Covenant Logistics Group Inc (CVLG) 2023 Q2 法說會逐字稿

Welcome to today's Covenant Logistics Group Second Quarter Earnings Release Conference Call. Our host for today's call is Tripp Grant. (Operator Instructions)

歡迎參加今天的聖約物流集團第二季財報發布電話會議。我們今天電話會議的主持人是特里普·格蘭特。 （操作員說明）

I would now like to turn the call over to your host, Mr. Grant, you may begin.

我現在想把電話轉給主持人格蘭特先生，您可以開始了。

Thank you, Jen. Good morning, everyone, and welcome to the Covenant Logistics Group Second Quarter 2023 Conference Call.

謝謝你，珍。大家早安，歡迎參加 Covenant Logistics 集團 2023 年第二季電話會議。

As a reminder, this call will contain forward-looking statements under the Private Securities Litigation Reform Act, which are subject to risks and uncertainties that could cause actual results to differ materially. Please review our SEC filings and most recent risk factors. We undertake no obligation to publicly update or revise any forward-looking statements.

提醒一下，本次電話會議將包含《私人證券訴訟改革法案》下的前瞻性陳述，這些陳述受到可能導致實際結果產生重大差異的風險和不確定性的影響。請查看我們向 SEC 提交的文件和最新的風險因素。我們不承擔公開更新或修改任何前瞻性陳述的義務。

A copy of the prepared comments and additional financial information is available on our website at www.covenantlogistics.com/investors. I'm joined on the call today by David Parker and Paul Bunn.

您可以在我們的網站 www.covenant Logistics.com/investors 上取得準備好的意見和其他財務資訊的副本。大衛·帕克和保羅·邦恩今天加入了我的電話會議。

We are pleased with our results for the quarter, which showed comparative resilience in the midst of a very soft freight environment. Consolidated freight revenue was down 9% compared to a very tough prior year comparable when the freight environment peaked. The decline related primarily to operating approximately 11% fewer weighted average tractors in our truckload operations and less overflow freight handled by our Managed Freight segment due to lower overall demand.

我們對本季的業績感到滿意，該業績在非常疲軟的貨運環境中顯示出相對的彈性。與去年貨運環境達到頂峰時非常艱難的情況相比，綜合貨運收入下降了 9%。這一下降主要與我們的卡車裝載業務中的加權平均拖拉機營運量減少了約 11%，以及由於整體需求下降而導致我們的管理貨運部門處理的溢出貨運量減少有關。

Adjusted operating income fell approximately $12 million or 43% compared to the prior year quarter, primarily as a result of our Expedited and Managed Freight segments, which declined by approximately $7.5 million and $6.5 million, respectively, offset by an increase of approximately $2 million in our Dedicated segment.

與去年同期相比，調整後營業收入下降約1,200 萬美元，即43%，主要是由於我們的加急和管理貨運部門分別下降約750 萬美元和650 萬美元，但被約200 萬美元的增長所抵消。我們的專用部分。

Adjusted net income decreased 44% to $14.4 million, and adjusted earnings per share decreased 34% to $1.07 per share compared to the year-ago quarter. Weighted average diluted shares decreased as a result of our share repurchase program.

與去年同期相比，調整後淨利潤下降 44% 至 1,440 萬美元，調整後每股收益下降 34% 至每股 1.07 美元。由於我們的股票回購計劃，加權平均稀釋股票有所減少。

Key highlights for the quarter include: all 4 of our business segments, including Expedited, Dedicated, Managed Freight and Warehousing, achieved sequential improvement in profitability in the second quarter; the acquisition of Lew Thompson & Son Trucking, Inc., a dedicated contract carrier comprised of approximately 200 tractors, specializing in poultry and live haul transportation. We have been pleased with the operational results to date and are excited about the growth opportunities that lie ahead.

本季度的主要亮點包括：我們的所有 4 個業務部門，包括加急、專線、託管貨運和倉儲，第二季度的盈利能力均實現環比改善；收購 Lew Thompson & Son Trucking, Inc.，這是一家專業合約承運商，擁有約 200 輛拖拉機，專門從事家禽和活畜運輸。我們對迄今為止的營運業績感到滿意，並對未來的成長機會感到興奮。

Within our combined truckload segments, operations and maintenance-related expenses declined on a cents per total mile basis by $0.06 or 21%. And fixed equipment costs, including lease revenue equipment, depreciation and gains on sale, remained flat compared to the prior year.

在我們合併的卡車裝載細分市場中，營運和維護相關費用按每總英里美分計算下降了 0.06 美元，即 21%。固定設備成本，包括設備租賃收入、折舊和銷售收益，與前一年相比維持不變。

The average age of our fleet at June 30 remained flat sequentially at 26 months compared to March 31, 2023, largely due to the equipment acquired from Lew Thompson & Son Trucking. For the remainder of 2023, based on our current equipment order, we anticipate sequential improvement to the average age of our equipment.

與 2023 年 3 月 31 日相比，我們車隊截至 6 月 30 日的平均車齡與上一季持平，為 26 個月，這主要歸功於從 Lew Thompson & Son Trucking 購買的設備。在 2023 年剩餘時間內，根據我們目前的設備訂單，我們預計設備的平均壽命將持續改善。

Gain on sale of revenue equipment was $2 million in the quarter compared to $0.4 million in the prior year. Our TEL leasing company investment produced $0.29 per diluted share compared to $0.33 per share versus the year-ago period. Our net indebtedness at June 30 climbed to $187.2 million in the quarter, primarily as a result of the acquisition, yielding a leverage ratio of approximately 1.7x and debt-to-equity ratio of 33.1%. On an adjusted basis, return on invested capital was 13% for the current quarter versus 17.6% in the prior year.

本季營收設備銷售收益為 200 萬美元，而去年同期為 40 萬美元。我們對 TEL 租賃公司的投資產生了每股攤薄收益 0.29 美元，而去年同期為每股 0.33 美元。截至 6 月 30 日，本季我們的淨負債攀升至 1.872 億美元，主要是由於收購所致，槓桿率約為 1.7 倍，負債股本率為 33.1%。調整後，本季的投資資本報酬率為 13%，而去年同期為 17.6%。

Now Paul will provide a little more color on the items affecting the individual business segments.

