ArcBest Corp (ARCB) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Danica, and I will be your conference operator today. At this time, I'd like to welcome everyone to the ArcBest Second Quarter 2024 earnings conference call. (Operator Instructions)

謝謝你的支持。我叫丹妮卡，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 ArcBest 2024 年第二季財報電話會議。（操作員說明）

I would now like to turn the call over to Amy Mendenhall, Vice President, Treasury and Investor Relations. Please go ahead.

我現在想將電話轉給財務和投資者關係副總裁艾米·門登霍爾 (Amy Mendenhall)。請繼續。

Good morning. I'm pleased to be here today with Judy McReynolds our Chairman and CEO; Seth Runser, our President; and Matt Beasley, Chief Financial Officer. We also have several other members of our executive leadership team available for the Q&A session.

早安.我很高興今天能與我們的董事長兼執行長 Judy McReynolds 一起來到這裡。 Seth Runser，我們的總裁；和財務長馬特·比斯利。我們還有幾位執行領導團隊的其他成員可以參加問答環節。

Before we begin, please note that some of the comments we'll make today will be forward-looking statements that are subject to risks and uncertainties which are described in the forward-looking section of our earnings press release and SEC filings. To provide meaningful comparisons, we will discuss certain non-GAAP financial measures that are outlined and described in our earnings release.

在我們開始之前，請注意，我們今天將發表的一些評論將是前瞻性陳述，這些陳述將受到我們的收益新聞稿和美國證券交易委員會文件的前瞻性部分中描述的風險和不確定性的影響。為了提供有意義的比較，我們將討論我們的收益發布中概述和描述的某些非公認會計準則財務指標。

Reconciliations of the GAAP to non-GAAP measures are also provided in the additional information section of the presentation slides, you can find the slides on our website at arcb.com, and Exhibit 99.3 of the 8-K filed early earlier this morning, or you can follow along on the webcast.

簡報投影片的附加資訊部分還提供了 GAAP 與非 GAAP 衡量標準的調節，您可以在我們的網站 arcb.com 上找到這些投影片，以及今天早些時候提交的 8-K 的圖表 99.3，或者您可以關注網路廣播。

Before I hand the call over to Judy, I would like to thank David Humphrey for his 41 years of dedicated service to ArcBest, including 26 years leading Investor Relations team. His contributions have been invaluable, and I am personally grateful for his support in making my transition into this role seamless. David is in the room with us today and we will continue to work together until he retires at the end of the month.

在將電話轉交給 Judy 之前，我要感謝 David Humphrey 41 年來為 ArcBest 提供的竭誠服務，其中包括 26 年來領導投資者關係團隊的經驗。他的貢獻是無價的，我個人非常感謝他的支持，讓我順利過渡到這個角色。大衛今天和我們在一起，我們將繼續合作，直到他月底退休。

I will now turn the call over to Judy.

我現在將把電話轉給朱迪​​。

Thank you, Amy, and congratulations again, David, and good morning, everyone. I'd like to begin by thanking our employees. You tireless efforts keep the global supply chain moving and your unwavering commitment to our customers' relentless pursuit of excellence and adaptability in the face of constant change are truly appreciated.

謝謝你，艾米，再次恭喜大衛，大家早安。首先我要感謝我們的員工。我們對您不懈的努力保持全球供應鏈的運轉以及您對客戶在不斷變化的情況下不懈追求卓越和適應能力的堅定承諾表示讚賞。

Despite navigating a challenging freight cycle. Our focus remains on delivering for our customers while advancing our strategic priorities of growth, efficiency and innovation. Reflecting on past freight cycles, ArcBest is in a much stronger position today, thanks to our long term thinking and disciplined execution of our strategy.

儘管面臨著充滿挑戰的貨運週期。我們的重點仍然是為客戶提供服務，同時推進我們的成長、效率和創新策略重點。回顧過去的貨運週期，由於我們的長期思考和策略的嚴格執行，ArcBest 今天處於更有利的地位。

Seth and Matt will provide more insights into how we're investing in our people, solutions and technology to drive results, and I'm pleased with the progress we are making. The strength of our strategy has been reaffirmed as I've spent time with our customers and listen to their needs.

Seth 和 Matt 將提供更多關於我們如何投資於員工、解決方案和技術以推動成果的見解，我對我們所取得的進展感到滿意。由於我花時間與客戶交流並傾聽他們的需求，我們策略的優勢得到了重申。

They seek efficiencies by leveraging trusted relationships and using multiple modes of transportation. ArcBest strategy is perfectly aligned to meet their needs and demand for our services continues to grow. Our sales pipeline is up nearly 40% since January and continues to expand and progress into later stages.

他們透過利用信任關係和使用多種運輸方式來提高效率。ArcBest 的策略完全符合他們的需求，並且對我們服務的需求不斷增長。自 1 月以來，我們的銷售管道成長了近 40%，並繼續擴大並進入後期階段。

Our managed transportation solution, which helps customers optimize their supply chains, had double digit growth in both demand and revenue. Customer retention is solid. Over 80% of our revenues are from customers. We've had relationships with for over 10 years. We are trusted advisors to our customers who value our solutions and utilize our offerings to enhance their supply chain.

我們的管理運輸解決方案協助客戶優化供應鏈，需求和收入均達到了兩位數成長。客戶保留率穩定。我們80%以上的收入來自客戶。我們與 的合作關係超過 10 年。我們是客戶值得信賴的顧問，他們重視我們的解決方案並利用我們的產品來增強他們的供應鏈。

Additionally, we are implementing programs that benefit our bottom line. In the second quarter, we saw significant efficiency improvements in our asset-base business while delivering the best on-time performance in five years. In a moment, Seth will take you through the initiatives driving these results and Matt will detail how they've improved our financial performance.

此外，我們正在實施有利於我們盈利的計劃。第二季度，我們的資產業務效率顯著提高，同時實現了五年來最好的準時業績。稍後，Seth 將向您介紹推動這些成果的舉措，而 Matt 將詳細介紹這些舉措如何改善我們的財務表現。

All of this work positions ArcBest well for the eventual recovery in freight volumes. Before I hand it over to Seth, I want to highlight our recent announcement that Seth Runser has been promoted to President of ArcBest and Matt Godfrey will succeed him as ABF President. These promotions underscore our best deliberate focus on talent, development and succession planning across our organization.

所有這些工作都使 ArcBest 能夠很好地恢復貨運量。在將其交給 Seth 之前，我想強調一下我們最近宣布的消息：Seth Runser 已晉升為 ArcBest 總裁，Matt Godfrey 將接替他擔任 ABF 總裁。這些晉升凸顯了我們對整個組織的人才、發展和繼任計畫的高度重視。

Our results this quarter and the successful initiatives Seth and Matt Godfrey, have led demonstrate why I'm so confident these appointments are the right steps for ArcBest.

我們本季的業績以及 Seth 和 Matt Godfrey 領導的成功舉措證明了為什麼我如此有信心這些任命對於 ArcBest 來說是正確的步驟。

Many of Seth. He has been a key leader at ABF for years, delivering eight quarters of record results and overseeing the successful renewal of our five year union labor agreement. As President, Seth has assumed responsibility for our day-to-day operations and execution of our integrated logistics solutions.

許多賽斯.多年來，他一直是 ABF 的關鍵領導者，創造了八個季度創紀錄的業績，並監督我們五年期工會勞工協議的成功續約。身為總裁，Seth 負責我們的日常營運和綜合物流解決方案的執行。

Our operational leaders will now report directly to him after the impressive transformation at ABF under his leadership. We are excited for him to take on this role where I'm confident his deep knowledge of the business and innovative spirit will help us continue improving performance for the benefits of our employees, customers and shareholders.

在他的領導下，ABF 發生了令人印象深刻的轉變，我們的營運領導者現在將直接向他報告。我們很高興他擔任這項職務，我相信他對業務的深入了解和創新精神將幫助我們繼續提高業績，為員工、客戶和股東謀福利。

I will remain CEO and Chairman of the Board, focused on advancing our long-term strategy, driving innovation and further developing relationships with customers, shareholders and employees. Matt, Godfrey's promotion, is also special to me.

我將繼續擔任執行長兼董事會主席，專注於推動我們的長期策略、推動創新並進一步發展與客戶、股東和員工的關係。戈弗雷的晉升馬特對我來說也很特別。

In 2015, ArcBest started a leadership academy, and Matt was one of the first to graduate from it. This success is a clear example of our commitment to investing in our people and his achievements underscore the power and effectiveness of our development program.

2015 年，ArcBest 創辦了領導學院，Matt 是第一批從該學院畢業的人之一。這一成功清楚地表明了我們對員工投資的承諾，他的成就強調了我們發展計劃的力量和有效性。

He has been working closely with Seth for many years at ABF and has spearheaded ABF's real estate plans, including long term facility growth and enhancement plans and transformational projects that enhanced operations and drive efficiencies. I have no doubt he will continue building on this progress and he is the right person to lead ABF going forward.

他在 ABF 與 Seth 密切合作多年，並領導了 ABF 的房地產計劃，包括長期設施成長和增強計劃以及增強營運和提高效率的轉型項目。我毫不懷疑他將繼續取得這一進展，並且他是領導 ABF 前進的合適人選。

And now I'll turn it over to our new President of ArcBest, Seth Runser.

現在我將把它交給 ArcBest 新任總裁 Seth Runser。

Thank you, Judy, and good morning. I want to start by expressing my gratitude for Judy's vision and leadership. I'm excited to serve our customers and employees in this new role. And I'm fully committed to our best strategy of accelerating growth, increasing efficiency and driving innovation. ArcBest's innovative mindset and integrated solutions uniquely position us to help customers solve their most complex logistics challenges.

謝謝你，朱迪，早安。首先，我想對朱迪的遠見和領導能力表示感謝。我很高興能夠擔任這個新角色為我們的客戶和員工提供服務。我完全致力於我們加速成長、提高效率和推動創新的最佳策略。ArcBest 的創新思維和整合解決方案使我們能夠幫助客戶解決最複雜的物流挑戰。

And as Judy mentioned, our value proposition continues to resonate with customers. Now let's discuss some of the key initiatives across ArcBest's that are driving efficiency gains and delivering results for our customers. Starting with our facility plans, we are progressing well, strategically adding capacity, increasing efficiency and improving service.

正如朱迪所提到的，我們的價值主張繼續引起客戶的共鳴。現在讓我們討論 ArcBest 的一些關鍵舉措，這些舉措正在推動效率提升並為我們的客戶帶來成果。從我們的設施計劃開始，我們進展順利，策略性地增加了產能、提高了效率並改善了服務。

Our newest facility opened in June in metro Atlanta, adding city capacity in key markets and freeing up transfer capacity in our network as expected. And we're already seeing productivity improvements up 16% in these locations. We added four facilities from the yellow auction as replacements for current facilities.

我們最新的設施於 6 月在亞特蘭大都會區開業，增加了主要市場的城市容量，並按預期釋放了我們網路中的轉運容量。我們已經看到這些地點的生產力提高了 16%。我們從黃色拍賣中添加了四個設施作為現有設施的替代品。

Two of those opened last month, and we expect the other two to open this quarter after renovations are complete. Additionally, in the fourth quarter, we expect to add 66 more doors in Chicago with another 40 planned in San Bernardino, California and early 2025 in addition to adding doors, we see a direct line of sight for these projects to significantly improve productivity.

其中兩間已於上個月開業，我們預計另外兩間將在翻修完成後於本季開業。此外，我們預計第四季將在芝加哥再增加66 個門，並計劃在加州聖貝納迪諾再增加40 個門，到2025 年初，除了增加門外，我們還看到這些項目將顯著提高生產力。

You have also heard us speak about our operation experts deployed to our largest facilities, focusing on continual improvement and operational excellence. This team's work has yield cost savings nearly 4 times what was projected, and they will continue to move throughout the ABF network. This year and into 2025.

