Knight-Swift Transportation Holdings Inc (KNX) 2023 Q3 法說會逐字稿

Good afternoon. My name is Judy, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Knight-Swift Transportation's Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Speakers from today's call will be Dave Jackson, President and CEO; and Adam Miller, CFO. Mr. Miller, the meeting is now yours.

午安.我叫朱迪，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Knight-Swift Transportation 2023 年第三季財報電話會議。 （操作員指示）今天電話會議的發言人將是總裁兼首席執行官戴夫傑克遜 (Dave Jackson)；和首席財務官亞當·米勒。米勒先生，現在會議由您主持。

Thank you, Judy. I appreciate that, and good afternoon, everyone, and thank you for joining our third quarter 2023 earnings call.

謝謝你，朱迪。我對此表示感謝，大家下午好，感謝您參加我們的 2023 年第三季財報電話會議。

Today, we plan to discuss topics related to the results of the quarter, provide an update on current market conditions and update our 2023 guidance.

今天，我們計劃討論與本季業績相關的主題，提供當前市場狀況的最新資訊並更新我們的 2023 年指導。

We have slides to accompany this call, which are posted on our investor website. Our call is scheduled to last 1 hour today. And following our commentary, we'll answer questions related to these topics. In order to get to as many participants as possible, we are going to limit the questions to 1 per participant.

我們在本次電話會議上附有幻燈片，這些幻燈片發佈在我們的投資者網站上。今天我們的通話預計持續 1 小時。在我們的評論之後，我們將回答與這些主題相關的問題。為了吸引盡可能多的參與者，我們將把每位參與者的問題限制為 1 個。

If you have a second question or a follow-up, please feel free to get back into the queue and we'll answer as many questions as possible. If we're not able to get to your question due to time restrictions, you may call (602) 606-6349, following the call, and we'll answer as many questions as possible at that point.

如果您還有第二個問題或後續問題，請隨時回到隊列中，我們將盡可能回答問題。如果由於時間限制我們無法回答您的問題，您可以在撥打電話後致電 (602) 606-6349，屆時我們將盡可能回答您的問題。

So to begin, I'll first refer you to the disclosures on Slide 2 of the presentation, and I'll also note the following. This conference call and presentation may contain forward-looking statements made by the company that involve risks, assumptions and uncertainties that are difficult to predict.

首先，我將首先向您介紹簡報投影片 2 上的揭露內容，我也會指出以下內容。本次電話會議和演示可能包含公司所做的前瞻性聲明，這些聲明涉及難以預測的風險、假設和不確定性。

Investors are directed to the information contained in Item 1A Risk Factors or Part 1 of the company's annual report on Form 10-K filed with the United States SEC for a discussion of the risks that may affect the company's future operating results. Actual results may differ.

投資者應參閱公司向美國 SEC 提交的 10-K 表格年度報告第 1A 項風險因素或第 1 部分中包含的信息，以討論可能影響公司未來經營業績的風險。實際結果可能有所不同。

Before we get into the slides, I want to turn the call over to Dave for a few opening remarks.

在我們開始幻燈片之前，我想將電話轉給戴夫，讓他做一些開場白。

Thank you, Adam, and hello, everyone, and thank you for joining our call today. As has been widely reported, we continue to be in a depressed truckload freight market where rate expectations from shippers are often close to, if not below operating costs as spot rates are at -- are not at sustainable levels and are proving not to be survivable for those that are dependent on that type of freight.

謝謝亞當，大家好，謝謝您今天加入我們的電話會議。正如廣泛報導的那樣，我們仍然處於低迷的卡車貨運市場，托運人的費率預期往往接近甚至低於運營成本，因為即期費率處於不可持續的水平，並且事實證明無法生存對於那些依賴該類型貨運的人。

When we did our last call a quarter ago, there were rumors of Yellow closing. Obviously, since that call, that has indeed taken place and the already resilient LTL market has seen more strength.

當我們一個季度前最後一次打電話時，有傳言稱 Yellow 將關閉。顯然，自從那次電話會議以來，這種情況確實發生了，本已具有彈性的零擔市場變得更加強勁。

On the truckload side, the announcements of failures and rumors of more seem to be increasing by the week as of late. It's taken a lot to get to this point so deep along the bottom of this current cycle. But the market is beginning to show signs of sensitivity to when supply leaves suddenly or a provider cannot perform with freight lanes that were awarded by offering the cheapest price and a shipper may find themselves quickly seeking a quality provider at a higher price than the original award.

在卡車裝載量方面，最近一周，有關失敗的公告和更多的謠言似乎在增加。要到達當前週期如此深的底部，需要付出很大的努力。但市場開始對供應突然停止或供應商無法履行通過提供最便宜價格授予的貨運通道的情況表現出敏感跡象，而托運人可能會發現自己很快就以比原始授予價格更高的價格尋找優質供應商。

However, we are not seeing enough of that kind of activity or enough supply leave and/or enough strength in volumes to move rates to a meaningful inflection position right now. But it does appear that the stage is being set for positive rate pressure in the next bid season.

然而，我們目前還沒有看到足夠的此類活動或足夠的供應剩餘和/或足夠的交易量來將利率推至有意義的拐點位置。但看起來確實正在為下一個競標季的積極利率壓力做好準備。

In the meanwhile, here at Knight-Swift, we are focused on 3 specific objectives. The first 1 is improving the performance of our Truckload businesses. There's much in our control that we can do, including being better at cost, running more miles safely and in hiring and retaining driving associates.

同時，在 Knight-Swift，我們專注於 3 個具體目標。第一個是提高我們卡車業務的績效。我們可以做很多事情，包括降低成本、安全行駛更多里程以及僱用和留住駕駛助理。

Our people are digging in and working hard. We're grateful for that. The Truckload operating ratio excluding U.S. Xpress was at 91.5%, and we are just simply not comfortable with an OR that starts with a 9, and our people are working with urgency to do all that we can.

我們的人民正在努力工作。我們對此表示感謝。不包括 U.S. Xpress 的卡車裝載運營率為 91.5%，我們只是對以 9 開頭的 OR 感到不舒服，我們的員工正在緊急工作，盡我們所能。

Another objective is to grow our LTL network. AAA Cooper and Midwest Motor Express seamlessly operate on 1 operating network while maintaining their local identities. We've opened 14 LTL service centers organically since the acquisition of AAA Cooper and MME in 2021. We've already purchased 11 additional terminals that have not yet been launched as service centers, and we'll continue to pursue acquiring additional terminals that fit our nationwide plan in addition to other strategic forms of growth for LTL. We have found synergies between LTL and the Truckload business while not getting in one another's way.

另一個目標是發展我們的零擔網絡。 AAA Cooper 和 Midwest Motor Express 在 1 個營運網路上無縫運營，同時保持其本地特色。自 2021 年收購 AAA Cooper 和 MME 以來，我們已經有機地開設了 14 個零擔服務中心。我們已經購買了 11 個尚未作為服務中心推出的額外終端，我們將繼續尋求購買更多適合的終端我們的全國計劃以及其他零擔運輸策略成長形式。我們發現零擔運輸和卡車裝載業務之間存在協同效應，同時又互不干擾。

And the third objective that I would point out is the turnaround of U.S. Xpress. We feel like we had good momentum going into the close of the transaction with the goal of being able to hit the ground running, and it feels like that's what's happened. We've had positive sequential rate improvement while lowering cost per mile in the first quarter of our ownership despite strong market pressure in the contrary.

我要指出的第三個目標是 U.S. Xpress 的轉虧為盈。我們覺得在交易結束時我們有良好的動力，目標是能夠立即開始運行，而且感覺就像發生了這樣的事情。儘管市場壓力相反，但在我們擁有所有權的第一季度，我們取得了積極的環比改善，同時降低了每英里成本。

Still a long ways to go, but we are ahead of schedule. The people at U.S. Xpress have been great, and we're so excited for where that business is headed and with some help from the market, we'll get there even sooner.

雖然還有很長的路要走，但我們已經提前了。 U.S. Xpress 的員工都很棒，我們對該業務的發展方向感到非常興奮，在市場的幫助下，我們會更快實現這一目標。

Now we'll turn our overview to Slide 3. The charts on Slide 3 compare our consolidated third quarter revenue and earnings results on a year-over-year basis. These results now include the results of U.S. Xpress for the full quarter. Revenue excluding fuel surcharge, increased 7.6%, while our adjusted operating income declined by 60.8%. Market conditions in the LTL business were strong while soft demand continues in the Truckload space.

現在我們將概述投影片 3。投影片 3 上的圖表比較了我們第三季的綜合收入和獲利結果與去年同期相比。這些結果現在包括 U.S. Xpress 整個季度的結果。扣除燃油附加費後的收入增加了 7.6%，而調整後的營業收入下降了 60.8%。零擔業務的市場狀況強勁，而卡車裝載領域的需求持續疲軟。

GAAP earnings per diluted share for the third quarter of 2023 were $0.37 per share, and our adjusted EPS came in at $0.41 per share. These results were negatively impacted on a year-over-year basis by a $20.4 million increase in interest expense and the $22 million reduction in operating income in our third-party insurance business with the non-reportable segments.

2023 年第三季的 GAAP 攤薄每股收益為每股 0.37 美元，調整後每股收益為 0.41 美元。與去年同期相比，我們的第三方保險業務非報告部門的利息支出增加了 2,040 萬美元，營業收入減少了 2,200 萬美元，對這些業績產生了負面影響。

Also, the third quarter GAAP results were positively impacted by a $14.6 million income tax benefit from the partial release of a tax benefit valuation allowance held by U.S. Xpress associated with net operating losses and the tax credit carryforward benefit at the time of the acquisition. This benefit was recognized post closing due to the ability of Knight-Swift to utilize those tax attributes, which had the effect of reducing the consolidated effective tax rate at Knight-Swift to negative 2.1% for the current quarter.

