Old Dominion Freight Line, Inc. (ODFL) Earnings Call Transcript & Summary

Good afternoon. This is Jordan Alliger. I cover the surface transportation here at Goldman, and we'll move on to the 12:10 p.m. [ track 3 ] presentation with Old Dominion. As a reminder, this conversation is not intended for the media and is off the record. With that out of the way, it's my pleasure to be able to introduce Adam Satterfield, Senior Vice President of Finance and Chief Financial Officer of Old Dominion. It's great to have Adam here to discuss Old Dominion's response to these challenging times, plus perhaps we could be let in a bit on some of the long-term thoughts and what keeps Old Dominion at the top of its game in the LTL world. With that, I think Adam had a few comments to make before we turn it over to Q&A. Adam?

Thanks, Jordan, and good afternoon, everyone. It's a pleasure to be able to speak to everyone, would certainly rather be in-person seeing everyone, but happy that we can at least do this. And so yes, I know that, obviously, there's a lot of focus on the here and now, and it's hard to get away from that in terms of what current trends are and how disruptive business levels have been and so forth in response to the COVID pandemic. But we do like to remind everyone of the long-term success that Old Dominion's had and the positioning for the long-term that we've been focused on as a company for many, many years. And we still feel like that we've got a service product that wins market share for us. We've got tremendous opportunity into the long run to be able to win market share, both from a service standpoint, but also we've been one of the few companies in our industry that's been investing in service center capacity. Certainly, right now, capacity is not a major issue for about anyone given the significant drop-off in volumes that most of the public carriers have reported in April. But still nonetheless, that has been an issue in recent years. And when we look long term, there's really been no one that's invested in capacity during this recent expansion period like we have. In fact, when we look at our publicly traded peers, and we compare the number of service centers in operation from 2011, kind of when the recovery began, to 2019, the number of service centers, excluding us is down slightly. It's down 2%. And our service centers are up about 9% to 10%, but that doesn't tell the story because many of our CapEx investments have been in expanding existing facilities. And so our number of doors in operation are up more than 50%. And when you look at the total number of shipments, as you can imagine, with the investments that we've made, our shipments during that time frame increased 60%, when the rest of the group, on average, together has only increased 2%. So we've gained tremendous market share over this recent period. And again, we feel like we've got tremendous opportunity ahead. So we're going to continue to stay focused on disciplined execution of our plan, continuing to give superior service that is second to none. And we're really proud of some of the awards that we received, most notably, we've won this Mastio Quality Award for 10 years in a row because the service supports our pricing initiatives going back to either 2006 before the price war of '08 and '09, or even starting from 2010 kind of after that price war ended and measuring to 2019, our average revenue per shipment has increased on average about 4.5% each year. So we have a consistent approach to pricing that our customers understand. It's easy to talk to because it's about what our cost inflation is. And we have seen cost inflation on a per shipment basis over those same time frames of around 3.5%. So the fact that we can get close to our target of being 75 to 100 basis points above our cost every year, that supports the investments, not only in our service centers, but also into technology tools that help us operate more efficiently and keep our costs in check. But finally, it's investing in our people. Our employees, it's probably cliché to say this, but employees really are the center to everything that we do and have been the biggest part of our success. So we want to keep our culture intact. And we've exhibited that through this recent downturn. Even though we've had to make adjustments to headcount, just commensurate with the reduction in volumes that we've seen, we've tried to go about things the right way in terms of giving a special bonus to all of our employees, including those that we knew would ultimately be affected by our furlough program that we put in place. But putting a furloughing program in place that covers and provides the employee benefits to those that were affected. Because ultimately, we believe that the volumes will recover and we'll be restoring these employees back to the positions that they held before, and we want to make sure that, that culture remains and that they are continuing to be motivated to do the right things for the company. So certainly, our mindset is looking towards the future. We feel like we've got a long runway for growth, and we don't like to grow for growth's sake. We want to make sure that it's profitable growth. And that is what our focus will remain. So with that said, I'd be happy to turn the floor over to some questions.

Sure. Thanks for that great backdrop, and maybe the first thing to tackle because it's certainly on everyone's mind at this conference and elsewhere, is there anything specific you may be hearing, again, putting the near-term hat on, from customers with regards to the reopening? And I know you have more of an industrial base tilt than retail, but perhaps you could share some thoughts on either side of the equation in terms of big picture thoughts on reopening of the U.S. economy.

