Werner Enterprises Inc (WERN) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to the Werner Enterprises Fourth Quarter and Full Year 2023 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

下午好，歡迎參加 Werner Enterprises 2023 年第四季和全年財報電話會議。 （操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Chris Neil, SVP of Pricing and Strategic Planning. Please go ahead.

我現在想將會議交給定價和策略規劃高級副總裁克里斯·尼爾 (Chris Neil)。請繼續。

Good afternoon, everyone. Earlier today, we issued our earnings release with our fourth quarter and full year 2023 results. Release and a supplemental presentation are available in the Investors section of our website at werner.com. Today's webcast is being recorded and will be available for replay later today. Please see the disclosure statement on Slide 2 of the presentation as well as the disclaimers in our earnings release related to forward-looking statements.

大家下午好。今天早些時候，我們發布了收益報告，其中包括 2023 年第四季和全年業績。新聞稿和補充簡報可在我們網站 werner.com 的投資者部分取得。今天的網路廣播正在錄製中，並將在今天晚些時候重播。請參閱簡報投影片 2 上的揭露聲明以及我們的收益發布中與前瞻性聲明相關的免責聲明。

Today's remarks contain forward-looking statements that may involve risks, uncertainties and other factors that could cause actual results to differ materially. The company reports results using non-GAAP measures, which we believe provide additional information for investors to help facilitate the comparison of past and present performance. A reconciliation to the most directly comparable GAAP measures is included in the tables attached to the earnings release and in the appendix of the slide presentation.

今天的言論包含前瞻性陳述，可能涉及風險、不確定性和其他可能導致實際結果有重大差異的因素。該公司使用非公認會計準則來衡量標準報告業績，我們認為這為投資者提供了更多信息，有助於比較過去和現在的業績。與最直接可比較的公認會計準則衡量標準的調節包含在收益發布所附的表格和投影片簡報的附錄中。

On today's call with me are Derek Leathers, Chairman and CEO and Chris Wikoff, Executive Vice President, Treasurer and CFO. Derek will provide an update on our 2023 accomplishments relative to our Drive strategy, highlights of our fourth quarter results and the market outlook. Chris will cover our financial results in more detail, including the 2023 achievement of our cost savings program, and provide 2024 guidance for key financial and operating metrics.

與我一起參加今天電話會議的有董事長兼首席執行官德里克·萊瑟斯 (Derek Leathers) 和執行副總裁、財務主管兼首席財務官克里斯·威科夫 (Chris Wikoff)。德里克 (Derek) 將提供有關我們的 Drive 策略的 2023 年成就的最新資訊、我們第四季業績的亮點和市場前景。 Chris 將更詳細地介紹我們的財務業績，包括 2023 年成本節約計畫的成就，並提供 2024 年關鍵財務和營運指標的指導。

I'll now turn the call over to Derek.

我現在將電話轉給德里克。

Thank you, Chris, and good afternoon, everyone. We appreciate all of you joining the call today. Clearly, 2023 was a prolonged and challenging operating environment. Our earnings were down and did not meet our expectations. However, we made structural improvements that will set us up for future success as normalization returns. Our Dedicated business proved to be durable and resilient. Our One-Way trucking business rate per mile decline was more favorable than industry benchmarks, and our Logistics business generated full year volume and revenue growth.

謝謝克里斯，大家下午好。我們感謝大家今天加入電話會議。顯然，2023 年是一個長期且充滿挑戰的營運環境。我們的收入下降了，沒有達到我們的預期。然而，我們進行了結構性改進，這將為我們在正常化回歸後取得未來的成功奠定基礎。事實證明，我們的專用業務是持久且有彈性的。我們的單程貨運業務每英里下降率比行業基準更有利，我們的物流業務實現了全年銷售和收入的成長。

Despite the backdrop, our leadership team and nearly 14,000 talented Werner team members stayed the course, executing on our strategy, upholding the Werner brand and reputation making safety our top priority and provided superior service to our highly valued customers.

儘管存在這種背景，我們的領導團隊和近14,000 名才華橫溢的Werner 團隊成員仍堅持到底，執行我們的策略，維護Werner 品牌和聲譽，將安全作為我們的首要任務，並為我們高度評價的客戶提供優質的服務。

Let's turn to Slide 5 to highlight some of our accomplishments in 2023 that created optimism for 2024 and beyond. Our Drive strategy continues to help inform our decisions and lead to acceleration across our core businesses. In 2023, our Dedicated business performed as expected, showing durability and resiliency in one of the most challenging operating environments that I've witnessed in my 30-plus years in the industry. We grew Dedicated revenue per truck for the ninth year out of the last decade. And despite the market backdrop, Dedicated performed within our TTS operating margin target for the year, and we expect to see margin expansion when normalization returns.

讓我們轉向投影片 5，重點介紹我們在 2023 年取得的一些成就，這些成就為 2024 年及以後帶來了樂觀情緒。我們的驅動策略持續幫助我們做出決策並加速我們的核心業務。 2023 年，我們的專用業務表現符合預期，在我從事該行業 30 多年所目睹的最具挑戰性的營運環境之一中表現出了耐用性和彈性。在過去十年中，我們每輛卡車的專用收入連續第九年成長。儘管市場背景如此，Dedicated 的表現仍符合我們今年的 TTS 營業利潤率目標，我們預計當正常化回歸時，利潤率將會擴大。

On our results, in addition to logistics growth and operational excellence within One-Way to mitigate rate per mile decline, we executed on structural cost changes, realizing $43 million of savings. We also leaned into greater network optimization, engineering and improved productivity, which helped to offset rate pressure, cost inflation and declining resale values of equipment.

根據我們的結果，除了 One-Way 內的物流成長和卓越營運來緩解每英里費率下降之外，我們還執行了結構性成本變更，實現了 4,300 萬美元的節省。我們也致力於加強網路優化、工程設計和提高生產力，這有助於抵消利率壓力、成本通膨和設備轉售價值下降。

Separately, operating cash flow margin remained solid and supported reinvestment in the business. We lowered the average age of our fleet, reduced debt and returned capital to our shareholders through an 8% dividend increase in 2023.

另外，經營現金流量利潤率保持穩健，支持了該業務的再投資。我們降低了機隊的平均機齡，減少了債務，並透過 2023 年股息增加 8% 向股東返還資本。

We made disciplined investments towards our continued pursuit and industry leadership of innovation. Our fleet remains modern, safe, reliable and fuel efficient. We also made significant advancements in our technology stack by transitioning truckload brokerage, including Reed, and intermodal business to our new cloud-based EDGE TMS solution.

我們進行了嚴格的投資，以實現對創新的持續追求和行業領先地位。我們的機隊仍然現代化、安全、可靠且省油。我們還透過將包括 Reed 在內的整車經紀業務和多式聯運業務過渡到我們新的基於雲端的 EDGE TMS 解決方案，在技術堆疊方面取得了重大進步。

In 2024, we are transitioning our One-Way business to the Werner Edge platform. This continues to be a journey, but we remain excited about the long-term value. By channeling all freight to Werner EDGE, we are committed to a better customer experience and lower cost of execution through improved visibility and optimization across all of Werner. Our core values guide our decisions and behavior every day as we keep America moving. With integrity as our foundation, safety and service is ultimately what Werner stands for, built on the pillars of inclusion, community, innovation and leadership.

2024 年，我們將把單向業務轉換到 Werner Edge 平台。這仍然是一個旅程，但我們仍然對其長期價值感到興奮。透過將所有貨物運送到 Werner EDGE，我們致力於透過提高整個 Werner 的可見度和最佳化來提供更好的客戶體驗並降低執行成本。我們的核心價值指導著我們每天的決策和行為，讓美國不斷前進。以誠信為基礎，安全和服務最終是沃納所代表的，建立在包容、社區、創新和領導的支柱上。

We were proud to be recognized in 2023 as one of America's greatest workplaces for diversity, parents and families. We realized a 19-year low in our preventable accident rate due to the hard work of our drivers, mechanics and safety associates working together. As always, safety remains our top priority and is demonstrated by our team members every day one mile at a time.

我們很自豪能夠在 2023 年被評為美國最適合多元化、父母和家庭的工作場所之一。由於我們的司機、機械師和安全人員的共同努力，我們的可預防事故率降至 19 年來的最低水準。像往常一樣，安全仍然是我們的首要任務，我們的團隊成員每天一次一英里地證明了這一點。

Relative to ESG, notable milestones include naming a lead Independent Director for our Board of Directors, increasing our blue brigade volunteer hours to over 3,300 hours and doubling driver training hours to bring awareness to human trafficking. These and other accomplishments are described in more detail in our third corporate social responsibility report released in November.

相對於ESG，值得注意的里程碑包括為我們的董事會任命一位首席獨立董事、將我們的藍色旅志工工作時間增加到3,300 小時以上，以及將駕駛員培訓時間增加一倍，以提高人們對人口販運的認識。我們在 11 月發布的第三份企業社會責任報告中更詳細地描述了這些成就和其他成就。

Before we move on, I want to acknowledge the appointment of Nathan Meiser as the next President of Werner Enterprises. On January 5, the Board unanimously approved at my recommendation, the promotion of Nathan. I could not be more excited about this progression in our company's history.

在我們繼續之前，我想感謝 Nathan Meiser 被任命為 Werner Enterprises 的下一任總裁。 1 月 5 日，董事會根據我的建議一致批准了內森的晉升。我對我們公司歷史上的這項進步感到非常興奮。

Nathan has been our Chief Legal Officer, and a transformative executive leader for nearly 2 decades at Werner. While his background is impressive, including being a Harvard Law School graduate, what stands out to me the most is Nathan's integrity, servant leadership, vision and embodiment of the Werner culture. And to be clear, I'm not going anywhere. I'm excited about our future and partnering more with Nathan going forward.

Nathan 近 20 年來一直擔任 Werner 的首席法務官和變革性的執行領導者。雖然他的背景令人印象深刻，包括作為哈佛法學院的畢業生，但對我來說最引人注目的是內森的正直、僕人式領導、遠見和維爾納文化的體現。需要明確的是，我不會去任何地方。我對我們的未來感到興奮，也對未來與內森的更多合作感到興奮。

Let's move on to Slide 6 and highlight our fourth quarter results. During the quarter, revenues net of fuel surcharges decreased nearly 2% versus the prior year. Adjusted EPS was $0.39. Adjusted operating margin was 4.8%. Adjusted TTS operating margin was 7.5% net of fuel surcharges.

讓我們繼續看投影片 6，重點介紹我們第四季的業績。本季度，扣除燃油附加費後的收入較前一年下降近 2%。調整後每股收益為 0.39 美元。調整後營業利益率為 4.8%。調整後的 TTS 營業利益率為 7.5%（扣除燃油附加費）。

Dedicated remains solid and resilient, delivering another quarter of strong customer retention and revenue per truck growth, a stable fleet in the second half of the year and double-digit adjusted operating margins for all of 2023.

Dedicated 仍保持穩健和彈性，客戶保留率和每輛卡車收入又增長了一個季度，下半年車隊穩定，2023 年全年調整後營業利潤率達到兩位數。

As we anticipated heading into the quarter, One-Way Truckload remained challenged by ongoing pricing pressure. We remain focused on long-term pricing discipline and continued our positive utilization trend. Miles per truck increased by nearly 9% in the quarter, the third consecutive quarter of improvement as we further engineered the fleet.

正如我們預期的那樣，進入本季度，單向卡車裝載仍面臨持續定價壓力的挑戰。我們仍然專注於長期定價紀律，並繼續保持積極的利用趨勢。本季每輛卡車的行駛里程增加了近 9%，這是我們進一步設計車隊後連續第三個季度的進步。

Within logistics, fourth quarter volume was strong and revenue grew over 6% year-over-year, extending the 13 straight quarters of year-over-year growth. In short, freight conditions remained challenging in the fourth quarter with lower rates despite stable customer demand and slightly better-than-expected peak volume. In spite of this, our results continue to reflect a business model that is durable, diversified and resilient.

