd like to share you can share at this time, but we look we get a better sense of the market share that might be at stake here. During the IPO Road show you discussed that both you and Jack Cooper.
Our full year outlook for 2025 remains marked by some large uncertainties in the macro environment, though we do expect sequential momentum as we move into the second quarter and the second half of the year with the expectation of improved full year of 2025 results over 2024.
Brad Wright: Had about low teens market share.
Brad Wright: However, it seems Jack Cooper might have north of $1 billion of top line.
Brad Wright: Is there any way without maybe going to be able to help us put a finer point on those numbers at a minimum maybe from a volume or revenue perspective, how much opportunity could be headed into the market.
Operator, we will now take questions.
Thank you as a reminder to ask a question. Please press star one one of your telephone and wait for your name to be announced.
Withdraw your question. Please press star one again.
Brad Wright: We really don't have.
Our first question comes from the line of Bruce Chan with Stifel. Your line is now open.
Brad Wright: Visibility into their revenue levels.
Brad Wright: So I don't know that we have that we can be very helpful with that.
Good afternoon team. This is Matt My last one for Bruce Chan how are you.
Speaker Change: We know the fleet fleet wide.
Good Matt good Matt.
Brad Wright: Are larger than us so.
Excellent.
Just to start off I know there's a.
Speaker Change: Okay.
Okay.
Likely limited information that you'd like to share with you can share at this time, but we look we get a better sense of the market share that might be at stake here. During the IPO Road show you discussed that both you and Jack Cooper.
Speaker Change: Is that low teen market share figure something that you're comfortable communicating.
Speaker Change: Yes.
Speaker Change: We don't have any.
<unk> had about low teens market share. However, it seems Jack whoever it might have north of $1 billion of top line is there any way without maybe going to be able to help us put a finer point on those numbers you know at a minimum maybe from a volume or revenue perspective, how much opportunity could be heading into the market.
Speaker Change: David.
Speaker Change: The market relative to what was shared.
Speaker Change: Joe so that would be a reasonable.
Speaker Change: Our estimate of opportunity at the time.
Speaker Change: Fair enough.
Speaker Change: And then just on <unk>.
Speaker Change: Network density.
Speaker Change: How should we think about prioritization of volume and share here.
<unk>.
Speaker Change: Versus density is your approach going to be in it.
And we really don't have.
Speaker Change: Take as much high quality share as possible and then sort of optimized for density. After the fact or are we planning to take a more measured approach.
Visibility into their revenue levels.
So I don't know that that we can be very helpful with that.
Speaker Change: To what volumes that you guys take onboard.
We know why.
Speaker Change: Yes, I can think about a little bit so.
Are larger than us so.
Speaker Change: Following that fits our existing network.
Okay.
Speaker Change: Is there any target for us and we're bidding on.
Okay.
Is that low teen market share figure something that you're comfortable communicating.
Speaker Change: On all of those opportunities.
Speaker Change: Adjacent falling in that timeline.
Speaker Change: And then just in case.
Speaker Change: Either at that terminal.
We don't have any.
Speaker Change: Is it bad debt.
Updated you.
Speaker Change: We are going to calculate before we enter an entirely new market.
The market relative to what was shared at the Investor.
Joe So that would be a reasonable estimate.
Speaker Change: And it's interesting the new desktop App would be looking for.
At the time.
Fair enough.
Speaker Change: Instantly to a sustainable level.
And then just on net.
Speaker Change: The market and that we build around that organically.
Network density.
How should we think about prioritization of volume and share here.
Speaker Change: So to answer your question.
Versus density is your approach on the day to take as much high quality share as possible and then sort of optimized for density after the fact.
Speaker Change: It's a bit right.
Speaker Change: So I've intensity, particularly.
Speaker Change: With backhaul opportunity.
Are we planning to take a more measured approach.
Speaker Change: Sure.
Speaker Change: It's the most attractive to us.
What volumes that you guys take on board.
Speaker Change: And I think that territory.
Yes, I can speak to that a little bit.
Speaker Change: Also our policy is that we have in mind, but not really not one or the other.
Volume that fits our existing network.
It is very positive for us.
Speaker Change: No.
Not all of those opportunities.
Speaker Change: For a more thoughtful I would say around in that market.
Adjacent and Bali in that timeline.