您也聽過我們談論我們部署到最大設施的營運專家，專注於持續改善和卓越營​​運。該團隊的工作節省的成本幾乎是預計的 4 倍，並且他們將繼續在整個 ABF 網路中推廣。從今年到 2025 年。

We are also advancing our innovation and technology projects. We have numerous active projects and a flow of new pilots in progress. Our city route optimization project, which uses AI to map our routes, continues to deliver significant efficiency gains, and we're expanding this project into additional phases.

我們還在推進我們的創新和技術項目。我們有許多活躍的項目和一批新的試點項目正在進行中。我們的城市路線優化專案使用人工智慧來繪製路線，繼續顯著提高效率，並且我們正在將專案擴展到其他階段。

Our investments in innovation are paying off with direct results and value creation for our customers and shareholders. Our customers tell us they need better visibility into their supply chains. As technology has evolved, we're now able to do things that weren't possible just even a few years ago.

我們對創新的投資正在獲得回報，為我們的客戶和股東帶來直接成果和價值創造。我們的客戶告訴我們，他們需要更了解其供應鏈。隨著科技的發展，我們現在能夠做到幾年前還無法做到的事。

Over the last several months, we've made enhancements to shipment visibility, providing customers with more data about their shipments and expanding visibility to even before the shipment has been picked up.

在過去的幾個月裡，我們增強了貨件可見性，為客戶提供更多有關其貨件的數據，並將可見性擴展到甚至在貨件被提貨之前。

With our large and growing database of shipment data. Beginning this month, customers will receive more accurate LTL shipment arrival information. This is another example of how our technology investments are driving real improvements in our service and the value we provide our customers and asset-light.

憑藉我們龐大且不斷成長的貨運數據資料庫。從本月開始，客戶將收到更準確的零擔貨件到達資訊。這是我們的技術投資如何推動我們的服務以及我們為客戶和輕資產提供的價值的真正改進的另一個例子。

Our digital quoting and carrier portal tools are gaining momentum. Shipment volumes have increased and we have maintained our focus on controlling costs. As a result, employee productivity improved over 30% year over year. We will continue to leverage technology for future productivity gains.

我們的數位報價和承運商入口網站工具正在不斷發展。出貨量增加，我們一直致力於控製成本。結果，員工生產力年增了 30% 以上。我們將繼續利用科技來提高未來的生產力。

In the third quarter, we will implement carrier payment and invoice auditing solutions from TriumphPay. By leveraging this technology, we expect to reduce manual tasks and improve efficiency, which will allow us to grow with fewer added costs, reduce fraud potential and improve our carrier partner experience.

第三季度，我們將實施 TriumphPay 的營運商付款和發票審核解決方案。透過利用這項技術，我們希望減少手動任務並提高效率，這將使我們能夠以更少的附加成本實現成長，減少詐欺可能性並改善我們的營運商合作夥伴體驗。

We believe that innovation will continue to transform our industry and our best is committed to investing in innovation to drive future growth and create value.

我們相信創新將繼續改變我們的行業，我們竭盡全力致力於投資創新，以推動未來成長並創造價值。

Now I'll turn it over to Matt to go through the financials in greater detail.

現在我將把它交給馬特，讓他更詳細地了解財務狀況。

Thank you, Seth, and good morning. I'm pleased to report that our best delivered solid financial results for the second quarter of 2024 despite the softer market environment. On a consolidated level, second quarter revenue was $1.1 billion, a slight 2% decrease versus last year.

謝謝你，賽斯，早安。我很高興地報告，儘管市場環境較為疲軟，但我們最好的公司在 2024 年第二季仍取得了穩健的財務表現。綜合來看，第二季營收為 11 億美元，比去年略有下降 2%。

However, our non-GAAP operating income from continuing operations rose by 28% to $64 million. Adjusted earnings per share increased to $1.98, up from $1.54 in the second quarter of 2023. Despite lower revenue and additional costs related to the new labor contract. Our asset-based business saw a $21 million increase in non-GAAP operating income compared to the same period last year.

然而，我們來自持續經營業務的非 GAAP 營業收入成長了 28%，達到 6,400 萬美元。調整後每股收益從 2023 年第二季的 1.54 美元增至 1.98 美元。儘管新的勞動合約帶來了收入下降和額外成本。與去年同期相比，我們的資產業務的非 GAAP 營業收入增加了 2,100 萬美元。

Our asset-light business experienced a $9 million decline in non-GAAP operating income, primarily due to turn to current truckload market conditions. Now let's talk about our two segments in more detail. Starting with our asset base business. Second quarter revenue of $713 million, a per-day decrease of 2%.

我們的輕資產業務的非 GAAP 營業收入下降了 900 萬美元，這主要是由於當前卡車市場狀況的變化。現在讓我們更詳細地討論我們的兩個部分。從我們的資產基礎業務開始。第二季營收為 7.13 億美元，季減 2%。

The segment's non-GAAP operating ratio was 89.8%, an improvement of 300 basis points compared to the second quarter of last year, an improvement of 220 basis points from the first quarter of this year. This improvement led to the second best Asset-Based operating income for a second quarter in our history.

該部門的非公認會計原則營運率為89.8%，較去年第二季提高300個基點，較今年第一季提高220個基點。這項改善導致我們第二季的資產營運收入創下歷史第二高。

Second quarter tonnage per day decreased by 20% and daily shipments were 5% below prior year levels to make to maintain consistent capacity and labor levels in our network. During the first half of 2023, we took on more transactional business as market conditions improved in the second half of the year, we reduced transactional shipments in favor of core shipments, resulting in 14% growth in core LTL shipments and 11% increase in core LTL tonnage on a year-over-year basis for the second quarter.

第二季每天的噸位下降了 20%，每日出貨量比去年同期水準下降了 5%，以保持我們網路中一致的產能和勞動力水準。2023年上半年，隨著下半年市場狀況的改善，我們承擔了更多交易性業務，我們減少了交易性出貨量，轉而支持核心出貨量，導致核心零擔出貨量增長了14% ，核心零擔出貨量增加了11%第二季零擔噸位年增率。

This shift contributed to improved productivity and better financial results. Year-over-year, billed revenue per hundredweight increased by over 23% in the second quarter, driven by strategic price increases on transactional business and a higher proportion of core business, which has a higher revenue per hundredweight.

這一轉變有助於提高生產力和改善財務表現。受交易業務策略性漲價以及每英擔收入較高的核心業務比例上升的推動，第二季每英擔計費收入年增超過 23%。

We secured an average increase of 5.1% on our customer contract renewals and deferred pricing agreements during the second quarter, demonstrating our continued pricing discipline by optimizing our freight mix, improving productivity and lowering costs. We offset higher union contract costs, achieving higher operating income despite lower revenue.

第二季度，我們的客戶合約續約和延期定價協議平均成長了 5.1%，這表明我們透過優化貨運結構、提高生產力和降低成本來持續保持定價紀律。我們抵消了較高的工會合約成本，儘管收入較低，但仍實現了較高的營業收入。

On page 11 of our conference call slide deck, we illustrate the significant impact of these actions on our second quarter results sequentially compared to the first quarter of 2024 segment saw low to mid single digit percentage improvements in revenue tons and shipments per day revenue per hundredweight and revenue per ship.

在我們的電話會議投影片第11 頁上，我們說明了這些行動對我們第二季業績的重大影響，與2024 年第一季相比，該細分市場的營收噸數和每日出貨量每英擔收入實現了低至中個位數的百分比成長以及每艘船的收入。

We are now one year beyond several major events, including a competitor's bankruptcy, the start of our new labor contract and the implementation of our freight mix management and cost savings initiatives for the trailing 12 months ending June 30, 2024, our non-GAAP operating ratio was 89.5%, an improvement of 840 basis points since 2016, demonstrating the effectiveness of our strategy.

現在，我們已經過去了一年多的重大事件，包括競爭對手的破產、新勞動合約的開始以及截至2024 年6 月30 日的過去12 個月的貨運組合管理和成本節約計劃的實施，我們的非GAAP 營運比率為89.5%，較2016年提高840個基點，證明了我們策略的有效性。

The impact from last year's market disruptions began in mid-July 2023 and peak from August through October. Based on preliminary results, total revenue per day and shipments per day, both increased 1% year over year in July. We anticipate that daily tonnage levels for third quarter 2024 will be below the prior year as some of the core business increase that began in July 2023 was project related and some of the increased business has shifted to other providers over the past year.

去年市場混亂的影響始於 2023 年 7 月中旬，並在 8 月至 10 月達到高峰。初步結果顯示，7月份日總收入和日出貨量均較去年同期成長1%。我們預計2024 年第三季的每日噸位水準將低於上一年，因為2023 年7 月開始的一些核心業務成長與專案相關，並且一些成長的業務在過去一年中已轉移到其他供應商。

Pricing remains rational and the strength of our core business allows us to optimize spot prices for transactional business on July 1, 2024 the contractual wage rate under our union contract increased and the health, welfare and pension benefit rate increased on August 1, for a combined rate increase of approximately 2.7%.

定價仍然合理，我們核心業務的實力使我們能夠優化交易業務的現貨價格。日上調，合計成長率約2.7%。

Historically, the average sequential change in the asset-based operating ratio from the second quarter to the third quarter as ranged from flat to 100 basis points improvement. With the current market backdrop and cost outlook for the third quarter, including the previously mentioned contractual wage and benefit increase. We expect the third quarter 2024 operating ratio to be consistent with second quarter 2024.

從歷史上看，從第二季度到第三季度，資產營運比率的平均連續變化範圍為持平到改善 100 個基點。結合目前的市場背景和第三季的成本前景，包括前面提到的合約薪資和福利的增加。我們預計 2024 年第三季的營運比率將與 2024 年第二季保持一致。

Moving on to our Asset-Light segment, second quarter revenue was $396 million, a daily decrease of approximately 4% year-over-year, while shipments per day increased 13%. Revenue per shipment decreased by 15% due to the soft freight market and growth in our managed business, which has smaller shipment sizes and lower revenue per shipment levels.

轉向輕資產領域，第二季營收為 3.96 億美元，年減約 4%，每日出貨量成長 13%。由於貨運市場疲軟以及我們管理業務的成長（貨運規模較小且每票收入水準較低），每票收入下降了 15%。

Non-GAAP operating loss of $2.5 million for the quarter was largely due to lower margins in the current truckload market compared to the first quarter of 2024. Revenue per day was flat, but margins improved due to lower purchased transportation costs, which increased in January due to winter weather shipments per day decreased slightly as customers using our Asset-Light Solutions experienced lower demand in their businesses.

本季非 GAAP 營運虧損 250 萬美元，主要是由於目前卡車市場的利潤率低於 2024 年第一季。每日收入持平，但由於購買的運輸成本降低，利潤率有所提高，由於冬季天氣，每天的發貨量略有下降，因為使用我們的輕資產解決方案的客戶的業務需求下降，導致購買運輸成本有所增加。

Our Asset-Light offerings play an integral role in our overall strategy as customers seek long-term logistics partners for all their transportation needs. Our asset-light solutions also allow us to serve a much larger portion of our customers' transportation spend, and there's a tremendous market opportunity for our truckload and managed solutions.