現在，保羅將對影響各個業務部門的專案提供更多的說明。

Thanks, Tripp. Taking a moment to dive deeper into what drove our results for the quarter, starting with our Expedited segment, freight revenue declined 7% compared to the prior year, largely due to a 6% reduction in the average fleet. Rates declined by just over 10%, but were offset by almost a 10% improvement in average total miles per truck compared to a year ago. The improvement in utilization was principally attributable to newer equipment in the fleet and reduced downtime.

謝謝，特里普。花點時間更深入地了解推動我們本季業績的因素，從我們的加急業務開始，貨運收入與前一年相比下降了 7%，這主要是由於平均機隊減少了 6%。費率下降了 10% 多一點，但與一年前相比，每輛卡車的平均總里程增加了近 10%，抵消了這種影響。利用率的提高主要歸因於機隊設備更新和停機時間減少。

While we are pleased with the segment's utilization improvement, we recognize that year-over-year freight revenue per total mile comparisons will continue to be challenging for the remainder of 2023. While cost headwinds from salaries and wages and fixed equipment costs compressed margins, they were somewhat offset with improvements to variable-based equipment costs for the quarter.

雖然我們對該部門利用率的提高感到高興，但我們認識到，在2023 年剩餘時間內，每總英里貨運收入的同比貨運收入將繼續面臨挑戰。雖然工資和固定設備成本帶來的成本阻力壓縮了利潤率，但本季基於變數的設備成本的改善在一定程度上抵消了這一影響。

Our Dedicated segment experienced an 8% reduction in freight revenue compared to the 2022 quarter as a result of a 217 or 15% reduction on the average number of total trucks, offset by an 8% increase in revenue per truck. Despite the addition of Lew Thompson & Son Trucking fleet, the overall fleet reduction in our Dedicated segment aligns with our strategy of exiting unprofitable or underperforming business and replacing it when opportunities arise that meet our profitability and return requirements. We were pleased with both the year-over-year and sequential improvement to the adjusted margin and expect to continue to improve upon this segment's profitability over the long term.

與 2022 年季度相比，我們的專用部門的貨運收入減少了 8%，因為卡車平均數量減少了 217 輛，即 15%，但每輛卡車的收入增加了 8%，抵消了這一影響。儘管增加了Lew Thompson & Son Trucking 車隊，但我們專用部門的整體車隊減少符合我們的策略，即退出無利可圖或表現不佳的業務，並在出現滿足我們盈利和回報要求的機會時更換它。我們對調整後利潤率的同比和環比改善感到滿意，並預計從長遠來看，該部門的盈利能力將繼續改善。

Managed Freight experienced a 21% reduction of total freight revenue and a 76% reduction in adjusted operating profit. The significant reduction in revenue and operating profit was primarily attributable to little to no overflow freight from our asset-based truckload segments. The brokerage environment remains highly competitive with numerous brokers aggressively competing for volumes at the expense of margin. We anticipate continued margin pressure in this environment.

Managed Freight 的貨運總收入減少了 21%，調整後營業利潤減少了 76%。收入和營業利潤大幅下降的主要原因是我們基於資產的卡車運輸部門幾乎沒有或沒有溢出貨運。經紀環境仍競爭激烈，眾多經紀商以犧牲利潤為代價積極爭奪交易量。我們預計在這種環境下利潤率壓力將持續存在。

Our Warehouse segment saw a 37% increase in freight revenue compared to the prior year, resulting from the start-up of new customers during the previous 12 months. We are pleased with the top line growth we've achieved in this segment, and the team has done a phenomenal job in executing these start-ups, which are both intense and time-consuming. However, despite the significant top line growth in the segment, we've only seen about a 10% improvement in adjusted operating profit compared to the prior year. Although we're pleased with the sequential profitability improvement within this segment, we will continue to focus on improving profitability at the mid-single digits through improved labor utilization and rate increases with existing customers.

由於過去 12 個月新客戶的啟動，我們的倉庫部門的貨運收入比去年增加了 37%。我們對我們在這一領域取得的收入成長感到滿意，團隊在執行這些新創公司方面做得非常出色，這些工作既緊張又耗時。然而，儘管該細分市場的營收顯著成長，但與前一年相比，調整後的營業利潤僅增加了 10% 左右。儘管我們對該細分市場盈利能力的連續改善感到滿意，但我們將繼續專注於透過提高勞動力利用率和提高現有客戶的費率來提高中個位數的獲利能力。

Our minority investment in TEL contributed pretax income of $5.4 million for the quarter compared to $7.1 million in the prior year period. The decline was largely due to reduced gains on the sale of used equipment compared to the year ago. TEL's revenue in the quarter grew 11%, and pretax net income decreased by 26% versus the second quarter of '22. TEL increased its truck fleet in the quarter versus a year ago by 210 trucks to 2,283 and grew its trailer fleet by 84 to 7,031.

我們對 TEL 的少數股權投資為本季貢獻了 540 萬美元的稅前收入，去年同期為 710 萬美元。下降的主要原因是二手設備銷售收益較去年同期減少。 TEL 本季的營收成長了 11%，稅前淨利比 2020 年第二季下降了 26%。 TEL 在本季的卡車車隊比去年同期增加了 210 輛卡車，達到 2,283 輛，拖車車隊增加了 84 輛，達到 7,031 輛。

As a reminder, TEL focuses on managing lease purchase programs for clients, leasing trucks and trailers to small fleets and shippers, aiding clients in the procurement and disposition of their equipment through a robust equipment buy-and-sell program. Due to the business model, gains and losses on the sale of equipment are a normal part of TEL's business model and can cause earnings to fluctuate from quarter-to-quarter.