Speaker Change: Paul.
Speaker Change: Super helpful. I will hop back in the queue. Thanks.
This is Dave.
Either at that terminal.
Speaker Change: Thank you.
Is it bad debt.
Speaker Change: Our next question comes from the line of Tyler Brown with Raymond James Your line is now open.
We are going to calculate before we entered entirely new markets.
Speaker Change: Hey, good afternoon guys good.
Interesting.
Speaker Change: Good afternoon Tyler.
Concentrated sustainable level.
Speaker Change: Hey.
Speaker Change: So obviously, there's a lot going on lots of dynamic things I get that youre not going to address at all head on.
The markets and that we build around that both organically and through acquisition.
Speaker Change: Let me come out a little bit differently.
So to answer your question.
Speaker Change: If I looked at it in real time are you guys seeing incremental spot opportunities in the market today and is that spot market premium firming up basically in real time.
It's a bit of thoughts.
So adding density, particularly.
With backhaul opportunity.
The network is.
It's the most attractive to us.
Speaker Change: We are seeing what I would describe as episodic opportunities.
In that territory.
And also our policy is that we have in mind, when they're really not one or the other we have the bandwidth.
Speaker Change: And on that basis, its about opex on that sort of in general.
So.
We're more thoughtful I would say around the market.
Speaker Change: Okay, Okay. So episodic okay.
Super helpful. I will hop back in the queue. Thanks.
Speaker Change: If I go back to pro fleet.
Thank you.
Speaker Change: No I think propylene is running at around $4 million a quarter, let's call. It in revenue number one is that basically at a minimum.
Our next question comes from the line of Tyler Brown with Raymond James Your line is now open.
Hey, good afternoon guys.
Good afternoon Tyler.
Speaker Change: <unk>, how would pro fleet react in a capacity challenged market could.
Hey.
So obviously, there's a lot going on lots of dynamic things I get that youre not going to address it head on.
Speaker Change: Could we see that number jumped quite a bit if theres a lot of market disruption.
Well, let me come out at a little bit differently.
Speaker Change: So to answer your first question yes.
If I looked at it in real time are you guys seeing incremental spot opportunities in the market today and is that spot market premium firming up basically in real time.
Speaker Change: What youre seeing is kind of at that minimum level than we guided last quarter that at minimum levels would be roughly 4 million 5 million a quarter depending upon.
Speaker Change: Volume and length of haul where we have those drivers so ronnie.
We are seeing what I would describe as episodic opportunities.
Speaker Change: If you have them.
Speaker Change: Dislocation and higher demand for those services.
<unk>.
And on that basis.
Spot opportunities in general.
Speaker Change: Correct.
Speaker Change: I'm sorry, Sir.
Okay, Okay. So episodic okay.
Speaker Change: But our.
Speaker Change: Our conservative outlook continues to be that we're going to be at or near contracted minimum let me move to the next time.
If I go back to pro fleet.
No I think propylene is running at around $4 million a quarter in let's call. It in revenue number one is that basically at a minimum.
Speaker Change: Okay, so to be clear, that's kind of implied in the Q1 guidance.
Speaker Change: Yeah.
Speaker Change: Okay.
And two how would pro fleet react in a capacity challenged market.
Speaker Change: Rick you mentioned that spot market premium I think was 16% of contract and that was versus say 100. You also said that 100 was effectively unusually high.
Could we see that number jumped quite a bit if theres a lot of market disruption.
So to answer your first question yes.
Speaker Change: So what would be kind of a normal as we try to learn the Idaho and industry more what would be kind of a normal spot primo.
What youre seeing is kind of at that minimum level than we guided last quarter that at minimum levels, we'd be roughly 4 million $5 million.
Speaker Change: Premium to contract.
Later, depending upon.
Speaker Change: So.
Volume and length of haul, where we have those drivers running.
Speaker Change: I think we're also trying to learn what a normal auto hallmark that looks like.
If you have them.
Speaker Change: I appreciate him into those at a time that was pretty atypical for the market correctly.
Dislocation and higher demand for those services.
Speaker Change: Premium.
But some.
Speaker Change: Yes, 'twenty one 'twenty two 'twenty three time frame I think what was elevated in a manner that we're not likely to see again.
And the increase there.
Uh huh.
