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| Statement |
|---|
| We've improved volume every month of the quarter and further improved in the month of January |
| Typically, a normal seasonality for us call it flattish tonnage sequentially from Q4 to Q1, and we expect to do better than that |
| As you can see from our results, our plan is working, and our service improvements are delivering revenue growth, margin expansion, and earnings growth |
| We're seeing demand slightly improve and with more optimism towards the back half of the year |
| Our adjusted diluted EPS for the company was $0.77, which was also better than expected |
| We grew yield, excluding fuel, by a strong 10.3% compared with the prior year |
| But we're seeing -- we already have been seeing it play out in the course of 2023, when you look at the improvement we've seen in yield quarter after quarter in having those very strong contract renewals |
| We grew adjusted operating income year-over-year by 51% and improved our adjusted operating ratio by 380 basis points |
| We delivered the best damage claims ratio in our history at 0.3%, as well as a record level of employee satisfaction |
| And we significantly accelerated our year-over-year yield growth, excluding fuel, to 10.3% |
| We also improved cost efficiency for the fourth consecutive quarter with further increases in labor productivity and linehaul and sourcing |
| And as we move through 2024, we would expect those to translate to very strong yield growth for us |
| All of these are proof points that our plan has strong traction |
| In the third quarter, we delivered a company record damage claims ratio and our yield growth accelerated to double-digits |
| This acquisition is a once-in-a-generation opportunity to integrate prime locations into our network to support yield growth and margin expansion |
| When the market recovers and industry capacity tightens, we'll be in a stronger position to serve our customers and drive profitable growth for years to come |
| So, as we continue to improve our service quality, we're going to be able to better align the price with the value we're delivering |
| We improved every major component of customer service quality in the quarter, including our customer satisfaction rating, which has risen by more than 40% since 2021 |
| Our on-time performance was three percentage points better than in the prior fourth quarter |
| So we feel very good about our ability to get those on-boarded with very minimal drag |
| So we have the great ability between operational discipline that Dave and the team are bringing to the table, supported by our proprietary technology to be able to run our network very efficiently from a labor standpoint |
| And importantly, Jordan, if you look at our year in 2023, we were able to improve efficiency every single quarter of the year |
| We also outperformed on yield in the fourth quarter, delivering a second consecutive quarter of acceleration |
| LTL pricing this quarter has been very strong |
| And so credit to the team's strong execution |
| I'm pleased to report that we kept a strong year for the quarter that exceeded expectations, and we've carried that momentum into 2024 |
| And meanwhile if you take a step back, the business is performing well |
| These service centers will deliver important benefits to the business for years to come |
| This should drive substantial cost efficiencies across our line haul, pickup-and-delivery and dock operations |
| Second, they'll enhance our yield growth by further improving, our service with fewer freight three handles, reduce damages, and better on-time performance |
| Statement |
|---|
| On an adjusted basis, our EPS for the quarter was $0.77, which is down 21% from a year ago |
| And this is all in a very sluggish demand backdrop and super cheap LTL pricing |
| We are currently in a sluggish freight environment where demand is down, roughly, call it double-digit low teens, and this is when that capacity went away from the market |
| Our weight per shipment was down 3.4% year-over-year, which was notably less of a decline for the second consecutive quarter |
| We're down to 0.3%, which is a company record |
| We do expect a drag on EPS, driven by the incremental debt there |
| Now keep in mind, we do have tougher comps in the second half of the year |
| In January, our tonnage per day was down 1.1% year-over-year, while shipment count was up 1.4% |
| So in a softer freight environment, where we see that, we don't have enough capacity |
| Our expense for third-party carriers was $83 million in the quarter, which was down year-over-year by 22% |
| So we're cautiously optimistic, but it's tough to call the macro at this point |
| Mario Harik I mean, whenever you open up those sites, you do have a small headwind in cost, but that for us would be a very short lived |
| It is tough to call what the macro is going to do through the balance of the year |
| If you look at our industry, it's been historically capacity constrained |
| So once we get these service centers online, we will be in the 25% to 30% excess capacity in our network |
| When you look at our network today, before the 28 service center acquisition, we were run-rating call it in the mid to high teens in terms of excess capacity in the current environment |
| It is a business that has a scarcity value to it |
| We ended the quarter with less than 20% of linehaul miles outsourced, for a year-over-year reduction of 290 basis points |
| When you go back before Yellow ceased operations, we didn't have enough capacity versus the demand that was out there |
| So again, we're seeing demand hold |
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