需要提醒的是，TEL 專注於管理客戶的租賃購買計劃，向小型車隊和托運人租賃卡車和拖車，透過強大的設備買賣計劃幫助客戶採購和處置其設備。由於業務模式的原因，設備銷售的損益是 TEL 業務模式的正常組成部分，可能導致獲利逐季波動。

Our investment in TEL is included in Other Assets on our consolidated balance sheet and has grown to $66 million as of June 30, 2023, from our original investment of $4.9 million in 2011. In 2022, we received $14.7 million in cash dividends from TEL, and we are anticipating approximately $19.8 million to be received during the second half of 2023.

我們對TEL 的投資包含在合併資產負債表的其他資產中，截至2023 年6 月30 日，我們對TEL 的投資已從2011 年的490 萬美元增至6,600 萬美元。2022 年，我們從TEL 獲得了1,470 萬美元的現金股息，我們預計 2023 年下半年將收到約 1,980 萬美元。

As we enter the third quarter, we are optimistic that the trough of the freight cycle is behind us, but are cautious about the rate at which we'll see improvements. Regardless of how the freight economy responds, our primary focus remains on the long term by continuing to invest in areas that provide opportunities for us to make forward progress on our strategic plan. The acquisition of Lew Thompson & Son and our investments in new revenue-generating equipment, people, technology are examples of this.

隨著進入第三季度，我們樂觀地認為貨運週期的低谷已經過去，但對改善的速度持謹慎態度。無論貨運經濟如何反應，我們的首要關注點仍然是長期發展，繼續投資那些為我們的戰略計劃取得進展提供機會的領域。收購 Lew Thompson & Son 以及我們對新的創收設備、人員和技術的投資就是這方面的例子。

Thank you for your time, and we'll now open up the call for questions.

感謝您抽出時間，我們現在開始提問。

(Operator Instructions) And our first question today will come from Jason Seidl with TD Cowen.

（操作員說明）今天我們的第一個問題將來自 Jason Seidl 和 TD Cowen。

I wanted to queue in on that last comment that you talked about in terms of the broader trucking industry. I'm with you guys that we're sort of off the bottom here, but how should we think about pricing on a sequential basis? Because I'm still getting some feedback from some private truckers from some just really lowball pricing out there like paid in North Carolina at less than $1 a mile being offered. So how should we think about that at least in the near term?

我想聽聽您在更廣泛的貨運行業中談到的最後一條評論。我同意你們的看法，我們已經跌入谷底了，但是我們該如何考慮連續定價呢？因為我仍然從一些私人卡車司機那裡得到一些回饋，他們的定價非常低廉，例如北卡羅來納州的每英里不到 1 美元。那麼至少在短期內我們應該如何考慮這個問題呢？

Jason, here's what I would say is we're still seeing that, too. But as a reminder, most of our stuff is tied up under contract rates. So when we talk about continuing to see margin pressure in the brokerage, that's really where we've got exposure to that. On the Dedicated and Expedited side, I don't think we're going to see any pricing pressure in the near term. I think we'll see what contract rates do next year. I think that's probably what will have the larger effect on us. And I think it's probably too early to tell exactly what those are going to do next year. But yes, a lot of the stuff that's out there in the spot market, I mean, it will negatively affect the brokerage a little bit, but it shouldn't affect Expedited and Dedicated for the balance of the year.

傑森，我想說的是我們仍然看到了這一點。但提醒一下，我們的大部分東西都與合約費率掛鉤。因此，當我們談論經紀業務中繼續面臨的利潤壓力時，這確實是我們面臨的風險所在。在專用和加急方面，我認為短期內我們不會看到任何定價壓力。我想我們明年會看到合約費率的變化。我認為這可能會對我們產生更大的影響。我認為現在確切地說這些明年會做什麼可能還為時過早。但是，是的，現貨市場上有很多東西，我的意思是，這會對經紀業務產生一些負面影響，但它不應該影響今年剩餘時間的加急和專用。

No, that makes a lot of sense. Also, you called out a little bit of gains on sale. How should we look at gain on sale going forward? And what does the equipment market look like?

不，這很有意義。另外，您也提到了一些銷售收益。我們該如何看待未來的銷售收益？設備市場又如何呢？

Let me talk about the market, and I'll let Tripp talk about gains on sale. Used equipment market has just continued to precipitously drop. It dropped a little bit from January to March. But since March, it's been kind of in a free fall. It seems like July maybe has kind of hit a little bit of a floor in the used equipment market, but March to July was a pretty big drop.

讓我談談市場，然後我讓特里普談談銷售收益。二手設備市場持續急劇下降。 1月至3月略有下降。但自三月以來，情況就直線下滑。似乎 7 月二手設備市場可能已經觸底，但 3 月到 7 月的跌幅相當大。

Yes, I agree. And quite honestly, and this is just me speaking, I don't see the used equipment market getting any better in the next 6 to 8 months. And it's continue -- especially when you look at the rate, it's continue -- it has dropped over the last few months.

是的我同意。老實說，這只是我的說法，我認為二手設備市場在未來 6 到 8 個月內不會有任何改善。而且它還在繼續——尤其是當你看一下利率時，它還在繼續——它在過去幾個月裡有所下降。

This is a -- we've talked about this in previous calls, but this is a very heavy CapEx year for us. We're -- really, over the last 1.5 years, I would say, we've been really investing in upgrading the fleet, and we're going to continue to do that because we think it's for the best. It provides an optimized way of operating the fleet for us both, I would say, on kind of the ongoing variable cost and I think that there's some fixed cost benefits with uptime.

我們在之前的電話會議中已經討論過這一點，但這對我們來說是資本支出非常沉重的一年。我想說，實際上，在過去 1.5 年裡，我們一直在投資升級機隊，而且我們將繼續這樣做，因為我們認為這是最好的。我想說，它為我們雙方提供了一種優化的機隊運作方式，在持續的可變成本方面，而且我認為正常運行時間有一些固定成本效益。

But here's what I would say: going forward, yes, we do have more newer equipment. We're not -- you're not going to see a lot of fleet count growth in the back half of the year, which means that we're going to be selling a lot of equipment, too. So it's just a matter of how much it continues to drop. I don't think you're going to see huge gains on sale in Q3 and Q4, may see a little bit, but I don't think that anything -- I also don't think you're going to see significant losses either. So it's marginal, I would say. But we appreciate -- we watch our depreciation on our equipment and make sure that we're depreciating it adequately, and I think we'll be okay there.