此外，第三季GAAP 業績也受到了1,460 萬美元所得稅優惠的正面影響，該所得稅優惠來自U.S. Xpress 持有的與收購時的淨營運虧損和稅收抵免結轉效益相關的稅收優惠估值津貼的部分釋放。由於 Knight-Swift 能夠利用這些稅收屬性，這項收益在交易完成後得以確認，從而將 Knight-Swift 本季的綜合有效稅率降低至負 2.1%。

Our adjusted EPS of $0.41 is calculated using a normalized 23.2% effective tax rate for the quarter and excludes the $0.09 per share benefit of the lower tax rate.

我們調整後的每股盈餘 0.41 美元是使用本季標準化的 23.2% 有效稅率計算的，不包括較低稅率帶來的每股 0.09 美元的收益。

Now on to Slide 4. Slide illustrates revenue and adjusted operating income for each of our segments. Freight demand in the third quarter remained stable at soft levels for Truckload, but fairly strong and building in LTL. The Truckload seasonal build usually seen in the late third quarter was subdued and this has continued thus far in early October.

現在轉到投影片 4。投影片顯示了我們每個部門的收入和調整後的營業收入。第三季卡車貨運需求維持穩定，處於疲軟水平，但零擔貨運需求相當強勁且不斷增加。通常在第三季末出現的卡車裝載季節性建造受到抑制，並且這種情況在十月初一直持續下去。

Our insurance business performed worse than expected, but this was largely offset by LTL and U.S. Xpress performing ahead of our plan in the quarter while our existing Truckload businesses were largely in line.

我們的保險業務表現差於預期，但這在很大程度上被 LTL 和 U.S. Xpress 在本季度的表現提前於我們的計劃所抵消，而我們現有的卡車裝載業務基本上符合預期。

Contractual bid rates are largely baked in at this point for the 2023 in the Truckload business, while project opportunities are less prevalent than a normal peak season, but are continuing to materialize. After generally falling for much of the past few quarters, fuel prices increased throughout the third quarter, providing a new headwind to operating margins for Truckload and Intermodal, though, our efforts to reduce costs largely offset the impact. Our existing logistics business did a great job navigating significant declines in volume and revenue per load year-over-year to maintain a low 90s adjusted operating ratio, excluding U.S. Xpress Logistics.

目前，2023 年卡車業務的合約投標率已基本確定，雖然專案機會不如正常旺季那麼普遍，但仍在繼續實現。在過去幾季的大部分時間普遍下跌之後，燃油價格在整個第三季都在上漲，這給卡車裝載和多式聯運的營運利潤帶來了新的阻力，不過，我們降低成本的努力在很大程度上抵消了影響。我們現有的物流業務做得很好，克服了貨運量和每次裝載收入同比大幅下降的情況，保持了 90 年代調整後的較低營運比率（不包括 U.S. Xpress Logistics）。

I'll now turn it over to Adam to discuss each segment's operating performance starting with truckload on Slide 5.

現在我將把它交給 Adam，從幻燈片 5 上的卡車裝載開始討論每個部分的營運績效。

Thanks, Dave. For the Truckload segment, the ongoing soft demand, further rate pressure and a recent sustained increase in fuel prices were headwinds to operating margins in the third quarter. However, our actions to reduce costs offset these challenges to produce a slight sequential improvement in adjusted operating ratio for our existing Truckload business, excluding the results of U.S. Xpress.

謝謝，戴夫。對於卡車裝載業務來說，持續疲軟的需求、進一步的利率壓力以及近期燃油價格的持續上漲對第三季的營業利潤率構成了不利因素。然而，我們降低成本的行動抵消了這些挑戰，使我們現有卡車業務的調整後營運率略有改善，不包括 U.S. Xpress 的業績。

The inclusion of U.S. Xpress negatively impacted the adjusted operating ratio for this segment by 340 basis points. On a year-over-year basis, our Truckload revenue, excluding fuel surcharge, increased 21.9%, reflecting a 15.5% decline in the existing Truckload business prior to the inclusion of U.S. Xpress.

U.S. Xpress 的納入對該部門調整後的營運比率產生了 340 個基點的負面影響。與去年同期相比，我們的卡車裝載收入（不含燃油附加費）增加了 21.9%，反映出納入 U.S. Xpress 之前現有卡車裝載業務下降了 15.5%。

Revenue per loaded mile fell 14% in total or 11.8% before including the U.S. Xpress Truckload business as the spring bid activity is now fully realized. Excluding the results of U.S. Xpress, miles per tractor increased 1% for the first year-over-year increase in 2023. Including the results of the U.S. Xpress miles per tractor increased 5.1% year-over-year. The decline in rates, partially offset by the improvement in miles per tractor, produced an 8.2% decrease in revenue per tractor year-over-year.

由於春季投標活動現已完全實現，每裝載英里的收入總計下降了 14%，在包括 U.S. Xpress Truckload 業務之前下降了 11.8%。不包括 U.S. Xpress 的結果，每台拖拉機的行駛里程在 2023 年首次同比增長 1%。包括 U.S. Xpress 的結果，每台拖拉機的行駛里程同比增長 5.1%。每台拖拉機行駛里程的提高部分抵消了費率的下降，導致每台拖拉機的收入同比下降了 8.2%。

Now we'll move to Slide 6. The benefits of our diversification in the LTL really stood out as this segment continues to perform well, aided by the recent disruption in the industry. Our LTL business grew revenue excluding fuel surcharge nearly 7% year-over-year and delivered an 84.9% adjusted operating ratio. Pricing growth strengthened as revenue per hundredweight, excluding fuel surcharge, increased 10.7% year-over-year. Volumes built throughout the quarter as shipments per day increased 4.8% year-over-year, which reversed the trend of decline seen in the first half of the year.

現在我們將轉到幻燈片 6。零擔業務多元化的好處確實非常突出，因為在最近行業混亂的幫助下，該細分市場繼續表現良好。我們的零擔業務（不計燃油附加費）營收年增近 7%，調整後營業率達 84.9%。價格成長強勁，每英擔收入（不含燃油附加費）較去年同期成長 10.7%。本季銷售量不斷增加，日出貨量年增 4.8%，扭轉了上半年的下降趨勢。

As Dave mentioned, we've brought on 14 new service centers online since entering the business in late 2021, and efforts are underway to continue growing this number with properties in various stages of procurement, development or reconditioning. Filling out a super regional network in the short-term and creating a national network in the long-term, will allow us to participate in more freight and enable us to find opportunities to further support our existing truckload customers with LTL capacity. This remains a key strategic priority for us.

正如 Dave 所提到的，自 2021 年底進入該行業以來，我們已經在線上開設了 14 個新服務中心，並且正在努力透過處於採購、開發或翻新各個階段的物業繼續增加這一數字。短期內完善超級區域網絡，長期打造全國性網絡，將使我們能夠參與更多貨運業務，並使我們能夠找到機會進一步支持我們現有的整車零擔運力客戶。這仍然是我們的一個關鍵策略重點。

Now on to Slide 7. The Logistics market is in a difficult phase where freight demand has been soft for over years producing top line price pressure that is no longer being offset by corresponding declines in purchase transportation costs. Despite these challenges, our existing Logistics business remains disciplined and nimble, maintaining a low 90s adjusted operating ratio before the inclusion of U.S. Xpress.

現在轉到幻燈片 7。物流市場正處於一個困難階段，多年來貨運需求一直疲軟，產生的頂線價格壓力不再被採購運輸成本的相應下降所抵消。儘管面臨這些挑戰，我們現有的物流業務仍然紀律嚴明且靈活，在納入 U.S. Xpress 之前保持著 90 年代調整後的較低營運比率。

The U.S. Xpress Logistics business is already showing sequential improvement in adjusted operating ratio since the acquisition closing within 300 basis points of our existing Logistics business as we improved the cost structure and pricing even in a difficult environment. Overall revenue was down 24.5% year-over-year as revenue per load declined 15.8% and load count declined 10.3%. Excluding the U.S. Xpress Logistics volumes, load count was down 29.7% year-over-year in the existing business.

自收購完成以來，U.S. Xpress Logistics 業務已顯示出調整後營運比率的連續改善，與我們現有物流業務的差距在 300 個基點以內，即使在困難的環境下我們也改善了成本結構和定價。整體營收年減 24.5%，每次負載收入下降 15.8%，負載數量下降 10.3%。不包括 U.S. Xpress Logistics 的貨運量，現有業務的裝載量較去年同期下降 29.7%。

Now if you move to Slide 8. I'll cover our Intermodal segment. Revenue declined 22.6%, which was driven by a 26.6% decrease in revenue per load, which was partially offset by an increase of 5.5% in load count. The operating ratio improved 190 basis points since the second quarter as a result of cost reductions, which offset a slight sequential reduction in revenue per load, this business improved during the quarter, reaching breakeven in September, and we expect modest profitability in the fourth quarter.

現在，如果您轉到投影片 8。我將介紹我們的聯運部分。收入下降 22.6%，這是由於每次負載收入下降 26.6%，但負載數增加 5.5% 部分抵消了下降。由於成本削減，營運比率自第二季度以來提高了190 個基點，抵消了每負載收入環比的小幅下降，該業務在本季度有所改善，於9 月份達到盈虧平衡，我們預計第四季度的盈利能力將適度。

Now on to Slide 9. This slide illustrates our Non-Reportable segment, which includes insurance, maintenance and equipment sales and rentals under the Iron Truck Services brand as well as equipment leasing and warehousing activities. For the quarter, revenue declined 14.2% year-over-year, largely as a result of our actions to address the recent challenges within our third-party insurance program, including significantly reducing the exposure basis. The $5.4 million operating loss within the non-reportable segment has modestly improved from the $7.1 million operating loss in the second quarter as improvement within other services provided greater offset to the ongoing losses within the third-party insurance business.

