Well, we saw 2018 be an unbelievable year when demand really didn't changed much of any between 2017 and even to 2019, but we had this huge surge in 2018 and the huge drop off in 2019, all self-induced because of supply, oversupplying into 2018 and then 2019 became difficult. 2. I have an LLB from Bar Ilan University in Israel and an LLM from the New York University School of Law. And you saw a need, or did this happen as a result of, you are a techie. Seeking Alpha is . And so, when you look at the fact that the full truckload piece is, first, we saw a shrink in terms of the overall revenue. Our team continues to act with agility and move with the market. It was like the wisdom of crowds. Please go ahead. And I think we have probably less visibility to the projects or type of surge opportunities we may have in the fourth quarter than we typically do this time. And now, of course, the challenge would be securing enough credit to do so. And I don't know if you have prior cycles to say why does this feel like 2018 or does it feel like 2016 or just some more perspective to kind of think about the cycle? There isn't warehousing in between. Today, we plan to discuss topics related to the results of the second quarter, provide an update on current market conditions, and update our full year [2020] (ph) guidance. Labor challenges within the rail network appear to be softening, leading to improved notification times and more consistency for our customers. We have identified several locations to develop or expand our LTL footprint through the rest of the year on an organic growth side, we expect to add 300 additional doors at nine new or existing facilities. Now, it wasn't nearly as difficult for the big guys, because electronic logs was one of the big reasons why there was the surge in 2018, because people could run less miles and you couldn't double down and run even more miles in an oversupplied environment. Paul Jelinek. What's the most efficient way to help a small carrier reduce their empty miles in a $5 plus diesel fuel environment and what's the best way to save the supply chains? And we're able to do it not to the detriment of our asset based business that performed, again, with an operating ratio in the 70s. Please disable your ad-blocker and refresh. Following our commentary, we will answer as many questions as possible. I wrote this article myself, and it expresses my own opinions. Hey, great. The original concept for this platform was for it to be a place where knowledgeable investors could share their insights on investments and compare strategies. He started his career as a macro-economist at HM Treasury in London and The Bank of Israel, and later moved to Morgan Stanley in New York as a technology research analyst covering the communications equipment sector. My Seeking Alpha journey began in 2006 as an article editor, recruited by our first Editor in Chief whose enthusiasm for Seeking Alpha was infectious. And in fact they have lower risk than the full truckload irregular route business has. I now live with my very own Brady Bunch (and assorted pets and wildlife) in the beautiful North of Israel, spending most of my free time feeding all of them, taking nature walks and tending my garden. They don't know what it is yet. There's another type of founder of startups of people who build the product that they want themselves. It's a huge discount that they only run once a year. If you've been thinking about getting it, there's no better time than right now. CCO. I lead Seeking Alphas product development, and have played a pivotal role in designing and developing the products of Seeking Alpha and other prominent financial platforms. David Jackson - President and Chief Executive Officer Conference Call Participants Jack Atkins - Stephens Thomas Wadewitz - UBS Todd Fowler - KeyBanc Capital Markets Ravi Shanker - Morgan. And analysis articles that focus on a specific stock are still free in the first 10 days. But we're excited about the runway that we have there. For the quarter, revenue excluding fuel surcharge was $224 million and the adjusted operating income was $47.8 million. Seeking Alpha was founded in 2004 by former Wall Street analyst David Jackson. We expect that demand may moderate as the consumer digests and deals with higher inflation and uncertainty in the economy. Our adjusted operating ratio of 78.9% was a 200 basis point improvement over the prior year and was the fourth consecutive quarter in the 70s. And I can say you know, I just want to see the bearish and the very bearish articles on the stock. Logistics revenue per load will moderate sequentially, but will be -- but will be more than offset with increased load volumes and most likely operates with an operating ratio in the mid to high 80s. We anticipate that sourcing and retaining drivers will continue as it has been -- continue to improve as we have seen thus far as it has been particularly challenging for small carriers and we are seeing signs of drivers looking for new opportunities. So what I'm leading to in all of this, Tom, is different than any other cycle, we have never seen supply come out so early and appear to be coming out at the same pace, if not, maybe even faster than demand seems to be waning. Do you kind of feel more confident in that $4 floor in earnings? You don't know how reliable somebody is. Is this happening to you frequently? Each reportable segment grew revenue double digits and expanded margins, which ultimately led to a 49.1% increase in revenue and a 66.1% increase in adjusted operating income on a consolidated basis. LTL is expected to grow revenue through yield management and shipment growth, while improving margins year-over-year. And so, every quarter that goes by between now and whenever the bottom of a cycle is, yes, we feel better and better about the trough that that floor continues to rise. Our call is scheduled to go until 05:30 PM Eastern Time. Do you see where I clicked in the navigation. Like I did in my Motley Fool Stock Advisor Review, I also subscribed to the 'Rule Breakers' service in January 2016 and have purchased about $2,000 of each of these picks since 2016. And as we get more clarity