但我想說的是：展望未來，是的，我們確實擁有更多更新的設備。我們不會－今年下半年你不會看到機隊數量大幅成長，這意味著我們也將出售大量設備。所以問題只是繼續下降多少。我認為你不會在第三季和第四季看到巨大的銷售收益，可能會看到一點點，但我不認為有什麼——我也不認為你會看到重大損失任何一個。所以我想說，這是邊緣的。但我們很感激——我們會觀察設備的折舊情況，並確保我們對其進行充分的折舊，我認為我們會沒事的。

Okay. That's great color. Last one, and I'll turn it over to somebody else here. Lew Thompson, you got about 2/3 of a quarter, looks like a good acquisition for you guys, getting you in a niche end market that you really weren't in. When I was hosting some calls with industry people before earlier this quarter, a lot of them were talking about how there's a lot fewer financial buyers in the marketplace for sort of smaller niche acquisitions. Do you foresee other opportunities for yourself down the road because multiples have come in a little bit?

好的。那顏色真棒。最後一個，我會把它交給這裡的其他人。 Lew Thompson，你得到了大約2/3 個季度的份額，對你們來說似乎是一次很好的收購，讓你們進入了一個你們實際上並不涉足的利基終端市場。當我在本季度早當與業內人士主持一些電話會議時，他們中的許多人都在談論市場上進行小型利基收購的金融買家越來越少。由於倍數的出現，您是否預見到自己未來還會有其他機會？

Jason, here's what I would say: a, I agree, there's less financial buyers in the market; b, we're always looking for those really niche, value-add, contractual-type businesses. And so we got to digest. Remember, we did AAT in February of '22, and then we just did Thompson in April. So we got to digest. But any of that niche, good-margin, contractual-type businesses out there, yes, we continue to field calls and are -- we'll keep looking at stuff like that as it comes about.

傑森，我想說的是：a，我同意，市場上的金融買家越來越少； b，我們一直在尋找那些真正利基、增值、合約型的業務。所以我們必須消化。請記住，我們在 22 年 2 月做了 AAT，然後我們在 4 月做了 Thompson。所以我們必須消化。但是，任何那些利基、利潤豐厚、合約類型的業務，是的，我們會繼續接到電話，並且——我們將繼續關注類似的事情。

Yes. And I just want to -- just adding to that a little bit is making sure that our balance sheet could absolutely support an additional acquisition, and it's something we may look at in the future. But our main focus, whether it's AAT or Lew Thompson, most recently Lew Thompson, is really focusing on learning that business and starting off, getting out of the gate on the right foot, which we have the first 2 months of -- since we acquired them. But there's a lot of executional risk at play with anytime you do something a bit different, I would say, or niche-y kind of, as Paul had mentioned.

是的。我只是想 - 只需添加一點點即可確保我們的資產負債表絕對可以支持額外的收購，這是我們將來可能會考慮的事情。但我們的主要焦點，無論是 AAT 還是 Lew Thompson，最近的 Lew Thompson，真正專注於學習業務並開始，以正確的方式走出大門，這是我們前 2 個月的做法——因為我們獲得了它們。但是，每當你做一些不同的事情時，我想說，或者像保羅提到的那樣，就會有很多執行風險。

But we're really focused on execution. We want to make sure we do those the right way. And I think we'll reap benefits from those that we've already done in the future if we can kind of continue to refine that and make sure we're executing at a high level.

但我們確實專注於執行。我們希望確保以正確的方式做這些事情。我認為，如果我們能夠繼續改進並確保我們在高水準上執行，我們將從未來已經完成的工作中獲益。

Your next question will come from Scott Group with Wolfe Research.

您的下一個問題將來自 Scott Group 和 Wolfe Research。

Can you just talk us through how you're thinking about back half of the year from an earnings standpoint? Do you think we see further sequential earnings growth from Q2 into the back half of the year? Or what are the puts and takes?

您能從獲利的角度告訴我們您對今年下半年的看法嗎？您認為我們會看到從第二季到今年下半年的獲利進一步連續成長嗎？還是什麼是看漲期權和看跌期權？

Yes. I mean I don't want to get into giving any sort of like defined guidance, but we feel like we've got -- and you've probably read it in the release, I mean we're optimistic about the back half of the year. We said that there's -- we feel like we're at the trough of the freight recession, and part of that may be due to our model. We've got a lot of LTL customers in Expedited. We've got, if you look at 2Q, we've got just 2 months of Lew Thompson. We've talked earlier about the optimism about how well Lew Thompson is running out of the gate as well as some potential growth opportunities that may come to fruition later in the year and early next year.

是的。我的意思是，我不想提供任何類似明確的指導，但我們覺得我們已經有了——而且你可能已經在發布中讀到了，我的意思是我們對後半部分持樂觀態度。那一年。我們說過，我們感覺我們正處於貨運衰退的低谷，部分原因可能是我們的模型。我們在加急方面有很多零擔客戶。如果你看看第二季度，我們就知道盧湯普森只有兩個月的時間。我們之前已經談到了對盧·湯普森的樂觀情緒，以及一些可能在今年晚些時候和明年初實現的潛在成長機會。

So I think I'm optimistic about being able to increase earnings sequentially in Q3. I think there's a big question mark -- Q4, there's some downtime with the holidays and there's a big question mark about peak, not that peak is a big part of our business, but last year, it was virtually nothing. And I'm just not sure how much that's going to contribute this year in 2023. But yes, I think we're bullish on the next half of the year for us.