隨著客戶尋求長期物流合作夥伴以滿足其所有運輸需求，我們的輕資產產品在我們的整體策略中發揮著不可或缺的作用。我們的輕資產解決方案還使我們能夠為客戶的大部分運輸支出提供服務，並且我們的卡車裝載和託管解決方案存在巨大的市場機會。

In addition, 70% of our asset-light customers also use our asset-based LTL solution. Our ability to meet our customers' needs at a price that reflects the value we offer is a key differentiator. Looking at preliminary results for July, revenue per day decreased 10% year-over-year due to lower revenue per shipment or shipment volumes for our managed solution have increased this growth and this growth has recently moderated due to lower demand from existing customers, reflecting current macroeconomic conditions.

此外，我們70%的輕資產客戶也使用我們的資產零擔解決方案。我們能夠以反映我們提供的價值的價格滿足客戶的需求，這是我們的一個關鍵優勢。從7 月的初步結果來看，每日收入年減10%，原因是每次發貨的收入較低，或者我們的託管解決方案的發貨量增加了這一增長，而由於現有客戶的需求下降，這一增長最近有所放緩，反映出當前的宏觀經濟狀況。

Additionally, truckload volume has slowed as we strategically reduce less profitable freight purchased transportation expense as a percentage of revenue increased sequentially throughout the second quarter and into July as carrier rates rose. These higher costs have reduced margins for our truckload brokerage contract business.

此外，隨著我們策略性地減少利潤較低的貨運購買運輸費用，卡車裝載量有所放緩，因為隨著承運人費率的上升，整個第二季度和進入7 月份收入的百分比持續增加。這些較高的成本降低了我們整車經紀合約業務的利潤。

We continue to focus on improving productivity and reducing cost per shipment. However, segment operating profit will remain impacted in the near term by current truckload brokerage market conditions.

我們繼續專注於提高生產力和降低每次發貨的成本。然而，該部門的營業利潤在短期內仍將受到當前整車經紀市場狀況的影響。

For the third quarter of 2024, we expect non-GAAP operating loss levels to be consistent with the second quarter of 2024. For the first half of 2024, we returned $37 million to shareholders through share buybacks and dividends. We have a $57 million net cash position and $500 million in available liquidity.

對於 2024 年第三季度，我們預計非 GAAP 營運虧損水準將與 2024 年第二季保持一致。2024 年上半年，我們透過股票回購和股利向股東返還 3,700 萬美元。我們擁有 5,700 萬美元的淨現金部位和 5 億美元的可用流動資金。

Our capital expenditure plan for the year remains in the $325 million to $375 million range. We are proud of our second quarter performance and our solid financial position. As Judy said, we continued to pursue growth, efficiency and innovation while delivering superior service to our customers and value to our shareholders. With improvements in operating costs and productivity and continued emphasis on growth initiatives. We are well positioned for the future.

我們今年的資本支出計畫仍維持在 3.25 億美元至 3.75 億美元之間。我們對第二季的業績和穩健的財務狀況感到自豪。正如朱迪所說，我們繼續追求成長、效率和創新，同時為客戶提供優質服務，為股東創造價值。隨著營運成本和生產力的改善以及對成長計畫的持續重視。我們為未來做好了充分準備。

And now I'll turn the call back to Judy for some final comments.

現在我將把電話轉回給朱迪，徵求一些最後的意見。

Thank you, Matt. Before I wrap up, I want to highlight some of our recent achievements that reflect our commitment to excellence and sustainability. ArcBest has once again been recognized as an inbound logistics, green supply chain partner in 2024. This honor underscores our legacy of good stewardship and our dedication to helping our customers advance their sustainability efforts.

謝謝你，馬特。在結束之前，我想強調我們最近的一些成就，這些成就反映了我們對卓越和永續發展的承諾。ArcBest再次被評為2024年入境物流、綠色供應鏈合作夥伴。這項榮譽凸顯了我們良好管理的傳統以及我們致力於幫助客戶推進永續發展努力的奉獻精神。

We are also proud to be named one of the best companies to work for by US News & World Report and to be ranked as a best leadership team by comparably. These awards are a testament to our ongoing efforts to make our best a leading place to work, and we're grateful for the recognition from these publications.

我們也很自豪被《美國新聞與世界報道》評為最適合工作的公司之一，並被評為最佳領導團隊。這些獎項證明了我們不斷努力使我們成為領先的工作場所，我們感謝這些出版物的認可。

Looking ahead, our team remains focused on continuing to deliver profitable growth through operational excellence, disciplined cost management and ongoing innovation. And that concludes our prepared remark and I'll turn it over to the operator for questions.

展望未來，我們的團隊仍致力於透過卓越營運、嚴格的成本管理和持續創新來繼續實現獲利成長。我們準備好的發言就到此結束，我將把它交給接線員提問。

(Operator Instructions) Jason Seidl, TD Cowen.

（操作員說明）Jason Seidl，TD Cowen。

Thanks, operator, Judy, Amy, Seth and the rest of the team, good morning. Just two quick things here. One, if we look at that project business that you mentioned in July of last year, if we exclude that, would your tonnage be projected as positive in 3Q? And then, Judy, just in general, there's a lot of talk right now about a potential recession. You get a good look into the economy as a national carrier. What are your customers telling you?

謝謝接線員、Judy、Amy、Seth 和其他團隊的成員，早安。這裡只有兩件事。第一，如果我們看看您去年 7 月提到的那個專案業務，如果我們排除這一點，您的噸位在第三季預計會是正值嗎？然後，朱迪，總的來說，現在有很多關於潛在衰退的討論。您可以深入了解國家航空公司的經濟狀況。您的客戶告訴您什麼？

Hey, Jason, good morning. This is Christopher. I'll just comment on the project business from last year. So last July, like you said, we did bring on some of that just due to market disruption that was that was good business for us, but that is definitely part of the story for the tonnage decline year-over-year.

嘿，傑森，早安。這是克里斯多福.我只評論一下去年的專案業務。所以去年七月，就像你說的，我們確實因為市場混亂而帶來了一些，這對我們來說是一筆好生意，但這絕對是噸位同比下降的原因之一。

But it's not all of it. Some of it was just us onboarding some of that core business for us that we are there in that time of disruption for our customers. But honestly, some of that went to lower-cost providers that they were able to ship by the end of the year.

但這還不是全部。其中一些只是我們在客戶受到干擾的時期為我們提供了一些核心業務。但老實說，其中一些流向了他們能夠在年底前發貨的低成本供應商。

So third quarter will be challenges from a year-over-year times perspective, but we're still as we continue to make good decisions in terms of the profitability and the freight selection for our business.

因此，從同比的角度來看，第三季將是挑戰，但我們仍然會繼續在獲利能力和業務貨運選擇方面做出明智的決策。

Okay. And, yes, and just from a wait for shipment perspective, you've seen it just drop from second quarter into July, just that it's starting to moderate. I would expect that to continue to moderate through the rest of the year?

好的。是的，僅從等待發貨的角度來看，您已經看到它從第二季度到七月只是下降，只是開始放緩。我預計這一情況將在今年剩餘時間內繼續放緩？

Judy, overall economy. Sorry, Jason, we missed part of that. If you had to follow-up.

朱迪，整體經濟。抱歉，傑森，我們錯過了其中的一部分。如果你必須跟進的話。

No. Yes, I said no. I was asking you to hear your thoughts on the overall economy, given that there's a lot of fear of a recession since you guys have such a good look into the macro, I was wondering what you.

不。是的，我說不。我請你們聽聽你們對整體經濟的看法，鑑於你們對宏觀經濟有如此深入的了解，人們對經濟衰退有很多恐懼，我想知道你們是什麼。

Yes. Well, Jason, I mean, I think that we're certainly being affected by those challenges. And I think that what we see is that we're kind of working across the bottom here, and we really don't have a crystal ball as to when that will inflect, but we feel like that we're well positioned really in any environment to succeed.

是的。嗯，傑森，我的意思是，我認為我們肯定受到這些挑戰的影響。我認為我們看到的是，我們正在從底部開始工作，我們確實沒有水晶球來預測這種情況何時會發生變化，但我們覺得我們在任何方面都處於有利位置。

We've got a pipeline that's increased 40% since the beginning of the year that really includes opportunities across LTL, truckload and manage, which we're excited about. And the work that we do with customers in this kind of environment shifts more to looking at cost efficiencies for them.

自今年年初以來，我們的通路增加了 40%，其中真正包括零擔、卡車裝載和管理方面的機會，對此我們感到很興奮。在這種環境下，我們與客戶所做的工作更轉向考慮他們的成本效率。

And the way that we've structured the company just really addresses that well. And so while we don't have a crystal ball, we feel very confident in our ability to navigate them the choppy waters as they hopefully settle down and we can move to a more normal environment, but feel like we're well positioned regardless.

我們建立公司的方式確實很好地解決了這個問題。因此，雖然我們沒有水晶球，但我們對自己在波濤洶湧的水域中導航的能力非常有信心，因為他們希望安定下來，我們可以進入一個更正常的環境，但無論如何，我們感覺自己處於有利位置。

Okay. So that lowering weight per shipment is not that much of a cause of concern, then?

好的。那麼，降低每批貨物的重量並不是一個令人擔憂的問題，那麼呢？

Well, it's been there. We've seen that and have navigated pretty well. We saw nearly 30% improvement in operating income in the in the second quarter. And that was in the face of some cost challenges and some macro challenges, but was overcome by a lot of great efforts to improve our operation that relate to efficiency efforts as well as the completion of some Tier one technology projects that we have.

嗯，它已經在那裡了。我們已經看到了這一點並且做得很好。我們看到第二季營業收入成長了近 30%。我們面臨著一些成本挑戰和一些宏觀挑戰，但透過付出巨大努力來改善我們的運營，這些努力與效率工作以及我們擁有的一些一級技術專案的完成有關，我們克服了這一挑戰。

So good. Appreciate the time as always, everyone.

超好的。大家一如既往地珍惜時間。

Exactly.

確切地。

Daniel Imbro, Stephens

丹尼爾·因布羅、史蒂芬斯

Yes. Hey, good morning, everybody. Thanks for taking my questions. Wondering one story on the pricing side, I guess looking at the second quarter revenue per hundredweight, including fuel was up sequentially, but fuel was down 1Q to 2Q.

是的。嘿，大家早安。感謝您回答我的問題。想知道定價方面的一個故事，我猜想看看第二季每英擔收入，包括燃料連續上升，但燃料從第一季到第二季下降。

So I guess is the right read here that core pricing ex fuel actually accelerated in your business. Can you just talk about how you're thinking about core pricing trends into the back half from the 2Q level?

因此，我認為這裡的正確解讀是，核心定價（不含燃料）實際上在您的業務中加速了。您能否談談您如何看待第二季下半年的核心定價趨勢？

Sure. Hey, Daniel, this is Christopher. So I would say in terms of just pricing trends, we remain disciplined in making sure that we're getting increases on our core business. Like we talked about, we got to 5.1% increase in the second quarter on our deferred negotiations. And that's just annual increases that we take on those customers. I'm also really proud of that result from our sales and our pricing team to get that just in this challenged freight environment that despite the environment, our customers are recognizing the value that we're providing and we're able to get good increases.

當然。嘿，丹尼爾，這是克里斯托弗。因此，我想說，就定價趨勢而言，我們仍然遵守紀律，確保我們的核心業務成長。正如我們所說，我們在第二季度透過推遲談判實現了 5.1% 的成長。這只是我們對這些客戶的年度成長。我也對我們的銷售和定價團隊所取得的成果感到非常自豪，在這個充滿挑戰的貨運環境中，儘管環境如此，我們的客戶還是認識到我們提供的價值，並且我們能夠獲得良好的成長。

I was looking back over history. That's actually the fourth best increase over the last 20 years that we've gotten in the second quarter. So really great result. And that's something that we will that will continue through the rest of the year as well. So like you said, there was some progression from first to second. We'll continue to get good increases throughout the rest of the year as well.

