Werner Enterprises Inc (WERN) 2024 Q1 法說會逐字稿

Good afternoon, and welcome to the Werner Enterprises First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

下午好，歡迎參加維爾納企業 2024 年第一季財報電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Chris Neil, Senior Vice President 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.

大家下午好。

Earlier today, we issued our earnings release with our first quarter results. The 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.

今天早些時候，我們發布了第一季業績的收益報告。此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。

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. 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.

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。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 overview of our Q1 results and update on our strategic priorities for 2024 and our market outlook. Chris will cover our financial results in more detail, and provide an update on our guidance for the year.

與我一起參加今天電話會議的是董事長兼執行長德里克‧萊瑟斯 (Derek Leathers)； Chris Wikoff，執行副總裁、財務主管兼財務長。德里克 (Derek) 將概述我們第一季的業績，並介紹我們 2024 年策略重點和市場前景的最新情況。克里斯將更詳細地介紹我們的財務業績，並提供我們今年指導的最新資訊。

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 you joining us.

謝謝克里斯，大家下午好。我們感謝您加入我們。

Before we get started on our first quarter update, I would like to acknowledge the very difficult time many of our associates and fellow citizens of Omaha are enduring as a result of the catastrophic tornadoes that took place this past Friday. It is truly inspirational to see both the Werner and broader community come together to support those in need. Miraculously, there are no reported fatalities locally at this time, but there remains a path of devastation that is hard to even describe. Regrettably, the devastation continued throughout the weekend in Iowa, Kansas and Oklahoma. Our thoughts, prayers and ongoing support go out to those impacted by this horrible disaster that has impacted so many.

在我們開始第一季更新之前，我想承認我們的許多同事和奧馬哈同胞由於上週五發生的災難性龍捲風而經歷了非常困難的時期。看到維爾納和更廣泛的社區齊心協力支持有需要的人，這確實令人鼓舞。奇蹟般的是，目前當地還沒有死亡報告，但仍存在著難以形容的破壞路徑。遺憾的是，整個週末愛荷華州、堪薩斯州和俄克拉荷馬州的破壞仍在持續。我們向那些受到這場影響如此之多的可怕災難影響的人們表示哀悼、祈禱和持續的支持。

I will now turn my attention to the results of the quarter. Our first quarter results reflect the reality that the freight market continues to be challenging and was further compounded by adverse weather in Q1. Despite these industry-wide headwinds, our focus remained on controlling the controllables. We realized another favorable quarter for one-way production, increased revenue per truck and dedicated and maintained high customer retention.

我現在將注意力轉向本季的業績。我們第一季的業績反映了貨運市場繼續面臨挑戰的現實，而第一季的惡劣天氣進一步加劇了這一挑戰。儘管存在這些全行業的阻力，我們的重點仍然是控制可控因素。我們實現了單向生產又一個有利的季度，增加了每輛卡車的收入，並保持了較高的客戶保留率。

We generated solid operating cash flow by proactively managing expenses, executed on additional cost savings, reduced our debt and repurchased shares during the quarter. While we cannot control the macro, we are focused on our long-term strategy and structural improvements to position Werner for success in an eventual tighter market.

我們透過主動管理費用、節省額外成本、減少債務並在本季回購股票，產生了穩定的營運現金流。雖然我們無法控制宏觀經濟，但我們專注於長期策略和結構性改進，以使維爾納在最終趨緊的市場中取得成功。

Let's move on to Slide 5 and highlight our first quarter results. During the quarter, revenues were 8% lower versus the prior year. Adjusted EPS was $0.14. Adjusted operating margin was 2.4%. Adjusted TTS operating margin was 4.7% net of fuel surcharges. In Dedicated, there's more noise from competition. Despite losing a few fleets to changes in the supply chain approach for select customers and isolated competitive undercutting, Dedicated remains solid and resilient and delivered another quarter of year-over-year revenue per truck growth. We are maintaining price discipline in Dedicated, particularly given our long-term agreements. Our Dedicated offering is superior in scale, service and reliability. Accordingly, we look to large enterprise customers that value their supply chain as strategic, mission-critical and not left to less sophisticated or inexperienced carriers.

讓我們繼續看投影片 5，重點介紹我們第一季的業績。本季營收比上年同期下降 8%。調整後每股收益為 0.14 美元。調整後營業利益率為 2.4%。扣除燃油附加費後，調整後的 TTS 營運利潤率為 4.7%。在 Dedicated 中，競爭的噪音更多。儘管由於特定客戶供應鏈方式的變化以及孤立的競爭削弱而損失了一些車隊，但 Dedicated 仍然保持穩健和彈性，每輛卡車的收入同比又增長了一個季度。我們正在維持 Dedicated 的價格紀律，特別是考慮到我們的長期協議。我們的 Dedicated 產品在規模、服務和可靠性方面都非常出色。因此，我們希望大型企業客戶將其供應鏈視為策略性、關鍵任務，而不是留給不夠成熟或缺乏經驗的承運商。

As expected, One-Way Truckload volume was steady and seasonally consistent. The revenues remain challenged by ongoing rate pressure. Despite setbacks from weather, miles per truck increased 11%, marking the fourth consecutive quarter of improvement. Our total miles were nearly similar to prior year down less than 3% despite 13% fewer trucks. We are pleased with the operational excellence that has been building to achieve similar volume with less capital intensity.

正如預期的那樣，單程卡車裝載量穩定且與季節性一致。收入仍受到持續利率壓力的挑戰。儘管受到天氣影響，每輛卡車的行駛里程仍增加了 11%，這是連續第四個季度取得進步。儘管卡車數量減少了 13%，但我們的總里程幾乎與去年相似，下降了不到 3%。我們對卓越的營運感到滿意，這些卓越的營運以較低的資本密集度實現了類似的業務量。

Within Logistics, first quarter volume reflected normal seasonality while results were impacted by further rate pressure. Still, we maintained a 15% gross margin, saw meaningful increases in both domestic and cross-border Power Only volume, drove strong customer retention and realized new business wins and higher volume in intermodal.

在物流領域，第一季的交易量反映了正常的季節性，而結果則受到進一步的費率壓力的影響。儘管如此，我們仍保持了 15% 的毛利率，國內和跨境 Power Only 銷量均顯著增長，提高了客戶保留率，並實現了新業務的贏得和多式聯運銷量的增加。

In short, despite seasonably stable customer demand, lower rates caused freight conditions to remain challenged. Inclement weather further negatively impacted One-Way and Logistics and a limited driver throughput for our school network. This, combined with higher-than-usual health and workers' comp benefits and elevated insurance expense, resulted in lower operating income. That said, we are proud to have achieved a first quarter 20-year record low for preventable accidents in addition to a high level of service to our customers, improved One-Way miles per truck and progress on our cost savings initiatives.

簡而言之，儘管客戶需求季節性穩定，但較低的運價導致貨運狀況仍面臨挑戰。惡劣的天氣進一步對單程和物流產生了負面影響，並限制了我們學校網路的司機吞吐量。再加上高於平常的健康和工人補償福利以及保險費用的增加，導致營業收入下降。儘管如此，我們很自豪第一季的可預防事故數量創下了20 年來的新低，此外還為我們的客戶提供了高水平的服務、提高了每輛卡車的單程里程以及在成本節約計劃方面取得了進展。

Moving to Slide 6. Despite the challenging environment, we continue to push forward with implementing structural improvements that will position Werner for success as rate normalizes. Our drive framework continues to inform our decisions over the long term. representing our commitment to durability, results, innovation, values, our associates and the environment.

轉到投影片 6。我們的驅動框架將繼續為我們的長期決策提供資訊。代表我們對耐用性、成果、創新、價值、員工和環境的承諾。

Last week, we announced that Werner made it to Forbes list of America's Best Large Employers for 2024. Forbes selected 600 outstanding companies for its list and Werner placed #10 in transportation and logistics category. This honored award highlights Werner's quality, employee satisfaction and an industry leadership.

上週，我們宣布 Werner 入圍《福布斯》2024 年美國最佳大型雇主排行榜。這項殊榮彰顯了維爾納的品質、員工滿意度和產業領導。

Relative to our 2024 objectives, last quarter, we communicated 3 overarching priorities to generate earnings power and drive value creation in 2024 and beyond. They are: driving growth in core business, driving operational excellence as a core competency and driving capital efficiency.

相對於我們的 2024 年目標，上季度我們傳達了 3 個首要優先事項，以在 2024 年及以後產生盈利能力並推動價值創造。它們是：推動核心業務成長、推動卓越營運作為核心能力以及提高資本效率。

Relative to our first priority, driving growth in core business. Topline improvement depends on time and pace of market inflection. In Dedicated, we see increased pressure as the down cycle continues and other carriers seek shelter. We continue to see a strong dedicated pipeline of opportunities to first backfill isolated fleet reductions and then focus on that growth. To achieve our long-term TTS range of 12% to 17% adjusted operating margin, we are executing on our cost savings plan, which is going well. We purposely set this as a long-term target though in certain years could be exceptionally up or down, but most years would fall within the range.

相對於我們的首要任務，推動核心業務的成長。營收改善取決於市場轉折點的時間和速度。在專用業務中，隨著下行週期的持續以及其他營運商尋求庇護，我們看到壓力越來越大。我們繼續看到強大的專用機會，首先回補孤立的機隊減少，然後專注於成長。為了實現 12% 至 17% 的調整後營業利潤率的長期 TTS 範圍，我們正在執行成本節約計劃，該計劃進展順利。我們特意將此作為長期目標，儘管在某些年份可能會異常上升或下降，但大多數年份都會落在該範圍內。

From an operational and cost basis perspective, Werner is in a much stronger position and with increased demand, better rates, a stronger used equipment market and further reining in of insurance cost per claim, we are confident we will achieve this and see operating leverage come through. However, in the current day, the freight environment remains very challenging to forecast. If the market stays lower for longer, it may serve as a headwind to reach this goal by the end of 2024.

從營運和成本基礎的角度來看，維爾納處於更有利的地位，隨著需求的增加、更好的費率、更強大的二手設備市場以及每項索賠的保險成本的進一步控制，我們有信心實現這一目標，並看到營運槓桿的到來通過。然而，目前貨運環境的預測仍然非常具有挑戰性。如果市場長期保持較低水平，可能會成為 2024 年底實現這一目標的阻力。

Relative to our second priority, driving operational excellence as a core competency, we are maintaining a favorable safety record, advancing our technology strategy and progressing our cost savings program. Transitioning to our EDGE TMS platform is a multiyear journey, and we remain encouraged by the synergies and value of a single freight platform, enhancing our customers' experience and our visibility while providing additional opportunities to grow revenue and reduce cost.

相對於我們的第二要務，即推動卓越營運作為核心能力，我們正在保持良好的安全記錄，推進我們的技術策略並推進我們的成本節約計劃。過渡到我們的 EDGE TMS 平台是一個多年的旅程，我們仍然對單一貨運平台的協同效應和價值感到鼓舞，它增強了客戶的體驗和知名度，同時提供了增加收入和降低成本的額外機會。

And finally, our third priority, driving capital efficiency. We had another strong quarter of operating cash flow. We continue with intentionality in our capital allocation. Net leverage CapEx spend and fleet age all remain low. Despite lower used equipment values, we are on track with our expectations and continue to anticipate a greater pace of gains later in the year. You will hear more about these priorities on quarterly calls going forward.