在物流領域，第四季銷售強勁，營收年增超過 6%，延續了連續 13 個季度的年增長。簡而言之，儘管客戶需求穩定且高峰貨運量略好於預期，但第四季度貨運狀況仍充滿挑戰，運價較低。儘管如此，我們的業績仍繼續反映出持久、多元化和有彈性的商業模式。

Moving to Slide 7 to highlight our current view of the market. We expect a challenging freight market to continue through the first half of 2024. While data points suggest capacity should exit at an accelerated pace, the reality is that it continues to be modest, leaving excess supply. Inventory levels have normalized and destocking appears largely complete, although we are not seeing broad restocking. The go-forward trend in consumer demand will be the focal point to normal replenishment. And while consumer sentiment has improved, mixed data points and themes impacting near-term spending leave us remaining cautious.

轉到投影片 7 來強調我們目前對市場的看法。我們預計充滿挑戰的貨運市場將持續到 2024 年上半年。雖然數據顯示運能應該會加速退出，但現實情況是運能仍溫和，導致供應過剩。庫存水準已經正常化，去庫存似乎已基本完成，儘管我們沒有看到廣泛的補貨。消費需求的未來走勢將是正常補貨的重點。儘管消費者信心有所改善，但影響近期支出的混合數據點和主題讓我們保持謹慎。

Spot freight rates remain low and are not expected to improve until the second quarter. A more balanced supply and demand environment in the second half will benefit us as we lock in more contractual freight at improving rates. The Dedicated environment is steady, and we performed well in the space, but it is increasingly more competitive. Normal customer turnover exists, but pipeline opportunities remain healthy, and we continue to achieve over 93% client retention rate.

現貨運費仍然很低，預計要到第二季才會改善。下半年更加平衡的供需環境將使我們受益，因為我們以不斷提高的費率鎖定了更多的合約運費。專用環境穩定，我們在該領域表現良好，但競爭越來越激烈。客戶流失率正常，但管道機會依然健康，我們持續實現超過 93% 的客戶保留率。

The One-Way operating environment continues to be challenging with low rates and some customers seeking cost improvement while they can. We expect ongoing pricing pressure during the early part of the 2024 bid season, although moderating later in the year.

單向營運環境持續面臨低費率的挑戰，一些客戶在力所能及的情況下尋求成本改善。我們預計 2024 年投標季初期價格壓力將持續存在，但在今年稍後將有所緩解。

Within Logistics, the marketplace remains competitive and margins will continue to be pressured, although we are proud of the growth in logistics, our portfolio of customers and our deep network of qualified carriers.

在物流領域，儘管我們對物流、客戶組合和合格承運商的深厚網路的成長感到自豪，但市場仍然具有競爭力，利潤將繼續受到壓力。

With that, let me turn it over to Chris to go through our fourth quarter results in more detail.

接下來，讓我把它交給克里斯，讓他更詳細地了解我們第四季的表現。

Thank you, Derek. Let's continue on Slide 9.

謝謝你，德里克。讓我們繼續看投影片 9。

Fourth quarter total revenue was $822 million, down 5% versus prior year. Net of fuel surcharges, total revenue was down by 2%. Adjusted operating income was $39.2 million and adjusted operating margin was 4.8%, a decrease of 56% and 560 basis points versus prior year. Adjusted EPS of $0.39 was down $0.60 year-over-year, with over 90% of the variance driven by lower equipment gains in the macro freight environment, weighing down rate per mile in One-Way and margin pressure in logistics.

第四季總營收為 8.22 億美元，比去年同期下降 5%。扣除燃油附加費後，總收入下降了 2%。調整後營業收入為 3,920 萬美元，調整後營業利益率為 4.8%，較上年下降 56% 和 560 個基點。調整後每股收益為 0.39 美元，年減 0.60 美元，其中超過 90% 的差異是由於宏觀貨運環境中設備收益下降造成的，從而拖累了單程的每英里費率和物流的利潤率壓力。

Turning to Slide 10. Truckload Transportation Services total revenue for the fourth quarter was $580 million, down 9%. Revenues net of fuel surcharges fell 6% to $495 million. TTS adjusted operating income was $37.2 million and adjusted operating margin was 7.5%, a year-over-year decrease of 55% or 830 basis points, driven by compressed pricing in One-Way and lower equipment gains. During the quarter, consolidated gains on sale of equipment totaled $3.1 million, a decline of $22.8 million or 88% versus prior year.

轉向幻燈片 10。卡車運輸服務第四季總收入為 5.8 億美元，下降 9%。扣除燃油附加費後的收入下降 6%，至 4.95 億美元。 TTS 調整後營業收入為 3,720 萬美元，調整後營業利潤率為 7.5%，年減 55%，即 830 個基點，這是受到 One-Way 定價壓縮和設備收益下降的推動。本季度，設備銷售綜合收益總計 310 萬美元，比去年同期減少 2,280 萬美元，即 88%。

While we sold 11% fewer tractors and over 60% more trailers compared to prior year period, average pricing gains were significantly lower. Net of fuel surcharges and equipment gains, TTS adjusted operating expenses declined modestly but were more than offset by TTS trucking revenue rate per mile decline during the quarter of 5% and the smaller fleet size.

雖然與去年同期相比，我們的牽引車銷量減少了 11%，拖車銷量增加了 60% 以上，但平均定價漲幅卻顯著降低。扣除燃油附加費和設備收益後，TTS 調整後的營運費用略有下降，但被本季每英里 TTS 卡車運輸收入下降 5% 和車隊規模較小所抵消。

One-Way rate per total mile during the quarter decreased 8.6% year-over-year, combined with a smaller fleet, but benefiting from nearly 9% improvement in miles per truck. This marks the third consecutive quarter of production improvement. One-Way rate per total mile was flat from Q3 to Q4. We saw improvements in the quarter in various TTS expense categories offset with year-over-year inflation in other categories. For example, insurance and claims were down 24% versus the prior year and full year was down 7%.

本季每總英里的單向費率年減 8.6%，加上車隊規模較小，但每輛卡車的里程數提高了近 9%。這標誌著產量連續第三個季度改善。從第三季到第四季度，每總英哩的單程率持平。我們看到本季各種 TTS 費用類別的改善抵消了其他類別的年比通膨。例如，保險和理賠業務較前一年下降 24%，全年下降 7%。

Operating supplies and maintenance expense continued a favorable trend and was down versus prior year. Driver pay continues to moderate and was down slightly year-over-year, with now 2 consecutive quarters of a year-over-year decrease, excluding fringe benefits. Benefit expense in the quarter was up over $9 million versus prior year, driven from favorable workers' comp reserve adjustments in the fourth quarter of 2022.

營運用品和維護費用繼續保持良好的趨勢，並且比去年有所下降。司機薪資持續放緩，年比略有下降，目前已連續兩季年減（不含附加福利）。由於 2022 年第四季有利的工人補償準備金調整，本季的福利支出比前一年增加了 900 萬美元以上。

In summary, given the unique and challenging operating environment, TTS operating margin for the year was below our long-range target of 12% to 17%, largely driven by One-Way. Dedicated remains steady and durable, generating double-digit operating margins. We are encouraged to see sequential improvement in core Dedicated operating income, excluding fuel and equipment gains for each of the last 3 quarters in 2023. We remain confident in returning to our target TTS operating margin towards the end of the year.

總而言之，鑑於獨特且充滿挑戰的營運環境，TTS 今年的營運利潤率低於我們 12% 至 17% 的長期目標，這主要是由 One-Way 推動的。 Dedicated 保持穩定且持久，產生兩位數的營業利潤。我們很高興看到核心專用營運收入（不包括 2023 年最後三個季度的燃料和設備收益）的連續改善。我們仍然有信心在年底前恢復到我們的目標 TTS 營運利潤率。

Now turning to Slide 11 to review our fleet metrics. TTS average truck count was 8,168 during the quarter, were down just over 6% versus prior year. We ended the quarter with the TTS fleet down 1% sequentially and down 7% year-over-year. Our TTS segment revenue per truck per week, net of fuel grew during the quarter by 0.2% and has grown year-over-year 19 of the last 24 quarters. These results further emphasize the resiliency of this business and our position in the marketplace.

現在轉向投影片 11 來回顧我們的車隊指標。本季 TTS 平均卡車數量為 8,168 輛，與去年同期相比下降了 6% 以上。本季結束時，TTS 機隊季減 1%，年減 7%。我們的 TTS 部門每週每輛卡車的收入（扣除燃油）在本季度增長了 0.2%，並且在過去 24 個季度中有 19 個季度同比增長。這些結果進一步強調了該業務的彈性以及我們在市場中的地位。

Within TTS for the fourth quarter, Dedicated revenue was $309 million, down 2%. Dedicated represented 64% of segment revenue net of fuel compared to 62% at the end of 2022. Dedicated average truck count decreased 3% to 5,239 trucks. At quarter end, Dedicated represented 66% of the TTS fleet.

第四季 TTS 專用營收為 3.09 億美元，下降 2%。專用卡車佔扣除燃油後的部門收入的 64%，而 2022 年底這一比例為 62%。專用卡車的平均數量減少了 3%，至 5,239 輛。截至季末，Dedicated 佔 TTS 機隊的 66%。

Dedicated revenue per truck per week increased 0.9% year-over-year during the quarter and 1.5% for the year, achieving growth for 7 straight years and 9 out of the last 10 years, growing steady across all economic conditions.

每輛卡車每週的專用收入本季同比增長 0.9%，全年增長 1.5%，連續 7 年實現增長，過去 10 年中有 9 年實現增長，在所有經濟條件下都保持穩定增長。

In our One-Way business for the fourth quarter, trucking revenue was $178 million, a decrease of 12% versus prior year. Average truck count was down 11% to 2,929 trucks. Revenue per truck per week was down less than 1% year-over-year.

第四季單程業務的貨運收入為 1.78 億美元，比去年同期下降 12%。平均卡車數量下降 11% 至 2,929 輛。每輛卡車每週的收入年減不到 1%。

Turning now to our Logistics segment on Slide 12. In the fourth quarter, Logistics segment revenue was up more than $13 million or 6%, representing 28% of total fourth quarter Werner revenues. Truckload Logistics continued to lead with double-digit year-over-year revenue and volume growth in the quarter. Shipments declined sequentially as we work to improve revenue quality.

現在轉向幻燈片 12 上的物流部門。第四季度，物流部門收入成長超過 1,300 萬美元，即 6%，佔沃納第四季總營收的 28%。卡車物流持續保持領先地位，本季營收和銷售年增兩位數。隨著我們努力提高收入質量，出貨量連續下降。

Our power-only solution represented a growing portion of the Truckload Logistics volume during the quarter. Intermodal revenues, which make up approximately 12% of segment revenue declined year-over-year due to a decrease in both shipments and revenue per shipment. Intermodal volumes have been up sequentially for 3 consecutive quarters. Final Mile continued to show strong growth, reporting a 6% year-over-year revenue increase during the quarter despite a softer market for discretionary spending on big and bulky products.

我們的純電源解決方案在本季卡車物流量中所佔的比例不斷增長。多式聯運收入約佔該部門收入的 12%，由於貨運量和每票收入的下降，較去年同期下降。多式聯運量已連續三個季度較上季成長。儘管大型產品的可自由支配支出市場疲軟，但 Final Mile 繼續表現出強勁成長，本季營收年增 6%。

Fourth quarter Logistics adjusted operating income was $3 million, and adjusted operating margin was 1.3%, down 250 basis points year-over-year and down 10 basis points sequentially driven by rate and gross margin compression. We remain encouraged about the mid- and long-term benefits of our Logistics business given a strong customer portfolio and growing contract business, particularly in food and beverage, our growing Power Only solution, progress towards advancing our technology strategy and long-term opportunity for growing Final Mile and Intermodal. We expect brokerage margins will remain challenged in the near term while expanding operating margin later in the year from cost savings and integration.