我在回顧歷史。這實際上是我們第二季度實現的過去 20 年來第四高的增幅。所以結果真的很棒。我們將在今年餘下的時間裡繼續這樣做。就像你說的，從第一到第二有一些進展。在今年剩餘時間內，我們也將繼續獲得良好的成長。

And then if I can follow up maybe on the back half of our outlook, Matt, I think you said or flattish in 3Q from 2Q? I think cost inflation is moderating a little bit. So I guess if revenue growth is improving and pricing is improving, why wouldn't that get a little bit better? And then can you just remind us what normal seasonality is on OR from 3Q to 4Q. As we think about that? Thanks.

然後，如果我可以跟進我們前景的後半部分，馬特，我想你說的是第三季度與第二季度持平？我認為成本通膨正在放緩。所以我想如果收入成長正在改善並且定價正在改善，為什麼情況不會變得更好一點呢？然後您能否提醒我們第三季到第四季的正常季節性是什麼？當我們想到這一點？謝謝。

Yes, absolutely. So I would say generally, revenue levels are fairly consistent from the second quarter to the third quarter, we did talk about in our range of zero to 100 basis points of improvement. When we look at things sequentially, just kind of considering the environment and considering the freight mix that we're looking at for the third quarter, we do think that it's.

是的，絕對是。所以我想說，總的來說，從第二季到第三季的收入水平相當一致，我們確實談到了 0 到 100 個基點的改進。當我們按順序看待事物時，只要考慮一下環境並考慮我們正在考慮的第三季度的貨運組合，我們確實認為是這樣。

And just considering our cost profile that we're looking at, we know we do have an increase that goes in July first for our wage rate on our union contract and then a benefit increase that goes in in August, which are at moderate levels, but are still a little bit higher and what seasonality has been outside of last year.

考慮到我們正在考慮的成本狀況，我們知道我們確實會在 7 月首先提高工會合約的工資率，然後在 8 月提高福利，這是中等水平，但仍然有點高，而且季節性因素與去年不同。

And so all of those are taken into a taken into account. It puts us at currently an expectation of roughly flat. I mean, certainly we had a very strong operational execution quarter in the second quarter. We've talked about just where our efficiency and productivity metrics, service metrics are very strong and compared to recent history.

所以所有這些都被考慮在內。目前我們的預期大致持平。我的意思是，我們在第二季的營運執行確實非常強勁。我們已經討論了與最近的歷史相比，我們的效率和生產力指標、服務指標非常強大。

And some of those metrics are perhaps the highest in our company's history. And so certainly, if we can continue that strong performance and that momentum into the third quarter, I'd say there's some potential for an improvement off of that off of that flat outlook. And then as you're looking from the third quarter to the first quarter. Typically, we do see an increase in operating ratio when you move from the third to the fourth quarter.

其中一些指標可能是我們公司歷史上最高的。因此，當然，如果我們能夠在第三季度繼續保持強勁的表現和勢頭，我認為在平淡的前景基礎上有一定的改善潛力。然後當你從第三季看到第一季時。通常，當從第三季轉向第四季時，我們確實會看到營運比率增加。

That has been up to 400 basis points, if you look over the last few years. But I think with the revenue initiatives with the strong pipeline that we've talked about and with some of the efficiency work and just some of the productivity performance that we've seen in our network. I think we've got it's a lot better opportunity for and more consistent results from the third quarter to the fourth quarter than we've had in past years.

如果你回顧過去幾年，這個數字已經高達 400 個基點。但我認為，我們已經討論過的收入計劃、強大的管道、一些效率工作以及我們在網路中看到的一些生產力表現。我認為從第三季度到第四季度，我們有比過去幾年更好的機會和更一致的結果。

Thanks for all the color.

感謝所有的顏色。

Jordan Alliger, Goldman Sachs.

喬丹·阿利格，高盛。

Good morning, Jordan.

早上好，喬丹。

Hi. Sorry about that. Yes, just wanted to follow up a little bit on some of the trends that you had put out there for July. I think there was a couple of more operating days in July versus a year ago. It sort of maybe distorts some of that per day growth?

你好。對此感到抱歉。是的，我只是想跟進一下您在 7 月發布的一些趨勢。我認為七月的營業天數比一年前多了幾天。這可能會扭曲一些每日增長？

Just curious, is there a way to sort of give some sense for how August and September might look broadly in terms of tons per day or revenue per day and taking into account the norm, the days I suspect it should start to look better on a year-over-year basis for both those relative to July? But I'm just curious if any thoughts on that.

只是好奇，有沒有一種方法可以讓我們了解 8 月和 9 月在每天的噸數或每天的收入方面的大致情況，並考慮到常態，我懷疑它應該開始看起來更好與7 月份相比，這兩個指標的年比情況如何？但我只是好奇是否對此有任何想法。

A good morning, Jordan. So I think just the typical seasonality of our business, we see as you as we all know, July had a holiday in it, and we see that just typically the progression of growth from July to August to September, September being the end of month end of quarter month tends to be the strongest in the quarter.

早上好，喬丹。所以我認為我們業務的典型季節性，正如大家所知，7 月有一個假期，我們看到通常從 7 月到 8 月再到 9 月的增長過程，9 月是月底季度末往往是本季度最強勁的。

So we see upside in terms of just tonnage and per day shipments per day as you just knew sequentially through the quarter.

因此，正如您在整個季度中連續了解的那樣，我們僅在噸位和每日發貨量方面看到了上升空間。

Okay. And I guess sort of like, the same thing. we do start to enter a period of, tougher comps for the industry. post a year ago with yellow and now there's a bunch of terminals opening. I know you gave some color around price. It would seem like industry discipline is still pretty strong, but there's been some recently pretty difficult ism readings that came out yesterday, which wasn't particularly good.

好的。我想有點像，同樣的事情。我們確實開始進入一個行業競爭更加激烈的時期。一年前發布的黃色帖子，現在有一堆終端開放。我知道你對價格做了一些說明。看起來行業紀律仍然相當強大，但昨天發布了一些最近相當困難的主義讀物，這並不是特別好。

I mean, how do you think about the industry's ability to sort of take into account these terminal openings and these new orders index, which continues to be pretty soft? And how does the industry keep core pricing firm? Thanks.

我的意思是，您如何看待該行業考慮這些終端開放和新訂單指數（該指數仍然相當疲軟）的能力？該產業如何保持核心定價穩定？謝謝。

Hey, Jordan, it's Seth. So we're really looking at things sequentially because that we think that's a better way to view kind of what's going on with all the market disruption that you mentioned. So when you think about the 10-year history on shipments to Christopher, what he was talking about, normally they declined from June going into July, and we've actually seen about 0.5% increase as well as tonnage.

嘿，喬丹，我是塞斯。因此，我們確實是按順序看待事情，因為我們認為這是一種更好的方式來了解您提到的所有市場混亂的情況。因此，當你想想克里斯托弗(Christopher) 所說的10 年出貨量歷史時，通常情況下，從6 月到7 月，出貨量會有所下降，而我們實際上看到了噸位的增長約0.5%。

We've seen that same type of result normally were down about 5%, and we're down only about 2% in July. So when you think about the industry overall and capacity what's coming in from a real estate standpoint, we still see that terminals and capacity being down from one yellow was in the market.

我們發現，同類結果通常會下降約 5%，而 7 月僅下降約 2%。因此，當您從房地產的角度考慮整個行業和運力時，我們仍然看到市場上的碼頭和運力從一黃色下降。

So when we look at our investments and what we've been investing in, it's really strategic. I don't think we overspent on our capacity, and we've had this long-term roadmap that we've been working on for many years. So we're investing where we see growth opportunities or productivity improvements Great example, that was Lithia Springs that we opened.

因此，當我們審視我們的投資以及我們一直在投資的內容時，這確實具有戰略意義。我認為我們的產能並沒有超支，而且我們已經制定了多年的長期路線圖。因此，我們在看到成長機會或生產力提高的地方進行投資。

I mentioned in my opening comments, a 16% improvement in productivity almost overnight. So we're really focused on the service improvements because we believe that's what's going to lead to long-term customer value. And we're seeing some amazing numbers there. Continue to win some external awards, but we think by focusing on the customer that's going to position us well.

我在開場白中提到，生產力幾乎在一夜之間提高了 16%。因此，我們真正關注的是服務改進，因為我們相信這將帶來長期的客戶價值。我們在那裡看到了一些驚人的數字。繼續贏得一些外部獎項，但我們認為透過專注於客戶將使我們處於有利地位。

But I do think industry capacity overall is going to be down over the long term. With the yellow capacity, there's still about half of their facilities not back online.

但我確實認為，從長遠來看，產業整體產能將會下降。對於黃色容量，仍有大約一半的設施未恢復正常運作。

Thank you.

謝謝。

Ken Hoexter, Bank of America.

肯‧霍克斯特，美國銀行。

It's a great, a good morning and congrats as Dave said And Matt, on your Dave, on your moving on and setting that new positions you see throughout there the comment in it that peers were taking more share. I think the last few questions asking about price competition, trying to get at that, what maybe you can define how they're being aggressive in winning that share if it's not being on price?

這是一個偉大的早晨，正如戴夫所說，恭喜馬特，祝賀你的戴夫，祝賀你繼續前進並設定了新的職位，你在其中看到的評論是同行正在佔據更多份額。我認為最後幾個問題是關於價格競爭的，試圖解決這個問題，如果不是透過價格競爭，你可以定義他們如何積極地贏得市場份額？

Because I think Judy also mentioned that some we're just moving to more different price providers. So maybe you can compare and contrast the comment about the peers take share.

因為我認為朱迪也提到，有些我們只是轉向更多不同的價格提供者。所以也許你可以比較和對比同行的評論，分享一下。

Ken, this is Christopher, again, just just to clarify, that comment was really about the disruption from late last year. So we onboarded some core business net late July, August time frame. We're able to be there for our customers. And honestly, there are prices that were substantially higher than what yellow was providing them.

肯，我是克里斯托弗，我只是想澄清一下，這個評論實際上是關於去年年底的混亂。因此，我們在七月底、八月的時間範圍內加入了一些核心業務網絡。我們能夠為我們的客戶提供服務。老實說，有些價格遠高於黃色提供的價格。

And then there were some of those customers that were able to find cheaper options there, but that was probably over the course of the next 30, 60 days, that's all settled out that was that quickly settled in the second half of last year, obviously at a much more consistent based basis now and moving forward.

然後有些客戶能夠在那裡找到更便宜的選擇，但這可能是在接下來的 30、60 天裡，這一切都已解決，顯然是在去年下半年很快就解決了現在並在更加一致的基礎上繼續前進。

All right. Great. Then if I can just get a follow up then on that, I just want to send the transactional thing has caused so much confusion, I think with your volumes, right? I mean, normally when a company is losing 20%-plus volumes, you're kind of scared and running for the hills, but yet your pricing is up 25%.

好的。偉大的。然後，如果我能得到跟進，我只想發送交易的事情造成瞭如此多的混亂，我想你的捲，對吧？我的意思是，通常當一家公司的銷量下降 20% 以上時，你會有點害怕並逃跑，但你的定價卻上漲了 25%。

So that tells you that the core is really kind of taking off here. But if you're still down 20% on volumes and your systems were kind of created that you could maybe do it more variable? Why is it such a vicious move if you're not filling it up and the opportunity to keep taking that transactional volume with accommodative, what what's missing there that we're seeing such maybe such huge swings in that in that transactional volume.