around that, the next time we release third quarter, we'll obviously make an adjustment based on what we know then. Additionally, we continue to make investments in the growth of this business and added 450 containers in the second quarter and plan to add an additional 1,500 throughout the rest of the year. Third party carriers prefer power-only business because it saves them hours at each load and unload location, lowers their capital investment and risk, reduces their operating costs and gives them access to freight that historically wouldn't be able to participate in. Intermodal margins will remain double digits and we expect to see volumes begin to improve on a year-over-year basis in the third quarter. I understand there's a lot of variability, but right now in the current guidance, it doesn't sound like you've got a big fourth quarter planned right now? We expect these services to continue to grow and provide us with income streams that are less prone to volatility through economic cycles. Whether they're bullish or bearish. Next question will be from Chris Wetherbee at Citi. [Operator Instructions]. Please go ahead. Operating income increased by 143.8% as the operating ratio improved from 95% to 89.3%. Live from New. What we're talking about is us leveraging the 73,000 trailers we have available within for our customers to fill with truckload freight. Demand for our power-only service offering remained strong and provides a strategic advantage compared to traditional brokers. VP HR. You can look at our rate per hundred weight at $14.20, excluding fuel, and compare that to some of the industry leaders and what you'll find is, there's some -- there's much bigger rates out there than already what we've achieved. Next to Slide 11. When we think about LTL, I think it does provide growth, but also stability through truckload cycles. The reality with freight rates going up, with driver wages going up, that number should have gone up, but it hasn't yet. He left in early 2003 to manage money (long/short) and explore new. I love navigating through complex laws and regulations to distill practical business solutions. But for the jury there the whole system ends up being really unbiased, and so that's the philosophy of Seeking Alpha. And when I think about rate sequentially, I think the one wildcard is what does the fourth quarter look like. Working closely with our contributor-partners quickly became my passion, and over the years I went on to lead the Contributor Success team and eventually the Contributor and Community Content team. The Seeking Alpha site has only one agenda, and that is to help its readers become better prepared and smarter investors. Click on "link portfolio" to sync your brokerage account by using Plaid. This followed two years as Nices Revenue Accountant. In this review I will tell you how it has performed over the last 6 years, how it compares to Stock Advisor, and let you decide if it is worth it. And two LTL partners in different parts of the country beginning to work together. Thanks, Ravi. The industry norms since electronic logs were mandated and enforcement began in early part of 2018 the industry standard is that you get two hours. And your next question will be from Bert Subin at Stifel. Im an experienced HR executive with over 18 years of experience in leading global HR teams across multiple business units. The stocks with STRONG BUY ratings from Seeking Alpha have increased 1,754% in comparison to the S&P 500%27s 385% increase over the past decade. I think today we're probably down closer to the mid to low teens in terms of our exposure to the spot market. Founded in 2004 by David Jackson, Seeking Alpha is a crowdsourced investment research platform. 2Q is an excellent quarter for LTL. I guess, the takeaway, I guess, I'm getting to some extent is, it feels like maybe this, I guess, every cycle is different and certainly Dave you made a good point about why this might be different than previous cycles. The teams have been aggressive at capturing both revenue and cost synergies and are rapidly moving towards harmonizing the network through AAA Cooper's footprint in the southeast and MME's footprint in the mid and northwest portions of the US. We expect contraction in supply and are already seen it, and expect that to continue as the year proceeds as carriers deal with depressed spot rates combined with high energy fuel prices, higher maintenance and equipment costs and rising interest rates, which not only makes it difficult for those that are highly leveraged, but also disincentivizes new entrants to the market. Please go ahead. Half the team is in Israel and half in Ukraine. Thanks, Dave. Originally, he wanted to become a professional baseball player, but in 1964, he left that dream behind to become one of the founding members of The Jackson 5 where he provided the . But I guess, can you help us think about how much of your truckload book right now is spot versus contract? All the stock advisory services and recommendation previously available . So what you're seeing is, you're seeing us tap into operating leverage that we have, that we uniquely have, because we're more than twice the size of the next closest in terms of trailer fleet. The larger carriers, we have been moving towards trailer pools for many years, because it makes us more efficient. And again, it's one question per participant. When AAA Cooper joined the KNX family last year, one of our stated goals was to improve the OR performance from the high 80s to the mid-80s over a three year period. First is to introduce new profitable revenue streams with lots of growth runway that further diversify our company. Just to make sure that when we refer to power-only, that's understood. And so, as a result of that, when you look at the progress made in LTL, for example, I mean, we're well ahead of schedule there. We continue to generate meaningful revenue and income growth, both organically and through acquisitions and demonstrate the operating leverage of our business. And the [indiscernible] rate is $60 an hour. David Jackson is the founder and CEO of Seeking Alpha. I need to understand how this happened. To begin, we'll