現在轉到投影片 9。這張投影片說明了我們的非報告部門，其中包括 Iron Truck Services 品牌下的保險、維護和設備銷售和租賃以及設備租賃和倉儲活動。本季營收年減 14.2%，這主要是由於我們採取了應對第三方保險計劃中近期挑戰的行動，包括大幅降低風險基礎。由於其他服務的改善更大程度地抵消了第三方保險業務的持續虧損，非報告部門的 540 萬美元營運虧損較第二季的 710 萬美元營運虧損略有改善。

We are evaluating strategic alternatives for the insurance business, including potential reinsurance strategies for the outstanding liabilities in order to help insulate our business from the volatility primarily arising from prior last years. As noted previously, it will take some time for the changes in the insurance business to fully materialize in the results, but we are making progress, raising premiums and improving the quality of risk as we work to mitigate volatility.

我們正在評估保險業務的策略性替代方案，包括針對未償負債的潛在再保險策略，以幫助我們的業務免受去年主要引起的波動的影響。如前所述，保險業務的變化需要一段時間才能完全體現在業績中，但在我們努力減輕波動性的同時，我們正在取得進展，提高保費並提高風險品質。

Now I'll turn it over to Dave for an update on the progress at U.S. Xpress.

現在我將把它交給 Dave，以了解 U.S. Xpress 的最新進展。

Thanks, Adam. The team at U.S. Xpress has really rallied around the goal of making significant improvements to this business and is currently running ahead of plan, as previously mentioned, on our projected path to reach an operating profit within the first half of next year. As noted in previous slides, the U.S. Xpress Truckload and Logistics businesses have already made meaningful progress improving their operating ratios.

謝謝，亞當。 U.S. Xpress 的團隊確實圍繞著對這項業務進行重大改進的目標而團結起來，並且如前所述，目前正在超前於我們預計在明年上半年實現營業利潤的目標。正如先前幻燈片中所指出的，U.S. Xpress 卡車裝載和物流業務已經在提高營運比率方面取得了有意義的進展。

Coming out of the third quarter, we have already reached a $100 million annualized run rate of realized synergies with a target of increasing that to $120 million run rate by the end of this year.

從第三季開始，我們已經實現了 1 億美元的綜效年化運行率，目標是在今年年底將其提高到 1.2 億美元。

We highlight some of the progress on this slide. You'll notice these are fundamental areas of the business, some of which are the most critical levers to pull through cycles. Ultimately, as we lower cost per mile and increase rate per mile, we will make operating ratio progress, and that has begun. U.S. Xpress is rolling out a decentralized terminal-based operating model similar to Knight-Swift, where there is P&L accountability at the local level with far more personal driver interaction. 9 out of the 10 locations have been converted from places to park to operating terminals.

我們在這張投影片上強調了一些進展。您會注意到這些是業務的基本領域，其中一些是度過週期的最關鍵槓桿。最終，隨著我們降低每英里成本並提高每英里費率，我們將提高營運率，而這已經開始了。 U.S. Xpress 正在推出一種類似於 Knight-Swift 的基於終端的去中心化運營模式，在地方層面上有損益問責制，並具有更多的個人駕駛員互動。 10 個地點中有 9 個已從停車場改為營運航站樓。

Understanding where rates need to be for a proper return has led to the elimination of brokers as the business is now dealing directly with shippers while significantly reducing exposure to spot rates versus contract rates, which has improved from approximately 45% at the beginning of the year to approximately 15% today. This is an uphill battle as we closed this transaction at the end of the spring bid cycle in July, but the team has made progress and will continue as we will soon begin the 2024 bid season.

了解適當回報所需的費率導致消除了經紀人，因為該業務現在直接與托運人打交道，同時顯著減少了即期費率與合約費率的風險，合約費率比年初的約45% 有所改善到今天約15%。這是一場艱苦的戰鬥，因為我們在 7 月春季申辦週期結束時完成了這筆交易，但團隊已經取得了進展，並將繼續前進，因為我們很快就會開始 2024 年申辦季節。

We are excited for this early progress and for how this consequential Truckload business is positioning for the future. We have been impressed with the effort and attitude of our new fellow teammates at U.S. Xpress and appreciate their hard work.

我們對這一早期進展以及這項重要的卡車業務如何定位未來感到興奮。 U.S. Xpress 新隊友的努力和態度給我們留下了深刻的印象，並對他們的辛勤工作表示讚賞。

Next to Slide 11 for our outlook. Slide 11 contains our updated outlook on market conditions for the remainder of 2023. The LTL market should continue to see solid demand as the recent capacity disruption in the industry continues to be sorted out over the next several months. This should support further yield improvement as the new business is increasingly repriced through bid activity.

幻燈片 11 旁邊是我們的展望。幻燈片 11 包含我們對 2023 年剩餘時間市場狀況的最新展望。隨著行業近期產能中斷問題在未來幾個月內繼續解決，零擔市場的需求應該會繼續保持強勁。隨著新業務越來越多地透過投標活動重新定價，這應該會支持收益率的進一步提高。

In the Truckload space, we believe we are moving past inventory destocking though shippers caution about the direction of the U.S. consumer behavior is governing freight demand for the time being, it feels. We continue to expect a modest peak season, including a return of some typical seasonal activity and project opportunities with opportunities continuing to materialize.

在卡車裝載領域，我們認為我們正在超越庫存去庫存，儘管托運人警告稱，美國消費者行為的方向目前正在控制貨運需求。我們仍然預期旺季會溫和，包括一些典型季節性活動和專案機會的回歸，並且機會將繼續實現。

Spot rates seem to have bottomed, but have yet to inflect positively. As a result, contract rates continue to be pressured. The soft demand, unsustainably low rates, ongoing inflation and restrictive financing conditions will keep pressure on carriers, especially smaller and less well-capitalized carriers. These factors should serve to accelerate the ongoing capacity attrition and limit immediate capacity expansion upon recovery.

即期利率似乎已經觸底，但尚未出現正面變化。因此，合約利率繼續面臨壓力。需求疲軟、不可持續的低利率、持續的通貨膨脹和限制性的融資條件將繼續給承運商帶來壓力，尤其是規模較小、資本較差的承運商。這些因素應該會加速持續的產能消耗，並限制恢復後立即的產能擴張。

The pace of cost inflation should ease, though, plentiful work alternatives in the general economy will pressure hiring and utilization until freight conditions improve. New equipment availability continues to improve, and the used equipment market weakens further as small carriers struggle and capacity exits.

不過，成本通膨的速度應該會放緩，在貨運條件改善之前，整體經濟中充足的工作選擇將給招聘和利用率帶來壓力。新設備的可用性持續改善，而隨著小型業者的困境和產能退出，二手設備市場進一步疲軟。

I will now turn it back to Adam to cover our 2023 guidance on Slide 12.

現在我將把它轉回 Adam 來介紹我們在幻燈片 12 上的 2023 年指導。

All right. Thanks, Dave. And this will be our final slide. For the full year 2023, we now expect adjusted EPS to be in the range of $2.10 to $2.20 per share, which is an update from our previous guidance of $2.10 to $2.30 per share. This is based on our expectations that truckload rates have stabilized at current levels for the fourth quarter, the truckload tractor count would be down modestly with miles declining sequentially similar to prior year in the absence of a strong peak.

好的。謝謝，戴夫。這將是我們的最後一張投影片。對於 2023 年全年，我們目前預計調整後每股收益將在每股 2.10 美元至 2.20 美元之間，這是我們之前每股 2.10 美元至 2.30 美元指引的更新。這是基於我們的預期，即第四季度卡車裝載率已穩定在當前水平，在沒有出現強勁峰值的情況下，卡車裝載牽引車數量將小幅下降，里程數將與上年類似地連續下降。

The LTL revenue, excluding fuel surcharge increases in the mid-teens year-over-year with a relatively stable sequential margin profile. The LTL shipping count and revenue excluding fuel surcharge per hundredweight, improve high single-digit percentage year-over-year.

零擔收入（不含燃油附加費）年增百分之十幾，連續利潤率狀況相對穩定。零擔運輸數量和收入（不包括每英擔燃油附加費）同比提高了高個位數百分比。

The U.S. Xpress EPS estimated dilutive impact in the fourth quarter expected at less than or around $0.05, I believe, as performance continues to improve. Logistics volumes and revenue per load remain under pressure in Q4 with OR stable in the low 90s. The Intermodal operating ratio slightly profitable with volumes stable sequentially. The Non-Reportable Op income to decline roughly $10 million to $15 million sequentially as third-party insurance stabilizes and other businesses experienced their typical seasonal slowdown in the fourth quarter.

我相信，隨著業績持續改善，U.S. Xpress 每股盈餘預計第四季的稀釋影響將低於或約為 0.05 美元。第四季的物流量和每次裝載收入仍面臨壓力，OR 穩定在 90 左右。多式聯運營運率略有獲利，貨運量連續穩定。由於第三方保險穩定且其他業務在第四季度經歷了典型的季節性放緩，非報告營運收入將連續下降約 1000 萬至 1500 萬美元。

We expect some easing cost pressure in the fourth quarter as we realize further cost containment efforts around some of our cost initiatives. We expect gain on sale to range from $8 million to $12 million, which includes now disposal of that U.S. Xpress. And we expect a minimal increase in interest expense from Q3, assuming the rate hiking cycle is largely complete.