第四季物流調整後營業收入為 300 萬美元，調整後營業利潤率為 1.3%，年減 250 個基點，由於費率和毛利率壓縮，季減 10 個基點。鑑於強大的客戶組合和不斷增長的合約業務（特別是在食品和飲料領域）、我們不斷增長的純電力解決方案、推進我們的技術策略的進展以及長期機會，我們對物流業務的中長期效益仍然感到鼓舞。不斷發展“最後一英里”和“多式聯運”。我們預計經紀利潤率在短期內仍將面臨挑戰，而今年稍後將透過成本節約和整合擴大營業利潤率。

On Slide 13, we provide an update on our cost savings program. In 2023, we achieved $43 million of in-year savings as an offset to rate and inflationary pressures and low equipment gains. Majority of the 2023 savings were structural and sustainable.

在投影片 13 上，我們提供了成本節約計畫的最新資訊。 2023 年，我們實現了 4,300 萬美元的年內節省，抵消了利率和通膨壓力以及較低的設備收益。 2023 年的大部分節約都是結構性和可持續的。

Cost savings will be key to expanding margin and earnings in 2024, given the freight market that will continue to be challenging in the near term, combined with further year-over-year decline in equipment gains. We are laser-focused on the 2024 program totaling over $40 million in incremental in-year savings. Less than 15% of the 24 program is carryover from 2023 to get to a full year run rate on initiatives that we actioned during the year. Over 85% of the 24 program are new initiatives that are again largely structural and sustainable.

鑑於貨運市場在短期內仍將面臨挑戰，加上設備收益年增率進一步下降，節省成本將是 2024 年擴大利潤和收益的關鍵。我們專注於 2024 年計劃，年內增量節省總額超過 4,000 萬美元。 24 個計劃中不到 15% 是從 2023 年結轉的，以便我們在這一年採取的舉措達到全年運行率。 24 項計劃中超過 85% 是新舉措，這些舉措在很大程度上也是結構性和可持續性的。

Let's look at our cash flow on Slide 14. We ended the year with $62 million in cash and cash equivalents. Operating cash flow remained strong at $118 million for the quarter or 14% of total revenue. Full year operating cash flow was also 14% of revenue and a company record at $474 million, a year-over-year increase of $26 million or 6% and 80 basis points of margin improvement, driven largely by DSO reduction during the year.

讓我們看看幻燈片 14 上的現金流。年底，我們的現金和現金等價物為 6,200 萬美元。本季營運現金流保持強勁，達到 1.18 億美元，佔總營收的 14%。全年營運現金流也佔營收的 14%，達到公司創紀錄的 4.74 億美元，年增 2,600 萬美元或 6%，利潤率提高 80 個基點，這主要是由於今年 DSO 的減少。

Net CapEx in the fourth quarter was $34.5 million and totaled $409 million for the year, up 29%. Free cash flow was $84 million for the fourth quarter and $66 million for the year or 2% of total revenues, down 50% versus prior year and reflecting an elevated level of net CapEx. Our total liquidity at quarter end was strong at $526 million, including cash and availability on our revolver.

第四季淨資本支出為 3,450 萬美元，全年總計 4.09 億美元，成長 29%。第四季自由現金流為 8,400 萬美元，全年自由現金流為 6,600 萬美元，佔總收入的 2%，比上年下降 50%，反映出淨資本支出水準的提高。截至季末，我們的總流動性強勁，達到 5.26 億美元，其中包括現金和左輪手槍的可用資金。

As shown on Slide 15, our net CapEx for 2023 of $409 million was below our most recent guidance range. Certain deliveries expected in the fourth quarter were moved to first quarter of 2024 and is now reflected in this year's guidance. 2023 was an elevated CapEx year reflecting lower year-over-year gains and a greater pace of reinvestment in the business. Our 2024 CapEx guidance is a range of $260 million to $310 million. This is within historical ranges in dollar terms although expected to be lower as a percent of revenue as growth in our asset-light business continues to outpace truckload growth.

如投影片 15 所示，我們 2023 年的淨資本支出為 4.09 億美元，低於我們最新的指導範圍。預計第四季度的某些交付已移至 2024 年第一季度，現已反映在今年的指導中。 2023 年是資本支出較高的一年，反映出年比收益較低以及業務再投資步伐加快。我們的 2024 年資本支出指引範圍為 2.6 億至 3.1 億美元。以美元計算，這一數字處於歷史範圍內，但隨著我們輕資產業務的增長繼續超過卡車裝載量的增長，預計佔收入的百分比將會較低。

Moving to Slide 16. We ended the quarter with $649 million in debt, down $45 million or 6% compared to a year earlier. Our debt structure is primarily long term and provides ample credit capacity for growth with 86% not maturing until the end of 2027. As of year-end, 57% of our debt is effectively fixed. We remain pleased with our low leverage, healthy balance sheet and long-term access to capital to fund growth and investments to expand earnings.

轉到投影片 16。本季結束時，我們的債務為 6.49 億美元，比去年同期減少 4,500 萬美元，即 6%。我們的債務結構主要是長期的，為成長提供了充足的信貸能力，其中 86% 的債務要到 2027 年底才會到期。截至年底，我們的債務有 57% 得到有效修復。我們仍然對我們的低槓桿率、健康的資產負債表以及長期獲得資本來資助成長和擴大收益的投資感到滿意。

On Slide 17, let's recap our capital allocation priorities. We will continue to prioritize strategic reinvestment in the business, remain disciplined in returning capital to shareholders and seek opportunities outside of Werner that will drive long-term shareholder value. Our strong balance sheet and low leverage provides us with financial flexibility to achieve our capital deployment goals.

在投影片 17 上，讓我們回顧一下我們的資本配置優先事項。我們將繼續優先考慮對業務的策略再投資，繼續嚴格向股東返還資本，並在維爾納之外尋找機會，以推動長期股東價值。我們強大的資產負債表和低槓桿為我們提供了實現資本部署目標的財務靈活性。

Let's turn to Slide 18 for an introduction to our 2024 guidance. Our truck fleet guidance for full year is a range of down 3% to flat year-over-year with the potential for growth in Dedicated in the second half. Net CapEx guidance is a range of $260 million to $310 million. Dedicated revenue per truck per week full year guidance range is flat to positive 3%. One-Way Truckload revenue per total mile guidance for the first half of the year is down 6% to down 3%. For the used truck market, we expect continued low demand with moderating pricing and equipment gains through the first half of 2024. We reached $42.4 million in equipment gains for 2023, and 2024 gains are expected between $10 million and $30 million.

讓我們轉向幻燈片 18，了解我們的 2024 年指南。我們全年卡車車隊的指導範圍為年減 3% 至持平，下半年專用卡車有成長潛力。淨資本支出指引範圍為 2.6 億至 3.1 億美元。全年每輛卡車每週專用收入指引範圍持平至正 3%。今年上半年每總哩程單程卡車裝載收入指引值下降 6% 至 3%。對於二手卡車市場，我們預計到2024 年上半年，需求將持續低迷，價格和設備收益將放緩。2023 年，我們的設備收益將達到4,240 萬美元，2024 年收益預計在1,000 萬美元至3,000 萬美元之間。

We expect net interest expense this year would be flat to $10 million higher than 2023, driven by repricing of our term loan that is maturing in the second quarter, interest rate swaps that are expiring and uncertainty on the timing of Fed easing offset with debt reduction during the year.

我們預計今年的淨利息支出將比2023 年持平至1000 萬美元，這是由於第二季度到期的定期貸款重新定價、即將到期的利率掉期以及美聯儲放鬆債務的時機的不確定性所抵消的。年內。

Our effective tax rate for full year 2023 was 24%. Guidance range for 2024 is 24.5% to 25.5%. The average age of our truck and trailer fleet at year-end 2023 was 2.1 years and 4.9 years compared to 2.3 years and 5 years, respectively, at the end of 2022. We anticipate staying near 2 years and 5 years through 2024.

我們 2023 年全年的有效稅率為 24%。 2024 年指引範圍為 24.5% 至 25.5%。截至 2023 年底，我們卡車和拖車車隊的平均車齡為 2.1 年和 4.9 年，而 2022 年底分別為 2.3 年和 5 年。我們預計到 2024 年，這一數字將保持在 2 年和 5 年左右。

I'll now turn it back to Derek.

我現在將其轉回給德里克。

Thank you, Chris.

謝謝你，克里斯。

2023 was a very challenging year for Werner, but we took measured steps to improve our operations, lower the average age of our fleet, improve safety, reduce costs and reduce debt. As we strategize for 2024 and met with the senior leaders across the company, we identified 3 primary pillars to generate earnings power and drive value creation this year.

2023 年對維爾納來說是非常具有挑戰性的一年，但我們採取了謹慎的措施來改善我們的運營，降低機隊的平均年齡，提高安全性，降低成本並減少債務。在製定 2024 年策略並與公司高層領導會面時，我們確定了今年產生盈利能力和推動價值創造的 3 個主要支柱。

First, is driving growth in core businesses, which is comprised of returning our TTS adjusted operating income margin to within our long-term range, growing Dedicated fleet and total revenue on a year-over-year basis in the back half of the year. Expanding One-Way utility Power Only and Mexico cross-border and continuing to generate double-digit revenue growth in logistics while getting back to mid-single-digit operating margin percentage entering 2025.

首先，推動核心業務的成長，包括將 TTS 調整後的營業利潤率恢復到我們的長期範圍內，下半年專用機隊和總收入同比增長。擴大單向公用事業公司 Power Only 和墨西哥的跨境業務，繼續在物流領域實現兩位數的收入成長，同時進入 2025 年恢復到中個位數的營業利潤率。

Second is operational excellence as a core competency, which we will deliver through maintaining resolute focus on safety, our #1 priority at Werner, advancing our technology road map through the transition of our One-Way businesses to our cloud-based EDGE TMS and executing on our 2024 cost savings program.

其次，卓越營運是一項核心能力，我們將透過堅定地專注於安全（這是Werner 的第一要務）來實現這一點，透過將單向業務過渡到基於雲端的EDGE TMS 來推進我們的技術路線圖，並執行關於我們的 2024 年成本節約計劃。

Lastly, is focusing on driving capital efficiency through process optimization. This includes streamlining business processes, maintaining strong operating cash flow and optimizing working capital and expanding free cash flow generation and margin through disciplined CapEx and equipment fleet sales.

最後，重點是透過流程優化來提高資本效率。這包括簡化業務流程、保持強勁的營運現金流、優化營運資本以及透過嚴格的資本支出和設備銷售來擴大自由現金流的產生和利潤。

We are 100% committed to executing on these objectives, and believe with high conviction that they are the right actions to generate margin and earnings improvement during the year. We have proven our ability to generate earnings power as demand accelerates. This road map of our commitment, combined with the resiliency and dedication of all of our associates, will confirm that history does indeed repeat itself. We look forward to providing you with updates on our progress against our 2024 pillars as the year progresses. With that, let us open it up for questions.

我們百分之百致力於實現這些目標，並堅信這些是今年實現利潤率和獲利改善的正確行動。我們已經證明，隨著需求的加速，我們有能力產生獲利能力。我們的承諾路線圖，加上我們所有員工的韌性和奉獻精神，將證實歷史確實會重演。隨著時間的推移，我們期待為您提供 2024 年支柱進展的最新資訊。那麼，就讓我們開始提問吧。

(Operator Instructions) The first question today comes from Bruce Chan with Stifel. Please go ahead.

（操作員說明）今天的第一個問題來自 Stifel 的 Bruce Chan。請繼續。

Maybe just want to start off by going into the cost savings a bit. You gave us some good color on where those savings are filtering in from. Is there any overlap between the savings and Werner Bridge? Or is Bridge more of an opportunity to add revenue and a market recovery on your existing cost base?