這告訴你，核心確實在這裡起飛了。但是，如果您的銷量仍然下降了 20%，而您的系統是經過精心設計的，那麼您是否可以做得更多？如果你沒有填補它，也沒有機會繼續以寬鬆的方式獲取交易量，那為什麼這是一個如此邪惡的舉動呢？

Yes. So I think you got to kind of rewind the tape on that because [20%s], I go back to 2023. We continued to see the weakness in the macro. So we used that transactional tonnage to fill our network and keep employees working when think about the years throughout the pandemic, very challenging to find qualified CDL employees.

是的。所以我認為你必須倒帶一下，因為 [20%s]，我回到 2023 年。我們繼續看到宏觀經濟的疲軟。因此，我們利用這些交易量來填充我們的網路並讓員工繼續工作，考慮到整個大流行期間的這些年，尋找合格的 CDL 員工非常具有挑戰性。

So we thought that was the right strategy at the time, we were also going through our contractual negotiations as well, just as a reminder. So we started to see the yellow story play out. So we wanted to keep our people working, but we also saw that that could potentially happen. So after we got clarity on our cost with the ratification of our contract, the demise of Yellow I think what we did with shifting strategies to more core business, what we really focused on was serving those core customers that come at a better price, better margin, more consistency which allows us to plan labor much more consistently and why you're seeing some of the productivity gains. But it really is truly just a mix in our business.

所以我們當時認為這是正確的策略，我們也在進行合約談判，只是作為提醒。所以我們開始看到黃色故事的上演。因此，我們希望讓我們的員工繼續工作，但我們也看到這種情況有可能發生。因此，在我們通過批准合約、明確了我們的成本、黃色的消亡之後，我認為我們將策略轉向更核心的業務，我們真正關注的是為那些以更好的價格、更好的核心客戶提供服務。但它實際上只是我們業務的混合體。

And I think it worked well. When you look at our second quarter generating $21 million more in op income with less top line revenue and almost $31 million worth of extra contractual costs. I think we handled that very well. But the way we really target our transactional businesses, it's a daily decision based on profit maximization and capacity in the network.

我認為效果很好。看看我們第二季的營運收入增加了 2,100 萬美元，但頂線收入減少了，額外合約成本增加了近 3,100 萬美元。我認為我們處理得很好。但我們真正瞄準交易業務的方式是基於利潤最大化和網路容量的日常決策。

So I think now that our cores in a good spot with the Yellow demise, I feel like you're going to see more consistency as we move through the rest of the year less of these wild swings, but it's probably going to take till about November to get there just because of the Yellow situation than we had the cyber event later in the year and everything was just still sorting out, like Christopher pointed to. So that's why we'd like to look at sequential trends. And we feel pretty good about the progress we've made.

所以我認為現在我們的核心在黃色消亡的情況下處於一個好的位置，我覺得隨著我們在今年剩餘的時間裡減少這些瘋狂的波動，你會看到更多的一致性，但這可能需要大約11 月到達那裡只是因為黃色的情況，而不是我們在今年晚些時候發生的網路事件，一切都還在整理中，就像克里斯托弗指出的那樣。這就是為什麼我們想觀察連續趨勢。我們對所取得的進展感到非常滿意。

Can you clarify what percentage is left of the total base that's transactional versus contract our core sorry?

您能否澄清一下，交易性與合約性的總基數中還剩下多少百分比，我們的核心抱歉？

Yes, we don't provide that number mainly because it changes so often. So the business is primarily core. Transactional business is really to help maintain consistency in the network and allow us to be positioned when the network when the market does change. When you think about what we did in the first half to what we're doing moving forward. We feel like our mix is in a much better place than you'll see.

是的，我們不提供該數字主要是因為它經常變化。所以業務首先是核心。交易業務實際上是幫助保持網路的一致性，並讓我們在網路市場發生變化時能夠定位。當你想想我們在上半場所做的事情以及我們接下來要做的事情。我們覺得我們的組合比您看到的要好得多。

Appreciate the time. Thank you.

珍惜時間。謝謝。

Bruce Chan, Stifel.

布魯斯·陳，斯蒂菲爾。

Good morning. This is Matt Milask on for Bruce. Thanks for taking our questions here. On the asset-light business, can you comment on the mix of spot versus transactional at the moment?

早安.這是布魯斯的馬特·米拉斯克。感謝您在這裡提出我們的問題。關於輕資產業務，您能否評論一下目前現貨與交易的組合？

The current the current mix on the truckload business, I mean, if you think about asset-light for us overall, that's several services. But on truckload business, we're roughly in that 60-40 range on contract versus spot. The other thing that's going on in truckload, if you look at kind of what we're doing year over year, we're continuing to see improvements in productivity and continuing to work through a strong pipeline of opportunities and really look into that through the future and well positioned to grow as the market improves.

我的意思是，如果你考慮我們整體的輕資產，那就是目前的卡車業務組合，這是幾項服務。但在卡車裝載業務上，我們的合約與現貨價格大致處於 60-40 的範圍內。卡車上正在發生的另一件事，如果你看看我們年復一年所做的事情，我們將繼續看到生產力的提高，並繼續透過強大的機會管道進行工作，並透過以下方式真正研究這一點：未來，並有能力隨著市場的改善而成長。

Can you walk us through the mechanics of the guide for the brokerage OR being flat, maybe what you're expecting in terms of gross margin compression, if any, and maybe some opportunities to take out some more costs.

您能否向我們介紹經紀業務或持平指南的機制，也許您對毛利率壓縮的期望是什麼（如果有的話），也許還有一些減少更多成本的機會。

Yes. The guidance there's base basically attributed to the market conditions and just not seeing a strong indicator of a strong improvement in the second half, and we'll continue to work through the opportunities that we mentioned in our pipeline. We also have a good roadmap of efficiency gains that we can see play out as we implement new technology and process.

是的。在那裡的指引基本上歸因於市場狀況，只是沒有看到下半年出現強勁改善的有力指標，我們將繼續利用我們在管道中提到的機會。我們還有一個良好的效率提昇路線圖，我們可以在實施新技術和流程時看到它的發揮。

So we will continue to improve efficiency as we move through the rest of the year. But most importantly, we want to be positioned for the market to improve and to take advantage of that and grow as we see the market start to improve.

因此，我們將在今年剩餘時間內繼續提高效率。但最重要的是，我們希望為市場的改善做好準備，並利用這一點，並在我們看到市場開始改善時實現成長。

Great. Thanks for that. And lastly, can you remind us of where you are in terms of door capacity utilization? And is there a way to tell what that might be if you on the transactional spot business down to zero?

偉大的。謝謝你。最後，您能提醒我們一下您在門產能利用率方面的情況嗎？有沒有辦法告訴您，如果您的現貨交易業務降至零，情況會如何？

Yes. We feel like right now, as far as our excess capacity is what you're asking.

是的。我們現在的感覺是，我們的產能過剩正是您所要求的。

Sure.

當然。

Okay. Yes. So we estimate that we have about 15% to 20% excess capacity in our network right now. And that includes people real estate, equipment, we've talked about a real estate plan quite a bit. So we feel like we've built up to be able to handle this eventual market swing and we continuously optimize the network and adjust based off the opportunities that we see to better service our customers.

好的。是的。因此，我們估計目前我們的網路中有大約 15% 到 20% 的過剩產能。這包括人員、房地產、設備，我們已經多次討論了房地產計劃。因此，我們覺得我們已經建立了能夠應對這種最終市場波動的能力，並且我們不斷優化網絡並根據我們看到的機會進行調整，以更好地為客戶服務。

We really have a long-term outlook here. So we don't want to limit our growth potential when the market does turn, and that's why we've made the investments that we're making. We've continued to make throughout our network. So we feel like if the market does turn, we get more for business, we want to grow with that.

我們確實有長遠的展望。因此，當市場確實發生轉變時，我們不想限制我們的成長潛力，這就是我們進行投資的原因。我們繼續在整個網路中進行生產。因此，我們覺得如果市場確實發生轉變，我們會獲得更多業務，我們希望隨之成長。

And we think transactional is a way for us to balance our network better and optimize that daily based on what the freight demand is and what the market prices are. So it's really a daily optimization to when the market turns, that should benefit us.

我們認為交易是我們更好地平衡我們的網路並根據貨運需求和市場價格進行日常優化的一種方式。因此，這實際上是市場轉向時的日常優化，這應該會讓我們受益。

Thanks for the color.

謝謝你的顏色。

Tom Wadewitz, UBS.

湯姆‧瓦德維茨，瑞銀集團。

Good morning. I wanted to see -- know you were asked a little bit about the weight per shipment on July kind of blazing July getting a little lighter versus June, but I'm not sure if I am understand what you what the perspective is. You've got the perspective. Do you think that's like softness in the economy a little bit?

早安.我想知道——知道你被問到了關於七月每批貨物的重量的問題，七月與六月相比，有點輕，但我不確定我是否理解你的觀點是什麼。你有遠見。您認為這有點像經濟疲軟嗎？

Or is that a function of some mix and you mentioned project business going away, was that project business heavier? Just wanted to see if you could give a little more thought on that kind of lighter weight per shipment in July versus June?

或者這是某種混合的功能，您提到專案業務正在消失，專案業務是否更重？只是想看看您是否可以考慮 7 月與 6 月相比每次發貨的重量是否更輕？

Tom, it's Christopher. I'd say it's both. If the economy just being softer than obviously we'd like to see. I think we've talked at length in the past about higher weight per shipment is a sign of an improving economy, and that hasn't turned the corner yet even on our core business.

湯姆，這是克里斯多福。我想說兩者都是。如果經濟明顯比我們希望看到的疲軟。我認為我們過去曾詳細討論過每批貨物的重量增加是經濟改善的跡象，但即使在我們的核心業務上，這種情況也還沒有好轉。

And then it's really from a year-over-year perspective, it's really all about this mix. And it's the majority of this mix management just moving more towards core business that tends to have a lower weight per shipment then the transactional business.

然後，從逐年的角度來看，這確實與這種混合有關。這種混合管理的大部分只是更多地轉向核心業務，每批貨物的重量往往比交易業務低。

So do you think the July look is representative and stable just in terms of mix of business as well as kind of, I guess, some of the business that that had moved away. Is that the right look? Or do you think it's kind of trending further in terms of lighter weight per shipment as you look to August, September, 4Q?

那麼，您認為 7 月份的情況是否具有代表性和穩定性，就業務組合以及我猜的一些已經轉移的業務而言。這是正確的外觀嗎？或者，您認為就 8 月、9 月和第四季而言，每批貨物的重量是否有進一步減輕的趨勢？

I would say, I don't see anything significantly changing it within our view right now. Obviously things could change, but what we've seen from June to July feels consistent and obviously moving forward we'd love to see that improve, but we're still we're positioned well to respond to whatever the market gives us there.

我想說，目前我們認為沒有任何重大改變。顯然情況可能會發生變化，但我們從6 月到7 月所看到的情況感覺是一致的，並且顯然我們希望看到這種情況的改善，但我們仍然處於有利位置，可以應對市場給我們的任何資訊。

Right. Okay. And then on the Asset-Light side as well it sounded like you saw a little bit of softening in July too. Is that is that just freight activity, market getting softer? Or what's the asset-light read on what you're seeing in July?

正確的。好的。然後在輕資產方面，聽起來七月也有一點軟化。這只是貨運活動，市場變得疲軟嗎？或者您對 7 月份的輕資產解讀是什麼？

Yes. We are seeing some drop in demand from current customers. A lot of that was associated with the first week of the month with the holiday. And then we just continue to work through opportunities and make sure we're making good selections on that, the shipments that we add and that type of thing that impacted that as well.