隨著我們圍繞一些成本計劃進一步控製成本，我們預計第四季度的成本壓力將有所緩解。我們預計出售收益將在 800 萬美元至 1200 萬美元之間，其中包括現在出售 U.S. Xpress 的收益。假設升息週期基本上完成，我們預期第三季的利息支出增幅將很小。

And our net cash CapEx is expected to be between $700 million to $750 million for the full year 2023 and that we expect our tax rate to be approximately 26% for the fourth quarter.

我們預計 2023 年全年的淨現金資本支出將在 7 億至 7.5 億美元之間，我們預計第四季的稅率約為 26%。

So that now concludes our prepared remarks. And so Judy, we will now turn it to you to open the line for questions.

我們準備好的演講到此結束。朱迪，我們現在請您撥打提問專線。

(Operator Instructions) Your first question comes from the line of Ravi Shanker from Morgan Stanley.

（操作員說明）您的第一個問題來自摩根士丹利的 Ravi Shanker。

So Dave, I think you said at the top of the call that you do expect to see some positive pricing momentum going into 2024. It seems hard to fathom with spot and contract rates where they are right now, but you also have spoken of cost inflation a fair bit. Can you unpack that a little bit more kind of what's the early signs on bid season looking like? Are we looking at a flat first half, positive second half or something even better than that?

所以戴夫，我想你在電話會議的開頭說過，你確實預計到 2024 年會看到一些積極的定價勢頭。目前的現貨價格和合約價格似乎很難理解，但你也談到了成本通貨膨脹相當大。您能否更詳細地解釋一下投標季節的早期跡像是什麼樣的？我們是否會看到上半場表現平淡，下半場表現積極，甚至比上半場更好？

Yes. I would say that, that comment is largely based on the economic position of the providers of full truckload transportation today. I think we've seen in the reports between second quarter and what we've already seen reported out for third quarter, I mean you have really record tight margins in the full truckload space, and this is all while driver wages, which are by far, our largest expense, have not increased since 2021.

是的。我想說的是，這項評論很大程度上是基於當今整車運輸提供者的經濟地位。我認為我們已經在第二季的報告中看到了第三季的報告，我的意思是，整個卡車裝載空間的利潤率確實創歷史新高，而這一切都是在司機工資的情況下進行的。到目前為止，我們最大的支出自 2021 年以來沒有增加。

And we likely will have some pent-up increase to work through as perhaps truckload is losing pace in recruiting vocational labor in the economy. And so it feels like we don't have the benefit or opportunity to be aggressive in pricing. In fact, we need a little bit of help.

我們可能需要解決一些被壓抑的成長問題，因為經濟中招募職業勞動力的速度可能正在放緩。因此，感覺我們沒有優勢或機會在定價上採取激進的態度。事實上，我們需要一點幫助。

And as we noted last quarter, this is a unique freight recession or trough of a freight cycle in that normally, when we've seen it so prolonged, so pronounced, we're in a broader economic recession. And so we naturally get cost concessions in the areas of fuel and labor and equipment. And in this case, we've seen the opposite. And now fuel has kind of turned from being more neutral into now being more of a headwind on the truckload side.

正如我們上季度所指出的，這是一次獨特的貨運衰退或貨運週期的低谷，通常情況下，當我們看到它如此持久、如此明顯時，我們正處於更廣泛的經濟衰退之中。因此，我們自然會在燃料、勞動力和設備方面獲得成本優惠。在這種情況下，我們看到了相反的情況。現在，燃料已經從更加中性變成了現在對卡車裝載量來說更加不利。

So that's how this is being set up. It feels like there are -- and what I referenced in my comment is we've seen some situations where it appears that price -- lanes and meaningful bid awards were awarded to carriers at levels that we just don't understand how that would be possible from a rate perspective.

這就是它的設定方式。感覺就像是——我在評論中提到的是，我們已經看到了一些情況，似乎價格——航線和有意義的投標獎勵被授予給運營商的水平，我們只是不明白這會是怎樣的。從費率的角度來看是可能的。

And what we have found is some of that has made its way back through, often it's done through a mini bid as we call them, where perhaps the service level wasn't where it needed to be or they just couldn't deliver on it. And so we're starting to see some of those signs. That tells us that maybe things have been pushed to the limit. And so we're here, hunkered down, just working as hard as we can, to be as efficient as we can. We have virtually no margin for error on the truckload side of the business right now. And we don't think that we're alone in that.

我們發現其中一些已經恢復過來，通常是透過我們所說的迷你投標來完成的，其中服務水平可能沒有達到需要的水平，或者他們只是無法交付。所以我們開始看到其中一些跡象。這告訴我們，也許事情已經被推到極限了。所以我們在這裡，蹲下來，盡我們所能努力工作，盡可能提高效率。目前，我們在整車業務方面幾乎沒有犯錯的餘地。我們並不認為我們是唯一這樣做的人。

Now I would guess that the -- our optimism of what could happen and what would need to happen in a bid season might not be the same as shippers might view right now. Truckload doesn't do cost-based pricing. That's more common in the LTL space as we've learned, but it isn't the case for Truckload. But that really is what's driving this. This is not elective. This is just essential.

現在我猜想，我們對投標季節可能發生的事情和需要發生的事情的樂觀態度可能與托運人現在的看法不同。 Truckload 不進行基於成本的定價。據我們所知，這種情況在零擔運輸領域更為常見，但卡車裝載的情況並非如此。但這確實是推動這一趨勢的原因。這不是選修課。這只是必要的。

And so we'll have to see how it plays out. If the bid season began right now today, we would really have a tough time seeing it be positive. But as things continue to materialize, I think that natural conditions are going to lead us in that direction.

所以我們必須看看結果如何。如果申辦季節從今天開始，我們真的很難看到它的正面結果。但隨著事情繼續實現，我認為自然條件將引導我們朝這個方向發展。

And Ravi, I'd just add to that. Again, the bid season hasn't kicked off. We've had some maybe just early discussions with some of the shippers that would have a bid coming out in the next quarter or so. The sentiment is a lot of our customers have enjoyed the low rates that they've had in the spot markets, even some of the contract rates. And I think they probably moved a disproportionate amount of their volume than they historically have to brokers, where they're able to capture some of that discount.

拉維，我想補充一下。同樣，競標季節尚未開始。我們已經與一些托運人進行了一些可能只是早期的討論，他們將在下個季度左右出價。我們的許多客戶都享受到了現貨市場的低利率，甚至是一些合約利率。我認為他們向經紀商轉移的交易量可能比歷史上不成比例，他們能夠在經紀商那裡獲得一些折扣。

And our shippers know just like carriers know that the market is not, if it will turn, it's when. And they're concerned about ensuring that they're going to have sustainable capacity. And so some of the commentary is even though the market may not bear today, they know 6 months, they could be in a tough position if they don't have capacity with asset-based carriers, especially in light of some of the failures that we've seen as of recently.

我們的托運人知道，就像承運人知道市場不會轉變，只是何時會轉變。他們擔心確保自己擁有可持續的能力。因此，一些評論是，儘管市場今天可能無法忍受，但他們知道，如果他們沒有能力與基於資產的運營商合作，6 個月後他們可能會陷入困境，特別是考慮到一些失敗我們最近已經看到了。

So we're in dialogue with our customers. We want it. We're partners with them. We know what we need for sustainable capacity, and we feel like we'll be able to work through what we believe will be fair rates moving forward.

所以我們正在與客戶對話。我們想要它。我們是他們的合作夥伴。我們知道我們需要什麼來實現永續能力，我們認為我們將能夠努力實現我們認為未來公平的費率。

Very helpful. Very quick follow-up. Kind of speaking of failures on the logistics side, we did hear headlines that a large digital player may have paused or stopped operations today. What kind of impact do you think that has in the marketplace and kind of where do you think this tells us about where we are in the cycle and kind of for the brokerage model going forward? Like is this a good thing or a bad thing? Kind of what does it mean to the industry?

很有幫助。非常快速的跟進。說到物流方面的失敗，我們確實聽到了一些頭條新聞，並表示一家大型數位企業今天可能暫停或停止營運。您認為這會對市場產生什麼樣的影響？您認為這會告訴我們我們處於週期中的哪個階段以及未來經紀模式的發展方向？這是好事還是壞事？這對產業意味著什麼？

So here's what I say, we'll answer that, Ravi, because I think everybody on the call would like to appreciate a comment, but it's one question. Because I think the last call, we had the first analyst asked two, and then everyone decided to ask two. So 1 question.

這就是我要說的，拉維，我們會回答這個問題，因為我認為參加電話會議的每個人都希望聽取評論，但這是一個問題。因為我認為在最後一次電話會議中，我們的第一個分析師問了兩個問題，然後每個人都決定問兩個人。所以 1 個問題。

Ravi, I'm still going to get to that. And if we don't jump in that queue, we'll answer that question.

拉維，我仍然會講到這一點。如果我們不插隊，我們就會回答這個問題。

And your next question comes from the line of Scott Group from Wolfe Research.

你的下一個問題來自沃爾夫研究公司的斯科特集團。

So can you just give us some color on the revenue and OR for U.S. Xpress in the quarter and where that goes from here? And how important is the market -- how important is it for the market to get better and pricing to get better to get the U.S. Xpress OR better? Or can you do it without -- like can you get to the profitability that you want without getting the pricing up for the market?

那麼，您能否向我們介紹一下 U.S. Xpress 本季的營收和 OR 以及未來的發展？市場有多重要——市場變得更好、定價變得更好、讓 U.S. Xpress 變得更好，有多重要？或者你能在不提高市場定價的情況​​下實現這一目標嗎？就像你能在不提高市場定價的情況​​下獲得你想要的盈利能力嗎？

Scott, just given where that business started once we finalized the acquisition, I mean, there's going to need to be improvement in both the cost side and the revenue side of the business. Now on the cost side, we don't really have to wait for the markets to change. We can move forward on a lot of activities there.