因此，我認為我對第三季的獲利連續成長持樂觀態度。我認為有一個很大的問號- 第四季度，假期期間有一些停機時間，並且關於高峰有一個很大的問號，並不是說高峰是我們業務的重要組成部分，但去年，它幾乎什麼都沒有。我只是不確定這將在 2023 年做出多少貢獻。但是，是的，我認為我們對下半年持樂觀態度。

Yes, Scott, let me add one thing to that. I agree with everything Tripp said. I think that the one thing to watch is with our reduced share count, a few things going in the right direction could really be accretive in the back half of the year. And one bad accident could pull it the other direction. I think that's one of the things everybody has got to remember with this reduced share count is the earnings have a lot of leverage up, but you also -- you have a bad accident or something, there's a lot of leverage on the downside. So on the balance, I agree with what Tripp said. I think we're optimistic about the back half of the year and think we can continue to improve earnings quarter-over-quarter.

是的，斯科特，讓我補充一件事。我同意特里普所說的一切。我認為值得關注的一件事是，隨著我們的股份數量減少，一些朝著正確方向發展的事情可能會在今年下半年真正增加。一場嚴重的事故可能會把事情推向另一個方向。我認為，隨著股票數量的減少，每個人都必須記住的一件事是，收益有很大的槓桿作用，但你也- 你遇到了嚴重的事故或其他什麼，有很大的下行槓桿作用。所以總的來說，我同意特里普的說法。我認為我們對今年下半年持樂觀態度，並認為我們可以繼續季度環比提高盈利。

Okay, helpful. And then -- so you just mentioned you got a lot of LTL customers. What are you seeing in the market right now in the last week or so as shippers are scrambling to leave yellow? How is this -- yes?

好的，有幫助。然後，您剛才提到您有很多零擔客戶。上週左右，當托運人爭先恐後地離開黃色市場時，您在市場上看到了什麼？這是怎麼樣——是嗎？

Yes. We're fielding a number of calls in the Expedited division. As you know, we do business with practically every major LTL and freight forwarder in that division. And so we continue to field a lot of calls as people need some incremental capacity. And it's probably maybe 5% growth on Expedited revenue during the quarter. I mean it's definitely going to be a positive on Expedited in the third quarter. There was really none of that in the second quarter. So it should be a positive for Expedited in the third quarter and likely into the fourth.

是的。我們的加急部門正在接聽大量電話。如您所知，我們幾乎與該部門的所有主要零擔和貨運代理都有業務往來。因此，我們繼續接到大量電話，因為人們需要一些增量能力。本季加急收入可能成長 5%。我的意思是，這肯定會對第三季的 Expedited 帶來正面影響。第二季確實沒有這些。因此，這對第三季度並可能持續到第四季度的 Expedited 來說應該是積極的。

Yes. And then just lastly, you mentioned the increased sort of leveraged earnings because of the buyback. What is the plan with the buyback going forward? Are you going to be continuing to be aggressive with it? Do you pause it? How do you think about that?

是的。最後，您提到了由於回購而增加的槓桿收益。下一步回購計畫是什麼？你會繼續積極應對嗎？你暫停一下嗎？您對此有何看法？

I mean I can't really give specifics. All I can say, I guess, with that is we do have an open buyback plan right now that has some parameters around it that the bank will repurchase based on those parameters. But here's what I would say, I really like how we've deployed capital over the last couple of years, and buybacks have been a big portion of that.

我的意思是我無法提供具體細節。我想，我只能說，我們現在確實有一個公開的回購計劃，其中有一些參數，銀行將根據這些參數進行回購。但我想說的是，我真的很喜歡我們在過去幾年部署資本的方式，其中回購佔了很大一部分。

So I think that there are always going to be on the playbook, not saying that we're going to buy back X amount of shares in Q3 or Q4, but I think as circumstances warrant, I think that there are always going to be the go-to -- a go-to -- potential go-to in our playbook to activate as part of our capital deployment plan. We like them. We've seen benefits from them.

因此，我認為劇本上總會有這樣的內容，並不是說我們要在第三季或第四季回購 X 股股票，但我認為，在情況允許的情況下，我認為總會有我們的劇本中的首選——首選——潛在的首選，作為我們資本部署計劃的一部分啟動。我們喜歡他們。我們已經看到了它們的好處。

The question is, as circumstances change, how do you reprioritize those types of things and decisions? And I think they're always going to be there. And I think that you guys will probably see us think about it or talk about it and move forward with another one in the future when circumstances warrant.

問題是，隨著情況的變化，您如何重新安排這些類型的事情和決策的優先順序？我認為他們永遠都會在那裡。我認為你們可能會看到我們思考這個問題或談論它，並在未來情況允許的情況下繼續推進另一個項目。

And your next question will come from Jack Atkins with Stephens.

你們的下一個問題將來自傑克·阿特金斯和史蒂芬斯。

Congrats on a great quarter. So I guess, just kind of going back to the LTL and sort of the Expedited comments there for a moment, how are you guys thinking about approaching deploying additional capacity into that market? I mean is it -- you have some longer-term partnerships there. Is it really a function of looking to secure longer-term commitments for additional trucks that you'd be willing to deploy into that LTL line haul part of the market?

恭喜您度過了一個出色的季度。所以我想，暫時回到 LTL 和加急評論，你們如何考慮在該市場部署額外的容量？我的意思是——你們在那裡有一些長期的合作關係。這真的是為了確保對您願意部署到零擔運輸市場部分的額外卡車做出長期承諾嗎？

Yes, Jack, you hit it. I mean we're -- I would say we're -- there's a few trucks here, a few trucks there to a lot of folks. But for us to add a significant volume of trucks, it's going to be with the folks that we have longer-term partnerships with. And so, yes, it's the -- as we move those trucks around, they're going to be more heavily weighted towards folks that are willing to sign up for those on a longer-term basis and that have been part -- we were partners with through the '21-'22 cycle, and they've been partners with us through this '23 cycle. And so that's how we're going to allocate our resources on trying to grow these teams for them.

是的，傑克，你成功了。我的意思是，我們——我會說我們——這裡有幾輛卡車，那裡有幾輛卡車運送很多人。但對我們來說，要增加大量的卡車，我們必須與那些有長期合作關係的人合作。所以，是的，當我們移動這些卡車時，它們將更傾向於那些願意長期簽約的人，而這一直是我們的一部分。在「21-」22 週期中與我們合作，並且在「23」週期中他們一直是我們的合作夥伴。這就是我們將如何分配資源來為他們發展這些團隊。

But as you think about this from an investor perspective, I guess the point I'm trying to make there or the question I'm asking is, as you bring on new business there, this isn't just a short-term sort of stop gap for some of these guys. This is potentially a longer-term sort of step-up in business activity with this particular part of your customer base.