But our conservative outlook continues to be that we're going to be at or near contracted minimums as they move to the next time.
Speaker Change: Environment.
Speaker Change: But we think we're on.
Okay, so to be clear, that's kind of implied in the Q1 guidance.
Speaker Change: On the low side of that continue on that.
Speaker Change: What we think might be typical is a thought that looks a little more light.
Yeah.
Okay. Rick you mentioned that spot market premium I think was 16% of contract and that was versus say 100. You also said that 100 was effectively unusually high so what would be kind of a normal as we try to learn the Idaho and industry more what would be kind of a normal spot.
Speaker Change: Be quantified.
Speaker Change: 40% I don't have that exact numbers there but.
Speaker Change: Directionally that would be a little more light.
Speaker Change: What capacity is I just wanted to buy.
Speaker Change: Okay. That's helpful. Even just a range very helpful and then just.
Premium to contract.
Speaker Change: I know that you have this heavy sub contractor capacity pool.
So any color.
I think we're also trying to learn what a normal auto haul market looks like.
Speaker Change: How much slack capacity do you have in the company owned fleet and maybe even to that how much do you have it's hard I know it would be harder to say in the.
I appreciate him into this at a time that was pretty atypical for the market. So correct.
Premium.
Speaker Change: Subcontractor piece, but how much slack capacity do you feel like you have ready at your fingertips.
Yes.
'twenty two 'twenty three time frame.
I think what was elevated in a manner that we're not likely to see again in the current environment.
Speaker Change: Yes.
Speaker Change: So on the company's lease side of thing recall that we invested.
But we think we're well on the.
Speaker Change: Roughly $30 million of capital.
Low side of that continue on that so what we think likely hit the ball is it any of that left.
Speaker Change: For the second half of last year.
Speaker Change: So.
A little more like maybe quantify.
Speaker Change: One of the newer fleets in the industry. Some of that was replenishment a lot of that investment for fleets out there.
40%.
I'll take that exact numbers there.
But directionally that would be a little more light.
Speaker Change: And third quarter.
Speaker Change: In a market that was relatively stronger than the time of what first quarter whatsoever.
And lastly, I just wanted to buy.
Okay. That's helpful. Even just a range very helpful and then Andy just.
Speaker Change: So we view, we do have open assets available, we will be higher and sell those assets and deploying those assets into the market.
Know that you have this heavy sub contractor capacity pool, but how much slack capacity do you have in the company owned fleet and maybe even to that how much do you have it's hard and it would be harder to say in the subcontractor.
Speaker Change: Where does the growth come online.
Speaker Change: We will continue to invest in truck capacity with those.
Subcontractor piece, but how much slack capacity do you feel like you have ready at your fingertips.
Speaker Change: And have a capital plan to do so again this year.
Speaker Change: That of course is commensurate with the opportunity that we see as well.
Yes.
On the company's suite side of thing recall that we invested.
Speaker Change: Accordingly, unless there.
Roughly $30 million of capital in new equipment for the second half of last year.
Speaker Change: Somehow side of things I would say there.
Speaker Change: Ill have capacity available in the market.
So.
Speaker Change: We have.
One of the newer fleets in the industry. Some of that was replenishment a lot of that investment.
Speaker Change: 2500 sub haul carrier.
Speaker Change: Our network.
Speaker Change: That you know that.
Sure.
Speaker Change: That are vetted by us.
And those orders are placed.
Speaker Change: Able to do work on behalf of our various operating company.
In a market that was relatively stronger than the time at which those orders.
Speaker Change: And then it has a very little FX rate in the current environment.
So we view.
Speaker Change: And if the color of our team.
Have opened assets available, we will be higher and fulfill those assets and deploying those assets into the market.
Speaker Change: And.
Speaker Change: And providers.
Speaker Change: So I would say, there's a lot of fun.
Where these wells come.
Speaker Change: Currently.
Speaker Change: Lots of slack capacity, so Brad last one just any thoughts on capex in 'twenty, five and what would be a reasonable number for 'twenty for them.
Come on line.
Thank you.
Your inbox and truck capacity was slow.
And have a capital plan to do so again this year.
Speaker Change: Actually.
That of course is commensurate with the opportunity that we see at one level.