最後，我們的第三個優先事項是提高資本效率。我們的營運現金流又一個強勁的季度。我們繼續有意進行資本配置。淨槓桿資本支出和機隊年齡均維持在較低水準。儘管二手設備價值較低，但我們仍符合我們的預期，並繼續預計今年稍後會有更大的漲幅。您將在未來的季度電話會議中聽到更多有關這些優先事項的資訊。

Before passing it over to Chris to discuss our financial results for the quarter, I want to provide our current view of the market. Turning to Slide 7. We expect a challenging freight market to continue through second quarter and into the second half of 2024. While inventory levels have normalized and destocking is largely behind us, we haven't seen signs of significant restocking. Attrition is happening, but at a slower pace, and as a result, competitive pricing pressure remains.

在交給克里斯討論我們本季的財務表現之前，我想先介紹一下我們目前對市場的看法。轉向投影片 7。 我們預計充滿挑戰的貨運市場將持續到第二季​​直至 2024 年下半年。人員流失正在發生，但速度較慢，因此，競爭性定價壓力仍然存在。

We have experienced more seasonal freight trends in April, specifically better demand on the West Coast related to certain spring projects. Recent isolated fleet losses in Dedicated will put pressure on our full year fleet guidance. We performed well in Dedicated, continue to maintain a 93% customer retention rate and we can see a pathway to truck growth with a more normal supply/demand environment, although our focus is first on backfilling losses while managing yield.

4 月我們經歷了更多的季節性貨運趨勢，特別是與某些春季項目相關的西海岸需求增加。最近專用船隊的個別機隊損失將對我們的全年機隊指導造成壓力。我們在 Dedicated 方面表現良好，繼續保持 93% 的客戶保留率，我們可以看到在更正常的供需環境下實現卡車增長的途徑，儘管我們的重點首先是在管理產量的同時彌補回填損失。

The One-Way operating environment remains challenging and led to a competitive early bid season with mixed results. We will continue to exercise pricing discipline. The environment in logistics is still very competitive and margins will continue to be pressured. Longer term, our portfolio of customers, our deep network of qualified carriers, our investment in technology and our operational improvement initiatives position us well for long-term profitable growth in this segment.

單向營運環境仍充滿挑戰，並導致早期投標季節競爭激烈，結果好壞參半。我們將繼續實行定價紀律。物流環境的競爭仍然非常激烈，利潤率將繼續受到壓力。從長遠來看，我們的客戶組合、合格承運商的深厚網路、技術投資和營運改善舉措使我們在這一領域實現長期獲利成長。

With that, let me turn it over to Chris to go through our first 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一季的表現。

Thank you, Derek.

謝謝你，德里克。

Let's continue on Slide 9. First quarter revenues totaled $769 million, down 8% versus prior year. Adjusted operating income was $18.6 million and adjusted operating margin was 2.4%, down 68% and 450 basis points, respectively. Adjusted EPS of $0.14 was down $0.46 with over 95% of the variance, driven by a softer used equipment market and lower gains combined with rate pressure in One-Way and Logistics.

讓我們繼續看投影片 9。調整後營業收入為 1,860 萬美元，調整後營業利益率為 2.4%，分別下降 68% 和 450 個基點。調整後每股收益為 0.14 美元，下降了 0.46 美元，差異超過 95%，原因是二手設備市場疲軟、收益下降以及 One-Way 和 Logistics 的利率壓力。

Turning to Slide 10. Truckload Transportation Services total revenue for the first quarter was $551 million, down 6%. Revenues net of fuel surcharges fell 4% to $478 million. TTS adjusted operating income was $22.7 million, down 58% versus prior year, and adjusted operating margin net of fuel was 4.7%, down 600 basis points. A decline in equipment gains drove nearly half of the TTS decline in operating income. We continue to see gains, albeit lower, and we are leaning into the expertise and capability of our national fleet sales operation.

轉向幻燈片 10。扣除燃油附加費後的收入下降 4%，至 4.78 億美元。 TTS 調整後營業收入為 2,270 萬美元，較上年下降 58%，扣除燃料後的調整後營業利潤率為 4.7%，下降 600 個基點。設備收益的下降導致了 TTS 營業收入下降的近一半。我們繼續看到收益，儘管有所下降，並且我們正在依靠我們全國車隊銷售業務的專業知識和能力。

During the quarter, consolidated gains on sale of equipment came in line with our expectations, totaling $3.6 million, a decline of $14.8 million or down 80% from a tough comp last year. We are maintaining our view of second half versus first half improvement in the used equipment market, although values may be held down for longer. Net of fuel surcharges and equipment gains, TTS operating expenses declined modestly year-over-year and sequentially, but were more than offset by TTS trucking revenue rate per mile decline of 2% versus prior year. and a 7% smaller fleet size.

本季度，設備銷售的綜合收益符合我們的預期，總計 360 萬美元，比去年的嚴峻對比下降了 1,480 萬美元，即下降 80%。我們維持對二手設備市場下半年相對上半年有所改善的看法，儘管價值可能會持續更長時間。扣除燃油附加費和設備收益後，TTS 營運費用年比和環比小幅下降，但被 TTS 卡車運輸每英里收入較上年下降 2% 所抵消。機隊規模縮小 7%。

One-Way rate per total mile during the quarter decreased 5.1%. In terms of improvements in the quarter in various TTS expense categories, operating supplies and maintenance expense was down $5 million and 8% versus prior year, and nondriver salaries, wages and benefits were down $2 million or 3%. Driver pay was down excluding fringe benefits. Benefit expense in the quarter increased nearly $2 million versus prior year, driven by outsized health insurance costs in January that subsided later in the quarter.

本季每總英里的單程費率下降了 5.1%。就本季各種TTS 費用類別的改善而言，營運用品和維護費用比去年同期下降了500 萬美元，下降了8%，非駕駛員工資、工資和福利下降了200 萬美元，下降了3% 。不包括附加福利的司機薪資下降。由於 1 月份巨額醫療保險費用在本季稍後有所下降，本季的福利費用比去年同期增加了近 200 萬美元。

Dedicated remains steady and durable generating double-digit operating margins on a trailing 12-month basis, whereas One-Way remains especially challenging. As Derek mentioned, achieving our long-term TTS operating margin range is a key priority, and we remain focused on producing higher operating margins, but achieving this goal by end of the year will be more challenging given first quarter results.

Dedicated 保持穩定和持久，在過去 12 個月的基礎上產生兩位數的營業利潤，而 One-Way 仍然特別具有挑戰性。正如德里克所提到的，實現我們的長期TTS 營業利潤率範圍是一個關鍵優先事項，我們仍然專注於產生更高的營業利潤率，但考慮到第一季的業績，在今年年底實現這一目標將更具挑戰性。

Turning to Slide 11 to review our fleet metrics. TTS average truck count was 7,935 during the quarter, down just over 7%. We ended the quarter with the TTS fleet down 2% sequentially and 8% year-over-year. Our TTS revenue per truck per week net of fuel grew during the quarter by 2.8% and has increased year-over-year 20 of the last 25 quarters.

請參閱投影片 11 來回顧我們的車隊指標。本季 TTS 平均卡車數量為 7,935 輛，下降略高於 7%。本季結束時，TTS 機隊季減 2%，年減 8%。我們每輛卡車每週的 TTS 收入（扣除燃油）在本季度增長了 2.8%，並且在過去 25 個季度中同比增長了 20 個季度。

Within TTS for the first quarter, Dedicated revenue net of fuel was $301 million, down 3%. Dedicated represented 64% of segment revenue compared to 63% a year ago. Dedicated average trucks decreased 4% to 5,149 trucks. At quarter end, Dedicated represented 65% of the TTS fleet. Dedicated revenue per truck per week increased 1.3% year-over-year, growing 24 of the last 25 quarters through all economic conditions. While our per truck production is trending well, the impact from isolated fleet losses will continue into second and third quarter as those reductions are fully realized. As we've said before, the opportunity pipeline in Dedicated remains strong but competitive. We are focused on winning with customers that value the reliability, scale, safety and service of our proven Dedicated model.

第一季 TTS 中，扣除燃油後的專用收入為 3.01 億美元，下降 3%。專用業務佔該部門收入的 64%，而一年前為 63%。專用卡車平均數量下降 4%，至 5,149 輛。截至季末，Dedicated 佔 TTS 機隊的 65%。每輛卡車每週的專用收入年增 1.3%，在過去 25 個季度中，有 24 個季度在所有經濟條件下都實現了成長。雖然我們的每輛卡車產量趨勢良好，但隨著這些減少完全實現，孤立的車隊損失的影響將持續到第二和第三季。正如我們之前所說，Dedicated 的機會管道仍然強勁但具有競爭力。我們致力於贏得重視我們經過驗證的專用模型的可靠性、規模、安全性和服務的客戶。

Demand improvement will naturally expand existing fleets that contracted single-digit percentages over the last year. And with a tighter market, we are positioned well to further penetrate new verticals and other hard-to-serve freight opportunities. In our One-Way business for the first quarter, trucking revenue was $169 million, a decrease of 8% versus prior year. Average truck count was down 13% to 2,786 trucks. Revenue per truck per week was up 5.6% year-over-year. One-Way bid season is well underway with mixed results that are customer specific and reflective of the competitive environment. As we focus on the controllables, we are pleased with another quarter of production gains, achieving near similar total miles versus prior year, but with 13% fewer trucks. We expect the favorable production trend to continue throughout the year, although year-over-year improvements will moderate.

需求的改善自然會擴大去年收縮了個位數百分比的現有機隊。隨著市場趨緊，我們處於有利地位，可以進一步滲透新的垂直領域和其他難以服務的貨運機會。第一季我們的 One-Way 業務貨運收入為 1.69 億美元，比去年同期下降 8%。平均卡車數量下降 13% 至 2,786 輛。每輛卡車每週的收入年增 5.6%。單向投標季節正在順利進行，結果好壞參半，具體取決於客戶並反映了競爭環境。當我們專注於可控因素時，我們對產量又增加了四分之一感到滿意，總里程數與去年幾乎相似，但卡車數量減少了 13%。我們預計有利的生產趨勢將持續全年，儘管同比增長將放緩。

In addition, our Power Only offering within Logistics segment continues to grow. In a tighter market with better rates, this combination of One-Way production gains plus double-digit Power Only volume growth translates to improved ROI, and it provides more options for our One-Way customers, which we can leverage when the market turns.

此外，我們在物流領域的 Power Only 產品持續成長。在價格更加緊張的市場中，單向產量增長加上兩位數的Power Only 銷量增長的結合轉化為投資回報率的提高，並且它為我們的單向客戶提供了更多選擇，我們可以在市場轉變時利用這些選擇。

Our Baylor acquisition continues to maintain shipper brand loyalty, and in terms of our ECM acquisition, our Northeast density is proving valuable to cross-sell and expand business in the region with long-standing Werner customers.