但當你從投資者的角度思考這個問題時，我想我想表達的觀點或我要問的問題是，當你在那裡開展新業務時，這不僅僅是一種短期的為其中一些人止損。這可能是針對您的這一特定客戶群的業務活動的長期升級。

Yes. I think we'll keep a high percentage of whatever we add with these customers on a longer-term basis. Because to your point, they're digesting this growth and their model is changing. And so, yes, we're strategically trying to make sure where we grow the most is for people that's going to be sticky.

是的。我認為，從長遠來看，我們將在這些客戶中保留較高比例的添加內容。因為就你而言，他們正在消化這種成長，他們的模式正在改變。所以，是的，我們正在策略上努力確保我們成長最快的領域是那些具有黏性的人。

Yes. No, absolutely...

是的。不，絕對...

Because, Jack, keep in mind, about 55% to 60% of that Expedited revenues is on guaranteed contracts.

因為，傑克，請記住，加急收入的大約 55% 到 60% 來自有保障的合約。

Right. Absolutely. That makes -- yes, that makes sense.

正確的。絕對地。這使得——是的，這是有道理的。

Yes. We -- as Paul was saying, when we add these trucks, whatever we do that's going on to those customers that have been partners to us, and we're partners, and part of that partnership that we got are long-term agreements between us.

是的。正如保羅所說，當我們添加這些卡車時，無論我們做什麼，都會惠及那些曾經是我們合作夥伴的客戶，我們是合作夥伴，我們獲得的合作夥伴關係的一部分是雙方之間的長期協議我們。

Absolutely. And that's paid dividends over the last couple of years, for sure. So I guess, David, good to hear your voice. I guess maybe would love to get your perspective as well in terms of just how you're thinking about the cycle. I know you bring a lot of perspective to this. I guess, could you maybe kind of help us think about where we are in terms of coming off the bottom here? And as you sort of think about capacity and all the puts and takes, are you more or less optimistic about sort of where we're headed from a cycle perspective over the next 6 months?

絕對地。當然，這在過去幾年中已經帶來了紅利。所以我想，大衛，很高興聽到你的聲音。我想也許也很想了解您對週期的看法。我知道你對此提出了很多觀點。我想，您能否幫助我們思考現在我們處於什麼位置？當您考慮產能以及所有的看跌期權時，您對未來 6 個月的周期角度對我們的發展方向是否或多或少持樂觀態度？

Yes. I was going to handle last week at a conference with the [primary insurance], but had a big carrier conference -- carrier panel. And -- because I think there's 2 things happening. We went around the room, the last question on the panel was, when do you think -- because the whole group was a bunch of smaller carriers, when do you think that things are going to get better and when that day is going to come? And the time, Jack, were anywhere from, I heard spring, I heard 12 months from now, I heard spring, I heard December.

是的。上週我本來打算參加[主要保險]的會議，但舉行了一場大型承運人會議—承運人小組。而且──因為我認為發生了兩件事。我們繞了房間一圈，小組討論的最後一個問題是，你認為什麼時候——因為整個團隊都是一群較小的運營商，你認為什麼時候事情會變得更好，那一天什麼時候會到來？傑克，時間在任何地方，我聽到春天，我聽到從現在起12個月後，我聽到春天，我聽到十二月。

And I was the last one to answer the question on there because this is the way I do believe. And I believe that we're going to fill it in September. I believe in the next couple of months for the trucking industry, truckload guys are going to feel capacity constraints. I'm not saying it's going to be 2022 over again, but it's going to feel better than the last 12 months that we've gone through. And it's all because of -- because I'm not sure about the economy. But capacity had left and is leaving our industry, added by the fact of what Paul said that's happened on the used truck prices just in the last 60 days.

我是最後一個回答這個問題的人，因為這就是我所相信的方式。我相信我們將在九月填滿它。我相信在接下來的幾個月裡，卡車運輸業的卡車運輸人員將會感受到運能的限制。我並不是說 2022 年會再次到來，但感覺會比我們經歷的過去 12 個月更好。這都是因為——因為我不確定經濟狀況。但產能已經消失，而且正在離開我們的行業，而保羅所說的過去 60 天內二手卡車價格也出現了這種情況。

It hurts, and it hurts right now. It hurts this month. But overall, it's good because as capacity leaves, the pricing power will return, and the pricing will make up for whatever shortfall we're disappointed in that we didn't sell a used truck for. And that's all happened over the last 60 days. So I really believe trucking will start sensing it in the next couple of months, a timing of capacity, as long as the economy at least kind of stays and hangs where it's at today. Those are my calls.

很痛，而且現在還很痛。這個月很痛。但總的來說，這是件好事，因為隨著運力的減少，定價能力將會恢復，而定價將彌補我們因沒有出售二手卡車而感到失望的任何不足。這一切都是在過去 60 天內發生的。因此，我真的相信，只要經濟至少保持在今天的水平，卡車運輸業就會在接下來的幾個月內開始感受到這一點，即產能的時機。這些是我的電話。

Okay. All right. No, I appreciate that. Maybe last question, long term strategically. I mean, as you guys think about the way you'd like to have your mix of assets deployed within the truckload market, you've been investing more outside of the kind of traditional long-haul, over-the-road, highly cyclical parts of the truckload market into things like AAT, Lew Thompson & Son, longer-term commitments within your Expedited team business for LTL. How do you think about the long-term mix of assets between traditional OTR truckload, and it was more niche parts of the market that really removed the cyclicality and where you can really see kind of compounded growth?