也許只是想從節省成本開始。您向我們提供了一些關於這些節省的來源的很好的資訊。儲蓄和維爾納布里奇之間有重疊嗎？或者，Bridge 更像是在現有成本基礎上增加收入和市場復甦的機會？

Yes, Bruce, thanks for the question. I'll start on the Werner Bridge part and then Chris may have color if he wants to add. But Werner Bridge is our digital platform. We're very excited about what that future looks like. But we've got a long ways to go as we continue to develop that out.

是的，布魯斯，謝謝你的提問。我將從維爾納布里奇部分開始，然後克里斯如果想添加的話可能會有色彩。但維爾納橋是我們的數位平台。我們對未來的樣子感到非常興奮。但在我們繼續開發這一點的過程中，我們還有很長的路要走。

More specifically, relative to the tech stack, it's really the transition we've already made and worked hard at throughout 2023 relative to getting both Reed, Werner Logistics -- or Werner Brokerage, I should say, as well as Intermodal on the EDGE TMS platform. That's sort of the first major milestone in a longer journey that ultimately includes this year focusing on getting One-Way largely on the platform by end of year.

更具體地說，相對於技術堆疊，這確實是我們在 2023 年全年努力完成的轉型，涉及 Reed、Werner Logistics 或 Werner Brokerage，我應該說，以及 EDGE TMS 上的 Intermodal平台。這是漫長旅程中的第一個重要里程碑，最終包括今年重點在年底前將 One-Way 基本納入該平台。

As we start to do that, we start to see opportunities for real savings with expanded visibility, better collaboration to freight across the various sides of the organization. But those are not actually in those cost savings numbers at this point because it's early innings. What we're talking about here are tangible programs of diligent cost cutting up and down the P&L through the building in ways that I believe do not impact our ability to respond as the market turns. That's probably the most important thing.

當我們開始這樣做時，我們開始看到透過擴大可見度以及組織各方面之間更好的貨運協作來真正節省成本的機會。但目前這些其實並不在成本節省數字中，因為現在還處於早期階段。我們在這裡討論的是透過建築物努力削減損益成本的實際計劃，我認為這些計劃不會影響我們隨著市場轉變做出反應的能力。這可能是最重要的事。

We're late enough in the cycle that what we don't want to do is to cut for cutting's sake and then end up bringing all of those costs right back on board. That's why we think they're structural, they're sustainable. It just puts us in a better position. The cost culture here has been one that we've needed to address for some time. We've worked on it aggressively over the last year. I think we're finally finding a rhythm and stride toward top to bottom ownership of better cost controls. And I think a crisis like this over the last year's freight backdrop really puts us in a better position to even execute better moving forward.

我們在這個週期中已經太晚了，我們不想做的是為了削減而削減，然後最終將所有這些成本重新帶回船上。這就是為什麼我們認為它們是結構性的、可持續的。它只是讓我們處於更好的位置。一段時間以來，我們一直需要解決這裡的成本文化。去年我們在這方面積極努力。我認為我們終於找到了一種節奏，並朝著自上而下更好地控製成本的方向邁進。我認為去年貨運背景下發生的這樣的危機確實使我們處於更好的位置，甚至可以更好地向前邁進。

Okay. That's super helpful. And then maybe just to follow up on some of your commentary around being late enough in the cycle. We've heard from a few carriers now that data and expectations are pointing towards the second half inflection. I imagine your customers are looking at similar outlooks. So just given that consideration, can you maybe share how your early conversations have been going in terms of renewals? Are we still tracking negative? Or are we starting to see some firming based on expectations for that recovery?

好的。這非常有幫助。然後也許只是為了跟進您關於在周期中足夠晚的一些評論。我們現在從一些業者得知，數據和預期都指向下半年的轉折點。我想您的客戶也有類似的看法。因此，考慮到這一點，您能否分享一下您在續約方面的早期對話進展如何？我們還在追蹤負面訊息嗎？或者我們開始看到基於對復甦的預期而出現的一些堅挺？

Sure. I mean I'd have to start by just pointing out that we're -- we have less than -- we're still in the single digits on renewals that are actually closed and kind of at their end date. And so it's early, early in the bid season. Clearly, there are customers that are looking to try to take one last fat bite at the apple. There's clear pressure, especially on the One-Way side of the network. But our stance is we've got to stay disciplined. If you look across, especially this earnings season, it's glaringly obvious that carriers cannot make a reinvestable return at current rate levels.

當然。我的意思是，我必須先指出，我們的續約數量仍然只有個位數，這些續約實際上已經結束，並且已經到了結束日期。現在是競標季節的早期。顯然，有些顧客正想嚐嚐蘋果的最後一口。存在明顯的壓力，尤其是在網路的單向一側。但我們的立場是我們必須保持紀律。如果你放眼望去，尤其是在這個財報季，你會發現很明顯，營運商無法以當前的利率水準獲得可再投資的回報。

So -- they're going to be frictional. They're going to be difficult. We've already indicated that we're willing to shrink the fleet size if need be. And we've shown that through 2023.

所以——他們會產生摩擦。他們會很困難。我們已經表示，如果需要，我們願意縮小機隊規模。我們已經在 2023 年證明了這一點。

The good news is we also have a lot of stability in the Dedicated portion of the portfolio that continues to do that hard to serve -- difficult to kind of dislocate us from the business type of work. And that's going to stand up pretty well. We feel good with those relationships. And on the One-Way side, we're going to keep focusing on engineering the network better to gain productivity. We're going to focus on our touchstones of Mexico cross-border, the engineered lanes that we've built out and just continue to do what we do really well and lean into that. That puts us in a better position relative to price as well.

好消息是，我們在產品組合的專用部分中也有很大的穩定性，該部分繼續很難提供服務——很難讓我們脫離業務類型的工作。這將會很好地站得住腳。我們對這些關係感覺良好。在單向方面，我們將繼續專注於更好地設計網路以提高生產力。我們將專注於墨西哥跨境的試金石，我們已經建造的工程車道，並繼續做我們真正擅長的事情並致力於這一點。這也使我們在價格方面處於更好的位置。

The next question comes from Jon Chappell with Evercore ISI.

下一個問題來自 Evercore ISI 的 Jon Chappell。

Derek, I just want to talk about the fleet for a second as we're looking at the guide, 0% to 3% decline in the truck count. Is this just a continued glide down of One-Way until you see that inflection and there's still going to be growth in the Dedicated fleet? Are you actually pausing the Dedicated fleet as well and we should think of both of them as being relatively static to slightly down again until you see a more favorable backdrop?

德里克，我只想談談車隊，因為我們正在查看指南，卡車數量下降了 0% 到 3%。這是否只是單向的持續下滑，直到你看到這種拐點並且專用機隊仍然會成長？您是否真的也暫停了專用機隊，我們應該將它們視為相對靜止或再次略微下降，直到您看到更有利的背景？

Well, as we pointed out in the opening remarks, Dedicated performed very well during the course of the year. So we're not looking to -- there's no intentionality about trying to shrink the dedicated fleet. But the reality is there, too, it's a competitive landscape. And so as we remain very price disciplined on Dedicated and return-focused, it's our expectation that there could be some fleet churn in Dedicated in the first half of the year.

嗯，正如我們在開場白中指出的那樣，Dedicated 在這一年中表現得非常出色。所以我們不打算——沒有意圖試圖縮小專用機隊。但現實也是存在的，這是一個競爭格局。因此，由於我們對專用航線保持嚴格的價格紀律並注重回報，因此我們預計今年上半年專用航線可能會出現一些船隊流失。

We already have a very robust pipeline in Dedicated and we're pricing a considerable amount of opportunities as we speak. But the net of that is that we think that will be flat to maybe slightly up by the end of the first half with back half growth built in.

我們已經在 Dedicated 領域擁有非常強大的管道，並且我們正在為大量機會定價。但最終的結果是，我們認為，隨著後半段的成長，到上半年結束時，數字將會持平，甚至可能略有上升。

On the One-Way side, it's a different story. It's simply not reinvestable right now. We're not going to grow trucks in One-Way until we see more of an inflection. And as a result, overall TTS fleet numbers will go down at least in the first half, and that's what we've guided to.

在單向方面，情況則不同。現在根本無法再投資。在我們看到更多的變化之前，我們不會以單向方式增加卡車。因此，整體 TTS 機隊數量至少在上半年將會下降，這就是我們的指導方針。

Okay. It's clear. Chris, noticeable insurance and claims down, you'd mentioned both in the fourth quarter and for the full year. It seems somewhat contrary to what we've heard across most of the industry. Is that just a function of maybe a distorted comp to '22, and we should think about some level of renewed inflation in that line item into '24? Or is there something structurally different about the way -- I know you're obviously running a safer overall network, but something structural that would think that insurance and claims at Werner grows at a lower level or a lesser level than the rest of the peer group in '24?

好的。天氣晴朗。克里斯，您提到第四季度和全年的保險和索賠明顯下降。這似乎與我們在大多數行業中聽到的情況有些相反。這是否只是 22 年扭曲補償的函數，我們應該考慮到 24 年該行項目中一定程度的新通膨？或者在結構上是否有什麼不同的方式——我知道你顯然正在運行一個更安全的整體網絡，但在結構上會認為維爾納的保險和索賠增長水平低於其他同行。'24 組？

Jon, yes, I mean, fundamentally, it does come down to safety, and that's our #1 priority. But to unpack that just a minute to address your question, yes, fourth quarter of last year was a peak year at $44 million in insurance and claims. But it's not simply just a matter of it being a comp. There have been others in the industry that have been reporting large reserve adjustments and charges and ours is elevated when you look back over the last couple of years, but really that inflection point up really occurred in the first half of really 2022. We've -- I think we're early on, but we've seen a recent decline. The -- it's not just in the quarter, which is down 23%, really the second half of last year of 2023 was down 17%.

喬恩，是的，我的意思是，從根本上來說，這確實取決於安全，這是我們的第一要務。但是，花一分鐘時間來解答您的問題，是的，去年第四季是保險和索賠達到 4,400 萬美元的高峰年。但這不僅僅是一個比較問題。業內還有其他人報告了大規模的準備金調整和費用，當您回顧過去幾年時，我們的準備金調整和費用有所提高，但實際上拐點的上升確實發生在 2022 年上半年。 — —我認為我們還處於起步階段，但最近我們看到了下降。不僅僅是本季下降了 23%，2023 年去年下半年確實下降了 17%。

So it's maybe early to say, but it's a good trend. It does coincide with our safety metrics that continue to perform very well. We have a declining accident rate. We hit a 19-year record low. So we do think that those are connected.

所以現在說可能還太早，但這是一個好的趨勢。它確實與我們繼續表現良好的安全指標相一致。我們的事故率正在下降。我們創下了 19 年來的新低點。所以我們確實認為這些是有連結的。

The next question comes from Brian Ossenbeck with JPMorgan.

下一個問題來自摩根大通的布萊恩·奧森貝克。

So Derek, maybe just wanted to get your thoughts just going back to capacity. If we hear yourselves and other big fleets or presumably the low-cost carriers in the market backing away, is it just inevitable that the smaller fleets and other capacity is going to exit as well? Is there something that maybe we're all missing in terms of just how freight is flowing? They have more contract exposure than before. They paid down equipment. Just wanted to see if you think that this is really sort of the beginning of the end of the capacity growth that's been here for some time.

所以德瑞克，也許只是想讓你的思緒恢復到原來的狀態。如果我們聽到你們自己和其他大型機隊或市場上的低成本航空公司退出，那麼小型機隊和其他運力是否也將不可避免地退出？在貨運流程方面，我們是否都遺漏了一些東西？他們比以前擁有更多的合約風險。他們付清了設備費用。只是想看看您是否認為這確實是已經存在了一段時間的產能成長結束的開始。

Brian, great question. I promised myself I wouldn't going to try to predict a turn on this call, so I'm going to try to steer clear of that. But -- we're at week 71 with net deactivations being negative, so more of carriers leaving the industry than coming in. Over the last, call it, 4 to 5 weeks, it's been very interesting because new activations have finally kind of really fallen off the cliff with net deactivations kind of continuing -- or I should say, deactivations continuing their trend that we've seen for now over a year straight. So we think momentum is gaining, and we're going to see more of that going forward.