Speaker Change: So Amy alluded to that somewhat I mean, I think we from the time of the IPO through the end of the year Tyler, we probably have right around just over $30 million of fleet Capex.
Accordingly, unless somehow outside of day, you know I would say.
Hey, there.
Possibly available in the market.
Speaker Change: And we are expecting for the current year to be in the $25 million to $35 million range as well.
We have.
2500 Stubhub carriers.
Across our network.
Got.
Speaker Change: That's just and that will evolve as we see opportunities, but that's our expectation today.
That are vetted by us that are able to do work on behalf of our various operating company.
Speaker Change: Okay perfect excellent. Thank you for the time.
And then very quickly in the current environment.
Tyler Brown: Thanks Tyler.
Speaker Change: Our next question comes from the line of Ryan Merkel with William Blair. Your line is now open.
The colors are cool.
Good work.
And providing the service side of things.
Speaker Change: Hey, everyone. Thanks for taking the question I wanted to ask on one Q a little bit more I think you said January is kind of trending down or at least quarter to date is trending down 17, 5%. Then you said you thought you would make up some of that shortfall and you had some visibility could you just talk about what that visibility isn't quite there.
There's a lot of fun.
Okay lots of slack capacity, so Brad last one just any thoughts on capex in 'twenty, five and what would be a reasonable number for 'twenty for them.
I actually.
So Amy alluded to that somewhat I mean, I think we from the time of the IPO through the end of the year Tyler, we probably have right around just over $30 million of fleet Capex.
Speaker Change: You'll make it up.
Sure This is Amy.
Speaker Change: So we get depending on the OEM and the lower side, what's the cause of our dispositions to us.
And we are expecting for the current year to be in the $25 million to $35 million range as well.
Speaker Change: We get visibility to anywhere from one to three weeks for example on the wall.
And.
And that will evolve as we see opportunities, but that's our expectation today.
Speaker Change: Other than that somewhat longer visibility.
Speaker Change: So we do have an idea of what is coming in the near term pipeline as well as some of the customer conversations.
Okay perfect excellent. Thank you for the time.
Thanks Barbara.
Speaker Change: And generally what we're hearing.
Speaker Change: Our next question comes from the line of Ryan Merkel with William Blair. Your line is now open.
Speaker Change: Our cautious outlook, but.
Speaker Change: Some reassurance.
Hey, everyone. Thanks for taking the question wanted to ask on <unk>, a little bit more I think you said January is kind of trending down or at least quarter to date, turning down 17, 5% and you said you thought you would make up some of that shortfall and you had some visibility could you just talk about what that visibility is and why is that.
Speaker Change: Bono said continue I've said begin to ramp up here.
Speaker Change: As we announced in March and into April So Oems are.
Speaker Change: And inside of that.
They've been followed as well.
Speaker Change: American water.
Speaker Change: March and April.
Make it up.
Speaker Change: Yeah, and I'd say look at the first quarter.
Sure This is Amy.
So we get depending on the OEM and the mode by which the cars are.
Speaker Change: To date no.
Speaker Change: Our term pipeline in a location where we participate.
Speaker Change: We expect to see.
<unk> to us.
Speaker Change: Some of the following.
We get visibility to anywhere from one to three weeks for example around the water we get some stability.
Speaker Change: Got it okay.
Speaker Change: And then just on.
Speaker Change: A clarification I think you said.
Speaker Change: <unk> <unk> will look like for Q, So should that should we take that to mean revenue and EBITDA.
So when you have an idea of what is coming in the near term.
Brian as well.
From a conversation.
Speaker Change: It looks like <unk>.
And generally what we're hearing.
Speaker Change: Revenue in or I would say, yes.
Our cautious outlook, but.
Speaker Change: Okay.
Speaker Change: And then.
Sure.
Speaker Change: You're not giving official guidance here, but should we just assume that the spot business in the premium.
Begin to wrap up here.
Particularly as we move through March and into April.
Speaker Change: Of spot over contract should we assume that really doesn't change for the next couple of quarters any any reason that it would improve.
Oh, yes.
At least died in that.
Speaker Change: That they think about them as well.
More.
Speaker Change: There are reasons that it could improve but I think youre on the right track there.
March and April and then looking.
Speaker Change: Yeah, So as we look at the first quarter.
Speaker Change: Don't have a crystal ball and we are.