我們對貝勒的收購繼續保持了托運人的品牌忠誠度，而就我們對ECM 的收購而言，事實證明，我們的東北密度對於與Werner 的長期客戶進行交叉銷售和擴大該地區的業務非常有價值。

Turning now to our Logistics segment on Slide 12. In the first quarter, Logistics revenue declined $26 million or 11%, representing 26% of total first quarter Werner revenues. Revenue in Truckload Logistics declined 13% and volumes decreased 6%. Shipments declined sequentially from normal seasonality and due to our focus on revenue quality. As previously mentioned, our Power Only solution again represented a growing portion of the Truckload Logistics volume in the quarter.

現在轉向幻燈片 12 上的物流部門。整車物流收入下降 13%，貨運量下降 6%。由於我們對收入品質的關注，出貨量較正常季節性下降。如前所述，我們的純電源解決方案再次代表了本季卡車物流量的不斷增長的部分。

Intermodal revenues, which make up approximately 12% of segment revenue, declined year-over-year due to a decrease in revenue per shipment partially offset by an increase in shipments. Final Mile continued to show growth in the first quarter, reporting just under a 5% increase in revenue despite a softer market for discretionary spending on big and bulky products.

多式聯運收入約佔該部門收入的 12%，年減，原因是每批貨物收入的下降被發貨量的增加部分抵消。 Final Mile 在第一季繼續呈現成長勢頭，儘管大型產品的可自由支配支出市場疲軟，但營收仍成長了不到 5%。

Logistics adjusted operating loss was $1.2 million in the first quarter. Adjusted operating margin was near breakeven, reporting a small loss of 0.6%, down 340 basis points year-over-year and 190 basis points sequentially, driven by rate and gross margin compression. We expect brokerage margins will remain challenged in the near term with operating margins expanding later in the year through our cost savings and integration success. The team was able to improve revenue quality as the quarter progressed, resulting in gross margins that were better in February and March.

第一季物流調整後營運虧損為 120 萬美元。調整後營業利益率接近損益兩平，小幅虧損 0.6%，較去年同期下降 340 個基點，較上季下降 190 個基點，原因是利率和毛利率壓縮。我們預計經紀利潤率在短期內仍將面臨挑戰，透過我們的成本節約和整合成功，營業利潤率將在今年稍後擴大。隨著季度的進展，該團隊能夠提高收入質量，從而導致 2 月和 3 月的毛利率更好。

During the quarter, we further integrated the Reed acquisition, along with completing certain technology advancements in EDGE TMS and implementation of improved freight payment and audit processes. We are seeing the fruit from these initiatives, and this will aid in sustainable margin improvement in coming quarters. Our strong and growing brokerage refrigerated services should also position us to capitalize on improving seasonal trends related to produce and food and beverage.

本季度，我們進一步整合了對 Reed 的收購，同時完成了 EDGE TMS 的某些技術進步，並實施了改進的運費支付和審計流程。我們看到了這些舉措的成果，這將有助於未來幾季利潤率的可持續改善。我們強大且不斷增長的經紀冷藏服務也將使我們能夠利用與農產品和食品和飲料相關的季節性趨勢的改善。

Overall, we remain encouraged about the mid- and long-term benefits of our logistics business. Given a strong customer portfolio and growing contract business by growing Power Only solution, advancing our technology strategy and long-term opportunity for growing Final Mile and Intermodal.

整體而言，我們對物流業務的中長期效益仍然感到鼓舞。透過不斷發展 Power Only 解決方案、推進我們的技術策略以及發展 Final Mile 和 Intermodal 的長期機會，我們擁有強大的客戶組合和不斷增長的合約業務。

On Slide 13, we provide an update on our cost savings program. Executing well on our cost savings program remains key to expanding margin and earnings in 2024 and beyond given a freight and used equipment market that will continue to be challenging. In 2024, we continue to expect to capture over $40 million of savings that are largely structural and sustainable. We have realized $12 million of savings through the first quarter and have a clear line of sight on the rest of the program.

在投影片 13 上，我們提供了成本節約計畫的最新資訊。鑑於貨運和二手設備市場將繼續面臨挑戰，良好執行我們的成本節約計畫仍然是 2024 年及以後擴大利潤和收益的關鍵。到 2024 年，我們仍然預計將實現超過 4000 萬美元的節省，這些節省主要是結構性和可持續的。我們在第一季就實現了 1200 萬美元的節省，並且對該計劃的其餘部分有清晰的認識。

Let's look at our cash flow on Slide 14. We ended the first quarter with $60 million in cash and cash equivalents. Operating cash flow remained strong at $89 million for the quarter or 11.5% of total revenue. Net CapEx in the first quarter was $19 million or 2.5% of revenue, down $84 million or 81% year-over-year. Free cash flow for the quarter was $70 million or 9% of total revenues, up 130 basis points year-over-year. Our total liquidity at quarter end was very strong at $619 million, including cash and availability on our revolver.

讓我們看看幻燈片 14 上的現金流。本季營運現金流保持強勁，達到 8,900 萬美元，佔總營收的 11.5%。第一季淨資本支出為 1,900 萬美元，佔營收的 2.5%，年減 8,400 萬美元，即 81%。該季度自由現金流為 7,000 萬美元，佔總營收的 9%，較去年同期成長 130 個基點。截至季末，我們的總流動性非常強勁，達到 6.19 億美元，其中包括現金和左輪手槍的可用資金。

Moving to Slide 15. We ended the quarter with $598 million in debt, down $51 million or 8% sequentially and down nearly $94 million or 14% compared to a year earlier. Net debt to EBITDA was steady at 1.2x. We are committed to maintaining a strong balance sheet and access to capital to fund growth in investments that are accretive to earnings.

轉向投影片 15。 EBITDA 淨債務穩定在 1.2 倍。我們致力於維持強勁的資產負債表和獲得資本的管道，為可增加收益的投資成長提供資金。

On Slide 16, let's recap our capital allocation priorities and strategy. We will continue to prioritize strategic reinvestment in the business and returning capital to shareholders. We spent $6.5 million on share repurchases during the quarter and will remain opportunistic. Regarding capital expenditures, 2023 was an elevated CapEx year, reflecting lower year-over-year gains and a greater pace of reinvestment in the business. For 2024, we are expecting net CapEx to be between $250 million and $300 million, with 80% towards trucks and trailing equipment and 20% towards technology, terminals and our school network.

在投影片 16 上，讓我們回顧一下我們的資本配置優先事項和策略。我們將繼續優先考慮業務的策略再投資和向股東返還資本。本季我們花了 650 萬美元用於股票回購，並將繼續抓住機會。就資本支出而言，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。 2024 年，我們預計淨資本支出將在 2.5 億至 3 億美元之間，其中 80% 用於卡車和牽引設備，20% 用於科技、終端和我們的學校網路。

Next, on Slide 17, is a review of our guidance for the year. We are lowering our full year fleet guidance from down 3% to flat to down 6% to down 3%. We are down 2% year-to-date with visibility to additional reductions from known isolated losses in Dedicated. Although greater than anticipated, we are not surprised by a more competitive Dedicated environment through this prolonged weak market. We are seeing new business wins to assist with backfilling losses, and we see potential for growth in Dedicated in the second half, but we recognize the challenge and believe it is reasonable to lower fleet size expectations at this time while we focus on maintaining price and margin discipline across our portfolio.

接下來，投影片 17 回顧了我們今年的指導。我們將全年機隊指引從下降 3% 下調至持平，下調至下降 6% 至下降 3%。今年迄今為止，我們的業績下降了 2%，可以看到 Dedicated 已知的孤立損失進一步減少。儘管超出預期，但我們對在長期疲軟的市場中競爭更加激烈的專用環境並不感到驚訝。我們看到新的業務勝利有助於彌補回填損失，並且我們看到下半年專用業務的成長潛力，但我們認識到這一挑戰，並相信此時降低機隊規模預期是合理的，同時我們專注於維持價格和我們投資組合的保證金紀律。

Net CapEx is being lowered by $10 million on either end to a range of $250 million to $300 million. Dedicated revenue per truck grew year-over-year and is expected to remain within our full year guidance range of 0% to 3%. One-Way Truckload revenue per total mile for first quarter decreased 5.1% and is within our guidance range the first half of the year. Equipment gains were $3.6 million in the first quarter, consistent with our expectations. We expect similar gains in the second quarter but now anticipate lower equipment values to linger into the second half. As a result, we are lowering the top end of our range and now expect equipment gains in the range of $10 million to $20 million, down from $10 million to $30 million previously.

兩端淨資本支出均減少 1,000 萬美元，降至 2.5 億至 3 億美元之間。每輛卡車的專用收入年增，預計將保持在我們 0% 至 3% 的全年指導範圍內。第一季每總英里單程卡車裝載收入下降 5.1%，在我們上半年的指導範圍內。第一季設備收益為 360 萬美元，符合我們的預期。我們預計第二季會出現類似的成長，但現在預計設備價值下降將持續到下半年。因此，我們降低了範圍的上限，現在預計設備收益在 1000 萬美元到 2000 萬美元之間，低於之前的 1000 萬美元到 3000 萬美元。

While our tax rate in the first quarter was 32.9% due to certain onetime discrete items, we expect this to level out throughout the year. Our full year guidance range is now 24.5% to 25.5%. The average age of our truck and trailer fleet in the first quarter was 2.1 and 5 years, respectively, compared to 2.1 and 4.9 years at the end of 2023.

雖然由於某些一次性的離散項目，我們第一季的稅率為 32.9%，但我們預計全年稅率將趨於穩定。我們的全年指引範圍目前為 24.5% 至 25.5%。第一季我們卡車和拖車車隊的平均車齡分別為 2.1 年和 5 年，而 2023 年底這一數字為 2.1 年和 4.9 年。

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。

Despite the challenging macro backdrop, our leadership team of nearly 14,000 talented Werner team members stayed the course by executing our strategy. They remain focused on upholding the Werner brand and reputation, making safety our top priority and providing superior service to our highly valued customers. We are actively taking steps to improve our operations and advance our competitive strength in the marketplace by investing in technology, reducing costs and optimizing cash flow.

儘管宏觀背景充滿挑戰，我們由近 14,000 名才華橫溢的沃納團隊成員組成的領導團隊仍然堅持執行我們的策略。他們仍然致力於維護沃納的品牌和聲譽，將安全作為我們的首要任務，並為我們尊貴的客戶提供優質的服務。我們正在積極採取措施，透過投資技術、降低成本和優化現金流來改善我們的營運並提高我們在市場上的競爭實力。

While times have been tough, we're cycle tested and built to last. Our historical results demonstrate our ability to generate earnings power as demand accelerates and the proactive actions we have taken position Werner to capitalize on opportunities as they present themselves in the future.

儘管時局艱難，但我們經過了循環測試，經久耐用。我們的歷史表現表明，隨著需求的加速，我們有能力產生獲利能力，而我們採取的積極行動使沃納能夠抓住未來出現的機會。

With that, let us open it up for questions.

那麼，就讓我們開始提問吧。

(Operator Instructions) This call will end at 5:00 p.m. Central Daylight Time following the company's closing remarks. (Operator Instructions) The first question comes from Amit Mehrotra with Deutsche Bank.