布萊恩，好問題。我向自己保證，我不會嘗試預測這次跟注的結果，所以我會盡力避免這種情況。但是，我們已進入第71 週，淨停用量為負數，因此離開該行業的運營商多於進入行業的運營商。在過去的4 到5 周中，這非常有趣，因為新的激活終於真正開始了。隨著淨停用的持續，或者我應該說，停用繼續我們已經連續一年多看到的趨勢，跌落懸崖。因此，我們認為勢頭正在增強，並且我們將看到更多這樣的進展。

When it turns exactly, I don't know. What I do know is that large, well-capitalized, well-run fleets like Werner, we're focused like never before on lowering our cost to execute, making sure that we're grinding through the controllable while not spending too much time trying to speculate on the uncontrollable.

具體什麼時候轉，我不知道。我所知道的是，對於像維爾納這樣規模龐大、資本充足、運作良好的車隊，我們前所未有地專注於降低執行成本，確保我們在可控範圍內不斷努力，同時不會花太多時間嘗試推測無法控制的事。

I'm excited about the team's focus right now. The fact that we've identified going into the year, $40 million of cost initiatives, and we believe we'll have great success on getting those implemented early. And often, as we kick off this year is exciting. I'm really excited about the structure of the fleet going into the year, meaning that we've got the fleet age where we want it to be. The mix is closer to where we wanted it to be than it has been in a long time, although we'd still lean more toward Dedicated given some of these opportunities close. Logistics is continuing to grow both in volume and revenue, and that's really an outlier across really the whole industry and gaining share. And we're finding that rhythm of all of this technology investment that we've been making.

我對團隊現在的專注感到興奮。事實上，我們已經確定今年將實施 4000 萬美元的成本計劃，並且我們相信，我們將在儘早實施這些計劃方面取得巨大成功。通常，當我們今年開始時都是令人興奮的。我對今年機隊的結構感到非常興奮，這意味著我們已經達到了我們想要的機隊年齡。與很長一段時間以來的情況相比，這種組合更接近我們想要的狀態，儘管考慮到其中一些機會接近，我們仍然更傾向於專用。物流在數量和收入方面都在持續增長，這在整個行業中確實是一個異常值，而且份額不斷增加。我們正在找到我們一直在進行的所有技術投資的節奏。

The best on that is still probably, to be fair, in the out years, but we're picking up incremental gains all the time. And so I'm really excited as that plays out over the course of this year.

公平地說，最好的情況可能仍然是在未來幾年內，但我們一直在不斷獲得增量收益。所以我真的很興奮，因為這將在今年發生。

So just to follow up on the cost savings. I know you mentioned earlier that you were confident that you're not cutting too much too late in the cycle, but also I just wanted to hear a little bit more, if you can give us some details in terms of what those different buckets are, how they've changed into this year and from the previous year. There's a little bit of carryover, but I really just wanted to hear what was on the horizon and understand that a little bit more.

所以只是為了跟進成本節省狀況。我知道你之前提到過，你有信心在周期中不會太晚削減太多，但我也只是想听聽更多信息，如果你能給我們一些關於這些不同桶的細節，今年和去年相比有何變化。雖然有一些遺留問題，但我真的只是想聽聽即將發生的事情並進一步了解這一點。

Yes, Brian, this is Chris. So it's another $40 million plus program. As we said earlier, it's less than 15% that's carryover. So by and large, it's new actions, it's new initiatives. A lot of it, as you can see from the materials that we presented is in salaries, wages, that's both in terms of driver turnover impacts, various pay changes, changes in benefits, work comp insurance. So even within that category of salaries and wages, it's multipronged. And then there's a number of other categories that we just summarized in some of the materials, but supplies and maintenance and other categories. So largely new initiatives, again, largely structural, sustainable, not cutting too deep but really positioning us well to where we can.

是的，布萊恩，這是克里斯。這是另一個耗資 4000 萬美元以上的項目。正如我們之前所說，結轉率不到 15%。總的來說，這是新的行動、新的舉措。正如您從我們提供的資料中看到的，其中許多是薪水、工資，包括司機流動率影響、各種工資變化、福利變化、工作補償保險。因此，即使在薪水和工資的範疇內，它也是多方面的。我們剛剛在一些材料中總結了許多其他類別，但用品和維護以及其他類別。因此，很大程度上是新的舉措，主要是結構性的、可持續的，不會削減太深，但真正使我們處於我們能夠做到的位置。

In the current year, we can combat some of the inflationary headwinds, some of the headwinds that we're going to have throughout the year in lower equipment gains and obviously, the market not helping at least the first half of the year. So we feel like these are the right things to do to combat those aspects, but also sustainable and puts us in a very strong position to capitalize on a better market, particularly beyond 2024.

今年，我們可以應付一些通貨膨脹的逆風，全年設備收益下降的一些逆風，顯然，市場至少在今年上半年沒有幫助。因此，我們認為這些措施是應對這些問題的正確之舉，而且是可持續的，並使我們處於非常有利的地位，可以利用更好的市場，特別是在 2024 年之後。

The next question comes from Ken Hoexter with Bank of America.

下一個問題來自美國銀行的 Ken Hoexter。

Derek, you noted miles per truck growth at 9% at One-Way in the second quarter. Is that due to company-specific moves in reshaping the network? I think you threw that out there in your prepared remarks. Or is that economic? And I guess if it's economic, how should we think about the historical trend during the turnaround? Is it led by that improved miles per truck? Is it led by rate? Maybe what are the key things we should look for as you talk about looking for that turn?

Derek，您注意到 One-Way 第二季度每輛卡車的行駛里程增加了 9%。這是由於公司重塑網路的具體措施嗎？我認為你在準備好的發言中已經提到了這一點。或者說很經濟嗎？我想如果是經濟的話，我們該如何看待轉型過程中的歷史趨勢？是由每輛卡車行駛里程的提高帶動的嗎？是由利率主導的嗎？也許當你談論尋找那個轉折點時我們應該尋找哪些關鍵的東西？

The production gains that we're seeing in One-Way is very much the result of disciplined engineering within our fleet designing -- as rates got as low as they've been pressed, it's really knowing what we can do and do efficiently doing more of that and walking away from business that we feel like no longer fits our network or doesn't allow us to build the kind of efficiencies it takes to operate at these rate levels.

我們在 One-Way 中看到的產量增長在很大程度上是我們車隊設計中嚴格工程的結果——隨著利率降到最低，我們真正知道我們能做什麼，並高效地做更多事情並放棄那些我們認為不再適合我們網路或不允許我們建立在這些速率水平上運作所需的效率的業務。

And so I think it's largely structural and internal to us. But clearly, the consumers held up probably a little better than most of us thought despite rising interest rates, inflation and sort of other headwinds they've been faced with.

所以我認為這很大程度上是我們的結構性和內在性的。但顯然，儘管利率上升、通貨膨脹以及他們面臨的其他阻力，消費者的表現可能比我們大多數人想像的要好一些。

But to answer your question, it's part of the controlling the controllable that we're trying to work on all the time. And then leaning into -- and this is certainly a part of it, but we've talked several times about our Mexico cross-border franchise and really trying to lean more heavily into that. It's a longer length of haul, it's more efficient freight. It's hard to do, especially on the Mexico side of the border, but it's something we're very good at.

但要回答你的問題，這是我們一直在努力解決的控制可控問題的一部分。然後傾斜——這當然是其中的一部分，但我們已經多次談論過我們的墨西哥跨境特許經營權，並且確實在努力更多地傾斜於此。運輸距離更長，貨運效率更高。這很難做到，尤其是在邊境的墨西哥一側，但這是我們非常擅長的事情。

And the trend you look for, is that -- just to follow up on that, is that the -- is that what goes first? Is it utilization? Is it the price? What turns first?

你尋找的趨勢是——只是跟進這個趨勢——這是首先發生的嗎？是利用嗎？是價格嗎？什麼先轉？

Yes. Well, I mean I think in this case, the utilization gains aren't necessarily a leading indicator of suddenly the market getting much better. It's just us getting better at where we allocate our trucks just to kind of reiterate that point. I think what I'm looking for or looking at as it relates to what goes first or what is moving is anecdotal things, like yes, there were winter storms across the U.S. Yes, that played a role in what we saw with spot market and other pricing opportunities in January. It also had a very negative impact on production for sure. But the reality is, in the darkest days of this freight recession there were hurricanes that hit with almost little to no impact on spot market pricing or project opportunities or anything else.

是的。嗯，我的意思是，我認為在這種情況下，利用率的提高並不一定是市場突然好轉的領先指標。只是我們在卡車分配方面做得更好，只是為了重申這一點。我認為我正在尋找或正在關注的事情，因為它與首先發生的事情或正在發生的事情有關，是軼事，例如是的，美國各地發生了冬季風暴。是的，這在我們看到的現貨市場和一月份的其他定價機會。它肯定也對生產產生了非常負面的影響。但現實是，在貨運衰退最黑暗的日子裡，颶風的攻擊對現貨市場定價、專案機會或其他任何方面幾乎沒有影響。

The other thing I would look at is our comments that we talked about in the opening. But fourth quarter peak volumes like project opportunity volumes, they were up over 20% year-over-year. That's encouraging. Now the problem is the market rate wasn't there to support those volumes being nearly as lucrative as they would have been in prior years. But in order to get back in that game and show customers what we're capable of and our execution qualities, we moved a lot of peak freight this fall, and so that was encouraging.

我要關注的另一件事是我們在開場時討論的評論。但第四季的峰值數量（如專案機會數量）年增超過 20%。這令人鼓舞。現在的問題是市場利率無法支持這些交易量幾乎與前幾年一樣有利可圖。但為了重返這場遊戲並向客戶展示我們的能力和執行質量，我們今年秋天轉移了許多高峰貨運，因此這是令人鼓舞的。

I think it's very encouraging, early conversations with customers in terms of the quality of the product that we're putting on the table. Because right now, when price is such a predominant topic, it's really more important than ever to be able to differentiate the quality of your service, the commitment that we're putting out there and the investment we're making back in the fleet, which we clearly showed in 2023, a willingness to do with an outsized CapEx year, now that fleet is where we want it, we're ready to launch. And as this inflection kind of continues to play out, I like our positioning.

我認為就我們所提供的產品品質而言，與客戶的早期對話非常令人鼓舞。因為現在，當價格成為如此重要的話題時，能夠區分您的服務品質、我們所做的承諾以及我們對機隊的投資確實比以往任何時候都更加重要，我們在2023 年清楚地表明了這一點，願意在一年內進行大規模的資本支出，現在機隊已達到我們想要的位置，我們已準備好推出。隨著這種變化的繼續發生，我喜歡我們的定位。

The next question comes from Scott Group with Wolfe Research.

下一個問題來自 Scott Group 和 Wolfe Research。

So you guys exited the year trucking at a 7.5% margin. I think you said the goal is to get back to 12% by the end of this year. Just help us think about the cadence of that through the year? Do we take one more step back in Q1 and then build from there? And what -- ultimately, what needs to happen to get that 4 or 5 points of margin improvement?

所以你們今年的卡車運輸利潤率為 7.5%。我想你說過目標是到今年年底恢復到 12%。請幫助我們思考這一年的節奏？我們是否會在第一季後退一步，然後從那裡開始構建？最終，需要做什麼才能讓利潤率提高 4 或 5 個百分點？

Yes, Scott, this is Derek. I mean, clearly, Q4 to Q1 has historically over the last decade, been a step back quarter just because of the reality of what happens in the first quarter, the combination of weather plus lower shipping volumes coming out of the holiday season, et cetera. I don't expect that to be any different this year in terms of the fact that there will be those structural headwinds.