Speaker Change: To date near term pipeline in a location where we participate.
Speaker Change: Going into the process of reporting.
Speaker Change: A portion of our portfolio and what we are.
Got it okay.
Speaker Change: And price premium there so.
And then just.
Speaker Change: Sequentially, I think you'll be able to give you additional information.
A clarification I think you said.
<unk> will look like for Q, So should that should we take that to mean revenue and EBITDA.
Speaker Change: The market for 2025.
Speaker Change: But conservatively.
Speaker Change: I would say as you suggested.
It looks like <unk>.
Revenue in or I would say, yes.
Speaker Change: Okay.
Speaker Change: And I would add to that just that we're not anticipating a rebound in the spot market, but given.
Okay.
And then.
You're not giving official guidance here, but should we just assume that the spot business in the premium.
Speaker Change: Current market dynamics, I'd say, there's probably more opportunity for dislocations, where people are taking on new business and that may struggle with that.
Of spot over contract should we assume that really doesn't change for the next couple of quarters any reason that it would improve.
Speaker Change: Some of that May come back to the spot market.
Speaker Change: Yes that makes sense Rick Okay last one for me you mentioned the press release strength of our balance sheet will be a differentiating factor in the marketplace can you just talk about the 2025 feel like Theres a lot of new business to win just broadly.
There are reasons that it could improve but I think youre on the right track there.
Don't have a crystal ball and we are coming into the process of reporting.
A portion of our portfolio and what we are seeing.
Speaker Change: How are you thinking about that and am I thinking about that the right way just given the challenges that the industry is facing and you're probably in a pretty good position relative.
And price premium there so.
Speaker Change: Sequentially I think we will be able to give you additional information.
The market for 2025.
Speaker Change: Yeah, I would think about it in two ways. One is you know over the last couple of quarter. We've shared with you our figures on the net new contract wins.
But conservatively.
Speaker Change: I would say as you suggested.
Okay.
And I would add to that just that we're not anticipating a rebound in the spot market, but given.
Speaker Change: And I try to give an update there since the last earnings call and webcast three net new contract wins.
Current market dynamics, I'd say, there's probably more opportunity for dislocations, where people are taking on new business and that may struggle with that.
Speaker Change: Two of which are larger than average size.
Speaker Change: But the point, bringing that up.
Speaker Change: Each quarter, we have had and that will contact Brad, but we have been.
Some of that May come back to the spot market.
Yes that makes sense Rick Okay last one for me you mentioned in the press release strength of our balance sheet will be a differentiating factor in the marketplace can you just talk about the 2025 feel like Theres a lot of new business to win just broadly.
Speaker Change: If the market starts to Embraer the benefit.
Speaker Change: Okay.
Speaker Change: More visible in our results.
Speaker Change: And we've talked quite a bit, particularly in the last quarter call.
Speaker Change: The contract business is stable profitable business for us and we want to partner with.
How are you thinking about that and am I thinking about that the right way just given the challenges that the industry is facing and you're probably in a pretty good position relative.
Speaker Change: Customers in a way, where we show up for them day after day with a high service level and.
Speaker Change: And what's the plan with that.
Speaker Change: Yeah, I would think about it in two ways one is.
Speaker Change: So we want to win in the contract space, we want to participate in the spot market when opportunity presents I want to put capacity up against that.
Speaker Change: Last couple of quarter, we have shared with you our figures on the net new contract wins.
And I've tried to give an update there since the last earnings call and webcast three net new contract wins.
Speaker Change: But our main focus is.
Speaker Change: <unk>, let's say guys market cap.
Speaker Change: Hi.
Which are larger than average size.
Rick O'Dell: The other way I would think about that to your question is Rick.
The point on bringing that up.
Speaker Change: Rick mentioned.
Each quarter, we have had net new contract wins, but we have been in a weak market if the market starts to address the.
Speaker Change: In his opening comments.
Speaker Change: There are several open pit that are material.
Speaker Change: A handful or so of Oems have gone to either what I would describe as super regional banks or national banks.
Of those market share gains.
Speaker Change: More visible in our results.
And we've talked quite a bit, particularly in the last quarter call.
Speaker Change: That could come effective anywhere.
May of next year or two as late as January of 2020.
The contract business is stable profitable business for us and we want to partner with.