是的。我們發現當前客戶的需求有所下降。其中很大一部分與該月第一周的假期有關。然後我們繼續尋找機會，確保我們在這方面、我們增加的發貨量以及影響到這一點的事情上做出了良好的選擇。

Okay, great. Thanks for the time.

好的，太好了。謝謝你的時間。

Chris Wetherbee, Wells Fargo.

克里斯‧韋瑟比，富國銀行。

Yes. Thanks. Good morning, guys. I guess maybe I wanted to come back to sort of overall volume and maybe your strategy. So if I look at tons per day down at levels that maybe we haven't seen in quite some time shipments, maybe not quite as low, but still relatively well outside of maybe 2020.

是的。謝謝。早安，夥計們。我想也許我想回到總體數量，也許還有你的策略。因此，如果我看看每天的噸數下降水平，我們可能已經在很長一段時間內沒有看到過這樣的出貨量，也許沒有那麼低，但在 2020 年之後仍然相對較好。

So obviously, you've improving the mix of the business. Profitability hasn't suffered during that dynamic. But I guess are we at the point where this is the appropriate level of volume. And I know we're in a softer market now, but as market comes back and would you be looking to grow into this or do you have capacity.

顯然，您已經改善了業務組合。在此期間，盈利能力並未受到影響。但我想我們已經達到了適當的交易量水準了。我知道我們現在正處於一個較疲軟的市場，但隨著市場的回歸，你是否會尋求成長，或者你是否有能力。

I'm just kind of getting a sense of where it is because the numbers are seemingly fairly low, but still sort of under some pressure on a year-over-year basis. Just want to get a sense of what the strategy is going forward.

我只是有點了解它在哪裡，因為數字似乎相當低，但與去年同期相比仍然承受著一些壓力。只是想了解一下該戰略的進展。

Yes, I think the results in the second quarter kind of speak to what we're doing there. We're trying to enhance, you know, profitability while having capacity for growth. So like I mentioned earlier, it's better to look at those sequential numbers, and we're seeing improvements in our core and weight per shipment. We just talked about that we expect to kind of flat sequentially.

是的，我認為第二季的結果說明了我們正在做的事情。你知道，我們正在努力提高獲利能力，同時擁有成長能力。因此，就像我之前提到的，最好查看這些連續數字，我們看到我們的核心和每批貨物的重量有所改善。我們剛剛談到，我們預計會依次持平。

Most of that is due to the market conditions and what's going on there. So you got to think the 1st year of the contractual wage increases were pretty large and we were able to overcome that. You saw that cost productivity things we did. So we feel good about that moving forward. It's a much more reasonable rate like this year is only a 2.7% increase all in for wages and HWP.

其中大部分是由於市場狀況和那裡正在發生的事情造成的。所以你必須認為第一年的合約薪資成長相當大，我們能夠克服這一點。您看到了我們所做的降低生產力的事情。因此，我們對這一進展感到滿意。這是一個更合理的比率，例如今年薪資和 HWP 總共只增加了 2.7%。

So that's going to allow us to make some gains on growth and yield. We knew that this business would continue to shift post disruption. So that's why we're saying it's better to look at that sequential history. We believe that the environment's going to be continued to be kind of unpredictable.

因此，這將使我們能夠在成長和產量方面取得一些進展。我們知道，這項業務在中斷後將繼續改變。這就是為什麼我們說最好看看連續的歷史。我們相信環境將繼續變得不可預測。

We've heard about PMI and what's going on there, but what gives us. A lot of confidence in the future is a 40% increase in our sales pipeline since January. As Judy mentioned in her opening comments, we've had some of the best service numbers in the over the last five years.

我們聽說過 PMI 以及那裡發生的事情，但它為我們帶來了什麼。自 1 月以來，我們的銷售管道成長了 40%，這讓我們對未來充滿信心。正如朱迪在開場白中提到的，我們在過去五年中擁有一些最好的服務數據。

So we're providing value for our customers. We've been celebrating our 40-year quality anniversary and our people have taken that to heart we've really seen that resonate with our customer retention numbers and our efficiencies at no multi-year highs. So that allows us to improve service capacity for growth and just it impacts the bottom line up cost measures well, so we continue to see those benefits.

因此，我們正在為客戶提供價值。我們一直在慶祝 40 週年品質紀念日，我們的員工牢記這一點，我們確實看到這與我們的客戶保留率和我們的效率產生了共鳴，沒有達到多年來的最高水平。因此，這使我們能夠提高服務能力以實現成長，並且它將很好地影響成本指標的底線，因此我們將繼續看到這些好處。

And I feel like that momentum is going to take us forward for continued growth, and we built the capacity forward. So we're continuing to execute on growing our core business while optimizing that transactional mix based on what the market's doing.

我覺得這種勢頭將推動我們持續成長，我們也不斷增強能力。因此，我們將繼續發展我們的核心業務，同時根據市場動態優化交易組合。

That's really helpful. I appreciate that. And maybe if I could zoom out the lens a little bit and think about the industry over the next couple of years. So you noted you have 15% to 20% excess capacity. I guess if I go around sort of the horn of the other public carriers, I think having that much, maybe in some cases, more extra capacity on a Yellow kind of down cut in half from a capacity perspective in the market now.

這真的很有幫助。我很欣賞這一點。也許我可以把鏡頭拉遠一點，思考一下這個產業未來幾年的狀況。所以你注意到你有 15% 到 20% 的產能過剩。我想，如果我繞過其他公共營運商的號角，我認為從現在市場容量的角度來看，黃色的額外容量可能會減少一半。

I guess do you see the market dynamics changing at all in terms of the ability to get price or real profitable mix improvements as we move forward? Or is it that there is enough growth and maybe there's some freight that's outside of the market that comes back in a tighter environment. Just kind of curious how you might see that next sort of cycle play out for the industry.

我想，隨著我們的前進，您是否認為市場動態在獲得價格或真正有利可圖的組合改進的能力方面發生了變化？或者有足夠的成長，也許有一些市場之外的貨運在更緊張的環境中回歸。只是有點好奇你會如何看待這個行業的下一個​​週期。

Yes. I think I think we're really well positioned for growth. I think we demonstrated that the middle of last year when we had similar excess capacity, we were able to meet the demands of our customers that had that disruption. We were able to onboard that business quickly without really missing a beat from a service standpoint.

是的。我認為我們確實處於成長的有利位置。我認為我們證明，去年年中，當我們出現類似的產能過剩時，我們能夠滿足出現這種中斷的客戶的需求。從服務的角度來看，我們能夠快速開展這項業務，而沒有真正錯過任何節拍。

So really, we're playing the same playbook that we played last year. We have excess capacity. We still have the transactional lever that we could. We could tampen that down even further if needed as core business grows further. So I feel great about our position to bring on additional growth when it's available.

所以說真的，我們正在玩去年玩的同樣的劇本。我們產能過剩。我們仍然擁有我們可以利用的交易槓桿。隨著核心業務的進一步成長，如果需要，我們可以進一步降低這一比例。因此，我對我們能夠在可能的情況下實現額外增長的地位感到非常高興。

Okay. Appreciate the comments. Thanks very much.

好的。感謝您的評論。非常感謝。

Brian Ossenbeck, JPMorgan.

布萊恩‧奧森貝克，摩根大通。

Good morning. Thanks for taking the question. Cisco back on the service improvements. Just wanted to see what's the feedback from customers so far have Matthew surveys going on again right now, but sort of focal point of proving that over the last couple of years. So what are customers seeing right now?

早安.感謝您提出問題。思科重新進行服務改進。只是想看看到目前為止客戶的回饋是什麼，馬修調查現在再次進行，但這是過去幾年證明這一點的焦點。那麼客戶現在看到了什麼？

And when do you think you start to see this sort of in either the freight mix or the pricing can that start to improve next year if things kind of bounce along the bottom? Or would that really be something you need an upcycle to help monetize if service does continue to improve?

您認為什麼時候開始在貨運組合或定價中看到這種情況，如果情況沿著底部反彈，明年就會開始改善？或者，如果服務確實持續改善，您真的需要升級改造來幫助貨幣化嗎？

Yes. We really when you think about our service levels, we have a commitment to excellence. And historically, we've been in a really good spot on the Mastio survey we've made a lot of improvements since last one came out. We do our own internal surveys with customers to measure NPS, and our internal scores have continued to improve consistently quarter after quarter. And we're seeing that in our own internal metrics as well because we've improved tactical execution, the shipment visibility.

是的。當您考慮我們的服務水準時，我們確實致力於追求卓越。從歷史上看，我們在 Mastio 調查中一直處於非常好的位置，自上次調查以來我們已經做出了許多改進。我們與客戶進行內部調查來衡量 NPS，我們的內部得分逐季持續提高。我們在自己的內部指標中也看到了這一點，因為我們提高了戰術執行力和出貨可見度。

I mentioned in my opening comments, we've made a lot of efforts to improve in that area and all the optimization efforts. When you improve efficiency, you improve your throughput, which in turn generates a better service for our customers. So we have better visibility into network issues. So if we do see an issue popping up, whether it's labor or whatever it is, we can react much faster and resolve those issues before it impacts our customers.

我在開場白中提到，我們在該領域和所有優化方面做出了很多努力來改進。當您提高效率時，您就提高了吞吐量，從而為我們的客戶提供更好的服務。這樣我們就可以更了解網路問題。因此，如果我們確實發現出現問題，無論是勞動力問題還是其他問題，我們都可以更快地做出反應，並在問題影響我們的客戶之前解決這些問題。

And that's because of all the So all the data that we have and all the infrastructure that we built around network visibility. So the real estate plan, obviously, gives our customers more capacity. But I feel like with our service metrics being at five-year high, continued internal and NPS improvement, we feel like that's going to continue to benefit our customers.

這是因為我們擁有的所有數據以及我們圍繞網路可見性構建的所有基礎設施。因此，房地產計劃顯然為我們的客戶提供了更多的容量。但我覺得我們的服務指標處於五年來的最高水平，內部和 NPS 持續改進，我們覺得這將繼續使我們的客戶受益。

I've spent a lot of time with customers throughout the second quarter and they've communicated back just the difference that they feel and our service levels. We think that translates to long-term value for our customers.

在整個第二季度，我花了很多時間與客戶交流，他們回饋了他們的感受和我們的服務水準的差異。我們認為這將為我們的客戶帶來長期價值。

Yes. Just from a price perspective, yes, obviously, the value prop that set is describing plays into that price. And really, we just want to be at a consistent place where our price is outperforming our cost increases through. And so we're winning both from a price standpoint and from a cost management standpoint to improve our OP income over time.

是的。僅從價格角度來看，是的，顯然，所設定的價值支撐會影響該價格。事實上，我們只是希望我們的價格始終優於成本成長。因此，從價格角度和成本管理角度來看，我們都取得了勝利，隨著時間的推移，我們的營運收入不斷提高。

So the value prop is definitely a big play there in terms of just getting the increase and retaining the customers that we have. The other thing I would just comment on is that our price is the highest in the market. So our price is already at a really good place. And so there's an opportunity likely for other carriers to catch up with where we are on a cost of price basis.

因此，就獲得成長和留住我們現有的客戶而言，價值支柱絕對是一個重要的角色。我要評論的另一件事是我們的價格是市場上最高的。所以我們的價格已經處於非常好的位置了。因此，其他業者可能有機會在價格成本基礎上趕上我們的水平。

Okay. That's helpful. Just to switch to the broader truckload market, it doesn't sound like you're seeing or expecting much of an improvement from that perspective? Just wanted to get maybe a little more commentary on that, what you're seeing here in July and into the typical peak season? And just in general, how that would impact from it, truckload spillover, fading and ABF and how you might be able to offset some of that on that Asset-Light side?