斯科特，考慮到我們完成收購後該業務的起點，我的意思是，業務的成本方面和收入方面都需要改進。現在在成本方面，我們實際上不必等待市場發生變化。我們可以在那裡推進很多活動。

On the procurement side, we're working on building out the terminal network that we expect will help safety, turnover, recruiting, and those all can be -- have a meaningful impact to the cost side of the business. Now we've made, probably I think we said mid-single-digit improvement in our cost per mile, which we're excited for. We know that there's more there.

在採購方面，我們正在努力建立終端網絡，我們預計這將有助於安全、營業額、招聘，而所有這些都可以對業務的成本方面產生有意義的影響。現在，我認為我們已經實現了每英里成本中個位數的改善，對此我們感到很興奮。我們知道還有更多。

On the revenue side, it's low single digits, and that's in a market where most are taking hits on the revenue per mile front, and we haven't had a bid season to be able to address where the current rates are for U.S. Xpress. To get to the long-term profitability, that dollar of accretion, we're going to need both revenue and cost to support that.

在收入方面，它的個位數較低，而且市場上大多數公司的每英里收入都受到了打擊，而且我們還沒有一個投標季節來解決 U.S. Xpress 目前的費率問題。為了實現長期盈利，即增加一美元，我們需要收入和成本來支持。

But I think that's just a matter of time before we have an opportunity to be able to do what we need to do on the revenue front to really close the gap from a rate perspective between U.S. Xpress and our other brands.

但我認為，我們有機會在收入方面做我們需要做的事情，從費率角度真正縮小 U.S. Xpress 和我們其他品牌之間的差距，這只是時間問題。

Yes. Maybe Scott, I'll just add that the Logistics business is in a good place. It's contributing earnings. The dedicated business is contributing earnings. The subsidiary total is contributing some earnings. And the wildcard is that over-the-road component, and it's made dramatic progress. And some of the things that we outlined on that slide, those are things that we have experienced and seeing driver turnover go down, we have experienced and seen revenue on a per truck basis improve, and we have experienced and seen P&L accountability on the cost side drive to lower cost to improve margin.

是的。也許史考特，我只想補充一點，物流業務處於一個很好的位置。它正在貢獻收入。專注的業務正在貢獻收益。子公司總計貢獻了一些收益。通配符是公路組件，它已經取得了巨大的進步。我們在幻燈片中概述的一些事情，這些是我們經歷過的事情，看到司機營業額下降，我們經歷過並看到每輛卡車的收入有所改善，我們經歷過並看到成本的損益責任側面驅動降低成本以提高利潤率。

And so they are not very far. As you could tell by the earnings for this quarter, they were not nearly the drag that frankly, we would have expected and this early on. And so the idea of getting to breakeven without any help from the market, that is definitely within reach. And so of course, that's not the goal. But to take them from the state, as Adam alluded to, the state they were in coming out of the second quarter and into this. This has been dramatic and faster than we would have expected.

所以他們並不是很遠。從本季的收益中可以看出，坦白說，它們並沒有像我們早期預期的那樣構成拖累。因此，在沒有市場幫助的情況下實現收支平衡的想法絕對是可以實現的。當然，這不是目標。但要讓他們擺脫亞當所提到的狀態，也就是他們從第二節進入這一節的狀態。這是戲劇性的，而且比我們預期的要快。

Your next question comes from the line of Jack Atkins from [JPK].

您的下一個問題來自 [JPK] 的 Jack Atkins。

Jack Atkins from Stephens. But I guess Dave and Adam, I'd love to maybe ask you about the LTL business for a moment. You said it exceeded your expectations in the quarter. There's been further market disruption in October. Just sort of curious how did operating ratio trend in that business relative to normal seasonality?

史蒂芬斯的傑克·阿特金斯。但我想戴夫和亞當，我想暫時向你們詢問零擔業務的情況。您說本季超出了您的預期。十月市場進一步混亂。只是有點好奇該業務的營運比率相對於正常季節性的趨勢如何？

Did you incur any additional expenses as you were trying to sort of onboard some of the market share that was probably moving around? And I guess, just would be curious the opportunity to maybe grab some of the real estate that's up for auction here with the Yellow estate over the next the next couple of weeks. I know it's a lot of questions in one, Adam. So if you could excuse just it's kind of broader topic of LTL, I would be curious if you could expand on that for a minute.

當您試圖獲得一些可能正在移動的市場份額時，您是否產生了任何額外費用？我想，我只是好奇，在接下來的幾週內，是否有機會在黃色房地產中獲得一些在這裡拍賣的房地產。我知道這是一個很多問題，亞當。因此，如果您能原諒這是一個更廣泛的 LTL 主題，我很好奇您是否可以對此進行擴展。

Yes. Adam, the enforcer might shut this down before we get started with all those questions. But it is not typical at least in experience with the 2 LTL franchises that we own to see that sequential improvement from a second into third, but we did. It was slight, but we saw a slight improvement sequentially from second to third quarter.

是的。亞當，執法者可能會在我們開始解決所有這些問題之前關閉它。但至少從我們擁有的 2 個 LTL 特許經營權的經驗來看，從第二名到第三名的連續改進並不常見，但我們做到了。雖然幅度很小，但我們看到第二季到第三季略有改善。

In terms of bearing an additional cost burden, I don't know that, that was so much the issue. I think in the LTL space, as our customers had found themselves with some immediate need, our LTL group just jumped in to get those things covered. It's more of handling those shipments and preserving the service than it is immediately talking about price.

至於承擔額外的成本負擔，我不知道，這就是問題所在。我認為在 LTL 領域，由於我們的客戶發現自己有一些迫切的需求，我們的 LTL 團隊介入來滿足這些需求。它更多的是處理這些貨物並保留服務，而不是立即談論價格。

It works a little different than the Truckload space when there's projects or things that are out of the norm. And so some of that volume that we've picked up, some of that volume that I think is in the process of being dispersed long term throughout the LTL providers, that will be addressed in these bids that have already started and that will continue to happen to make sure that we price it appropriately as you kind of know how it fits the network.

當項目或事物不符合規範時，它的工作方式與卡車裝載空間略有不同。因此，我們已經獲得的一些數量，我認為其中一些數量正在長期分散在零擔供應商中，這些數量將在已經開始的投標中得到解決，並將繼續碰巧確保我們對其定價適當，因為您知道它如何適合網路。

So I wouldn't say that there was a cost headwind there. I would say that that, that sequential improvement was a very positive sign for us of where things are.

所以我不會說那裡有成本阻力。我想說的是，連續的改進對我們來說是一個非常積極的跡象，表明事情的進展。

And the fact that we are seeing shipments turn positive on a year-over-year basis and to be able to see our revenue, excluding fuel per hundredweight up in the double digits continue. That's -- those are very positive signs for us.

事實上，我們看到出貨量同比轉正，並且能夠看到我們的收入（不包括每英擔燃料）繼續以兩位數成長。這對我們來說是非常積極的跡象。

Your next question comes from the line of Todd Wadewitz from UBS.

您的下一個問題來自瑞銀集團 (UBS) 的 Todd Wadewitz。

Dave, Adam, it's Tom Wadewitz. I wanted to ask you a little bit about kind of cycle view, Dave, you offered some thoughts of kind of constructive on bid season. Do you need to see spot rates move up first in order to really see that improvement in contract? It continues to be a widespread between contract and spot. And I think the brokers take advantage of that and compete against you guys.

戴夫、亞當，我是湯姆‧韋德維茲。我想問你一些關於週期觀點的問題，戴夫，你提供了一些關於申辦季節的建設性想法。您是否需要先看到即期匯率上漲才能真正看到合約的改善？它仍然在合約和現貨之間廣泛存在。我認為經紀人利用了這一點並與你們競爭。

So I'm just wondering, is the kind of optimism on contract rates next year really contingent on seeing some momentum in spot rates ahead of that? And I don't know if you have a thought on just capacity exiting and when you get enough of that to take place to tighten the market as well.

所以我只是想知道，明年合約利率的樂觀情緒是否真的取決於在此之前看到即期利率的一些勢頭？我不知道您是否考慮過產能退出，以及何時獲得足夠的產能來收緊市場。

Yes, I would just -- I'll jump in and then Adam can finish this off. I think that historically through these cycles, it's worked where that spot rate starts to climb. And if you were to graph out spot rates and contract rates, you find that intersection. And when they intersect, that is the telltale sign that spot rates are just getting going and that is the curve of the contractual rate is now about to bend and turn to the positive again. And so yes, we have not seen that. We've really seen spot rates just kind of move sideways as time has gone on.

是的，我會——我會介入，然後 Adam 就能完成這件事。我認為，從歷史上看，在這些週期中，當即期匯率開始攀升時，它就會發揮作用。如果您要繪製即期匯率和合約匯率的圖表，您會發現交叉點。當它們相交時，這就是即期利率剛開始上升的明顯跡象，即合約利率的曲線現在即將彎曲並再次轉向正值。是的，我們還沒有看到這一點。我們確實看到即期匯率隨著時間的推移而橫向移動。

One disadvantage we have from cycle to cycle is the data set that we look at is constantly evolving. And it seems like increasingly, the data set that we look at is a magnifying glass into just broker and the smallest of carriers. That isn't necessarily where the majority of freight moves or how it moves. But nonetheless, we've got that corner of the market with a telescope right now, it feels like.

我們在每個週期中遇到的一個缺點是我們查看的資料集不斷變化。我們看到的資料集似乎越來越像放大鏡一樣，只能觀察經紀人和最小的承運人。這不一定是大部分貨物運輸的地點或運輸方式。但儘管如此，我們現在已經在市場的角落找到瞭望遠鏡，感覺就像是這樣。

So it's hard to always compare that to previous years. It's hard to think that we wouldn't see that kind of -- generally speaking, that kind of mechanic happen again where spot rates increased to a point where they intersect contract. And then now you know you're off to a different part of the cycle.