move you to Slide two, where I'll read the disclosure. You saw the gross margin of better than 24% in our logistics segment. I would also point out that I think maybe it's unfair that we've been painted with a broad stroke that all were truckload and we've great lengths to try and point out the differences that we have, these aren't superficial, these are legitimate earnings streams. And so, we're fortunate with over $1 billion of free cash flow over the last 12 months that we have opportunities to go in both directions and we can sing and dance, so to speak, at same time and see both of these continue to grow and flourish. I appreciate that. Which Task has which predecessors and who is going to work on which Task. And so the nature of the freight we haul tends to end up in the grocery store -- tends to end up in a place that's somewhat resilient through cycles. Your next question will be from Todd Fowler at KeyBanc Capital Markets. Book reviews moved to Amazon, right? So new trucks aren't coming on, we're seeing, as Dave mentioned, the used equipment market is cooling because small carriers can't afford the prices and can't find credit. Yes. I mean, if you looked at our operating income, there's -- that's an operating income number that rivals the biggest market caps of anybody -- of full -- of companies moving full truckloads, whether that's over the rail or whether that's over the road in our transportation space. I would say, what has made our industry more choppy and more cyclical has been the fact that we grossly oversupply when it's good, and then it takes a little time for that to work off in part, because when the economy starts to sputter just a little bit you see wind at the back of a small carrier to absorb the difficult times by having low energy prices, typically used equipment prices bottom out. I mean, a lot of these LTL statistics are public. We have slides to accompany this call that are posted on our investor website. The idea of providing investors with a level playing ground to share insights was as exciting then as it is now! I imagine at least partially as a result of fuel and then clearly you had super strong yields there. So just -- our spot exposure. Don't treat them as people who need to be told what to do. Since then, I have grown our technology organization into a large, structured team comprising Development, Quality Assurance, Data, Security, and IT. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Now on Slide 13, we have our second half of 2022 outlook. All lines have been placed on mute to prevent any background noise. Knight-Swift Transportation Holdings Inc. (KNX). Chris, we're going to answer this in record time, because we're down to -- we're about out of time right now. I have a BA in Behavioral Science from the University of Ben Gurion and an MBA. At the same time, new technologies were creating the possibility of a . Thank you. So, Adam, just to clarify though, it doesn't sound like you've got a lot built in for a lot of transactional opportunity into the fourth quarter. Slide nine illustrates the strong growth in our businesses that are included in the non-reportable segment. The following text is a transcript for our readers who would like to follow along: (Parts of this transcript may have been altered for readability.). Not to speak about just the economics of how it works for a small carrier. No, that's just our employees. Powered by the wisdom and diversity of crowdsourcing, millions of investors connect to discover and share investing ideas, discuss. This has allowed us to make progress towards reducing the number of unseated trucks and slow the reduction in productivity year over year. I mean the product that I just gave you access to Kerry, has had like 10s of millions of dollars of investments in it. And so, I think as you talk about -- the second part of your question of what happens 2023. I have done a version of my current role at other traditional media companies (A&E Television Networks, Viacom/Nickelodeon and Discovery Communications) and more importantly at Taboola where I was a senior executive for over seven years prior to joining Seeking Alpha. After his phenomenal debut in 2014, Chinese K-pop star Jackson Wang has been taking the entertainment industry of South Korea by storm. If I compare that to last year this time will probably be 20% to 25%. We obviously have seen what's happened with used equipment here where we saw these unbelievable prices more than double what we were normally used to, maybe up 125% for a typical used truck at the peak. David Jackson (Seeking Alpha), American entrepreneur, founder of Seeking Alpha in 2004 This page was last edited on 3 November 2022, at 14:29 (UTC). I have no business relationship with any company whose stock is mentioned in this article. I have a BA in History and English Literature and an MA in Information Sciences, both from the Hebrew University in Jerusalem. Here it is. We do over for a backup where we contract with a customer where any type of freight that falls out just flows to our power-only business and we're able to support them there. Okay. Okay. So, now what we've done is, is we've tried to address the area where we do have a finite limit of capacity, which is we only have so many trucks and drivers. Thanks, Tom. Freight demand followed normal seasonal trends, but was generally strong throughout the quarter. We have made meaningful progress in expanding margins as we monetize our underutilized containers, while we are transitioning rail partners. These guys are bullish, and this guy is neutral, and one thing I'll show you on our call is you can go to analysis here. I was a research analyst for an investment bank in the tech bubble, and I'm not a serial entrepreneur. Our stock coverage is wider and deeper than any other. And then also not looking for guidance, but any thoughts on how contract rates will progress into 2023, just given where the spot market is right now? And that process is well underway already. To achieve a 78.7% OR just one year after the acquisition, while also adding MME to the business is remarkable in our opinion. 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