好的。這很有幫助。只是轉向更廣泛的卡車裝載市場，從這個角度來看，您似乎沒有看到或期望有很大的改進？只是想獲得更多對此的評論，您在 7 月和典型的旺季會看到什麼？總的來說，這將如何影響卡車裝載溢出、褪色和 ABF，以及您如何能夠在輕資產方面抵消其中的一些影響？

Yes, I mean, from an overall perspective, we feel like we're at the bottom, but we're not really seeing anything that and just a strong indicator that things are going to improve rapidly. And we're like a lot of others just and you'll feel like we're at the bottom and moving towards a time of improvement.

是的，我的意思是，從整體角度來看，我們感覺自己處於底部，但我們並沒有真正看到任何東西，只是有一個強有力的指標表明情況將迅速改善。我們和許多其他人一樣，你會覺得我們正處於谷底，正在走向進步。

But one of the things that that we are confident in is our team, how we're positioned and the MoLo team specifically in the truckload space, we provide a great service. Seth mentioned NPS. That's one of them kind of high points that we have with our truckload service. We see customers continuously telling us that we're doing a great job there and really appreciate the service and value we provide.

但我們對我們的團隊、我們的定位以及 MoLo 團隊（特別是在卡車裝載領域）充滿信心的一件事是，我們提供優質的服務。賽斯提到了NPS。這是我們的整車服務的亮點之一。我們看到客戶不斷告訴我們，我們在那裡做得很好，並且非常感謝我們提供的服務和價值。

So we're well positioned as the market recovers. But like a lot of others, right now, we're just looking for that improvement, but we're not seeing anything that tells us that there's a dramatic improvement coming and Vito in the third quarter.

因此，隨著市場復甦，我們處於有利地位。但像許多其他人一樣，現在我們只是在尋找這種改進，但我們沒有看到任何東西告訴我們第三季會有顯著的改進和維托。

Okay. Understood. Thanks for your time. Appreciate it.

好的。明白了。感謝您抽出時間。欣賞它。

Stephanie Moore, Jefferies.

史蒂芬妮·摩爾，杰弗里斯。

Hi, good morning. I wanted to touch on this morning. I wanted to touch on I think you mentioned clearly driving some cost initiatives and other productivity initiatives in the second quarter and expectations. So that continue as the year progresses. And I think on both the Asset-Based and Asset-Light side, could you maybe give us some more examples of some of the actions that you've been putting into place on both sides of the business?

嗨，早安。我想談談今天早上的事。我想談談我認為您明確提到在第二季度推動一些成本計劃和其他生產力計劃以及預期。隨著時間的推移，這種情況會持續下去。我認為在基於資產和輕資產方面，您能否給我們更多關於您在業務雙方採取的一些行動的例子？

Thanks. Yes, Stephanie, good morning. When you think about how many cycles and what we've been through. We have a long history of adapting to challenging environments, and we really go out to the field, listen to our people, get feedback from employees and that really shapes what we have to do to service our customers better.

謝謝。是的，史蒂芬妮，早安。當你想想我們經歷了多少週期和經歷了什麼。我們在適應充滿挑戰的環境方面有著悠久的歷史，我們真正走到現場，傾聽員工的意見，獲取員工的回饋，這真正決定了我們必須採取哪些措施才能更好地為客戶服務。

So we built those tools for better network visibility, labor planning. We invested in those operational experts that I mentioned earlier, they've only been to four of our largest locations so far. So throughout the third quarter, they're going to visit the next three, which are very large distribution centers as well, and we'll continue that throughout the year. We also rolled out city optimization.

因此，我們建構了這些工具來提高網路可見度和勞動力規劃。我們投資了我之前提到的那些營運專家，到目前為止他們只去過我們最大的四個地點。因此，在整個第三季度，他們將訪問接下來的三個，這也是一個非常大的配送中心，我們將在全年繼續這樣做。我們也推出了城市優化。

Last year. We saw a material benefit from that rolling out the next two phases of that that have been in pilot mode throughout the second quarter. So we think we'll get to operationalize those in the third and fourth, and we're also in the process of rolling out new dock software that creates better visibility for our people, our customers and allows us to see by employee productivity levels.

去年。我們看到了在整個第二季度處於試點模式的接下來兩個階段的推出帶來的實質好處。因此，我們認為我們將在第三和第四階段實施這些計劃，而且我們還在推出新的碼頭軟體，該軟體可以為我們的員工和客戶創造更好的可見性，並使我們能夠了解員工的生產力水準。

And we have that implemented at 97 locations and we think we'll finish that rollout in the first quarter of 2025. I mentioned the productivity improvements in Lithia Springs and what we saw in Olathe in the first quarter. So we'll continue to see productivity as these real estate initiatives come online.

我們已在 97 個地點實施了該計劃，我們認為我們將在 2025 年第一季完成部署。我提到了 Lithia Springs 的生產力提高以及我們在第一季在 Olathe 看到的情況。因此，隨著這些房地產計劃的上線，我們將繼續看到生產力。

We also have a lot of projects and pilot phase right now that we expect will operationalize throughout the back half. So we're really excited about our pipeline of innovation projects and the efficiency gains we're going to see as we move through the back half of the year. That's some of the upside that Matt talked about.

我們現在還有很多專案和試點階段，我們預計將在下半年投入營運。因此，我們對今年下半年將看到的一系列創新項目和效率提升感到非常興奮。這是馬特談到的一些好處。

Great. And then just switching gears to the truckload side of the business. I'd love to hear your thoughts on what you're hearing from an overall freight cycle standpoint, I think we've heard of capacity exits for some time now, but really not to the extent that or the magnitude that we would hope to get us out of this. So I'd love to hear your overall thoughts on just capacity exits on the supply side of the equation. Thank you.

偉大的。然後將業務切換到卡車裝載方面。我很想聽聽您從整體貨運週期的角度來看您所聽到的想法，我想我們已經聽說運力退出已經有一段時間了，但實際上還沒有達到我們希望的程度或程度讓我們擺脫困境。因此，我很想聽聽您對供給側產能退出的整體看法。謝謝。

Yes. I mean, what we're seeing is the capacity is coming out of the market. It's just a slow pace. And so without a dramatic increase in demand, it's just taking some time for that to get to the right balance but we are seeing movement in capacity coming out of the market, which is a movement towards a more balanced market. Like I said, it's just slow kind of a slow movement in that direction.

是的。我的意思是，我們看到的是市場容量正在消失。這只是一個緩慢的節奏。因此，在需求沒有大幅增加的情況下，需要一些時間才能達到適當的平衡，但我們看到市場上的產能正在發生變化，這是一個朝著更平衡的市場發展的趨勢。就像我說的，這只是朝那個方向緩慢的移動。

Great. Thank you, guys.

偉大的。謝謝你們，夥計們。

Jeff Kauffman, Vertical Research Partners.

傑夫考夫曼，垂直研究夥伴。

Thank you very much. And best to David Humphreys And congratulations, Seth and Matt. Really two questions. When we think about the cost per pound versus revenue per pound dynamic, it's been shifted negative because of the big wage increases in the union contract. Now you have the July August increases. When do we get a chance to offset that with the GRI or an increase in the revenue per pound?

非常感謝。謹向 David Humphreys 致以最良好的祝愿，並祝賀 Seth 和 Matt。確實是兩個問題。當我們考慮每磅成本與每磅收入的動態時，由於工會合約中工資的大幅上漲，它已經變成了負值。現在你有七月八月的成長。我們什麼時候有機會透過 GRI 或增加每磅收入來抵消這一影響？

And when do we see that relationship flip more to the positive? Do we have to wait for January first? Is it something that could start to happen in the fourth quarter?

我們什麼時候會看到這種關係變得更正面？我們必須先等到一月嗎？這可能會在第四季開始發生嗎？

Yes, Jeff, it's Christopher, just from a GRI perspective. So our last year, I was October, early October of last year. I think our normal trends are in that 10 to 12 month cycle. So I think kind of do the math there were getting up close to that GRI cycle that we would normally have.

是的，傑夫，我是克里斯托弗，從 GRI 的角度來看。所以我們去年，我是十月，去年十月初。我認為我們的正常趨勢是在 10 到 12 個月的周期內。因此，我認為可以做一下數學計算，以接近我們通常擁有的 GRI 週期。

Okay. But you haven't made any announcement at this point that's probably still a ways away, but we don't have to wait for January to see a GRI, hopefully.

好的。但目前你們還沒有發布任何公告，這可能還有很長的路要走，但我們希望不必等到一月才能看到 GRI。

Yes. If history plays out like it normally does, like I said, 10 to 12 months. And yes, we haven't announced anything formally yet, Jeff.

是的。如果歷史像平常一樣發展，就像我說的，10 到 12 個月。是的，我們還沒有正式宣布任何消息，傑夫。

Okay, thanks. Now I thought the LTL business with great hum. My big questions on the asset-light and not to be throwing rocks here, but it doesn't make sense to do business for practice. And it feels like we're doing that with Asset-Light. And I recognize the difference in the contingent consideration accounted for about $14 million of the swing. So I do understand that that's a little odd. But with Asset-Light so challenged.

好的，謝謝。現在我覺得零擔業務很熱鬧。我對輕資產有一個大問題，不要在這裡扔石頭，但為了實踐而做生意是沒有意義的。感覺就像我們正在透過輕資產來做到這一點。我認識到或有對價的差異導致了大約 1400 萬美元的波動。所以我確實明白有點奇怪。但輕資產面臨如此大的挑戰。

How are we raising contingent consideration for MoLo and maybe break down what's going on the Asset-Light side a little bit because it's not just one business, it's a series of businesses. Why is the loss not getting better in the third quarter? Do we have another contingent consideration headwind that we might be looking at?

我們如何提高 MoLo 的或有考慮因素，也許可以稍微分解一下輕資產方面的情況，因為它不僅僅是一項業務，而是一系列業務。為什麼第三季虧損沒有改善？我們是否還有另一個可能考慮的不利因素？

Or is there an issue with the business that we used to call Panther because there's just no emergency shipments going on, who how do we turn the corner on these losses? Because I think all of us would argue these losses are bigger than we ever thought we'd see at the Asset-Light business.

或者我們過去稱為 Panther 的業務存在問題，因為沒有緊急發貨，我們該如何扭轉這些損失？因為我認為我們所有人都會認為這些損失比我們想像的在輕資產業務中看到的要大。

Yes. So Jeff, it's Matt. Maybe I'll just walk through at a high level. I mean, certainly, we've made some comments about the business, and we do feel like it will position well there. But I'll just touch a little bit on your questions about strategic iteration because you're right. And that's something that we value under the accounting standards every quarter.

是的。傑夫，是馬特。也許我會在高水準上走過。我的意思是，當然，我們已經對該業務發表了一些評論，我們確實認為它會在那裡佔據有利位置。但我只會稍微談談你關於戰略迭代的問題，因為你是對的。這是我們每季根據會計準則所重視的。

We look at a simulation of the potential outcomes for that business as it relates to the earnout that we entered into that structure, some additional value. Some for some performance metrics were met when we when we purchased that business.

我們研究對該業務潛在結果的模擬，因為它與我們進入該結構的收益（一些附加價值）有關。當我們購買該業務時，某些績效指標就得到了滿足。

And so as we've looked at that, you're right on a year-over-year basis, there was a change as we look at that and some of that just has to do with just getting closer to the potential out period. You just cut the time value impact coming into effect is that the payout period is getting closer.