（接線生說明）本次通話將於下午 5:00 結束。中部夏令時間公司閉幕詞後。 （操作員說明）第一個問題來自德意志銀行的 Amit Mehrotra。

Derek, I guess my couple of questions. First and foremost, I know you're a student to supply and historically, you've talked a lot about supply, and I know that's been stubbornly persistent in the market. Wondering if you could just share your view on kind of where the latest on your view on supply is going to be over the next 12 months? And then obviously, on the bid season side, it feels like the shippers are trying to take one last big bite of the apple. Wondering how you're navigating that and thinking about still keeping the optionality to the upside while obviously navigating utilization of the One-Way fleet?

德瑞克，我想我有幾個問題。首先也是最重要的，我知道你是供應方面的學生，而且從歷史上看，你已經談論了很多關於供應的問題，而且我知道這在市場上一直頑固地存在。想知道您是否可以分享您對未來 12 個月供應的最新看法？顯然，在投標季節方面，托運人似乎試圖咬下最後一口蘋果。想知道您是如何應對這一問題的，並考慮在顯然如何利用單向車隊的同時仍然保持向上的選擇性？

Yes. Thank you, Amit. Thanks for the question.

是的。謝謝你，阿米特。謝謝你的提問。

On the supply side, kind of like I indicated last quarter, it's tough to predict any turn at this point. I will tell you that there are some signs of life that are encouraging, but clearly, we've still got some work to do to get this market back in balance. We did see and we referenced some spring project activity that's sort of new and encouraging. We've seen an uptick in demand as we've kind of got ourselves into Q2.

在供應方面，就像我上個季度指出的那樣，目前很難預測任何轉變。我會告訴你，有一些令人鼓舞的跡象，但顯然，我們仍然需要做一些工作才能讓這個市場恢復平衡。我們確實看到並引用了一些春季項目活動，這些活動有點新鮮且令人鼓舞。隨著我們進入第二季度，我們看到需求上升。

But at the end of the day, we do need capacity to continue to come out of the market. I think we're closer to equilibrium than we've been in a long time. We can see that in a variety of ways through load bookings and customer interactions and even customer conversations as of late. And so it's just going to take a little bit longer to play out. Clearly, this has been longer than any of us anticipated and extremely frustrating.

但歸根結底，我們確實需要產能來繼續退出市場。我認為我們比長期以來更接近平衡。我們可以透過負載預訂和客戶互動，甚至最近的客戶對話以多種方式看到這一點。因此，這需要更長的時間才能發揮出來。顯然，這比我們任何人預期的都要長，而且非常令人沮喪。

As it relates to the second part of your question, yes, there's clearly a group of customers out there that will always try to take a last bite of the apple, as you indicated. I would tell you our focus is really staying disciplined to what we believe, making sure rates are reinvestable, meaning that we can turn around and make a margin that allows us to invest back into the fleet. But we're especially going to be disciplined at this point in the cycle, knowing that the end is closer than it's been at any point prior.

正如您所指出的，這與您問題的第二部分有關，是的，顯然有一群顧客總是會嘗試吃最後一口蘋果。我想告訴你，我們的重點實際上是遵守我們的信念，確保費率可再投資，這意味著我們可以扭轉局面並賺取利潤，使我們能夠重新投資於機隊。但我們在周期的這一點上尤其要遵守紀律，因為我們知道末日比之前的任何時候都更接近。

And so at times, that's going to lead to some frictional conversations, but we've got to stay true to who we are and what our shareholders deserve. And that includes a very disciplined cost-focused approach, that includes making sure that agreements we enter into, that we feel as though we can honor and that's why we've indicated the possibility of some further attrition before things get better within our own fleet. We'll see how that plays out. The pipeline is strong, both in Dedicated and frankly, in One-Way, has been encouraging as of late. But the pricing environment is still competitive as people are desperate to find safe havens for their assets.

因此，有時這會導致一些摩擦性的對話，但我們必須忠於我們是誰以及股東應得的。這包括一種非常嚴格的以成本為中心的方法，包括確保我們簽訂的協議，我們覺得我們可以兌現，這就是為什麼我們表示在我們自己的機隊內情況好轉之前可能會進一步減員的原因。我們將看看結果如何。管道很強大，無論是 Dedicated 還是坦率地說，One-Way，最近都令人鼓舞。但定價環境仍然具有競爭力，因為人們迫切希望為自己的資產找到避風港。

Yes. And then, Chris, I mean, does the OR -- I mean, obviously, the first quarter of the OR is typically the weakest, and you had weather challenges. Do we see a pickup in the OR, as we progress through 2Q? I certainly hope so, but obviously, it's a different -- difficult market. I wanted to get your latest thoughts on that.

是的。然後，克里斯，我的意思是，手術室——我的意思是，顯然，手術室的第一季通常是最弱的，而且你遇到了天氣挑戰。隨著第二季的進展，我們是否會看到手術室出現回升？我當然希望如此，但顯然，這是一個不同的——困難的市場。我想了解你對此的最新想法。

Yes. Sure, Amit. So yes, we should have improvement as we go forward. Our long-term target continues to be in TTS 12% to 17%, but that's going to take some time to get there. But we do expect with our continued program -- in our cost savings program and continuing to focus on our long-term strategy that we'll continue to improve from here.

是的。當然，阿米特。所以，是的，我們在前進的過程中應該要有所改進。我們的長期目標仍然是 TTS 12% 到 17%，但這需要一些時間才能實現。但我們確實希望透過我們的持續計劃——在我們的成本節約計劃中並繼續關注我們的長期策略，我們將繼續從這裡改進。

I would just add, Amit, that's one way to think about it is, each month of the quarter the OR improved and we saw margin expand. We obviously are going to work our tails off to keep that trend going forward. We can't control the macro, but what we can control is what we do inside these walls. And the team is committed now to execution to the highest possible level.

我想補充一點，阿米特，這是一種思考方式，該季度每個月的 OR 都在改善，我們看到利潤率在擴大。顯然，我們將竭盡全力保持這一趨勢向前發展。我們無法控制宏觀，但我們可以控制的是我們在牆內所做的事情。該團隊現在致力於以盡可能高的水平執行。

The next question is from Jason Seidl with TD Cowen.

下一個問題是 Jason Seidl 和 TD Cowen 提出的。

Just a couple of quick ones from me. Noticed the nice productivity gains and miles per truck per week. Just curious, did that result in any big mix shift in your business?

只是我的幾個快速的。注意到生產率的顯著提高以及每輛卡車每周行駛的里程數。只是好奇，這是否導致您的業務發生重大組合轉變？

Jason, I'll take that. I don't know that I would call it a large mix shift, but clearly, it's intentional. The shift that's taking place is intentional. In order to be -- to lower our cost to serve, we're leaning in further and further to things that we do very well and that we think are particular to us. You know we have a heavy focus on Mexico cross-border. That length of haul lends itself to better productivity. We've been really aggressively further engineering our own assets so that they are operating in more and more repetitive -- kind of repeatable lanes that -- where we can extract better productivity, both for our drivers, but also high service levels for our customers. So there's a lot of intentionality about it. Some of the tech that we've been building and working on is helping us to be more selective. Now it's tough to do that in a freight backdrop like the one we have right now. But nonetheless, it is producing increased utilization, and that's something that we think we can hold as we go forward.

傑森，我會接受的。我不知道我會稱其為大型混合轉變，但顯然，這是故意的。正在發生的轉變是有意為之的。為了降低我們的服務成本，我們越來越傾向於我們做得很好並且我們認為對我們來說特別的事情。您知道我們非常關注墨西哥跨境業務。如此長的運輸距離有助於提高生產力。我們一直在非常積極地進一步設計我們自己的資產，以便它們在越來越重複的情況下運作——一種可重複的車道——我們可以為我們的司機提高生產力，也可以為我們的客戶提供高水準的服務。所以這裡面有很多意圖。我們一直在開發和開發的一些技術正在幫助我們更具選擇性。現在，在像我們現在這樣的貨運背景下很難做到這一點。但儘管如此，它正在提高利用率，這是我們認為我們可以繼續前進的東西。

Comps will get tougher as we get into the back half because you started to see those gains taking place in the back half of '23. But it's exciting. And I think it really shows what utilizing our assets, specifically for what they're good at and then supplementing it with Power Only where that's a better solution for our customer can really result in. And that's really where the operating leverage comes from in an up cycle and our ability to then utilize that denser, more high-velocity network at a higher rate per mile to produce upside in an up cycle.

當我們進入後半段時，比賽將會變得更加艱難，因為你開始看到這些進步是在 23 年後半段發生的。但這很令人興奮。我認為這確實展示瞭如何利用我們的資產，特別是針對他們擅長的資產，然後用Power Only 對其進行補充，這對我們的客戶來說是一個更好的解決方案，這確實可以帶來結果。

That makes sense. I guess I'll use my follow-up on the comments on used equipment. Chris, I think you mentioned there is expectation for improvement in the back half of the year. Is that just that you guys plan to sell more or you think that pricing is going to improve. And if it's on the pricing side, I guess, a, what gives you the confidence in that is that both for both trucks and trailers?

這就說得通了。我想我會根據對二手設備的評論進行跟進。克里斯，我想你提到下半年會有改善的期望。這只是你們計劃出售更多產品還是你們認為定價將會提高。如果是在定價方面，我想，是什麼讓您對卡車和拖車都充滿信心？

Yes. We do expect some improvement in the values as we go through the year. I think it's going to be modest improvement as we go through. We are being mindful of equipment and trying to maximize what we can. Where it's appropriate, leverage our advantage in having a national fleet sales, network and operation. So leaning into that to maximize the gains where possible. But really, we're just looking for the market to improve. And it's difficult to say exact timing of that, but we do look for improvement.

是的。我們確實預計今年的價值會有所改善。我認為隨著我們的經歷，這將是適度的改進。我們非常關注設備並盡力最大限度地利用設備。在適當的情況下，利用我們在全國範圍內的車隊銷售、網路和營運方面的優勢。因此，盡可能致力於實現收益最大化。但實際上，我們只是在尋找市場的改善。很難說具體的時間，但我們確實在尋求改進。

Yes. The only thing I would add is that all of the public data that's out there where folks that do this for a living also lend their forecast to the same vendors as our internal view. And as it relates to the follow-up question that often comes is that, with all of the carriers going out of business, then that put pressure on used. And while it does put pressure on used in the categories that they would be selling or be placing into the market, we're talking about near new or still under warranty, higher-value equipment that holds up better and really plays well into the pre-buy, as people start to think about those that are secondary buyers to begin with, needing to refresh their fleet and start that work today. Now there's a lot of regulatory issues coming at us in trucking and getting -- folks getting their hands on a much fresher fleet, we believe, starts taking place later this year.

是的。我唯一要補充的是，所有以此為生的人也將他們的預測提供給與我們內部觀點相同的供應商。與經常出現的後續問題相關的是，隨著所有業者倒閉，這會對二手設備造成壓力。雖然這確實給他們將要銷售或投入市場的類別中的二手設備帶來了壓力，但我們談論的是接近全新或仍在保固期內的、價值更高的設備，它們的性能更好，並且在預售中發揮了良好的作用。現在，我們在卡車運輸和運輸方面遇到了許多監管問題——我們相信，人們將在今年稍後開始獲得更新的車隊。

The next question is from Ravi Shanker with Morgan Stanley.