Speaker Change: But we have.
Speaker Change: We have done this.
Customers in a way, where we show up for them day after day with a high service level and and what was left with their needs in a volatile. So we want to win them in the contract space.
Speaker Change: And our staff to gain incremental business with those two customers with the strike.
Speaker Change: I called our network on the offering.
Speaker Change: We feel pretty good about how we are positioned to thrive.
Want to participate in the spot market when the opportunity presents.
Speaker Change: Coming out of <unk>.
Speaker Change: So as we look out in the market carefully.
We'll be up against it.
But our main focus is ammo I'm afraid at microchip.
Speaker Change: Those are the physician then there's new contact time to take effect.
Uh huh.
Speaker Change: Would love to hate it sounds like that's not all.
The other way I would think about that to your question is.
Speaker Change: Opportunity in the last part of the year.
Speaker Change: Got it that's very helpful. Thank you pass it on.
Rick mentioned.
In his opening comments.
Speaker Change: There are several open bids that are material.
Speaker Change: Thank you. Our next question comes from the line of Alex Paris with Barrington Research. Your line is now open.
A handful or so of Oems have done what I would describe as super regional banks or national banks.
Alex Paris: Hi, guys. Thanks for fitting me in and taking my questions.
That become effective anywhere.
Rick O'Dell: Rick I wanted to come at that Big question another way.
May of this year to as late as January of 2020.
Alex Paris: Given your experience in the <unk> space.
But we have.
We have gone.
Speaker Change: CEO of Shire for 14 years.
Send ourselves to gain incremental business with those two customers with the strike.
Speaker Change: He finished his CEO was there for 14 years, I think 14 years as CEO and Youre still the nonexecutive chairman today. So you you lived through the bankruptcy of yellow roadways.
Our solar network offering.
We feel pretty good about how we are positioned coming out of those beds.
Speaker Change: And.
Speaker Change: As we look at market share for the year as.
Speaker Change: I'm wondering if you could maybe create a parallel.
Those are just positioned on those new plants.
Speaker Change: And even the timeline what should we expect first I would think if the number two player in the auto Halloween business exits the business that volume needs to find a new way to the dealerships. So.
Speaker Change: Contact time to take effect.
Okay. That's all additional opportunity in the last part of the year.
Got it that's very helpful. Thank you pass it on.
Thank you. Our next question comes from the line of Alex Paris with Barrington Research. Your line is now open.
Does it start with brokers.
Speaker Change: Does it.
Speaker Change: Include bids whatever parallel you could make to the <unk> business. If there is a parallel to make would be helpful. I think.
Hi, guys. Thanks for fitting me in and taking my questions.
Rick: Rick I wanted to come at that Big question another way.
Speaker Change: Yeah I think.
Speaker Change: If you look at the cycle and how customers would generally react to situations like that.
Given your experience in the <unk> space.
Speaker Change: They may have a.
CEO of Shire for 14 or.
Speaker Change: Our backup contracted carrier and that business would potentially move to that backup carrier.
Finished as CEO, but was there for 14 years, I think 14 years as CEO and Youre still the nonexecutive chairman today. So you you lived through the bankruptcy of yellow roadways.
Speaker Change: Right out the gate and then they would probably put it out to bid over a period of time, so theres, probably some immediate impact depending on how you're positioned with the Oems with pricing in place.
And I'm.
I'm wondering if you could maybe create a parallel.
And even the timeline of what what should we expect first I would think if the number two player in the auto hauling business exits the business that volume needs to find a new way to the dealerships. So.
Speaker Change: <unk>.
Speaker Change: This businesses.
Speaker Change: A little different than <unk>.
Speaker Change: You may have.
Speaker Change: Business, that's under contract, but youre not getting any any shipments.
Does it start with brokers.
Speaker Change: And then they can just began shipping with you.
Does it.
Speaker Change: Our this business is a little different than that just because we don't have.
Include bids whatever parallel you can make to the <unk> business. If there is a parallel to make would be helpful. I think.
Speaker Change: Not as much of a network capacity business, where you can just pick up more business you have to have.
Yeah I think.
If you look at the cycle and how customers will generally react to situations like that is.
Speaker Change: <unk>.
Speaker Change: Yeah.
Speaker Change: Yes.
They may have a.