因此很難總是將其與前幾年進行比較。很難想像我們不會看到那種——一般來說，當即期匯率上升到與合約相交的程度時，這種機制會再次發生。現在你知道你已經進入了週期的不同階段。

The piece about that, that's hard to predict is that it always -- it happens so fast, and it happens unexpectedly and there's always a catalyst or a multitude of catalysts that bring it to bear, whether it be weather, whether it be fuel prices. It feels like the extreme aggressiveness that we have seen out of non-asset-based players has reached a level to where it's not only unsustainable, but when you add how expensive financing is and what might subsidize and allow that to happen, it becomes -- it just -- it blows up. And now all of a sudden, you have a lot of small carriers who were dependent on some kind of a model like that, that now are maybe in a little bit of trouble.

關於這一點，很難預測的是，它總是——它發生得如此之快，而且它發生得出乎意料，而且總是有一個或多個催化劑讓它發揮作用，無論是天氣，無論是燃油價格。感覺就像我們看到的非資產型參與者的極端侵略性已經達到了不僅不可持續的程度，而且當你加上融資的昂貴程度以及可能補貼並允許這種情況發生時，它就變成了—— - 它只是 - 它爆炸了。現在突然之間，有許多小型業者依賴某種類似的模式，現在可能遇到了一些麻煩。

So I think we're starting to see some of this. I mean we are hearing of asset-based carriers that are closing the doors. Here just -- I mean, just this month, we continue to hear. I think there was another one, just heard about today to say nothing for a non-asset-based player that seems to be stopping operations or something. So things are breaking right now.

所以我認為我們已經開始看到其中的一些情況。我的意思是，我們聽說基於資產的運營商正在關門。我的意思是，就在這個月，我們繼續聽到。我想還有一個，今天剛聽說，對於一個非資產型玩家甚麼也沒說，似乎要停止運作什麼的。所以現在事情正在破裂。

Now I don't know if that is enough to be this catalyst where you start to see this happen. But inevitably, it is almost impossible to predict. And when it does change, it's always been many, many, many months, if not many, many quarters in the making, so it doesn't just turn around all of a sudden. And that feels like we're right, we're pushing up against that level. Adam, any thoughts?

現在我不知道這是否足以成為你開始看到這種情況發生的催化劑。但不可避免的是，這幾乎是不可能預測的。當它確實發生變化時，它總是經過許多、許多、許多個月，甚至許多季度的醞釀，所以它不會突然轉變。感覺我們是對的，我們正在朝著這個水平邁進。亞當，有什麼想法嗎？

Yes. I think as you see some of these disruptions from the operations that have ceased, I mean we see immediate reactions in our business. They may be short term, some maybe longer term, and we'll see how it plays out. But I think that tells us there's not much slack in the supply chain right now. And so any type of lift in demand or exaggerated decline in capacity, I think we'll see the market turn very quickly.

是的。我認為，當你看到一些已經停止的營運造成的干擾時，我的意思是我們看到我們的業務立即做出了反應。它們可能是短期的，有些可能是長期的，我們將看看結果如何。但我認為這告訴我們目前供應鏈並沒有太多鬆弛。因此，任何類型的需求提升或產能大幅下降，我認為我們都會看到市場迅速轉變。

And again, we're predicting that will happen in 2024. It's just a matter of when. And so as we approach bids, we're looking at rates that we believe will be sustainable as the market shifts. And those are the type of conversations we're having with our customers rather than just waiting for the spot market to turn, which would then dictate that rate -- contract rate should follow.

我們再次預測這將在 2024 年發生。這只是時間問題。因此，當我們進行投標時，我們會考慮我們認為隨著市場變化而可持續的價格。這些就是我們與客戶進行的對話類型，而不是只等待現貨市場轉向，然後現貨市場將決定利率——合約利率應該隨之而來。

Your next question comes from the line of Chris Wetherbee from Citigroup.

您的下一個問題來自花旗集團的 Chris Wetherbee。

I wanted to ask about the USX fleet and how you think about that relative to some of the cost synergies that you're realizing? So I think you said about $100 million run rate, maybe moving up to $120 million by year-end. Is there a relationship between getting that cost synergy and then ultimately, profit synergy and the size of that fleet, I guess, in other words, do you need to cull a little bit more to be able to generate profitability? What do you think kind of you'll be able to net hold on to over the course of maybe 1 year and maybe that 2026 target you have out there?

我想問 USX 機隊的情況，以及您如何看待與您正在實現的一些成本協同效應相關的問題？所以我想你說過大約 1 億美元的運行費用，到年底可能會增加到 1.2 億美元。獲得成本綜效和最終的利潤綜效與機隊規模之間是否存在關係，我想，換句話說，您是否需要剔除更多一點才能產生獲利？您認為在 1 年的時間裡或您設定的 2026 年目標中您能夠淨堅持什麼？

Yes. We don't think we have to shrink into profitability. There's -- there are a few hurdles but had already overcome that we hadn't on the Swift merger. On the Swift merger, we had post the deal, we adopted hair follicle drug testing, for example. And we also made some adjustments to the owner operator program.

是的。我們認為我們不必縮減獲利能力。有一些障礙，但我們已經克服了 Swift 合併中沒有克服的障礙。在 Swift 合併中，我們已經發布了交易，例如我們採用了毛髮藥物測試。我們也對業主運營商計劃進行了一些調整。

In this case, we didn't have either one of those and so we are really battling to hold on to that fleet and to help them be more profitable on a per truck basis. If I look at just sequentially, we've only owned them for a quarter here, but if I look at it, the fleet size has remained -- it's down just slightly, but it's almost the same. And so there's not a plan to cull the fleet.

在這種情況下，我們沒有其中任何一個，因此我們正在努力保住車隊並幫助他們在每輛卡車的基礎上獲得更多利潤。如果我按順序看，我們只擁有它們四分之一的時間，但如果我看一下，機隊規模仍然保持不變——只是略有下降，但幾乎相同。所以沒有計劃淘汰艦隊。

Your next question comes from the line of Ken Hoexter from Bank of America.

您的下一個問題來自美國銀行的 Ken Hoexter。

Thanks for that thoughts on the write up against the wall on the rates. Hopefully, I think we've all been watching that waiting for the capacity to leave to get that rate up there. So hopefully, that follows through. Maybe just, Dave, your thoughts on Intermodal. You kind of talked about it getting to profitability. What's the confidence there? Is that the same thing? Is that just about rate and getting that up there? Is it about going through bid season? What's operationally going on with Intermodal that you've been losing money that you see a flip there?

感謝您在牆上寫下的關於費率的想法。希望我們都在關注這一情況，等待產能離開以提高利率。希望這一切能夠順利進行。戴夫，也許只是您對聯運的看法。您談到了它的盈利能力。那裡有什麼信心？這是同一件事嗎？這只是關於利率和提高它嗎？是為了經歷競標季節嗎？多式聯運的營運情況如何，導致您一直在虧損，以至於出現了翻轉？

I'm going to let Adam answer that.

我會讓亞當來回答這個問題。

Yes. Yes. I think it's a combination of multiple things, just like any business that's operating at that level. It's not one thing that you have to get done. I think there's going to be some opportunity to pick up some additional volume in the bid season as we've got our rates with our rail partners adjusted based on the way our contract is structured with them. So I think that puts us in a better position to be aggressive there. I think we've got some operational efficiencies we need to work through in terms of how we manage chassis. And I think we've made some progress there.

是的。是的。我認為這是多種因素的結合，就像任何在該級別運營的企業一樣。這不是你必須完成的一件事。我認為，在投標季節，我們將有機會獲得一些額外的銷售量，因為我們已經根據與鐵路合作夥伴簽訂的合約結構方式調整了費率。所以我認為這使我們能夠更好地在那裡積極進取。我認為我們需要在管理底盤方面提高營運效率。我認為我們已經在這方面取得了一些進展。

And we started the quarter out on a rough start, but we saw that sequential progress all the way through till we got to a level of profitability just slightly in September, and we expect to continue that momentum. But it will be something that just takes time to work through. Service is improving at both the west and the east. I think customers that had moved freight off of the rail to Truckload because of the issues with service are looking at that again as an option.

本季一開始，我們的開局並不順利，但我們看到了持續的進展，直到 9 月才略微達到盈利水平，我們預計將繼續保持這種勢頭。但這只是需要時間來解決的事情。西部和東部的服務都在改善。我認為，由於服務問題而將貨物從鐵路轉移到卡車裝載的客戶正在再次考慮將其作為一種選擇。

And I think we've got some great relationships on the Truckload side that we still don't do much with on the Intermodal side that I think we'll be able to open up those doors. So it's going to be a combination of all those factors, Ken, that we think will get us to a good position where that's a business that can compete with the top providers there and generate a margin in that, hopefully, high single digit, low double digit, depending on where we're at in the cycle.

我認為我們在卡車裝載方面已經建立了一些良好的關係，但我們在多式聯運方面仍然沒有做太多事情，我認為我們將能夠打開這些大門。因此，肯，這將是所有這些因素的結合，我們認為這將使我們處於一個有利的位置，該業務可以與那裡的頂級提供者競爭，並希望產生高個位數的利潤，低的利潤。兩位數，取決於我們在周期中的位置。

But Adam, if I can just clarify. It sounds like those were working with customers, is that longer term? Or because you said you're going to get the profitability fourth quarter? Or did I miss something? Or is that bid season that already happened that's going to happen quickly?