下一個問題來自摩根士丹利的 Ravi Shanker。

So just on the cost side, obviously, the structural cost actions are notable and most welcome. But I think a lot of the transportation companies basically decided to not get super aggressive with responding to the down cycle this time because of all the struggles with bringing resources back post pandemic. But just given how long the down cycle has lasted and how deep it's been, is it time do you think to maybe pull some of the reins in a little bit more for some tactical cost actions as well? Or do you think that will be coming in the wrong time just for the cycle in flex?

因此，就成本而言，顯然，結構性成本行動是值得注意且最受歡迎的。但我認為，由於疫情後在恢復資源方面遇到了困難，許多運輸公司基本上決定這次不會過於積極地應對經濟下行週期。但考慮到下行週期持續了多長時間以及有多深，您是否認為是時候對一些戰術成本行動採取更多控制措施了？或者你認為這對 Flex 週期來說是在錯誤的時間出現的嗎？

Yes, Ravi, I'll take that.

是的，拉維，我會接受的。

First off, I will tell you, I think our ability to rebound, so regardless of where the fleet is at in any given moment, our ability to rebound from that point is advantaged over others with our vertically integrated school network. And so we believe that we have some elasticity to the fleet that puts us at a competitive advantage. And so I'll start with that. That also, therefore, gives us confidence to pull back where we think pulling back is the right decision and really keep that focus on pricing discipline as we enter the very late stages of this particular cycle.

首先，我會告訴你，我認為我們的反彈能力，因此無論車隊在任何特定時刻處於何處，我們從該點反彈的能力都比擁有垂直整合學校網絡的其他公司更具優勢。因此，我們相信我們的機隊具有一定的彈性，這使我們具有競爭優勢。我就從這個開始吧。因此，這也讓我們有信心在我們認為撤退是正確決定的地方撤退，並在我們進入這個特定週期的最後階段時真正將重點放在定價紀律上。

As it relates to cutting back too far, I don't think that's where we're at. I think we're prudently trimming where it makes sense. We're eliminating cost that, frankly, we can live without. But the -- but it is tougher and tougher to come by incremental cost savings without doing damage to long-term strategic initiatives at Werner. And we're simply not going to do that. This is a long game. We're going to be in this for this cycle and several more. And we're preparing to ship for kind of those future seas, not the ones we're in today.

由於這與削減太多有關，我認為這不是我們現在的處境。我認為我們正在謹慎地進行合理的調整。坦白說，我們正在消除我們不需要的成本。但是，要在不損害沃納長期戰略計劃的情況下實現增量成本節約是越來越困難的。我們根本不會這樣做。這是一場漫長的比賽。我們將在這個週期以及其他幾個週期中參與其中。我們正準備將船舶運送到未來的海洋，而不是我們今天所處的海洋。

I'm really excited about it as the turn takes place, our ability for upside operating leverage both in Dedicated and One-Way as well as now a much larger Logistics division, to be able to participate both via Power Only as well as transactional brokerage, Intermodal and Final Mile. So the way the table is set, we feel comfortable with. Clearly, we need some support from the macro. But as that support comes, our ability to respond to and I think, is in a better position than even it was in the last up cycle.

隨著這一轉變的發生，我真的很興奮，我們在專用和單向以及現在更大的物流部門的上行運營槓桿能力，能夠通過僅電力和交易經紀參與、聯運和最後一英里。所以桌子的擺放方式讓我們感覺很舒服。顯然，我們需要宏觀的一些支持。但隨著這種支持的到來，我認為我們的應對能力甚至比上一個上升週期處於更好的位置。

Understood. That's really helpful. And maybe as a follow-up, I think you had mentioned something about reining in insurance costs kind of, is that just again, tactically on the margins? Or are you guys coming up with ways to significantly pull that down because -- what would we think that's going to be a meaningful rest of the industry in the coming years?

明白了。這真的很有幫助。也許作為後續行動，我認為你提到了一些關於控制保險成本的事情，這是否又是戰術上的邊緣？或者你們是否想出了一些方法來顯著降低這一點，因為——我們認為這將在未來幾年對行業產生有意義的影響？

Yes. This is Chris. Thanks for the question on that. So the quarter was back to a bit of elevated insurance costs overall, more representative of the first half of last year, not necessarily some of those lower trends that we were seeing in the second half of last year. But again, we still view this as a cost per claim issue, not so much a frequency issue and certainly doesn't reflect our continued trend and record setting in our safety metrics.

是的。這是克里斯。感謝您提出這個問題。因此，本季保險成本總體上有所上升，這更能代表去年上半年的情況，不一定是我們去年下半年看到的一些下降趨勢。但同樣，我們仍然將其視為每次索賠成本問題，而不是頻率問題，當然不能反映我們安全指標中的持續趨勢和記錄設定。

We communicated last year that we had a 19-year low in our DOT preventable accidents per million rating. And then for the first quarter, in comparison to other first quarters, we hit a 20-year low. So we continue to see very positive safety metrics. Last year, we -- from a premium perspective, we had a low single-digit increase in the second half of the year. So that's not really impactful. This is more of a cost per claim issue. And we anticipate that as we continue to focus on safety and have a very low and positive safety record that that will come through more sustainably in the insurance expense line.

我們去年表示，交通部每百萬人可預防事故的評級處於 19 年來的最低水準。然後第一季度，與其他第一季相比，我們創下了 20 年來的最低點。因此，我們繼續看到非常積極的安全指標。去年，從保費角度來看，我們在下半年實現了較低的個位數成長。所以這並不是真正有影響力。這更多的是每次索賠的成本問題。我們預計，隨著我們繼續關注安全並擁有非常低且積極的安全記錄，這將在保險費用方面更加可持續地體現。

Next question is from Scott Group with Wolfe Research.

下一個問題來自 Scott Group 和 Wolfe Research。

So Derek, the fleet guidance came down a bunch. The CapEx guidance barely budged. And any thoughts there? And then I'm sure you listened to the Knight call last week and the discussion around mid-cycle margins, higher highs, lower lows. I'm just curious how you think about that in mid-cycle just given the starting point for margins being -- so obviously, I'm asking that for you guys. I'm not asking for an opinion on Knight.

所以德里克，艦隊的指導下降了很多。資本支出指引幾乎沒有改變。還有什麼想法嗎？然後我確信您上週聽到了奈特的電話會議以及圍繞週期中期利潤率、更高的高點、更低的低點的討論。我只是好奇你們在周期中期如何看待這個問題，只是考慮到利潤率的起點——很明顯，我是在為你們問這個問題。我並不是徵求對奈特的意見。

Well, thank you for that, Scott. I appreciate it. Look, I do think this cycle is perhaps a once in a lifetime, we'll see as time plays out, the COVID highs were higher than any previous up cycle. Clearly, the lows have been lower and longer than anything we've endured. We have reiterated affirmatively our long-term guidance relative to TTS margins, and that's not without significant introspection. We believe that with the strategy we're putting forth and the execution that we have in place will allow us to return there, although the timing of that return is certainly delayed as this market has lingered lower for longer.

好吧，謝謝你，斯科特。我很感激。聽著，我確實認為這個週期可能是一生一次，隨著時間的推移，我們會看到新冠疫情的高點高於之前的任何上漲週期。顯然，這些低點比我們經歷過的任何時期都要低、持續時間長。我們肯定地重申了我們對 TTS 利潤率的長期指導，這並非沒有經過深刻的反省。我們相信，透過我們提出的策略和我們現有的執行力，我們將能夠重返那裡，儘管回歸的時間肯定會被推遲，因為這個市場已經在較低水平徘徊了更長的時間。

I suspect, as we go forward with this next up cycle, it is going to be also somewhat unique, not as much as COVID, but unique in that it's combined with significant regulatory headwinds, significant environmental overlay that's going to cause capital outlays for carriers to be greater than ever before. That's why we kind of made our move early to freshen the fleet and position ourselves to be in a really good position as that plays out.

我懷疑，當我們推進下一個上升週期時，它也將有些獨特，雖然不像新冠疫情那麼嚴重，但獨特之處在於它與重大的監管阻力、重大的環境疊加相結合，這將導致運營商的資本支出比以往任何時候都更偉大。這就是為什麼我們很早就採取行動來更新機隊，並讓自己在比賽結束時處於非常有利的位置。

I also suspect there's a whole lot of people that have been taught some lessons through the pain of this cycle, and there may be more reluctance for capacity to come back in this next time around, but only time will tell. In the interim, our job is to focus relentlessly on getting back to that long-term margin guidance range in TTS.

我還懷疑有很多人已經從這個週期的痛苦中吸取了一些教訓，並且可能會更不願意在下一次恢復容量，但只有時間才能證明一切。在此期間，我們的工作是不懈地致力於恢復 TTS 的長期利潤指導範圍。

And as it relates to comparing to prior cycles, when I look at our portfolio, it's just significantly different now with the acquisition of ReedTMS, the size of logistics as a percentage of the portfolio, the amount of engineering we've done within one way to produce the increased miles per truck that we've been talking about. And then Mexico nearshoring plays directly into our portfolio very nicely. So we're still bullish on what it looks like longer term. And that's why we're trying to take a longer-term view of how we build this portfolio out and get ready and prepared for the turn when it happens.

由於與之前的周期相比，當我查看我們的投資組合時，隨著收購 ReedTMS，物流規模佔投資組合的百分比以及我們以一種方式完成的工程量發生了顯著變化增加我們一直在談論的每輛卡車的行駛里程。然後墨西哥近岸業務直接融入我們的投資組合中，效果非常好。因此，我們仍然看好長期前景。這就是為什麼我們試圖以更長遠的眼光來建立這個投資組合，並為轉變發生時做好準備。

Okay. And then did you -- if you had a thought on the CapEx relative to the fleet guidance. I just -- yes, go ahead.

好的。然後，如果您考慮過相對於機隊指導的資本支出，您也會這樣做。我只是——是的，繼續吧。

I apologize. Yes. On the CapEx part of the equation. I think what you're seeing there is, one, some carefulness and thoughtfulness on our part of what the back half could look like. We talked about the opportunity. The fleet guidance ranges for the first half, whereas CapEx is for the whole year. And so we talked about the reality that we do have a strong Dedicated pipeline for the back half of the year. That continues to look encouraging, and so we want to be prepared to be able to do that.

我道歉。是的。關於等式的資本支出部分。我認為你所看到的是，第一，我們對後半部分的外觀進行了一些謹慎和深思熟慮。我們談論了機會。機隊指引範圍為上半年，而資本支出則為全年。因此，我們談到了這樣一個事實，即我們確實在今年下半年擁有強大的專用管道。這看起來仍然令人鼓舞，因此我們希望做好準備能夠做到這一點。

And it's really just trying to be thoughtful about how we think about that. It's a dramatically reduced CapEx from what you saw a year ago. And so we don't want to starve the fleet, and we want to make sure it's Power Only grows or has the opportunity to continue to grow that we have the trailing equipment to go with it. But at this point, that's the comfort level we have. By the way, I want to fix my first statement on fleet guidance. That is a full year range, not a half year range.