Speaker Change: <unk> trailer and the driver in the right location to be able to service the requirements.
Our backup contracted carrier and that business would potentially move to that backup carrier.
Speaker Change: So our solution to that obviously is too.
Rick: Right out the gate and then they would probably put it out to bid over a period of time, so there's probably.
Speaker Change: Near term would be the source with sub contractor capacity and then optimize with.
Are there some immediate impact depending on how you're positioned with the Oems with pricing in place.
Speaker Change: And source your own drivers there over some period of time.
Speaker Change: And we're positioned to react to that those opportunities quickly.
Yeah.
This business is.
It's a little different than <unk>.
Speaker Change: And then.
You may have.
Speaker Change: As you probably would expect that.
Business, that's under contract, but youre not getting any any shipments and then they can just began shipping like you are.
Speaker Change: As the industry goes through a transition.
Speaker Change: The incremental business.
Speaker Change: Some carriers handle it better than others and so a lot of times the customers again, we'll try to re optimize over a period of time so.
This business is a little different than that.
Just because we don't.
We have not.
Not as much of a network capacity business, where you can just pick up more business you have to add.
Speaker Change: I would imagine there's kind of a two leg impact.
Two.
Rick: Yes.
Speaker Change: So the closure.
Rick: <unk> trailer and the driver in the right location to be able to service the requirements.
Speaker Change: B some immediate.
Speaker Change: Sourcing of the business and then it was <unk>.
So our solution to that obviously is.
Speaker Change: We are going to be a second round of opportunities coming at us.
Near term would be the source with sub contractor capacity and then optimize with.
Speaker Change: It is.
Speaker Change: Proficient seen any impact from that first round here.
And source your own drivers there over some period of time.
Speaker Change: We are seeing some impact.
Speaker Change: The other thing I would share is.
And we're positioned to react to that those opportunities quickly.
Speaker Change: Hum.
And then.
Speaker Change: Congratulations with the OEM.
As you probably would expect that as.
Speaker Change: The situation is.
As the industry goes through a transition.
Speaker Change: Rather than just the transportation.
Of the incremental business.
Speaker Change: Sure.
Speaker Change: It really is a risk management exercise for the OEM.
Some carriers handle it better than others and so a lot of times the customers again, we'll try to re optimize over a period of time so.
Speaker Change: Their production to the other stuff I think that sounds a bit upstream.
I would imagine there is theres kind of a two leg impacts.
Speaker Change: They also to be sure.
Speaker Change: They've got two camps are found.
Two.
Speaker Change: Disruptions in transportation.
Rick: So the closure.
It would be some immediate.
Speaker Change: Theres a puzzle with a lot of pieces here that that our customers are trying to call.
Sourcing of the business and then it was.
Probably going to be a second round of opportunities coming at us.
Speaker Change: And some of those things have to be solved in.
As proficient seen any impact from that first round here.
Speaker Change: In multiple places around them.
Speaker Change: To that point, and I think that well and sometimes play out overtime.
We are seeing some impact.
Speaker Change: Got it.
Speaker Change: I would just comment there is some near.
The other thing I would share is.
Speaker Change: Nearly immediate.
Speaker Change: Short term impact that.
From our conversations with the Oems.
Speaker Change: We feel will offset some of the current market weakness that we're experiencing.
This situation.
It is broader than just the transportation.
Speaker Change: That would be indicative of a kind of a recovery.
Really is a risk management exercise for the OEM.
Speaker Change: Volumes.
Speaker Change: Particularly in March from the softness that we've seen year to date.
Rick: From their production into the deal or a supply chain that goes a bit upstream.
They are not so sure.
Speaker Change: So is that part of that that Q1 forecast.
They obviously can't shut down as well.
With all of disruptions in transportation.
Speaker Change: There is some sort of assumption for some volume pick up from that event, yes. It is.
So theres a puzzle with a lot of pieces here that that our customers are trying to call.
Speaker Change: Got you and then as you both said that second opportunity once that goes into risk management exercise to take on more volumes down the road.
Some of those things have to be solved.
And my question is that wrong.
And I'll go back to school and I think that.
Well it sounds like to play out over time.
Speaker Change: Right.
Speaker Change: And is there any reason that proficient shouldnt get its fair share of this incremental volume that's coming out of the market for the other players these market share opportunities.