但是亞當，如果我能澄清一下的話。聽起來那些是在與客戶合作，是長期的嗎？還是因為你說你將在第四季獲利？還是我錯過了什麼？或者已經發生的申購季節會很快發生？

I said as we got to slight profitability at the end of the third quarter, and we expect that to continue into the fourth quarter. So to be profitable there, but not where we're targeting to be. I mean that's going to take a few more quarters as we work through the operational efficiencies we need to pick up as well as work through the bid season to pick up more volume and address rates.

我說的是，我們在第三季末實現了輕微獲利，我們預計這種情況將持續到第四季。因此，我們要在那裡實現盈利，但不是我們的目標。我的意思是，這將需要幾個季度的時間，因為我們需要提高營運效率，並在投標季節提高數量和地址率。

Your next question comes from the line of Allison Poliniak from Wells Fargo.

您的下一個問題來自富國銀行的艾莉森·波利尼亞克 (Allison Poliniak)。

James on for Allison. Just I wanted to actually kind of look back to some -- the question on the Truckload rate. Like basically, as you said, they're still under pressure. You're still seeing costs elevated, but there is a sort of an amount of capacity that's still out there. Just wanted to get your thoughts on what you thought was allowing that capacity to stay in there and sort of when do you think it might exit or if there's a particular type of event that needs to happen for the exit? Just wanted to kind of get your thoughts on sort of the pace of capacity exists.

詹姆斯換下艾利森。我只是想回顧一些關於卡車裝載率的問題。基本上，正如您所說，他們仍然面臨壓力。你仍然會看到成本上升，但仍有一定的產能。只是想了解您的想法，您認為是什麼允許該能力保留在那裡，以及您認為它何時可能退出，或者是否需要發生特定類型的事件才能退出？只是想了解您對現有容量速度的看法。

Yes. Well, I appreciate the question, James. I think we're -- what we're seeing is a pretty extreme resourcefulness on the part of small carriers to survive. And it's hard to say if it's the fact that the used equipment market hasn't completely collapsed like sometimes it does at this stage of the cycle, perhaps it's kept folks on the financing side, maybe willing to make some accommodations. I don't know to what degree that is the case, but there could be that for sure.

是的。嗯，我很欣賞這個問題，詹姆斯。我認為我們所看到的是小型航空公司為了生存而表現出相當足智多謀的能力。很難說二手設備市場是否沒有像週期的這個階段有時那樣完全崩潰，也許它讓人們留在融資方面，也許願意做出一些調整。我不知道這種情況到什麼程度，但肯定有這種情況。

You have individuals who if it's a 1 or 2 truck operation that might be temporarily living out of a truck. And just to get by through to the bottom part here. We know through our exposure to small carriers that they're under extreme pressure and juggling kind of cost and low on cash flow.

如果有 1 或 2 輛卡車運營，有些人可能會暫時住在卡車外。只是為了完成這裡的底部部分。透過對小型業者的接觸，我們知道他們面臨巨大的壓力，並且要兼顧成本和現金流不足。

And in many cases, deferring maintenance, for example, just routine oil change maintenance. And so it just feels like there's a lot of folks out there that are just barely getting by with credit cards maxed out, hoping that they don't have to buy a tire over the road or have any other kind of mechanical failure. And so that's what it feels like. It's -- to be honest, we're a little puzzled as to why we haven't seen more capacity come out because if you look at spot rates on an absolute basis, these levels on an absolute basis were enough to send the market in 2017 into a strengthening position because of the atrophy of supply.

在許多情況下，推遲維護，例如，只是例行換油維護。因此，感覺就像有很多人勉強度日，他們的信用卡已經刷爆，希望他們不必在路上購買輪胎或遇到任何其他類型的機械故障。這就是感覺。說實話，我們有點困惑為什麼我們沒有看到更多的產能出現，因為如果你從絕對的角度來看即期匯率，這些絕對水平足以讓市場進入2017年因供應萎縮而進入強化狀態。

And so if you compare the cost structure and what inflation has done, it's hard to imagine that you could have the same absolute spot rate and yet have higher cost and still get by. So it feels like more survival than anything else, James. But we're watching anxiously and trying to understand that better ourselves.

因此，如果你比較成本結構和通貨膨脹造成的影響，很難想像你可以在擁有相同的絕對即期匯率的情況下，在成本更高的情況下仍然過得去。所以感覺這比什麼都重要，詹姆斯。但我們正在焦急地觀察並試著更好地理解這一點。

Got it. Actually, a small follow-up. Is there anything at the end of the year like a maintenance events, insurance renewals or anything else that might be sort of a catalyst over in the fourth quarter for exits?

知道了。實際上，是一個小後續行動。年底是否有諸如維護事件、保險續保或其他任何可能成為第四季度退出的催化劑的事情？

Yes. I don't know that there's one event. I mean those kind of renewals and registrations happen routinely. It does feel like they do get a little bit bunched up towards the end and beginning of the year, but I don't really have a place I could point to validate that. That's just kind of a feeling. But I don't think there is one event like that.

是的。我不知道有一個活動。我的意思是這種續訂和註冊經常發生。確實感覺他們在今年年底和年初確實有點擁擠，但我真的沒有一個地方可以指出來驗證這一點。這只是一種感覺。但我認為沒有這樣的事件。

Your next question comes from the line of Bruce Chan from Stifel.

您的下一個問題來自 Stifel 的 Bruce Chan。

Maybe just wanted to ask one here on core demand. I know you've got a pretty diverse base of customers, but is there anything that you've been seeing in terms of end markets that may be worth calling out, especially anything around food and bev and what at least one big shipper talked about with regard to lower spending due to [Ozempic], anything related to industrial in TL or LTL related to UAW? Anything there would just maybe be material enough to affect your outlook for the rest of the year?

也許只是想在這裡問一個關於核心需求的問題。我知道你們的客戶群相當多元化，但在終端市場方面，有什麼值得一提的，尤其是食品和飲料方面的事情，以及至少一位大型托運人談論的事情關於由於[Ozempic] 導致的支出減少，是否有任何與UAW 相關的TL 或LTL 工業相關的資訊？有什麼事情可能足以影響你今年剩餘時間的前景嗎？

Adam and I are looking at each other and are both kind of shaking our heads like, no. So I think what's been a little different this year is we have seen some -- a little more seasonality through the beverage season and a little bit of produce in the second quarter that we saw none of last year. Seen a little bit around the holidays, which is more of a food and beverage play, but haven't seen any.

亞當和我互相看著對方，都搖著頭，好像在說，不。所以我認為今年有點不同的是我們看到了一些——飲料季節的季節性增加了一點，第二季度的農產品增加了一些，這是我們去年沒有看到的。假期的時候看過一點，更多的是吃喝玩樂，不過沒看過。

Yes. I think there's maybe some specific customers who maybe have made more progress on inventory than others that might see a different demand pattern than others, but I think that's more specific to their strategy versus something that's broader to a certain sector.

是的。我認為可能有一些特定的客戶在庫存方面取得了比其他客戶更多的進展，他們可能會看到與其他客戶不同的需求模式，但我認為這對他們的策略來說更具體，而不是對某個行業更廣泛的策略。

Your next question comes from the line of Jon Chappell from Evercore ISI.

您的下一個問題來自 Evercore ISI 的 Jon Chappell。

Adam, maybe better for you. I know it's not a core business, but it does tend to move the needle pretty significantly, the insurance business. Just looking for a little bit of clarity there. I mean if we take the midpoint what you've kind of guided to for the fourth quarter. That looks like a $40 million EBIT drag. I know you're evaluating strategic alternatives. But as we think about how that plays into 2024, it seems like it's pretty cycle independent first and foremost. Is that a business that goes back to kind of breakeven in 2024? Is it a first half drag that maybe you get a bit of a second half recovery? Or is it just kind of a lesser loss line item for '24?

亞當，也許對你更好。我知道這不是核心業務，但它確實會對保險業務產生相當大的影響。只是在那裡尋找一點清晰度。我的意思是，如果我們採用您對第四季度的指導方針的中點。這看起來相當於拖累了 4000 萬美元的息稅前利潤。我知道你正在評估戰略選擇。但當我們思考這將如何影響到 2024 年時，它似乎首先與週期無關。這項業務會在 2024 年恢復到損益兩平嗎？是因為上半場的拖累，下半場你會有所恢復？還是這只是 24 年損失較小的項目？

Yes. So that's a business that obviously has been challenging over the last, I think, now 4 quarters, and we're working on what we can do to kind of mitigate those losses. And there are several things that we're working on. It's probably improving or tightening our underwriting standards in the near term. We're looking at some reinsurance opportunities that could help with just eliminating some of the volatility or the outstanding liabilities we have currently on the balance sheet. So that is underway. And really, I think everything is on the table to be able to kind of work through mitigating our losses there.

是的。因此，我認為，這是一項在過去四個季度中顯然一直面臨挑戰的業務，我們正在努力採取措施來減輕這些損失。我們正在研究幾項工作。它可能會在短期內改善或收緊我們的承保標準。我們正在尋找一些再保險機會，這些機會可以幫助消除我們目前資產負債表上的一些波動或未償負債。所以這一切正在進行中。事實上，我認為一切都已擺在桌面上，以便能夠透過減輕我們在那裡的損失來發揮作用。

And hey, do we expect to see a lesser loss into the 2024? Certainly from where we are. And I think there's measures we've taken to do that, but we needed to move a bit quicker than it currently is. And in a difficult cycle, and this is the last thing that we need is a business that has been a bit challenging for us. And we've got a lot of people working towards that and looking at every different alternative to approach it. And we think we'll see some progress here both in the fourth quarter and as we get into 2024. And, if we find some of these strategies that help us eliminate that liability sooner rather than later with the reinsurance option, we'll move quickly on that if we find it to be appealing.