是的，史考特，這是德瑞克。我的意思是，很明顯，從歷史上看，第四季度到第一季在過去十年中一直是倒退的季度，只是因為第一季度發生的實際情況、天氣加上假日季節帶來的運輸量下降等。 。就存在結構性阻力這一事實而言，我預計今年的情況不會有任何不同。

But in terms of getting back to that range, it's about -- it's several things, and I don't want to get too granular here, but it's a back half goal. Let's be clear. It's really an end-of-year goal to be even more clear. And it takes our ability to continue to move further down this engineered path inside of One-Way to continue a further shift into that more stable, durable Dedicated business that has proven itself to be resilient in both good and bad markets and from a margin perspective, and then executing on all of these identified cost savings that we've laid out.

但就回到這個範圍而言，這涉及到幾件事，我不想在這裡說得太細，但這是一個後半場的目標。讓我們說清楚。這確實是一個更明確的年終目標。我們需要有能力繼續沿著單向內部的這條精心設計的道路前進，以繼續進一步轉向更穩定、更持久的專注業務，該業務已證明自己在好市場和壞市場中以及從利潤角度來看都具有彈性，然後執行我們列出的所有已確定的成本節約。

And then the wild cards are things like the used equipment market. How does that play out over the course of the year, and that's going to be difficult. But we're -- our base case, I think, is conservative and one that we believe is achievable. If we can be at the higher end of that range, then obviously, it accelerates our ability to get there.

然後，變數就是二手設備市場之類的東西。這一年的進展如何，這將是困難的。但我認為，我們的基本情況是保守的，我們認為是可以實現的。如果我們能夠達到該範圍的高端，那麼顯然，它會加速我們實現這一目標的能力。

There's a lot of work ahead of us, but again, I'll hit the theme one more time, but it's about controlling the controllable. It's been way too long with everybody waiting for something external to change. And it's about -- the moment is upon us now that we've got to change internally, and we're laser-focused on doing exactly that.

我們還有很多工作要做，但我會再一次觸及這個主題，但它是關於控制可控的。每個人都在等待外部變化的時間太長了。現在我們必須進行內部變革，而我們正全神貫注地致力於做到這一點。

And then my next question, we've all seen all these -- all your fourth quarters, they've been tough for everybody and your point about we're at a place where it's not reinvestable. One thing I'm just struggling with like we're still seeing pretty elevated truck orders, truck builds, like I'm struggling with why that's happening. Do you have a thought on that and where we go from here?

然後我的下一個問題，我們都看到了所有這些 - 所有的第四季度，它們對每個人來說都很艱難，而且你的觀點是我們正處於一個不可再投資的地方。我只是在努力解決一件事，就像我們仍然看到卡車訂單和卡車製造量相當高，就像我在努力解決為什麼會發生這種情況一樣。您對此有什麼想法嗎？我們下一步該何去何從？

Yes. I mean my predominant thought on that, Scott, would be, I think a lot of folks -- it's a matter of when you make your move. I mean if you think about a racing analogy, it's when do you pit versus your competitors? And we clearly pitted in 2023. We spent a lot of money and had a lot of orders and a lot of builds to get our fleet where we wanted it. There are several others that haven't made that pit yet, and they're doing so, I believe, as we -- as 2024 plays out. It's a big thing that we like about our positioning currently because doing all of that fleet rotation is time consuming. It costs money, it costs miles, it cost driver downtime. And so I like our positioning. But I think that's what a lot of those orders are.

是的。我的意思是，斯科特，我對此的主要想法是，我想很多人——這取決於你何時採取行動。我的意思是，如果你考慮一下賽車的類比，那就是你什麼時候與競爭對手進站？我們顯然在 2023 年陷入了困境。我們花費了大量資金，獲得了大量訂單和大量建造，以使我們的機隊達到我們想要的水平。還有其他幾個尚未進入這個坑，我相信，隨著 2024 年的到來，他們正在這樣做。我們目前對我們的定位很滿意，因為所有的機隊輪換都非常耗時。這需要金錢、里程、駕駛員的停機時間。所以我喜歡我們的定位。但我認為很多訂單都是這樣的。

Very few carriers in America are happy with their fleet makeup right now coming out of the COVID years. And I think you're seeing pent-up demand. I also think it will be interesting to see how that order board plays out relative to builds because orders are one thing, but builds are something entirely different. And I just think as the year plays out, that number may come into more clarity for everyone.

在美國，很少有航空公司對其機隊組成在新冠疫情結束後感到滿意。我認為你看到了被壓抑的需求。我還認為看看訂單板相對於構建的表現會很有趣，因為訂單是一回事，但構建是完全不同的東西。我只是認為隨著這一年的結束，這個數字可能對每個人來說都會變得更加清晰。

The next question comes from Alison Poliniak with Wells Fargo.

下一個問題來自富國銀行的艾莉森‧波利尼亞克。

It's James Monigan on for Allison. Just wanted to ask -- sorry about that. Just wanted to ask about the catalyst for the second half improvement that you have in there. Is there any sort of specific intent do you see? Or is it just sort of better balance improving across the first half of the year and that improving the market outlook in the second?

詹姆斯·莫尼根替補艾利森。只是想問一下——抱歉。只是想問一下下半年改善的催化劑。您認為有什麼具體意圖嗎？還是只是上半年的平衡有所改善，下半年的市場前景有改善？

Yes. I think it's really built on the ongoing attrition that we're seeing across the industry. I mean I saw a stat just last week, we're up to 56,000 registered carriers that have went out of business completely. That's a big number, 700,000 less CDL drivers that are like sort of in circulation from where we were when this whole ramp started. There's just a lot more momentum behind where we're at from an equilibrium perspective.

是的。我認為這實際上是建立在我們在整個行業中看到的持續流失的基礎上的。我的意思是我上週看到了一份統計數據，我們有多達 56,000 家註冊運營商完全關閉。這是一個很大的數字，CDL 司機減少了 700,000 名，就像整個坡道開始時我們所在的地方一樣。從均衡的角度來看，我們所處的位置背後有更多的動力。

I mentioned the storms recently being an interesting indicator that, yes, it was widespread. Yes, it was a severe storm. I'm not trying to minimize that, but kind of the immediate impact on what it did to the network shows that we're closer to balance than we've been in a while. So it's -- I don't think there's one catalyst. And certainly, we're not banking on it being the GDP-driven rebound. Our base case assumption is very neutral kind of GDP growth this year, but rather a supply-side story as it continues to exit. And obviously, keeping very close eyes on replenishment of inventories because it's one thing to get to just a one-for-one replenishment level.

我提到最近的風暴是一個有趣的指標，是的，風暴很普遍。是的，那是一場猛烈的風暴。我並不是想最小化這種情況，但它對網路造成的直接影響表明，我們比過去一段時間更接近平衡。所以我不認為有任何催化劑。當然，我們並不指望它是 GDP 驅動的反彈。我們的基本情境假設是今年的 GDP 成長非常中性，而是一個供給方的故事，因為它繼續退出。顯然，要密切注意庫存的補充，因為達到一對一的補充水準是一回事。

But I don't think we've seen supply chains really since COVID that have simultaneously been dealing with issues in the Suez Canal, issues in the Panama Canal the ongoing and sort of ever present questions around West Coast ports and productivity issues there. And I think it's really causing some pause in the retailers of America to decide whether they want to be just in case or just in time or maybe somewhere in the middle. And if they go to the middle, there's going to need to be outside replenishment as the year plays out, and we believe that plays into this as well.

但我認為自新冠疫情以來，我們還沒有真正看到供應鏈同時處理蘇伊士運河的問題、巴拿馬運河的問題、西海岸港口周圍持續存在的問題以及那裡的生產力問題。我認為這確實導緻美國零售商猶豫不決，決定他們是想以防萬一還是及時趕上，或者也許是中間的某個地方。如果他們進入中期，隨著這一年的結束，將需要外部補充，我們相信這也會發揮作用。

Got it. And just real quickly, you highlighted the improvement in revenue per tractor per week in Dedicated and highlighted the fact that margins are in the double digits there. But look, were you able to get price increases that sort of kept up with the cost inflation that you're seeing there? And sort of have you been able to sort of get margin expansion there over time through cost savings or anything else across this prior year?

知道了。很快，您就強調了專用拖拉機每週收入的改善，並強調了利潤率達到兩位數的事實。但是你看，你能否讓價格上漲跟上你所看到的成本通膨？隨著時間的推移，您是否能夠透過節省成本或前一年的其他措施來實現利潤成長？

Yes. I mean, look, we've been consistent with our explanations around Dedicated. It has clearly held up and shown resiliency through this downturn. But that doesn't mean there wasn't margin compression even in Dedicated, but at a much lower level. We're able to get the support from our customers better there, stand by us more there because of the quality and the complexity of the work we do. But even there, there's inflationary pressures. That's why this cost cutting becomes so critically important. We've got to offset some of the underlying inflationary pressures by taking costs out elsewhere. The bulk of, obviously, the damage to the long-term TTS margin range was driven by One-Way, and we've seen enough results already this quarter and for everyone to realize just how pressured that part of the portfolio is here and everywhere else.

是的。我的意思是，看，我們對 Dedicated 的解釋是一致的。在這次低迷時期，它顯然保持住了並表現出了彈性。但這並不意味著即使在 Dedicated 中也沒有利潤率壓縮，但水平要低得多。由於我們工作的品質和複雜性，我們能夠在那裡更好地獲得客戶的支持，並更多地支持我們。但即便如此，也存在通膨壓力。這就是為什麼成本削減變得如此重要。我們必須透過在其他地方削減成本來抵消一些潛在的通膨壓力。顯然，對長期 TTS 利潤範圍的損害大部分是由 One-Way 造成的，本季度我們已經看到了足夠的結果，讓每個人都意識到這部分投資組合在這裡和任何地方都面臨著多大的壓力別的。

The next question comes from Ravi Shanker with Morgan Stanley.

下一個問題來自摩根士丹利的 Ravi Shanker。

Maybe just a follow up on that. I think the message of this call kind of the message is a little bit different than what you heard for some of your peers, who've been saying that there's absolutely no further room to give on pricing, given the cost inflation and we have to take pricing up, yet your pricing outlook is, I think, somewhat more bearish than we were expecting and maybe some of your peers have been telegraphing. Is this, a, kind of reflective of a starting point on costs for you guys that may be lower and so you have more opportunity to cut? Or b, kind of is this a strategy to potentially try and take share maybe kind of if you're -- if you have more room to be flexible on rates? Kind of just trying to square that difference in messaging maybe.

也許只是後續行動。我認為這次電話會議傳達的信息與您從一些同行那裡聽到的信息有點不同，他們一直在說，考慮到成本通脹，定價絕對沒有進一步的空間，我們必須提高定價，但我認為，你們的定價前景比我們預期的要悲觀一些，也許你們的一些同行已經發出了電報。這是否反映出你們的成本起點可能較低，因此你們有更多削減的機會？或者b，這是否是一種可能嘗試分享份額的策略，如果你有更多的靈活利率空間？也許只是想消除訊息傳遞中的差異。

Well, I'll start with the obvious, Ravi, which is I concur with everybody who's made this statement, there is no more room to give. But that doesn't mean that we don't have prior year comps to deal with and things that we've already digested or ingested into the network. Over the course of 2023, that's going to come to roost in the first half of 2024, so some of it has to do with prior year comps. Some of it has to do with making sort of intelligent decisions on places that we still want to have a foothold, and we still want to kind of live to fight another day. And some of it is just trying to predict when, in fact, does this inflection take place. You know that we tend to be careful and thoughtful with what we say. And I believe that's a range that we're comfortable giving at this point. If we can exceed that range, I can assure you we'll be doing everything we can to do so.