好的。好的。不，我很欣賞這一點。也許是最後一個問題，從長期策略來看。我的意思是，當你們考慮如何在卡車市場中部署資產組合時，你們已經在傳統的長途、公路、高週期性之外進行了更多投資卡車裝載市場的一部分進入AAT、Lew Thompson & Son 等公司，以及您的零擔加急團隊業務中的長期承諾。您如何看待傳統 OTR 卡車裝載之間的長期資產組合，以及市場中更利基的部分真正消除了周期性，並且您可以在哪裡真正看到複合增長？

I would say this. I would say that we've been on this journey now really in 2015 when we brought over Delta Airlines. I actually went to the Board and said, we're going to change our company around. We're not going to be this [feed for famine] and hope things get better tomorrow. We are going down another road. And so we started that in 2015. It really came into fruition in 2018 with the acquisition of Landair. It really came into fruition in 2020 when we shut down SRT in the over-the-road solo side of the Covenant business, and we got out of the solo business.

我會這麼說。我想說的是，我們在 2015 年收購達美航空時就已經踏上這段旅程了。事實上，我去董事會說，我們要改變我們的公司。我們不會成為這樣的[飢荒飼料]，並希望明天情況會好起來。我們正在走另一條路。所以我們在 2015 年開始了這項計畫。隨著 2018 年收購 Landair，它真正取得了成果。 2020 年，當我們關閉了 Covenant 業務的公路單人業務中的 SRT，並退出了單人業務時，它才真正實現了。

And we're really in the market of Expedited, Dedicated, Warehousing and Managed Freight. And Managed Freight is brokerage of TMS. And we are really looking at those 4 avenues. And as I look at the whole and at this is that we get -- 2 things got to happen. We got to bring value to the customer, but that customer has got to bring value to us. That's going to be a 2-way street that we're both bringing value because at the end of the day, if we're not bringing value, if our customer is not bringing value, the relationship will eventually end. Something will happen.

我們確實處於加急、專用、倉儲和管理貨運市場。 Managed Freight是TMS的經紀業務。我們確實正在研究這 4 條途徑。當我審視整體時，我們發現──有兩件事必須發生。我們必須為客戶帶來價值，但客戶也必須為我們帶來價值。這將是一條我們雙方都帶來價值的雙向路，因為到最後，如果我們沒有帶來價值，如果我們的客戶沒有帶來價值，那麼這種關係最終就會結束。將會發生一些事情。

And we were just so tired over all those years, 35 years or 33 years or whatever it's been of, okay, the market is up, let's go increase rates 5%. The market is down, let's give it all back. And our model today is not doing that, and it's because we're bringing value. Our Expedited side of our business, our teams, everybody doesn't have teams, we're one of the largest team providers out there. If you truly need teams, then pay me for what it costs me to operate these teams, and we'll be there during the great times of 2022, the Expedited side.

這些年來，我們真的太累了，35 年或 33 年，或無論什麼，好吧，市場上漲了，讓我們升息 5%。市場低迷了，我們把一切都還回來吧。我們今天的模式並沒有這樣做，而是因為我們正在帶來價值。我們業務的加急部分，我們的團隊，每個人都沒有團隊，我們是最大的團隊提供者之一。如果你確實需要團隊，那麼請支付我經營這些團隊的費用，我們將在 2022 年的偉大時刻，加急隊的幫助下。

It's not that they came in [larger] just on rate. They came in this last year, instead of 20 trucks, I think, 17. And we work with our customers on that. And we got to make sure that we've got a pipeline to be able to take care of the ones that give you back, and then the broker side is really filling the OTR side of our business. And as you know, brokerage is up and down and barges are up and down. But as long as we can -- it's a high ROI on that business.

這並不是說它們只是因為利率而變得[更大]。他們是去年進來的，而不是 20 輛卡車，我想是 17 輛。我們與客戶合作解決這個問題。我們必須確保我們有一個管道能夠照顧那些給你回報的人，然後經紀人方面真正填補了我們業務的 OTR 方面。如您所知，經紀業務有起有落，駁船也有起有落。但只要我們能做到，該業務就能獲得很高的投資報酬率。

And so I'm very pleased with that, and then Paul talked about the Warehousing. But those are the 4 areas that we're concentrating in. And those are the areas that we're going to continue to build either through internal growth or through acquisitions, as you call it, niches and those kinds of things. So that's what we love. We love something that's hard and something that everybody doesn't do and it brings value to the customer. So that's our model.

我對此非常滿意，然後保羅談到了倉儲。但這是我們重點關注的四個領域。這些是我們將透過內部成長或透過收購（正如您所說的）繼續建立的領域，利基市場和諸如此類的事情。這就是我們所愛的。我們喜歡一些困難的事情，喜歡某些人人不會做的事情，但它能為客戶帶來價值。這就是我們的模型。

David, it looks like it's clearly working. I'll hand it over.

大衛，看起來它顯然有效。我會把它交給你。

(Operator Instructions) And your next question comes from Barry Haimes with Sage Asset Management.

（操作員說明）您的下一個問題來自 Sage Asset Management 的 Barry Haimes。

Good quarter. I had 2 questions. One is, David, I wanted to circle back on your comment about capacity leaving the industry. Is there -- so when you look at your brokerage segment, you might be able to get a read on that in terms of all the carriers that you work with. So is there anything either numerical or anecdotal that you could talk about to flesh that out a little bit more? And then I had one other question, but go ahead.

好季度。我有兩個問題。一是，大衛，我想回顧一下您關於產能離開該行業的評論。是否存在—因此，當您查看經紀業務細分市場時，您也許能夠了解與您合作的所有運營商的情況。那麼，您是否可以透過一些數字或軼事來進一步充實這一點？然後我還有一個問題，但請繼續。

Yes. I just want to say, on the broker side, yes, you can. And I would say the main thing that's happened on the brokerage side is that the small carriers have reached a point that they're not going no lower. And that's what we have seen is that we can't get the capacity for any lower rate than what's out there. So it's showing you that capacity is starting to tighten a little bit because the rates are not falling like they were.

是的。我只想說，在經紀人方面，是的，可以。我想說的是，經紀業務方面發生的主要事情是，小型業者已經達到了他們不會再繼續下跌的地步。這就是我們所看到的，我們無法以比現有價格更低的速率獲得容量。因此，它向您表明，運力開始稍微收緊，因為利率沒有像以前那樣下降。

Got it. Okay. And then the other question is on the asset-based businesses that, as you pointed out, are more contract, are most of those roll in the spring? And any feel for where contract rates are in the market now versus where they might have been 6 months or a year ago?