這實際上只是試圖思考我們如何看待這個問題。與一年前相比，資本支出大幅減少。因此，我們不想讓機隊挨餓，我們希望確保其動力僅增長或有機會繼續增長，以便我們擁有與之配套的尾隨設備。但在這一點上，這就是我們所擁有的舒適度。順便說一句，我想修正我關於艦隊指導的第一個聲明。這是全年範圍，而不是半年範圍。

And just -- sorry, Scott, I was just going to expand on the net CapEx. Historically, that's been a 10% to 13% of revenue, net CapEx. We did guide for that $250 million to $300 million range for the year. That's not only lower in dollars, that's also lower as a percentage of revenue. It was $19 million for Q1, so that will elevate as we go through the year.

只是 - 抱歉，斯科特，我只是要擴大淨資本支出。從歷史上看，這佔淨資本支出收入的 10% 到 13%。我們對今年 2.5 億至 3 億美元的範圍進行了指導。這不僅以美元計算較低，佔收入的百分比也較低。第一季的銷售額為 1,900 萬美元，因此隨著這一年的推移，這一數字將會上升。

Okay. And then, Derek, I know this is just a -- maybe this is a crazy thought, but we're -- everyone is saying the same thing that it's just taking longer for this capacity to come out of the market. And it strikes me that this cycle versus prior cycles, you and all the asset-based carriers have much bigger brokerage businesses, much bigger Power Only offerings that are just sort of feeding volumes to these small carriers. And again, maybe crazy, but could it make sense for you and maybe others to shrink the brokerage offering, shrink the Power Only offering, maybe stop giving volume to small carriers? And do you think that could help accelerate this capacity reduction and get the cycle going again? I don't know.

好的。然後，德瑞克，我知道這只是一個——也許這是一個瘋狂的想法，但我們——每個人都在說同樣的事情，只是這種能力需要更長的時間才能離開市場。讓我印象深刻的是，與之前的周期相比，這個週期和所有基於資產的運營商擁有更大的經紀業務、更大的 Power Only 產品，這些產品只是為這些小型運營商提供了交易量。再說一次，也許很瘋狂，但對你和其他人來說，縮減經紀業務、縮減僅電力業務、也許停止向小型運營商提供業務量是否有意義？您認為這是否有助於加速產能削減並讓循環重新開始？我不知道。

Yes, Scott, I don't think it's a crazy thought. I think the issue just lies in the execution, right? Like to actually do that, we'd have to assume that the other brokers that don't have asset positions would also somehow magically stop distributing that freight and not take advantage of the vacuum that it would create. And I don't think that's how it would actually play out. I think they would fill that vacuum. They would feed those carriers. And so instead, I think it took a while, at least here at Werner for us to really execute properly on making sure if we're going to have this large non-asset portion of our portfolio, how do we make sure our assets are doing exactly what they're designed to do and then the most optimal performance lanes for our assets, which is different than where a small carrier may be able to operate more effectively.

是的，斯科特，我不認為這是一個瘋狂的想法。我覺得問題就出在執行上吧？就像實際做到這一點一樣，我們必須假設其他沒有資產部位的經紀人也會以某種方式神奇地停止分配貨運，並且不會利用它所創造的真空。我不認為事情實際上會這樣發展。我認為他們會填補這個真空。他們將為這些航母提供食物。因此，我認為至少在維爾納，我們花了一段時間才真正正確執行，以確保我們的投資組合中是否有這麼大的非資產部分，我們如何確保我們的資產完全按照其設計目的進行操作，然後為我們的資產提供最佳性能航線，這與小型承運人可能能夠更有效運作的方式不同。

It's a competitive space and Truckload Logistics, which includes both asset and non-asset from a market perspective, and so we've got to bring to bear a product that can compete effectively long term. And we believe that mixed approach is the best one, kind of a more asset light, if you will, approach.

這是一個競爭激烈的空間和整車物流，從市場角度來看，它包括資產和非資產，因此我們必須推出能夠長期有效競爭的產品。我們認為，混合方法是最好的方法，如果你願意的話，這是一種更輕資產的方法。

Finally, I do believe the difference maker in Power Only and the reason it's so valuable is the customer experience. Power Only is a completely different experience from a non-asset broker in that we've got trailing equipment already there and in place. We are hauling a portion of that portfolio on our own assets. The remainder going to Power Only. The customer gets a seamless experience with a seamless interaction, tracking and tracing and capability. And I think it wins in the market. And we're seeing that with outpaced growth in Power Only inside of a division Werner that's also outside outpaced growth, which is Logistics overall.

最後，我確實相信 Power Only 的差異化因素及其如此有價值的原因在於客戶體驗。 Power Only 是一種與非資產經紀人完全不同的體驗，因為我們已經擁有了追蹤設備。我們正在利用自己的資產來運送該投資組合的一部分。其餘的僅用於供電。客戶透過無縫互動、追蹤和追蹤以及功能獲得無縫體驗。我認為它會贏得市場。我們看到，維爾納部門內部的僅動力部門的成長速度超過了外部部門，即整個物流部門的成長速度。

We did do some culling in Q1, so you saw into the, I believe, 12-or-plus quarters of double-digit type growth in Logistics. And that's because of us just simply yielding off the bottom and being aggressive on some of these untenable rates. We're going to keep that pricing discipline front and -- front and center as we go forward, especially at the point in the market where we believe we are.

我們確實在第一季進行了一些剔除，所以我相信您看到了物流領域 12 個或以上季度的兩位數成長。這是因為我們只是簡單地從底部屈服，並對其中一些難以維持的利率採取激進的態度。在我們前進的過程中，我們將把定價紀律放在最前面和最中心的位置，特別是在我們認為我們所處的市場階段。

The next question is from Brian Ossenbeck with JPMorgan.

下一個問題來自摩根大通的布萊恩·奧森貝克。

Maybe just wanted to follow up on that conversation there. In terms of the 11% utilization or production growth that you see for Werner here. Is that something else you think other fleets, larger fleets, maybe mid-sized ones are also doing? And therefore, there's a bit of a belt tightening on the large fleet side. And so they're able to keep more capacity in the market.

也許只是想跟進那裡的談話。就您在此處看到的 Werner 11% 的利用率或產量成長而言。您認為其他機隊、大型機隊、也許中型機隊也在做其他事情嗎？因此，大型機隊方面需要勒緊褲腰帶。因此他們能夠在市場上保留更多的產能。

And then on the other side, we've speculated on this for a while now, but what do you think is really keeping some of these smaller carriers from going under at least maybe if that would accelerate from here, what do you think would finally move that? Or do we just have to be patient on that front?

另一方面，我們對此已經猜測了一段時間，但您認為真正阻止這些小型運營商中的一些的倒閉的因素是什麼，至少也許如果這種情況從這裡開始加速的話，您認為最終會怎樣？移動那個？還是我們只需要在這方面保持耐心？

Yes. Thanks, Brian. Starting with the utilization question. Although other fleets have shown utilization improvement year-over-year, I haven't seen anybody that's hit double digits, to my knowledge. I think it's something that we're laser-focused on. We're executing at levels that I'm extremely proud of with our team and the work they're putting in to do that. I think it's sort of the early innings of some of the tech coming to bear that -- and some new tools that we're deploying as well as, as I stated earlier, just a simple focus on what we do really well and doing that with our assets and then providing a solution to customers via Power Only to do some of the remainder or at still a very high level based on the technology that we've deployed to make that happen.

是的。謝謝，布萊恩。從使用問題開始。儘管其他機隊的利用率逐年提高，但據我所知，我還沒有看到任何人的利用率達到兩位數。我認為這是我們高度關注的事情。我們的執行程度讓我對我們的團隊以及他們為此付出的努力感到非常自豪。我認為這是一些技術的早期階段，我們正在部署一些新工具，正如我之前所說，只是簡單地專注於我們真正擅長的事情並做到這一點使用我們的資產，然後透過Power Only 為客戶提供解決方案，以完成剩餘的一些工作，或根據我們為實現這一目標而部署的技術，仍處於非常高的水平。

So it's hard to come by. It's not easy to achieve, especially with the freight market like the one we're in. But I think all of us are getting more creative with how we can try to sweat the assets further. But again, that 11% is a number that we're extremely proud of.

所以得來不易。這並不容易實現，尤其是在我們所處的貨運市場。但同樣，11% 是一個令我們感到非常自豪的數字。

As it relates to the attrition question, it's tough to predict. We are seeing ongoing attrition. You're now starting to see, in recent weeks, bankruptcies that are more notable, size of fleets that are more impactful, but it's going to have to continue to take place. And unfortunately, the -- or fortunately, I guess, depending on how you look at it, customers seem all too willing to continue to push people over that cliff. We're going to maintain our discipline and stay on firm ground but there will be others that are continuing to sign up for rates that I don't believe are tenable and will find themselves on the wrong side of the ledger shortly.

由於它涉及到人員流失問題，因此很難預測。我們看到持續的人員流失。最近幾週，你開始看到破產更加引人注目，船隊規模變得更有影響力，但這種情況必須繼續發生。不幸的是，或者幸運的是，我想，這取決於你如何看待它，客戶似乎非常願意繼續將人們推向懸崖。我們將保持我們的紀律並保持堅定的立場，但會有其他人繼續簽署我認為不可行的利率，並且很快就會發現自己處於賬簿的錯誤一邊。

So it's got to play out. We've got to be patient. In the meantime, we can't sit around worrying about it all day. What we have to do instead is redouble our efforts on best-in-class execution.

所以它必鬚髮揮出來。我們必須要有耐心。同時，我們不能整天坐著擔心這件事。相反，我們要做的是加倍努力，打造一流的執行力。

All right. Derek. And then maybe just sticking in the short term, can you talk more about what you're seeing in April so far, how that compares to seasonality? What visibility you have into the second quarter just for, probably in the TTS side, in terms of the demand there. And I guess, ultimately, if you still have an expectation for the spot market to recover here? Is that -- is that the demand visibility? Is that helping drive some of that?

好的。德里克.然後也許只是堅持短期，你能多談談你在四月所看到的情況嗎？您對第二季的了解程度如何，可能是在 TTS 方面，就那裡的需求而言。我想，最終，您是否仍期望現貨市場能夠復甦？這就是需求可見性嗎？這有助於推動其中一些嗎？

Yes. So in April and in Q2, in general, and I'll keep this fairly high level, but it's a bit of A Tale of Two Cities. We are -- we know that some of the fleet attrition we've seen in Dedicated will continue to play out in Q2 and Q3. At the same time, we do have a pretty strong pipeline of new opportunities and some new implementations that are already on the books. The net of those, those that we believe you'll see some fleet shrinkage as we have remained that -- or kept that pricing discipline that I've referenced several times. We're simply not able to sign up for a dedicated contract right now that is not reinvestable or not in our margin profile. And we believe that would be shortsighted to do so.