好吧，我將從顯而易見的事情開始，拉維，我同意所有發表此聲明的人，沒有更多的空間可以給予。但這並不意味著我們沒有前一年的比較需要處理以及我們已經消化或吸收到網路中的東西。在 2023 年期間，這種情況將在 2024 年上半年顯現出來，因此其中一些與上一年的比較有關。其中一些與我們仍然想立足的地方做出明智的決定有關，我們仍然想活到另一天再戰鬥。其中一些只是試圖預測這種變化實際上何時發生。你知道，我們說話時往往會小心謹慎、深思熟慮。我相信這是我們目前願意給予的範圍。如果我們能夠超出這個範圍，我可以向您保證，我們將竭盡全力做到這一點。

And then the last piece, which you already mentioned inside of your question is we were a bit of a positive outlier on price in 2023, and that might cause more pressure on us as customers try to take a second bite at the Apple, but we're going to stay disciplined and focused as we go through the bid season because, frankly, at some of the opportunities being put forth, it is not reinvestable, therefore, not worth doing.

最後一點，你在問題中已經提到過，我們在 2023 年的價格上有點積極的異常值，這可能會給我們帶來更大的壓力，因為客戶試圖第二次咬蘋果，但我們在整個在投標季節期間，我們將保持紀律和專注，因為坦白說，在提出的一些機會中，它是不可再投資的，因此不值得做。

Very helpful. Maybe as a follow-up on the logistics side of the house. We've seen some interesting announcements. Obviously, a very large digital broker shut down a few months ago. You're seeing one of your peers examine strategic options for their digital brokerage business. The big player in the space is now talking about the business potentially being more cyclical than it has been before with operating leverage. Do you think the brokerage business has kind of structurally changed with kind of what it used to be and kind of given the investments that you guys are making yourselves, what's the outlook there kind of in both the short term and the cycle comes back, but also kind of medium and long term?

很有幫助。也許作為房子後勤方面的後續行動。我們看到了一些有趣的公告。顯然，一家非常大的數位經紀商幾個月前就關閉了。您看到您的一位同行正在研究其數位經紀業務的策略選擇。該領域的巨頭現在正在談論，憑藉營運槓桿，該業務可能比以前更具週期性。你認為經紀業務在結構上發生了某種程度的變化嗎？考慮到你們自己進行的投資，短期和周期回來的前景如何，但是也是中長期的嗎？

Sure. Lots to unpack there. I'll give it a whirl. I mean, first and foremost, I think the digital brokerage push, if that's all you are, and you're kind of hitching all your wagons to that horse. That's a difficult place to be because there's still a lot of need for institutional know-how, personal attention, the ability to follow up and provide customer service and opportunity to meet your customers or even exceed what their expectations are. And it's hard to do all of the above with just a digital platform only. It's a part of our portfolio. It's not the primary focus of how we're going to attack this market.

當然。那裡有很多東西可以打開。我會嘗試一下。我的意思是，首先也是最重要的，我認為數位經紀業務的推動，如果這就是你的全部，那麼你就有點把所有的馬車都拴在那匹馬上了。這是一個困難的地方，因為仍然需要大量的機構專業知識、個人關注、跟進和提供客戶服務的能力以及滿足客戶甚至超越他們期望的機會。僅靠數位平台很難做到上述所有事情。這是我們產品組合的一部分。這不是我們如何進攻這個市場的主要焦點。

I think what's really happened is when you think about Power Only and the brokerage role that Power Only plays, it is truly an efficiency gain for every customer that decides to purchase that product. Instead of a rainbow fleet out there that may have been getting service previously, but with a lot of labor cost absorbed by the customer to have to deal with multiple different trailers and all of the complexity that comes with that, us and others that are executing very well on Power Only have proven that there's a better way.

我認為真正發生的事情是，當您考慮 Power Only 以及 Power Only 所扮演的經紀角色時，對於每個決定購買產品的客戶來說，這確實是一種效率增益。我們和其他正在執行的人不是彩虹車隊，之前可能已經獲得了服務，但客戶承擔了大量的勞動力成本，必須處理多個不同的拖車以及隨之而來的所有複雜性在Power Only 上做得很好好，已經證明有更好的方法。

And I would liken it to a lesser degree, but it's similar to why do we like Dedicated so much more than One-Way. It's more complex. It involves -- it's more defensible. Well, so is the Power Only solutions that we're growing within our brokerage group. These are large-scale network relationships with large-scale blue-chip customers that need as frictionless of support as they can possibly get in their brokerage environment. And being able to offer both assets, Power Only, Dedicated and if need be Intermodal and Final Mile is a win for them. It makes their life easier, and I think that's what's putting the squeeze on folks that maybe are only playing in one end of that arena. And we're going to continue to apply that pressure every chance we get.

我會把它比作一個較小的程度，但這類似於為什麼我們更喜歡“Dedicated”而不是“One-Way”。情況更複雜。它涉及——它更具防禦性。嗯，我們在經紀團隊中發展的 Power Only 解決方案也是如此。這些是與大型藍籌客戶的大規模網絡關係，這些客戶需要在經紀環境中盡可能獲得無摩擦的支援。能夠提供僅動力、專用以及聯運和最後一英里這兩種資產對他們來說是一場勝利。這讓他們的生活變得更輕鬆，我認為這就是給那些可能只在競技場一端打球的人帶來壓力的原因。我們將一有機會繼續施加這種壓力。

The next question comes from Bascome Majors with Susquehanna.

下一個問題來自巴斯科姆梅傑斯與薩斯奎哈納。

As we look into the opportunity to grow Dedicated long term, can you talk a little bit about how the competition and that has changed at all through this cycle and if you think your niche has evolved at any point as more and more people have leaned further into that from the large carrier base and further away from One-Way?

當我們研究長期發展Dedicated 的機會時，您能否談談在這個週期中競爭和競爭發生了怎樣的變化，以及您是否認為隨著越來越多的人進一步傾斜，您的利基市場已經發生了演變從大型航母基地進入，遠離單向？

Yes. Thanks, Bascome. I appreciate the question. Yes, clearly, there's been new competition in Dedicated and new competitors coming to sort of look for that safe haven. But coming -- pulling into the port and then knowing how to maneuver and dock inside it is 2 totally different things. And so our ability and expertise over decades of work in Dedicated has proven itself to not only attract new customers and new logos into the portfolio but to retain them.

是的。謝謝，巴斯科姆。我很欣賞這個問題。是的，顯然，Dedicated 領域出現了新的競爭，新的競爭對手正在尋找這個避風港。但是，駛入港口，然後知道如何在港口內操縱和停靠是兩件完全不同的事情。因此，我們在 Dedicated 數十年的工作能力和專業知識已經證明，不僅能吸引新客戶和新商標進入產品組合，還能留住他們。

Now we're going to have more competitive white noise potentially on price from time to time in Dedicated with newer entrants into the market. But that's why we like to work with winning customers that are winning in their space and in their vertical because they view the supply chain as a competitive advantage, not as a cost center, and they want to work with people that know what they're doing. And we believe we're very good at it. And we're going to continue to lean into it. I'm excited about what that pipeline looks like right now. And yet, we're realistic. We know the win rate within that pipeline will be lower at this point that we sit at today and as we get into the first half of '24 because of some of these competitive pressures.

現在，我們將不時在專用市場上與新進入者一起提供更具價格競爭力的白噪音。但這就是為什麼我們喜歡與在其領域和垂直領域獲勝的客戶合作，因為他們將供應鏈視為競爭優勢，而不是成本中心，並且他們希望與了解自己的人合作正在做。我們相信我們非常擅長。我們將繼續致力於它。我對這條管道現在的樣子感到很興奮。然而，我們是現實的。我們知道，由於一些競爭壓力，在我們今天所處的這一點以及進入 24 年上半年時，該管道中的勝率將會較低。

That's simply a matter to put more on the top end of the funnel to make sure we get what we need out of the bottom end. And we'll be -- we just got back from our annual sales meeting that I can assure you, there was no lack of clarity on what we're looking for and how we're going to go about it. And our teams out there are working hard as we speak.

只需要在漏斗的頂端投入更多，以確保我們從底端得到所需的東西即可。我們剛從年度銷售會議上回來，我可以向你保證，我們在尋找什麼以及我們將如何做並不缺乏明確性。在我們說話的時候，我們的團隊正在努力工作。

The next question comes from Chris Wetherbee with Citi Group.

下一個問題來自花旗集團的 Chris Wetherbee。

I guess I just wanted to pick back up on sort of the Dedicated versus One-way Truckload kind of relationship, I guess. We heard from other carriers that there was maybe even some instances of breakeven or losing money on the truckload side. And I guess as you think about your sort of mix of business, I don't know that you've gone that far to suggest that the One-Way Truckload side is actually not making money in this environment. But kind of curious your thoughts on that relative profitability.

我想我只是想重新認識專用與單向卡車裝載之間的關係。我們從其他承運人那裡聽說，卡車裝載方面甚至可能出現一些損益平衡或虧損的情況。我想，當您考慮您的業務組合時，我不知道您已經走到了這一步，表明單向卡車裝載方面實際上在這種環境下沒有賺錢。但有點好奇你對相對獲利能力的看法。

And then what that implies about Dedicated margins and the ability for sort of them to turn up as we go through the next year. I guess we're trying to understand what the sort of margin opportunity looks like on the Dedicated side, if it's in the hundreds of basis points being like several hundreds of basis points or something a little bit smaller than that. So just kind of curious how you think about that. And can it come back as quickly as maybe -- obviously, truckload goes fairly quickly, but how do you think about the timing of that margin expansion as we go through the year?

然後，這對專用利潤意味著什麼，以及它們在明年出現的能力。我想我們正在試圖了解專用方面的保證金機會是什麼樣的，如果它是數百個基點，或者比這稍微小一點的話。所以只是有點好奇你對此有何看法。它能盡快恢復嗎？顯然，卡車裝載速度相當快，但您如何看待今年利潤擴張的時機？

Chris, this is Chris. Yes, a couple of points there. Certainly, Dedicated, as we've mentioned, has been steady, has been durable, continues to have double-digit margins there. So that puts -- can put the focus on One-Way. Certainly, there's been more volatility there. We're still not getting specific to disclose operating income between Dedicated and One-Way within our TTS segment. But it certainly is more volatile than Dedicated, low single-digit OI percentages for the full year. And that is primarily driven by some softer demand, the market backdrop as well as the lower rate per mile, although we've been faring, we believe, better than broadly the industry there through pricing discipline and a lot of aspects and actions, but that's really the major driver along with lower equipment gains, which has been challenging and will continue to, by and large, throughout this year, that is our view. And so those are the major drivers to TTS that's bringing down that margin. It's not necessarily in Dedicated.

克里斯，這是克里斯。是的，有幾點。當然，正如我們所提到的，Dedicated 一直很穩定，很耐用，並且繼續保持兩位數的利潤率。因此，可以將重點放在單向上。當然，那裡的波動性更大。我們尚未具體揭露 TTS 部門內 Dedicated 和 One-Way 之間的營業收入。但它肯定比全年的專用、低個位數的 OI 百分比更不穩定。這主要是由需求疲軟、市場背景以及每英里費率降低所推動的，儘管我們相信，透過定價紀律以及許多方面和行動，我們的表現比整個行業都要好，但是我們認為，這確實是設備收益下降的主要驅動因素，這一直是一個挑戰，並且總體上將在今年持續下去。因此，這些是導致 TTS 利潤下降的主要驅動因素。它不一定是專用的。

With some of the aspects that we talked about in terms of an improved market in the second half, restocking as well as some of the structural changes, continuing the utility trend and production trend that you've seen in One-Way. And with those cost savings that we've been talking about, we are targeting to get back to at the end of the year back to that TTS run rate target operating margin.