嘿，我們預計 2024 年損失會減少嗎？當然是從我們所在的地方。我認為我們已經採取了一些措施來做到這一點，但我們需要比目前更快採取行動。在一個困難的周期中，我們最不需要的就是一家對我們來說有點挑戰的業務。我們有很多人正在為此努力，並尋找各種不同的替代方案來實現這一目標。我們認為，在第四季度和進入 2024 年時，我們都會看到一些進展。而且，如果我們發現其中一些策略可以幫助我們通過再保險選項盡快消除這種責任，我們將採取行動如果我們發現它有吸引力，請盡快進行。

Your next question comes from the line of Amit Mehrotra from Deutsche Bank.

您的下一個問題來自德意志銀行的 Amit Mehrotra。

I guess there's an expectation that earnings can be up meaningfully next year. And I know you guys do an exceptional job kind of pivoting to where maybe the opportunities present themselves. So there's obviously that opportunity or potential next year. But I guess the question, Dave, I want to understand how you're thinking about how expectations are calibrated for next year? How you think the slope of the recovery from here? Can it be more muted? Is there an opportunity to see gaps higher if you think those opportunities are likely to show up?

我想人們預計明年的收入將會大幅成長。我知道你們在轉向可能出現機會的地方方面做得非常出色。所以明年顯然有這樣的機會或潛力。但我想問題是，戴夫，我想了解您如何考慮如何校準明年的期望？您認為此後復甦的斜率為何？能不能低調一點？如果您認為這些機會可能會出現，是否有機會看到更高的差距？

We're just kind of late in this year now and demand doesn't seem to be there. And I'm just trying to understand kind of get in your head a little bit and how you're thinking about the recovery path from where we are today.

今年我們來得太晚了，需求似乎不存在。我只是想了解您的想法，以及您如何考慮我們今天所處的復甦路徑。

Yes, Amit. As you know, and I think we've referenced in previous calls that these kind of recoveries on the Truckload side start with some volume increases and then volume begets a little bit of rate improvement and then volume and rate improvement beget earnings. And so this will be a gradual process. Our comparisons to start the year are not going to be as easy, but they -- they'll get a little bit easier as we go into -- we hope, into next year on the Truckload side.

是的，阿米特。如您所知，我認為我們在之前的電話會議中提到過，卡車裝載量的複蘇首先是銷量的一些增加，然後銷量帶來一點點費率的改善，然後銷量和費率的改善帶來收益。所以這將會是一個漸進的過程。我們今年開始的比較不會那麼容易，但是當我們進入我們希望明年的卡車裝載量時，它們會變得容易一些。

Now if you look at our business, so we've got this LTL business that's going to continue to chug away. We expect that to be very predictable. We expect that to be very positive. And then we've got this maybe large call option, if you will, on the truckload space with U.S. Xpress, a business that's very close to breakeven. And that as there's some -- as we have another bid season to work with, to work on the network and a little bit of strength, all of a sudden, that does give us quite a significant sale, if you will, if the wind decides to blow that we have not had in the past.

現在，如果你看看我們的業務，我們的零擔業務將繼續蓬勃發展。我們預計這是非常可預測的。我們預計這將是非常積極的。然後，如果你願意的話，我們可以在 U.S. Xpress 的卡車裝載空間上獲得這個可能很大的看漲期權，這是一家非常接近盈虧平衡的業務。因為有一些——因為我們還有另一個投標季節可以合作，可以在網絡上工作，並且有一點力量，突然之間，這確實給我們帶來了相當大的銷售，如果你願意的話，如果風決定吹我們過去沒有吹過的風。

And so I think as we mentioned a couple of quarters ago, this is somewhat of a try and make sure that our -- we're trying to make sure that our cycles -- that our peaks in the cycle in terms of earnings performance outperform the previous cycle. And so as far as the timing to predict that, that's a little bit beyond our control and very difficult to do so in the truckload space. But for us, we're just heads down preparing ourselves to be ready for that. To be ready in terms of how our business is committed, the kind of relationships we have on the truckload side, and just kind of where the operation is.

因此，我認為正如我們在幾個季度前提到的那樣，這在某種程度上是一種嘗試，以確保我們的——我們正在努力確保我們的周期——我們在周期中的盈利表現峰值表現優於大盤上一個週期。就預測的時間而言，這有點超出我們的控制範圍，而且在卡車裝載空間中很難做到這一點。但對我們來說，我們只是埋頭做準備，為此做好準備。就我們的業務承諾、我們在卡車裝載方面的關係類型以及營運地點做好準備。

So we're -- this next quarter, we'll put out our guidance for 2024. And I'm grateful that we can do that in 3 months, and I don't have to do it today because a lot could change, frankly, in the next 3 months. Now our posture in terms of running the business is hey, we're heads down working hard as if nothing is going to change and nothing is going to be given to us, and we're not going to have any wind at our back. We're just not going to wait for that to happen to try and control what we can control. But we will be prepared and to move when the market -- when the wind blows, we'll be prepared. So it's the best I could answer that right now for you, Amit.

所以我們——下個季度，我們將發布 2024 年的指導。我很高興我們可以在 3 個月內做到這一點，而且我今天不必這樣做，因為很多事情都可能發生變化，坦白說，在接下來的3個月內。現在我們在經營業務方面的態度是，嘿，我們埋頭努力工作，好像什麼都不會改變，什麼也不會給我們，我們不會有任何風在我們後面。我們不會等到這種情況發生才嘗試控制我們能控制的事情。但我們會做好準備，並在市場出現時採取行動——當風起時，我們會做好準備。所以這是我現在能為你回答的最好答案，阿米特。

Your next question comes from the line of Bascome Majors from Susquehanna.

你的下一個問題來自薩斯奎哈納的巴斯科姆梅傑斯隊。

Yes, going back to the insurance business and the boom bust cycle, you've managed through there. What have you learned from that, both about how you would incubate a future business at Knight and grow it internally? And also just dealing with some of your small trucking competitors as customers there. What have you learned about the market that will help you manage cyclically going forward?

是的，回到保險業和繁榮蕭條週期，你已經度過了難關。您從中學到了什麼，包括如何在 Knight 孵化未來的業務並在內部發展它？而且還只是與一些小型貨運競爭對手作為那裡的客戶打交道。您從市場中學到了什麼可以幫助您管理未來的周期性？

Well, Bascome a few things. For one, it is difficult to find small carriers who care about safety the way that we do and are willing to do things, to change behavior, such as hair follicle drug testing, to have cameras in the vehicles that track your scoring, that then indicate whether you're a safe driver or not, it's difficult to find a carrier who's willing to do that at a consistent level. That's part of the underwriting process. And I think what we found is we had to be a bit more disciplined on the compliance around some of those factors.

嗯，巴斯科姆有幾件事。其一，很難找到像我們一樣關心安全並願意做事、改變行為（例如毛髮藥物測試）、在車輛中安裝攝影機來追蹤您的評分的小型承運商，然後表明您是否是安全駕駛員，很難找到願意始終如一地做到這一點的承運人。這是承保流程的一部分。我認為我們發現我們必須在其中一些因素的合規性方面更加自律。

I think we also found that this is a difficult environment. And so one of the first bills that may not get paid, maybe the monthly insurance bill. And so we have to do a better job getting probably a couple of months or some larger deposit on the front end to protect ourselves from any bad debt that we may incur should you have a carrier that doesn't make a payment appropriately.

我想我們也發現這是一個困難的環境。因此，最先可能無法支付的帳單之一可能是每月的保險帳單。因此，我們必須做得更好，在前端獲得可能幾個月或更大的存款，以保護我們自己免受任何壞帳的影響，如果您的承運人不適當付款，我們可能會產生壞帳。

And I think we learned quite a bit of just how we manage claims, what the development looks like. And when you know that and understand it and understand how different it is than company drivers or owner operators that operate for us, we can be more effective at how we price that business.

我認為我們對如何管理索賠以及開發情況了解了很多。當您知道這一點並理解它並了解它與為我們經營的公司司機或業主經營者有何不同時，我們可以更有效地對該業務進行定價。

So I think we made some, I think, some missteps in terms of assuming that claims would develop the same way they do with our own business. And maybe didn't price the business as effectively as we should. So we're in the process of moving pricing up as quickly as we can, and that affects any renewals. We're not writing any new business now until we can really understand what the right mix of carrier is and what the underwriting qualification should be. And we'll determine through that process, whether we think it's a business that we can grow and develop profitably.

因此，我認為我們在假設索賠的發展方式與我們自己的業務相同方面犯了一些錯誤。也許沒有像我們應該的那樣有效地為業務定價。因此，我們正在盡快提高價格，這會影響任何續約。在我們真正了解什麼是正確的承運人組合以及承保資格應該是什麼之前，我們現在不會承保任何新業務。我們將透過這個過程來確定我們是否認為這是一項可以獲利成長和發展的業務。

So there's still more that we're working through in this process. It's relatively new to us. And hey, we're again open to a lot of different approaches to make this business work if we can.

因此，在過程中我們還有更多工作要做。這對我們來說相對較新。嘿，如果可以的話，我們再次對許多不同的方法持開放態度，以使這項業務發揮作用。

And this ends our Q&A session. I would like to turn it back to our speakers for closing remarks.

我們的問答環節到此結束。我想請我們的發言人發表閉幕詞。

Okay. Well, thank you, Judy. We are grateful for your interest today. I think we had a record number of questions today. So if we did not get to your question, please feel free to call us at (602) 606-6349. Thanks for joining the call today. Take care.

好的。嗯，謝謝你，朱迪。我們感謝您今天的關注。我想我們今天的問題數量創下了紀錄。因此，如果我們未能解答您的問題，請隨時致電 (602) 606-6349 與我們聯絡。感謝您今天加入通話。小心。

And ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。