Got it.
Rick: I would just comment there is some near.
Nearly immediate.
Short term impacts that we.
We feel will offset some of the current market weakness that we're experiencing.
Speaker Change: The only caveat I would I.
Speaker Change: I would place on that.
Speaker Change: Geographic again to the earlier comments.
That would be indicative of kind of a recovery.
Speaker Change: Where our network is strong and where we haven't had some density.
Volumes.
Particularly in March from the softness that we've seen year to date.
Speaker Change: There has not necessarily been a high overlap.
Speaker Change:
So is that part of that that Q1 forecast.
Speaker Change: With certain competitors.
Speaker Change:
Speaker Change: So.
Is there some sort of assumption for some volume pick up from that event, yes. It is.
Speaker Change: There is a component there, but all else equal proficient is well positioned.
Got you and then as you both said that second opportunity once they go through the risk management exercise to take on more volume down the road.
Speaker Change: Okay.
Speaker Change: And quite a pretty Alex's, Panama, if I understood that.
Speaker Change: Got you that's helpful. I appreciate the additional color.
Speaker Change: Okay.
Right.
And is there any reason that proficient shouldnt get its fair share of this incremental volume that's coming onto the market for the other players these market share opportunities.
Speaker Change: As a reminder to ask a question at this time. Please press star one one or you touched on telephone. Our next question is a follow up from Bruce Chan with Stifel. Your line is now open.
The only caveat I would I would place on that is.
Bruce Chan: Great Thanks for allowing us to follow up here.
Bruce Chan: Just curious to hear about how you're thinking about M&A is there an appetite for it from your side.
Geographic again to the earlier comment.
Where our network is strong and where we have existing density.
Bruce Chan: Especially with your you needed capacity requirements.
There has not necessarily been a high overlap.
Bruce Chan: The M&A market potentially get more competitive from here.
Rick: With certain competitors.
Bruce Chan: Any color around that would be great.
So.
Bruce Chan: Yeah, I guess, what I would tell you is I mean.
There is a component there, but all else equal for fishing is well positioned.
Bruce Chan: We have a pipeline of opportunities.
Bruce Chan: Well, you know will be a nice fit for us providing synergies and adjacent.
Participate in and sort of reallocation of month, if I understood that.
Bruce Chan: Geography geographical capacity.
Got you that's helpful. I appreciate the additional color.
I would say.
Bruce Chan: Were obviously managing that are balancing that against other priorities and opportunities that we have.
Okay.
As a reminder to ask a question at this time. Please press star one one or you touched on telephone. Our next question is a follow up from Bruce Chan with Stifel. Your line is now open.
But I would say.
Bruce Chan: We're still active in the marketplace.
Great Thanks for allowing us to follow up here.
Bruce Chan: We would probably expect one to two smaller acquisitions to occur this year.
Just curious.
Here about how you're thinking about M&A is there an appetite for it from your side, especially.
Speaker Change: That's great great color. Thank you.
Speaker Change: Thank you and I'm currently showing no further questions at this time I'd like to hand, the call back over to Rick O'dell for closing remarks.
Especially with your you needed capacity requirements.
Does the M&A market potentially get more competitive from here.
Rick O'Dell: Alright, well. Thank you so much for your interest in professional logistics, we're very excited about the opportunities in the marketplace.
Any color around that would be great.
Yes, I guess, what I would tell you is I mean, we have a pipeline of opportunities that well.
Speaker Change: Confident in our execution capabilities.
Well, you know will be a nice fit for us providing synergies and adjacent.
Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.
Geographical capacity.
Sure.
I would say.
Rick: Were obviously managing that are balancing that against other priorities and opportunities that we have.
But I would say.
We're still active in the marketplace.
We would probably expect one to two smaller acquisitions to occur this year.
That's great great color. Thank you.
Thank you and I'm currently showing no further questions at this time I'd like to hand, the call back over to Rick O'dell for closing remarks.
Alright, well. Thank you so much for your interest in professional logistics, we're very excited about the opportunities in the marketplace.
Confident in our execution capabilities.
This concludes today's conference call. Thank you for your participation you may now disconnect.
Okay.
Rick: [music].
Okay.
[music].
Yeah.
[music].
Yeah.
[music].
Rick: Okay.
[music].