因此，正如我們所看到的，與去年同期相比，你是對的，當我們看到這一點時，發生了變化，其中一些只是與接近潛在的停賽期有關。你剛剛削減的時間價值影響正在生效，就是支付期越來越近了。

But and I would say when we're talking about the outlook that we're giving are the in terms of the expectations on being flat from the second quarter results to the third quarter results. We're not really considering that the impact that's kind of exclusive of that impact.

但我想說，當我們談論前景時，我們給出的是對第二季業績到第三季業績持平的預期。我們並沒有真正考慮那種排除這種影響的影響。

That's not something that we're projecting forward through the third quarter. And then I think in that business, there's the dynamics that we have been talking about. I mean, certainly, we've done a great job with the productivity and efficiency work that we've been doing. You've seen that in the results.

這不是我們預計到第三季的事情。然後我認為在這個行業中，有我們一直在談論的動態。我的意思是，當然，我們在生產力和效率方面做得非常出色。您已經在結果中看到了這一點。

I think we're taking the right steps now to make sure that we're prioritizing the profitable business on the truckload side and keeping the right relationships with customers. I mean, if you look at and all the industry forecasts that that business is going to turn, that the shift has been maybe a little bit more delayed than others we're anticipating.

我認為我們現在正在採取正確的步驟，以確保我們優先考慮卡車裝載方面的盈利業務，並與客戶保持正確的關係。我的意思是，如果你看看所有行業都預測該業務將會發生轉變，那麼這種轉變可能比我們預期的其他轉變要延遲一些。

But I think from where we are with a customer service and customer satisfaction level technology efficiency will be in a good spot. And you're right, I mean that is a mix of businesses that provide a lot of different services to our customers that they're appreciating certainly part of that is our managed transportation business. And part of the significant growth in the pipeline and that we talked about earlier has to do with just the continued interest that we're seeing in that solution.

但我認為，從我們的客戶服務和客戶滿意度水平來看，技術效率將處於一個良好的位置。你是對的，我的意思是，這是一個向我們的客戶提供許多不同服務的業務組合，他們很欣賞其中的一部分，這當然是我們的管理運輸業務。我們之前談到的管道的顯著增長部分與我們看到的對該解決方案的持續興趣有關。

And those wins are very significant wins when they come on board. I mean that business comes on in very large chunks, and we're having some very good late-stage discussions there. Expedite business, certainly part of that business as well, international, I mean, so there are multiple different solutions come in there.

當他們加入時，這些勝利都是非常重大的勝利。我的意思是，業務量很大，我們正在進行一些非常好的後期討論。加速業務，當然也是國際業務的一部分，我的意思是，所以有多種不同的解決方案。

And again, we are in a period kind of bouncing along the bottom here. But we do know that that business is going to turn and we're in a good position when it does.

再說一次，我們正處於一個底部反彈的時期。但我們確實知道業務將會發生轉變，而且當它發生時我們處於有利的位置。

Yes. Thank you for that.

是的。謝謝你。

Yes, get this, Judy, I just I want to just speak to the strategic decision to own the asset-light solutions that we have and extremely important to our customers to be able to do business with a logistics company that has solutions like we do with truckload ground expedite of the managed solution that Matt was just talking about.

是的，明白了，朱迪，我只是想談談擁有我們擁有的輕資產解決方案的戰略決策，這對我們的客戶來說非常重要，能夠與擁有像我們這樣的解決方案的物流公司開展業務馬特剛才談到的託管解決方案的卡車地面加速。

And so it is when I'm in customer conversations, we have the right conversations. And it's helped us to be able to execute through some of these market disruptions that we've seen. I mean it's really positioned us well to do that. We're in a market that's unusual, no spot market because of the carrier capacity that's here, but we are well positioned when the that changes and we have a better demand environment.

因此，當我與客戶交談時，我們進行了正確的對話。它幫助我們能夠應對我們所看到的一些市場混亂。我的意思是，這確實使我們能夠很好地做到這一點。我們處於一個不尋常的市場，由於這裡的承運人能力而沒有現貨市場，但當情況發生變化並且我們有更好的需求環境時，我們處於有利地位。

And again, we have the right conversations with customers and when we do well with customers, that turns into shareholder value. And this is all a part of the story of our integrated solution set that we go to market with that I feel great about.

再說一次，我們與客戶進行正確的對話，當我們與客戶相處得很好時，就會轉化為股東價值。這就是我們的整合解決方案集故事的一部分，我們將其推向市場，我對此感到非常滿意。

Judy. It's just I've had 10 other asset-light divisions report this quarter in years is by far the worst performing in terms of operating margin change. And I get that a lot of that's the contingent consideration. But historically, it's just done so much better than that. So I'm just trying to figure out what's weighing on this around more analysis.

朱迪。只是我收到的其他 10 個輕資產部門的報告顯示，本季的營業利潤率變化是多年來表現最差的。我知道很多都是偶然的考慮。但從歷史上看，它做得比這要好得多。所以我只是想透過更多的分析找出影響這個問題的因素。

Yes. I know what you're saying and I know what you're saying, Jeff. But when we look operationally, we put that contingent liability as a part of the overall purchase price for the Company, which I think we would all agree if we're able to pay something on that, that means the results are there and that all that story will be told in 2025.

是的。我知道你在說什麼，我也知道你在說什麼，傑夫。但是，當我們從營運角度來看時，我們將或有負債作為公司整體購買價格的一部分，我認為如果我們能夠為此支付一些費用，我們都會同意這一點，這意味著結果已經存在，並且所有這個故事將於2025 年講述。

And none of us can help the way that we have to account for it. But I wouldn't put those dollars in as operational because that's not the operation of the business. That's a part of the purchase price, just to clarify.

我們誰也無法以我們必須解釋的方式提供幫助。但我不會把這些錢投入運營，因為這不是業務的運作。這是購買價格的一部分，只是為了澄清。

Can I just get one clarification when you say operating loss should be flat? I think that's what I heard. Are you saying the dollar amount of operating loss? Are you saying the operating margin? Are you saying the revenues when we say flat, 3Q versus 2Q, what specifically is that we're talking about?

當您說營業虧損應該持平時，我可以澄清一下嗎？我想這就是我聽到的。您是說營業損失的美元金額嗎？你說的是營業利益率嗎？當我們說第三季與第二季持平時，你指的是收入嗎？

Yes. I mean, I think --

是的。我的意思是，我認為--

Yes. We're talking about the non-GAAP operating loss that we had. We had a $2.5 million operating loss in the second quarter. We're hopeful to improve on that, but right now, particularly based on the trends that we're seeing in July, we're saying that we're expecting to be roughly at that same level as we move to the sorry, as we move to the third quarter.

是的。我們談論的是我們的非公認會計原則營運虧損。第二季我們的營運虧損為 250 萬美元。我們希望在這方面有所改進，但現在，特別是根據我們在 7 月看到的趨勢，我們預計，當我們轉向抱歉時，我們預計會達到大致相同的水平，因為我們進入第三季度。

Okay.

好的。

Operator.

操作員。

Thank you.

謝謝。

Thanks, Jeff. Operator, it looks like we've got one more in the queue so we can take one more question.

謝謝，傑夫。接線員，隊列中似乎還有一個問題，所以我們可以再回答一個問題。

Ravi Shanker, Morgan Stanley.

拉維‧尚克，摩根士丹利。

Great. Thanks for the time on. May, they're going to switch it up a little bit going up and follow up on the productivity initiatives. Is there a way to quantify how much of an OR lift we can get from those initiatives alone irrespective of macro?

偉大的。感謝您抽出時間。五月份，他們將稍微調整一下，並跟進生產力計劃。有沒有一種方法可以量化我們可以從這些舉措中獲得多少 OR 提升，而不考慮宏觀因素？

And also would you characterize as initiatives is kind of catching up to the rest of the industry? Or are you going to be pulling ahead with industry-leading initiatives here?

您是否認為這些舉措正在趕上行業的其他部分？或者您打算在這裡推動業界領先的舉措？

Yes, we provide our long term, our overall guidance of the 10% to 15% margin, and that's really where we're leaning towards. And we've tried to get there consistently over the past few years. So if you look at I believe it's page 12 of the earnings presentation, that 840 basis points improvement we've had over the last few years.

是的，我們提供了 10% 至 15% 利潤率的長期整體指導，這確實是我們所傾向於的方向。在過去的幾年裡，我們一直在努力實現這一目標。因此，如果你看一下收益報告的第 12 頁，我相信我們在過去幾年中取得了 840 個基點的改進。

So I feel like we've made a step in the right direction on the OR, but we got more work to do, and that's why I'm so excited about Matt's leadership coming into the President role of ABF because he really spearheaded a lot of those efficiency improvements that we saw the real estate plan we've talked about. So that obviously a lot of things depend on the macro.

所以我覺得我們在OR 方面已經朝著正確的方向邁出了一步，但我們還有更多的工作要做，這就是為什麼我對Matt 擔任ABF 主席一職感到如此興奮，因為他確實帶頭做了很多事情我們看到了我們所討論的房地產計劃中的效率改進。所以顯然很多事情都取決於宏觀。

We need top line growth and we've talked about that. A lot of others have as well. But we feel like we still have a lot of runway on on the efficiency side of things with the amount of projects we have in the hopper. So it's hard to give guidance, on what that's going to translate to in terms of OR until we get through some of those pilot phase. But we feel good about our future and where we're going.

我們需要營收成長，我們已經討論過這一點。很多其他人也有。但我們覺得，從我們現有的項目數量來看，在效率方面我們還有很長的路要走。因此，在我們完成其中一些試點階段之前，很難就 OR 方面的內容提供指導。但我們對我們的未來和我們要去的地方感到滿意。

Got it. Maybe as a follow-up. I think, Judy, you opened the call by saying that your sales pipeline is up 40%. Is there anything we can read into kind of what that means for what the cycle looks like in the next kind of 6, 9, 12 months? Or is that just long-term statistics?

知道了。也許作為後續行動。Judy，我想您在通話開始時就說您的銷售管道成長了 40%。我們是否可以解讀這對接下來 6、9、12 個月的週期意味著什麼？還是這只是長期統計數據？

Well, it's a statistic that covers a span of time, but I wouldn't necessarily characterize it as longer term, although there are elements of it, but they're are longer-term sales cycle like the managed part of it. But it's what's good about what we're seeing is that we're getting into later stages, on the on those opportunities from where they were at the beginning of the year.

嗯，這是一個涵蓋一段時間的統計數據，但我不一定將其描述為長期的，儘管它有一些元素，但它們是長期的銷售週期，就像它的管理部分一樣。但我們所看到的好處是，我們正在進入後期階段，利用年初的機會。

So what I think when I see that is just about how we'll go into the latter part of the fourth quarter and maybe into 2025. And it's what I've always wanted our team to do which is to outpace what's going on in the macro, particularly if it's negative and add to really control our own destiny in terms of the growth that we have at the company. And so that's the way I think about it. It's not it is not super long term or anything though. I think we are replenishing it every day.

因此，當我看到這一點時，我的想法是我們將如何進入第四季度後半段，甚至可能進入 2025 年。這就是我一直希望我們的團隊做的事情，那就是超越宏觀上正在發生的事情，特別是如果它是負面的，並在我們公司的成長方面真正控制我們自己的命運。這就是我的想法。但這並不是超長期或其他什麼。我想我們每天都會補充它。

Great. Thank you.

偉大的。謝謝。

I know I will now turn the call back over to Amy for closing remarks.

我知道我現在將把電話轉回給艾米進行結束語。

Thanks to everyone for joining us today. We appreciate your interest in ArcBest. Have a great day.

感謝大家今天加入我們。我們感謝您對 ArcBest 的興趣。祝你有美好的一天。