知道了。好的。然後另一個問題是關於資產型業務，正如您所指出的，這些業務更具合約性，其中大部分是在春季滾動的嗎？與 6 個月或一年前相比，現在市場上的合約利率有何感覺？

Yes, most of our stuff is in the spring. And I would say January to April is when most of the asset-based contracts reset. Pricing is probably down mid-single digits on -- if you combine Dedicated and Expedited, I would say our pricing is probably down mid-single digits if you kind of weight those. I would say people that have more of OTR (inaudible) U Call We Haul type exposure, those are probably down a lot more than mid-single digits.

是的，我們大部分的事情都是在春天。我想說，一月到四月是大多數以資產為基礎的合約重置的時間。如果您將專用和加急結合起來，定價可能會下降到中個位數，如果您權衡這些，我想說我們的定價可能會下降到中個位數。我想說的是，那些有更多 OTR（聽不清楚）「U Call We Haul」類型曝光的人，這些風險可能會比中位數下降很多。

David, any more color you want to add on that?

大衛，你還想添加更多的顏色嗎？

No, I agree. It's [bringing a bit] next year when rate starts, then we start looking at rates again. And I agree with Paul on this thing.

不，我同意。明年利率開始[帶來一些]，然後我們開始再次考慮利率。在這件事上我同意保羅的觀點。

Great. And just one last quick follow-up on that. So looking at the cost side for next year, as we start thinking about next year, are there any big puts or takes we should think about as we're thinking about cost structure in '24 versus '23?

偉大的。這只是最後的快速跟進。因此，從明年的成本方面來看，當我們開始考慮明年時，當我們考慮「24 年與 23 年」的成本結構時，我們是否應該考慮任何重大的看跌或看跌？

So on the cost side, I mean we've been pleased with what we've seen. And with a lot of the costs, we've been really laser-focused, I would say, as an enterprise starting in the fourth quarter of last year, kind of seen -- I think we -- it's safe to say we kind of first felt it pretty significantly in November of 2022. And as a response to that, we've been laser-focused on cost. And the enterprise as a whole has done a great job and just really focused on cost savings throughout the enterprise, whether in a business unit or a back office.

因此，在成本方面，我的意思是我們對所看到的感到滿意。考慮到很多成本，我們一直非常專注，我想說，作為一家從去年第四季開始的企業，我想我們可以肯定地說我們第一次感受到這一點是在2022 年11 月。作為對此的回應，我們一直高度關注成本。整個企業做得非常出色，並且真正專注於整個企業的成本節約，無論是在業務部門還是在後台。

And that being said, that can only go so far. But I think a big part of the success story of where we have seen success, I would say, is on the investment in our new tractors. And we've done a lot there. It was painful last year. We had to pull some trucks early and created some fleet disruptions and created some drag on the P&L and impairment charge. If you go back and read the Q4 release, it was a little bit muddy.

話雖這麼說，但也只能到此為止。但我認為，我們所取得的成功的一個重要部分是對新拖拉機的投資。我們在那裡做了很多事情。去年就很痛苦了。我們不得不提前拉走一些卡車，造成了一些車隊中斷，並對損益和減損費用造成了一些拖累。如果你回去閱讀第四季的版本，你會發現它有點混亂。

But we are seeing improved fuel economy. We're seeing improved maintenance costs. We're seeing improved retention because we're in -- it's a different market, but we'd like to think of it that they're in newer equipment, better equipment and more efficient. And so our utilization has improved as well. So I do think that we'll continue to see cost improvements as we continue to upgrade and reduce the average age of our fleet.

但我們看到燃油經濟性有所改善。我們看到維護成本有所改善。我們看到保留率有所提高，因為我們處於一個不同的市場，但我們希望他們擁有更新的設備、更好的設備和更高的效率。因此我們的利用率也提高了。因此，我確實認為，隨著我們繼續升級和降低機隊的平均壽命，我們將繼續看到成本的改善。

Fuel is kind of a wildcard. It goes up one month and goes down another month. I think directionally, it's going to be going down. But quite honestly, I don't see a lot of reduction in wages. So it's a little bit of a mixed bag. I feel good about our cost journey to date. But 2024, when we have that type of leverage, we squeeze and turn it pretty hard this year.

燃料是一種通配符。一個月上漲，一個月下跌。我認為從方向上看，它會下降。但老實說，我並沒有看到薪水減少太多。所以它有點魚龍混雜。我對迄今為止我們的成本之旅感覺良好。但到 2024 年，當我們擁有這種槓桿作用時，我們今年就會很難擠壓並扭轉它。

And how can -- do we have the leverage to kind of offset some of those costs? But it's kind of a hard question to answer because I think there's some ups and downs in there. But we feel good about the things that we can control, and we're really happy with what we've done to date.

我們如何才能——我們有能力抵消其中一些成本嗎？但這是一個很難回答的問題，因為我認為其中有一些起伏。但我們對自己能夠控制的事情感覺良好，並且對迄今為止所做的事情感到非常滿意。

(Operator Instructions) And it appears there are no further questions at this time. Mr. Grant, I'll turn the call back to you for any additional or closing remarks.

（操作員說明）目前似乎沒有其他問題。格蘭特先生，如果您有任何補充或結束語，我會將電話轉回給您。

Yes, Jen, thanks so much. I just wanted to thank everyone for your time and participation today. We're excited about the quarter, pleased with our results and are optimistic about the future. And we look forward to speaking with everyone next quarter.

是的，珍，非常感謝。我只是想感謝大家今天的時間和參與。我們對本季感到興奮，對我們的業績感到滿意，並對未來感到樂觀。我們期待下個季度與大家交談。

Thanks very much, and have a good afternoon.

非常感謝，祝您下午愉快。

This concludes today's conference call. Thank you for attending.

今天的電話會議到此結束。感謝您的出席。