是的。所以在四月和第二季度，總的來說，我會保持這個相當高的水平，但這有點像兩個城市的故事。我們知道，我們在「專用」中看到的一些機隊消耗將在第二季和第三季繼續出現。同時，我們確實擁有相當強大的新機會管道和一些已經記錄在案的新實施。我們相信您會看到機隊有所縮減，因為我們一直保持這種狀態，或保持我多次提到的定價規則。我們現在根本無法簽署不可再投資或不在我們的保證金概況中的專用合約。我們認為這樣做是短視的。

One-Way by contrast has seen limited but still have appeared spring activity, some project activity and increased opportunity for pricing. That's encouraging. It's early, early, early. And so I'm not taking that to the bank just yet. But indications and how we think about network bookings and prebookings and overall demand seem encouraging. And then just the build I talked about from January to February to March in terms of profitability as all indicators are that we're on a path for that to continue as we go forward. And so we'll have to see how it plays out, but early signs are encouraging.

相比之下，One-Way 的活動有限，但仍出現了春季活動、一些專案活動以及定價機會的增加。這令人鼓舞。還早，早，早。所以我現在還不會把它帶到銀行。但跡像以及我們對網路預訂和預訂以及整體需求的看法似乎令人鼓舞。然後是我從一月到二月到三月的獲利能力建設，因為所有指標都表明我們正走在前進的道路上。因此，我們必須看看結果如何，但早期跡象令人鼓舞。

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

下一個問題來自美國銀行的 Ken Hoexter。

So Derek, maybe just help on the Dedicated a little bit more. You talked about increasing competition. I just want to understand, is that because of the loss of dollar stores? Or are there plans to shrink some of the stores, I know maybe not your direct one, but I know there were some out there talking about bringing some of that planned expansion back in or closing some stores? And is that just an absolute shift to now the cross-border opportunity with that fleet. So is that a maybe more a permanent shift in that fleet? Maybe talk a little bit about that Dedicated market?

所以德里克，也許只是在專用方面提供更多幫助。您談到了日益激烈的競爭。我只是想明白，這是因為一元商店的流失嗎？或者是否有計劃縮小一些商店，我知道也許不是你直接的商店，但我知道有人在談論恢復一些計劃中的擴張或關閉一些商店？這是否只是對現在該機隊的跨國機會的絕對轉變？那麼這是否是該艦隊的永久轉變？也許可以談談那個專用市場？

Yes, Ken. I mean I'll start with this. Every one of our discount retailers year-over-year is up in truck count within Dedicated. So I just want to put to rest this idea that there's some big carnage going on within Dedicated, especially if -- this hyper focus on the dollar stores and different announcements of different types. We are up across the board in our discount retail segment, and that includes beyond the dollar stores. So we feel like that product is one that still has great value. It's one that's certainly appreciated and it's one that we believe we have a competitive advantage on that differentiates us from our competitors.

是的，肯。我的意思是我將從這個開始。我們每家折扣零售商的 Dedicated 卡車數量都逐年增加。所以我只是想打消這個想法，即 Dedicated 內部正在發生一些大屠殺，特別是如果——這種過度關註一元商店和不同類型的不同公告。我們在折扣零售領域全面崛起，其中包括一元商店以外的領域。所以我們覺得該產品仍然具有很大的價值。這當然受到讚賞，我們相信我們擁有競爭優勢，使我們有別於競爭對手。

Dedicated in general is very price competitive right now. So that pipeline I've referenced multiple times is full and it looks encouraging but we would be remiss if we don't just accept that the win rate is going to be at least in the current market at historically low levels because of that pricing discipline that we're going to continue to execute against. And so where those lines cross is tough to predict right now. It's probably harder in Dedicated than anywhere because you're talking about signing up for what you hope to be, not just that initial multiyear term, but in most cases in Dedicated, it becomes a relationship that last decades. And so we want to get it right going in. We want to do it with the right thoughtfulness.

整體而言，專用現在的價格非常有競爭力。因此，我多次提到的管道已經滿了，看起來令人鼓舞，但如果我們不接受這樣的事實，即由於定價紀律，勝率至少在當前市場中將處於歷史低位，那麼我們將是失職的我們將繼續執行反對。因此，目前很難預測這些界限的交叉點。在「奉獻」中，這可能比在任何地方都更難，因為你談論的是簽署你希望成為的人，而不僅僅是最初的多年任期，但在大多數情況下，在「奉獻」中，它將成為一種持續數十年的關係。因此，我們希望能夠正確實施。

And then the last thing I'll mention because we've talked about some fleet attrition is, there were certain disadvantages with incumbency in Dedicated. And the biggest one of all is that you know what the actual work is, whereas competitors bidding on that same work, bid based on an RFP and a profile that's been provided that often sounds a little more amenable to your skill set than what it actually is going to be once you enter. And so we've got a lot of new entrants into Dedicated that may or may not have full exposure and understanding of what they're signing up for, and we're seeing that in the pricing.

然後我要提到的最後一件事是因為我們已經討論了一些艦隊損耗，在專用中存在某些缺點。最重要的是，您知道實際的工作是什麼，而競爭對手對相同的工作進行投標，則根據 RFP 和提供的資料進行投標，這些資料聽起來通常比實際情況更適合您的技能。就會是。因此，我們有許多新進入 Dedicated 的人，他們可能對自己註冊的內容有充分的了解和了解，也可能沒有，我們在定價中看到了這一點。

So our job is to know when to walk away and push away from the table and make sure that we're still staying focused on the price, which is long-term shareholder value and making sure we're building a company that's built to last. And I'm excited about what this looks like as it plays out and this turn takes place. But in the short term, there is no refuting the fact that there is pain afoot, and we're going to keep fighting through it.

因此，我們的工作是知道何時離開並離開談判桌，並確保我們仍然專注於價格，這是長期股東價值，並確保我們正在建立一家基業長青的公司。我對事情的發展和轉折的發生感到興奮。但從短期來看，無可否認，痛苦正在發生，我們將繼續與之奮鬥。

Ken, I would just add -- yes, we do still have high customer retention. And with our, on average, a large fleet size on a customer-by-customer basis, 1, 2, 3 losses can be more material and they can take a bit more time, particularly in this market to replace it. But we feel good about growing Dedicated beyond some of the near-term backfilling of these fleets. Dedicated is a large addressable market. There's new verticals, there's private fleets that we can be well positioned to win in a tighter market. So we are positioning for the long term.

肯，我想補充一點——是的，我們的客戶保留率仍然很高。平均而言，我們每位客戶的機隊規模都很大，1、2、3 次損失可能會更嚴重，而且可能需要更多時間，特別是在這個市場上才能取代它。但我們對 Dedicated 的成長感到滿意，超越了這些機隊的一些近期回填。 Dedicated是一個巨大的潛在市場。有新的垂直領域，有私人車隊，我們可以很好地在日益緊張的市場中獲勝。所以我們的定位是長期的。

And with these isolated fleet losses that we've been referring to, a little bit less than 2/3 of them really relates to managing the yield in this competitive environment and making sure that we're getting into margin and pricing that's reinvestable long term. And then a little bit more than 1/3 is really related to customers that are changing their approach to supply chain dynamics and parameters and the like. So there remains a very strong pipeline for us to draw from. We've continued to price numerous opportunities. So it's competitive, but we'll continue to be in the mix and be aggressive and focus on pricing discipline for the long term.

就我們一直提到的這些孤立的機隊損失而言，其中不到 2/3 的損失確實與在競爭激烈的環境中管理收益有關，並確保我們獲得可長期再投資的利潤和定價。超過 1/3 的比例確實與正在改變供應鏈動態和參數等方法的客戶有關。因此，我們仍然有一個非常強大的管道可供參考。我們繼續對眾多機會進行定價。因此它具有競爭力，但我們將繼續參與並積極進取，並長期關注定價紀律。

I appreciate that. And if I could just get a follow-on -- kind of on that -- you mentioned a competitive bid season and noted that some brokerage, I guess, maybe either brokerage carriers or particularly guys out there who are getting more aggressive on pricing? Is there anything or industry or, I guess, industry leader that you would call out or want to talk to? And then it seems like if you kept your revenue per ton mile down 3% to down 6% and first quarter was down 5%. Does that mean maybe the midpoint kind of looking for a little bit of sequential improvement or stabilization in that rate? Or is that just hey, that was the rate we set we're just -- we're sticking with it. I just want to understand if there was a message you wanted in there.

我很感激。如果我能得到一個後續——類似的——你提到了一個競爭性的投標季節，並指出一些經紀公司，我想，也許是經紀公司，或者是那些在定價方面變得更加激進的人？有什麼事情或行業，或者我猜是行業領導者，您會呼籲或想與之交談嗎？然後，如果你將每噸英里的收入保持在 3% 到 6% 之間，那麼第一季就會下降 5%。這是否意味著中間點可能會尋求該比率的一點連續改善或穩定？或者只是嘿，這就是我們設定的速度，我們只是 - 我們會堅持下去。我只是想知道裡面是否有您想要的資訊。

Well, a couple of things. First, I'm not going to call out any industry leaders on their behavior or strategy. I do think when you get deep into a cycle, which one thing you find is customers, even those looking to take another bite at the apple, are aligning themselves more with assets than non-asset. It's just a logical thing to do at this point in the cycle. And so our ability to have those assets matter a little bit more now than they might have a quarter or 2 ago is upon us. And we're starting to see that with certain bid results.

嗯，有幾件事。首先，我不會批評任何行業領導者的行為或策略。我確實認為，當你深入到一個週期時，你會發現客戶，即使是那些想要再咬一口蘋果的人，也會更與資產而不是非資產保持一致。在周期的此時此刻，這是一件合乎邏輯的事。因此，我們現在擁有這些資產的能力比一兩個季度前更重要。我們開始在某些出價結果中看到這一點。

But the white noise that's created by broker potentially underpinning rates are getting even more aggressive knowing it's harder to win right now, can be problematic, and we see that as well. And it's a matter of whether you're aligned with the right customer base. And in most cases, we are. And in some cases, we're finding that perhaps we are not. Our job those to, again, go back to the playbook and make sure we execute the plays as drawn and stay committed to what we know works through -- to and through a cycle and feel good about what we're doing there, despite the Q1 results. It's a longer-term view. It's a longer-term strategy than just a quarter.

但是，經紀人所產生的白噪音可能會支撐利率，並且知道現在更難獲勝，因此變得更加激進，可能會產生問題，我們也看到了這一點。這取決於您是否與正確的客戶群保持一致。在大多數情況下，我們確實如此。在某些情況下，我們發現也許我們不是。我們的工作是，再次回到劇本，確保我們按計劃執行劇本，並致力於我們所知道的工作，通過一個週期，並對我們正在做的事情感到滿意，儘管第一季的結果。這是一個更長遠的觀點。這是一項長期策略，而不僅僅是一個季度的策略。

So we'll stick to our knitting and move forward. And as this plays out, I think we're going to have the right formula for success.

因此，我們將堅持我們的編織並繼續前進。隨著事情的發展，我認為我們將找到成功的正確秘訣。

Yes. And Ken, just to follow up on the last part of your question there on rate per mile. I believe you're referring to the One-Way Truckload rate per mile and the first half year-over-year guidance of being down 6% to down 3%. You're correct. I think you referenced being down 5% through the first quarter on a year-over-year basis. So still within that range, although trending to the lower end, we're about 30% through the bid season. There's been some mixed results to this point, including some low single-digit reductions but also some that are flat, and more recently, some that are increasing renewals.