我們討論了下半年市場改善的一些方面，補充庫存以及一些結構性變化，繼續您在單向中看到的公用事業趨勢和生產趨勢。透過我們一直在談論的成本節約，我們的目標是在今年年底恢復到 TTS 運行率目標營運利潤率。

Yes. And I would add a couple of thoughts to that. One thing that's underappreciated about Dedicated is that throughout this downturn, although we had great fleet retention and have continued to even add new logos into the mix, the reason you haven't seen as much in truck growth is it's very common that across multiple fleets really across the entire network, they may be down 2 trucks, 3 trucks, 5 trucks just based on customer volumes and that had mostly to do with inventory levels and the lack of replenishment.

是的。我想補充一些想法。關於Dedicated 被低估的一件事是，在整個經濟低迷時期，儘管我們擁有出色的車隊保留率，甚至繼續在組合中添加新徽標，但您沒有看到卡車增長那麼多的原因是，跨多個車隊的情況很常見實際上，在整個網路中，僅根據客戶量，他們可能會減少 2 輛卡車、3 輛卡車、5 輛卡車，這主要與庫存水準和缺乏補貨有關。

As we get to a more normalized run rate and we look forward, the upside leverage to adding 3 to 4 trucks to across 100-plus dedicated fleets can become very compelling because your fixed costs are essentially still what they are. You're not adding a lot of incremental other cost other than the variable cost of running that equipment. And so that's exciting. And so Dedicated has more upside potential than people realize as the market strengthens.

隨著我們達到更加標準化的運行率，並且我們期待著，向100 多個專用車隊添加3 到4 輛卡車的上行槓桿可能會變得非常引人注目，因為您的固定成本基本上仍然是原來的成本。除了運行該設備的可變成本之外，您不會增加大量其他增量成本。這很令人興奮。因此，隨著市場走強，Dedicated 的上行潛力比人們意識到的還要大。

And then in One-Way, I don't want to underestimate the fact that even with only 2,700 trucks and over time, that number will be smaller. The percentage of those trucks that are available for hire and nimble and can be moved right now is high. Now I don't necessarily love that because it means it's not tied up with long-term valued customers under the type of arrangements that we prefer. But the good news is they're available and they're free agents that can be moved around as appropriate as this market turns, and they will be moved because we're not going to continue to run a network in One-Way at the return levels that we're seeing today, and we owe it to our shareholders and others to make sure that isn't the case. And so we'll be able to respond, as you mentioned, to the One-Way market that more quickly turns. We'll be nimble there.

然後，在 One-Way 中，我不想低估這樣一個事實：即使只有 2,700 輛卡車，隨著時間的推移，這個數字也會更少。可供租賃、靈活且可立即移動的卡車的比例很高。現在我不一定喜歡這一點，因為這意味著它不會按照我們喜歡的安排類型與長期有價值的客戶聯繫在一起。但好消息是他們是可用的，而且他們是自由球員，可以隨著市場的變化而適當移動，他們會被移動，因為我們不會繼續在單向運行網絡我們今天看到的回報水平，我們有責任向我們的股東和其他人確保情況並非如此。因此，正如您所提到的，我們將能夠對變化更快的單向市場做出反應。我們在那裡會很靈活。

Okay. I appreciate that. And one quick follow-up just on the gain side. As you think about the first half of the year, should we be assuming essentially kind of very flattish or sort of 0 gains in the first half with maybe more material uptick towards the end?

好的。我很感激。還有一個快速的後續行動，只是在增益方面。當你思考今年上半年時，我們是否應該假設上半年的漲幅基本上是非常平淡或為零，而到年底可能會出現更多的實質上漲？

Well, as we said earlier, the range that we are guiding to is $10 million to $30 million for the entire year. that will be more challenging or challenged in the first half of the year versus the second half of the year.

嗯，正如我們之前所說，我們全年的指導範圍是 1000 萬至 3000 萬美元。與下半年相比，上半年將更具挑戰性或挑戰。

The last question today comes from Tom Wadewitz with UBS.

今天的最後一個問題來自瑞銀集團的湯姆·瓦德維茨。

I wanted to see if you could offer some thoughts on just where you think the One-Way fleet count goes. It seems like that's been coming down a bit. And it sounds like you've got maybe more than normal trucks in the spot market in One-Way. Is that something you just kind of let that continue to attrit down?

我想看看您是否可以就您認為單向機隊數量的走向提出一些想法。好像已經下降了一些。聽起來單程現貨市場上的卡車數量可能比一般卡車還要多。這是你讓其繼續惡化的事情嗎？

And then I guess from a more strategic perspective, is there a reason to keep a couple of thousand trucks in One-Way? Or do you just kind of keep shifting those into Dedicated as you get Dedicated growth? It's not -- I don't know, it's hard to know what the theoretical framework is for what you really need in One-way. So yes, just some thoughts on kind of near term and medium term on One-Way fleet.

然後我想從更具策略性的角度來看，是否有理由在單向中保留數千輛卡車？或者，當您獲得專用成長時，您是否會不斷將它們轉移到專用？這不是——我不知道，很難知道單向中你真正需要的理論架構是什麼。所以，是的，只是對單向機隊的近期和中期的一些想法。

Yes, Tom, this is Derek. A couple of things there. One, we do need a one-way fleet for a variety of reasons that may not be as obvious as only the returns. One, it's a great entry point to get involved and engaged with the customer and show them what Werner is all about, to get them familiar with the brand, the culture, the service levels and the commitment to safety. It also houses the Mexico cross-border franchise, which has also performed well, and we got to continue to focus on taking advantage of the near-shoring opportunities as they present themselves, and we're going to continue to be prepared to do that.

是的，湯姆，這是德瑞克。有幾件事。第一，出於多種原因，我們確實需要一支單程車隊，這些原因可能不像回報那麼明顯。第一，這是一個很好的切入點，可以讓客戶參與進來，向他們展示沃納的全部內容，讓他們熟悉品牌、文化、服務水準和安全承諾。它還擁有墨西哥跨境特許經營權，該特許經營權也表現良好，我們必須繼續專注於利用近岸機會，我們將繼續為此做好準備。

We've increased utility in the One-Way fleet significantly and that leads to being able to do more with less. And so we don't need the same number of trucks. And then Power Only operates in many respects within the same freight environment as One-Way, and it's really sort of a seamless movement of freight. So that also dictates. So if I zoom out to 40,000 feet, the goal is to continue to grow Dedicated.

我們顯著提高了單向車隊的實用性，從而能夠用更少的資源做更多的事情。因此我們不需要相同數量的卡車。然後，Power Only 在許多方面都在與 One-Way 相同的貨運環境中運作，這實際上是一種無縫的貨運方式。所以這也決定了。因此，如果我縮小到 40,000 英尺，目標就是繼續增長 Dedicated。

One-Way is a great kind of launching pad for drivers to come into the network to learn Werner, to learn the culture. It's a great way to get to know customers and show them who we are and what we are. And at this point, where we're at in the cycle, also, I don't want that fleet to be so small as to not be able to participate in the opportunities that are going to be ahead of us as we see the inflection in pricing, both in spot and contract. So it's -- I'm not here to give you a number.

One-Way 是一種很好的跳板，可以讓司機進入網路學習維爾納、了解文化。這是了解客戶並向他們展示我們是誰以及我們是什麼的好方法。在這一點上，我們正​​處於週期中，我也不希望該機隊太小，以至於無法參與我們看到拐點時將要出現的機會在定價方面，無論是現貨還是合約。所以，我來這裡不是為了給你一個數字。

I don't think at this point, there's anything on our road map that would indicate we want to grow One-Way, but I do want to continue to free One-Way assets up to be able to play whatever position comes available in the market as the market turns. I want to continue to have it be a landing pad for drivers that are coming into our culture and learning what Werner stands for.

我不認為在這一點上，我們的路線圖上有任何內容表明我們想要發展單向，但我確實希望繼續釋放單向資產，以便能夠發揮任何可用的位置市場隨著市場的轉變。我希望繼續讓它成為那些進入我們文化並了解維爾納所代表的車手的著陸平台。

I want to continue to engineer further to try to push the envelope on production, but do so safely above all else. And I want to make sure that as Mexico cross-border opportunities present themselves that we're able to respond. And we are both in the asset and non-asset side through the significant investments we've made on the southern border and our cross-dock operations in Laredo, be able to grow and really lean into this nearshoring as it matures because we're in the very early innings of that right now, but it will continue to mature, and we think we're well positioned for those opportunities.

我想繼續進一步設計，嘗試突破生產極限，但安全高於一切。我想確保，當墨西哥跨境機會出現時，我們能夠做出回應。透過我們在南部邊境和拉雷多的跨碼頭業務的重大投資，我們在資產和非資產方面都處於資產和非資產方面，隨著近岸業務的成熟，我們能夠發展並真正依靠它，因為我們目前還處於早期階段，但它將繼續成熟，我們認為我們已經為這些機會做好了準備。

So if you look out a couple of quarters, you think you're closer to 3,000 trucks or 2,500 trucks in One-Way?

因此，如果您觀察幾個季度，您認為 One-Way 中的卡車數量接近 3,000 輛或 2,500 輛嗎？

We won't be at 3,000 trucks in a couple of quarters in One-Way, I can assure you. Whether we're at 2,500 or not will be determined largely by the close rate and implementation dates of dedicated opportunities because we're also not at a point right now until we get returns where they belong to grow total fleet. So that will be the farm system for those dedicated opportunities largely. And if anything, you'll see One-Way assets decrease in size while dedicated grows. And historically, we've talked about kind of a 65-35. We're well past that in our mindset now. And we believe there is no -- we have no inhibition about dedicated growing to be 70% of the fleet in the intermediate term.

我可以向你保證，One-Way 的卡車數量不會在幾個季度內達到 3,000 輛。無論我們是否達到 2,500，很大程度上取決於專用機會的成交率和實施日期，因為我們現在還沒有達到我們獲得屬於增加總機隊的回報的程度。因此，這將主要是那些專門機會的農場系統。如果有的話，您會看到單向資產規模縮小，而專用資產規模增加。從歷史上看，我們討論過 65-35 的情況。現在我們的心態已經遠遠超過了這一點。我們相信，在中期內，我們不會抑制專用機隊佔機隊比例的 70%。

I'll now turn the call over to Mr. Derek Leathers, who will provide closing comments. Please go ahead, sir.

我現在將把電話轉給德里克·萊瑟斯先生，他將發表總結評論。請繼續，先生。

Yes, thank you. I just want to thank everybody for joining us today on our fourth quarter call. I know the quarter represented a further extension of what's been a very challenging freight environment. But we do believe capacity rightsizing is gaining momentum and inventory levels are in line and replenishment early innings have begun.

是的，謝謝。我只想感謝大家今天加入我們的第四季電話會議。我知道本季代表著極具挑戰性的貨運環境的進一步擴展。但我們確實相信，產能調整正在獲得動力，庫存水準也處於穩定狀態，補貨初期已經開始。

We entered this year, and we're focused on operational discipline and controlling the controllable. We'll continue to identify and implement cost savings without sacrificing our ability to respond as the market improves. Dedicated remains the core of this portfolio and logistics share gains allow us to be more creative than ever with how our customers' needs are going to be addressed.

我們進入今年，重點是操作紀律、控制可控。我們將繼續確定並實施成本節約，而不會犧牲我們隨著市場改善做出反應的能力。專用仍然是該產品組合的核心，而物流份額的成長使我們能夠比以往更具創意地滿足客戶的需求。

Power Only, cross-border Mexico and then further engineering of our One-Way lanes show promising opportunities for both top and bottom line improvements as the year plays out. And finally, we're committed to being good stewards of capital as we go forward this year and like the positioning of our fleet to kick off 2024.

僅電力、跨境墨西哥以及我們單向車道的進一步工程顯示，隨著這一年的結束，收入和利潤都有良好的改善機會。最後，我們致力於在今年前進時成為良好的資本管理者，並喜歡我們的機隊在 2024 年開始時的定位。

And with that, I just want to thank you all for joining our call today and spending your time with us.

在此，我只想感謝大家今天加入我們的電話會議並與我們共度時光。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。