是的。肯，我想跟進您問題的最後一部分，即每英里費率。我相信您指的是每英里單程卡車裝載率以及上半年同比指導值下降 6% 至 3%。你是對的。我認為您提到第一季同比下降 5%。因此，儘管趨向於下限，但仍在該範圍內，我們在投標季節中的進度約為 30%。到目前為止，結果好壞參半，包括一些低個位數的減少，但也有一些持平，而最近，一些則增加了續約。

So we have a bit more to go in the heavy part of the bid season here, but we'll continue to maintain that pricing discipline and do what we can to stay in the range there.

因此，在競標季節的高峰期，我們還有更多工作要做，但我們將繼續維持定價紀律，並盡我們所能保持在該範圍內。

The next question is from Tom Wadewitz with UBS.

下一個問題來自瑞銀集團的湯姆·瓦德維茨。

It's Mike Triano on for Tom. So obviously, a tough operating environment, but your free cash flow was up 9% year-over-year with the step down in CapEx. Werner is one of the largest and best-run trucking companies out there. But to what extent is the cash flow resiliency that you've had a representative of the broader trucking market? And do you think this is a reason why capacity has been so stubborn to exit the market?

邁克·特里亞諾 (Mike Triano) 替補出場。顯然，營運環境很艱難，但隨著資本支出的下降，您的自由現金流比去年同期成長了 9%。維爾納 (Werner) 是最大、營運最好的貨運公司之一。但是，您所代表的更廣泛的貨運市場的現金流彈性在多大程度上？您是否認為這就是產能如此頑固地退出市場的原因？

Well, just in terms of maybe the first part of your question on our cash flow and trend. Over the past couple of years, our free cash flow has been more in the 2% to 4% of revenue. In building the plan this year, being mindful of the operating environment, margins and reinvesting in the fleet, lower CapEx. We were gearing towards a free cash flow that on a percent of revenue basis was just going to have higher free cash flow conversion. We still feel good about that outcome for the year, given all those factors and managing a CapEx level that still appropriately invest in the fleet. So we think that that, even in this environment, is going to continue to be a positive perspective on free cash flow conversion going forward.

好吧，就您關於我們的現金流和趨勢的問題的第一部分而言。過去幾年，我們的自由現金流更佔收入的2%至4%。在製定今年的計畫時，要考慮營運環境、利潤率和機隊再投資，降低資本支出。我們正在努力實現自由現金流，在收入的百分比基礎上，自由現金流的轉換將會更高。考慮到所有這些因素以及管理仍然適當投資於機隊的資本支出水平，我們仍然對今年的結果感到滿意。因此，我們認為，即使在這種環境下，這也將繼續成為未來自由現金流轉換的積極前景。

And the second part of that, I'll jump in. As it relates to are others able to do that, certainly well ran large capitalized fleets, I think, are probably putting a lot of diligence towards this. I'm not so sure your small to midsized trucker thinks about free cash flow much until it runs out. I think the difference is, it takes a long time to kill a trucker. And they are out there operating equipment that they're running to the end of life, but no ability to reinvest or re-up or even refresh that particular piece of equipment.

我將介入其中的第二部分。我不太確定您的中小型卡車司機是否會考慮自由現金流，直到它耗盡為止。我認為不同的是，殺死一個卡車司機需要很長時間。他們在那裡操作已經運行到使用壽命結束的設備，但沒有能力再投資或重新安裝，甚至沒有能力更新該特定設備。

There's regulatory hurdles and other things about to come at them in waves that I think will make that reinvestment even more difficult. And they had a -- they were flushed with cash coming out of the COVID years, and that's largely burnt off, if not completely burnt off at this point. So I think it's happening, it's going to continue to happen. But no, I do not believe they're managing free cash flow the way people like Werner Enterprises are. But nonetheless, it's just taken a long time for them to kind of burn through the remaining life on that asset and ultimately exit.

我認為監管障礙和其他問題將一波接一波地襲來，這將使再投資變得更加困難。他們在新冠疫情期間獲得了大量現金，但目前這些現金即使沒有完全燒光，也已經大部分燒光了。所以我認為這正在發生，而且還會繼續發生。但不，我不相信他們會像沃納企業這樣的人那樣管理自由現金流。但儘管如此，他們花了很長時間才耗盡該資產的剩餘生命並最終退出。

And the last question today is from Bascome Majors with Susquehanna.

今天的最後一個問題來自巴斯科姆·梅傑斯和薩斯奎哈納。

I don't want to get too short term here, but I do think it would be helpful to level set expectations and bring together some of the seasonality commentary you said earlier in the call. So if I look at 1Q to 2Q, and you strip out the outliers, operating income and earnings, they typically grow anywhere from 20% to, call it, 50%. Is that the kind of range that feels reasonable with the puts and the takes that you've already talked about? Or is it just too early to do that kind of normal historical relationship given the uncertainty out there?

我不想在這裡談得太短期，但我確實認為這將有助於設定預期並彙集您之前在電話會議中所說的一些季節性評論。因此，如果我看看第一季到第二季度，並剔除異常值、營業收入和收益，它們通常會成長 20% 到 50% 之間。對於您已經討論過的看跌期權和看跌期權來說，這種範圍感覺合理嗎？或者考慮到存在的不確定性，現在建立這種正常的歷史關係是否還為時過早？

Bascome, I appreciate your question. We don't give EPS guidance, but just to give some color, I guess, in terms of the business outlook. As we look forward, kind of midterm, we would expect demand to remain steady. The rate pressure is going to be ongoing across the portfolio. No real signs of more meaningful attrition in that excess capacity, which is obviously driving this whole rate environment. It's going to keep the environment competitive. We have more to go in kind of the heavy part of the bid season. And we'll be backfilling some of the Dedicated losses, fleet losses into the second quarter although, again, there's a strong pipeline of opportunities that we can draw from.

巴斯科姆，我很欣賞你的問題。我們不提供每股盈餘指引，我想只是為了在業務前景上提供一些色彩。展望中期，我們預期需求將保持穩定。利率壓力將持續存在於整個投資組合中。沒有真正的跡象表明產能過剩會出現更有意義的消耗，而這顯然是推動整個利率環境的因素。這將保持環境的競爭力。在申辦季節的重頭戲中，我們還有更多工作要做。我們將在第二季彌補一些專用損失、機隊損失，儘管我們再次可以利用大量機會。

We expect the revenue per truck per week on TTS to continue to be growing on a year-over-year basis. That year-over-year difference might moderate a bit as we go through the year, but we would continue to expect some year-over-year favorability there. The used equipment market is important. And as I said earlier, I think that will improve modestly throughout the year. And we're going to continue to advance our structural changes, the cost savings, which are on track and growing. We'll continue to progress those. We'll continue to lean into safety and looking for that to show a more favorable trend and some of those low $30 million per quarter numbers that we are seeing in the second half of last year. We'll continue to lean into our operational excellence and really get more of that production improvement on the One-Way side.

我們預計 TTS 上每週每輛卡車的收入將繼續同比增長。隨著這一年的推移，這種同比差異可能會有所緩和，但我們仍然預計會有一些同比的好感。二手設備市場很重要。正如我之前所說，我認為這種情況全年都會略有改善。我們將繼續推動結構性變革和成本節約，這些變革正在步入正軌，並且還在不斷增長。我們將繼續推進這些工作。我們將繼續關注安全性，並尋求其顯示出更有利的趨勢，以及去年下半年我們看到的每季 3000 萬美元的低數字。我們將繼續致力於卓越運營，並真正在單向方面獲得更多生產改進。

So we can't control the macro. We can focus on controlling the controllables, continuing to serve our customers safely, reliably and at scale and execute on the long-term strategy. If we do that, then we're going to be more positioned to navigate this market well and be ready for a tighter market and a better market. It was -- Q1 is typically our low quarter coming off the peak, and there were some compounding factors in the first quarter, including, call it, $0.05 to $0.06 of really unique one-offs in terms of the adverse weather, elevated health insurance costs and some discrete income tax adjustments in the quarter that aren't necessarily expected to continue.

所以我們無法控制宏觀。我們可以專注於控制可控因素，持續安全、可靠、大規模地為客戶提供服務，並執行長期策略。如果我們這樣做，那麼我們將能夠更好地駕馭這個市場，並為更緊張的市場和更好的市場做好準備。第一季通常是我們擺脫高峰後的低谷，第一季度存在一些複合因素，包括，所謂的，在惡劣天氣、健康保險上漲等方面真正獨特的 0.05 至 0.06 美元的一次性費用本季度的成本和一些離散所得稅調整預計不一定會持續。

So a lot there. I'm probably not being as specific as you would like, but we would expect some improvement, and we're just going to continue to be focused on controlling what we can and being set up for a better market when it comes.

那裡有很多。我可能沒有像您希望的那麼具體，但我們希望有所改進，並且我們將繼續專注於控制我們所能控制的範圍，並為更好的市場做好準備。

So it sounds like you do expect sequential improvement just it's really hard to peg that versus any historic sort of bogey at this point?

所以聽起來你確實期望連續改進，只是目前很難將其與任何歷史性的柏忌掛鉤？

We do.

我們的確是。

This concludes our question-and-answer session. I will now turn the call over to Mr. Derek Leathers, who will provide closing comments. Please go ahead, sir.

我們的問答環節到此結束。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。

Thank you, Gary.

謝謝你，加里。

I want to thank our nearly 14,000 Werner associates for their dedication, loyalty and commitment to supporting each other and serving our customers daily. I also want to reiterate our support for everyone impacted by the recent tornadoes across Omaha and the Midwest, and we will get through this. I want to thank our valued customers for choosing Werner and giving us the opportunity to support their business. And we will continue to operate with eyes wide open as we navigate the current very challenging environment. We are controlling what we can and driving operational improvements, managing expenses and driving savings while strategically investing for our future. Our balance sheet is healthy, and our cash flow is strong and our diverse portfolio puts us in a great position for the eventual market turn.

我要感謝我們近 14,000 名 Werner 員工的奉獻、忠誠和承諾，他們每天相互支持並為我們的客戶提供服務。我還想重申，我們對最近受奧馬哈和中西部龍捲風影響的每個人的支持，我們將度過難關。我要感謝我們尊貴的客戶選擇沃納並讓我們有機會支持他們的業務。在應對當前充滿挑戰的環境時，我們將繼續睜大眼睛開展業務。我們正在盡我們所能進行控制，推動營運改善、管理費用和節省開支，同時對我們的未來進行策略性投資。我們的資產負債表健康，現金流強勁，多元化的投資組合使我們在最終的市場轉變中處於有利地位。

In the meantime, we're going to remain disciplined on our approach. We're going to remain committed to safety and we're going to continue to serve our customers. I'm going to thank you all for being with us today and for joining our call.

同時，我們將繼續遵守我們的方法。我們將繼續致力於安全，並將繼續為我們的客戶提供服務。我要感謝大家今天與我們在一起並加入我們的電話會議。

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。