Sure. While we do have more exposure to industrial and manufacturing, that's about 55% to 60% of our revenue. The reality is the U.S. economy is pretty much goes by the way of the consumer. It's a consumer-driven economy, and you need the consumer demand there for producers to produce. So I think right now, some of the early conversations that we've had with some customers is the ongoing uncertainty that we've been dealing with really for about the past month or so. And I think that people are going to be taking a wait-and-see approach to a certain degree to figure out will consumers leave their home as these shelter-in-place orders are relaxed and go out and be comfortable going into an environment with crowds and shopping? And I think that for the next couple of weeks, probably there's going to be that level of uncertainty there on the producer side. Do you really want to ramp up production, if you will, certainly back to maybe where you were before 100% when you don't know if that demand is going to be there on the other side. So I think that some of the conversations that we've had are people are going to try to reopen their businesses, but they're going to watch very closely to see, will there be any kind of spike in cases, that ultimately might lead to some more restrictive policies being put back in place. So it's probably just going to be an environment where people on both sides of the coin are kind of be dipping their toe back in the water and figuring out, am I comfortable? And will I be healthy if I leave my home? And then the producers making the product to make sure that inventory is there to be consumed when that begins.

So just sort of curious, as you were talking, is there perhaps a difference between your small to midsized businesses and maybe their thinking versus some of the larger accounts? I mean, is there concern around that front, especially on the small to midsize manufacturing base?

Yes, certainly, the -- our larger national accounts, in many cases, they've been running higher business levels than what we have had before. If you think about certain products, and we're very fortunate that we've got a well-diversified mix of business and customers and so forth. But we have a fair amount of shipments that are food related, that are pharmaceutical related, maybe chemicals that go into cleaners and sanitizers and whatnot. So in many cases, those types of businesses are running significantly above where they were before given the demand for their type of products. Whereas a lot of our smaller mom-and-pop type of customers may be either closed or just running at a very limited kind of percent of what their normal operations were before the pandemic really started having an effect. And that's partly been the reason why our weight per shipment has inflected positive like it did in those last couple of weeks of March that ended up taking the average for the quarter up. And as well, the average weight per shipment in April was 1,677 pounds. In a normal environment, our weight per shipment is closer to 1,600 pounds, sort of between 1,550 and 1,600 pounds. So we're trending much higher than that because typically, the national account weight per shipment is heavier than the mom-and-pop. So it's just a reflection of that being a bigger percentage of our business right now.

That's interesting. And just sort of following along that, I know I'm pretty sure you gave data through April in terms of volumes and things along those lines. I'm wondering, as we moved in the first 2 weeks of May, any sense -- are trends generally still pretty stable versus what you saw in April? And actually, would be interested to know if you've seen any shift also on that weight per shipment? Or is it still pretty much running at those levels as well?

Yes. At the end of April, it was already starting to revert back a little bit closer, still heavier than that 1,600 pound average. But from the beginning of the month to the end of the month, things started reverting back a little bit lower. We were seeing, like I mentioned, closer to 1,700 pound sort of average at the beginning of the month and that sort of reverted back by the end to get to that average of 1,677. So we'd expect to see that as the customers come back online, the other small mom and pop customers we'd expected to see that come back closer to the 1,600 pound range. And maybe by the end of this quarter, we'll have to continue to watch. But we haven't given any update at this point on May. We certainly will put our mid-quarter update out that will give all of our May trends once we finish. And I think that these next couple of weeks, it will be important, like we were talking about earlier, to see what type of reaction and how people really do kind of handle the lifting of these orders. But I'll say the good thing about the revenue levels and what we saw through April is that we saw an immediate drop-off at the beginning of the month, and revenue was down between 19% and 20%. And certainly, it's difficult to handle when it happens all at once like that. And we were able to plan. We knew it was coming, and we started planning at the end of March. It was really the middle of March that we felt like when things were really changing, and the world was shutting down and these orders are going into place. But once revenue dropped off, it's been very consistent. Consistent day in and day out and week by week. And so that's really been helpful for us to plan because the majority of our costs are labor costs. And so if we've got consistent patterns of revenue and consistency throughout each of our regions, in each of our service centers, that's really helped us plan. It's allowed us to keep our service metrics high, which really is what's supportive of our value proposition and our ability to command a little bit of a price premium, but we feel like we kind of -- we'd like to think the worst is behind us, and we've kind of hit that low level of revenue. But the fact that it's come in on a very consistent basis day by day, that certainly helped us on the cost side, and we think it will help us be able to protect how we manage the operating ratio going into the second quarter from the first.

So that's very helpful. And actually, just sort of dovetailing a bit, we talked a bit about the volumes. But on the price side, obviously, since the global financial crisis, there's been consolidation and general stability in I guess you'd call core LTL pricing. Any update on that, sort of taking mix out of the equation and just what you're seeing from an industry core price trend standpoint? And that would be helpful.

Yes. Things have been pretty consistent. And for us, we don't have a bid season per se. We've got contracts that we're working on every day. But we put our general rate increase in place, and that's on -- that's applied to about 25% of our revenue that is the smaller business, the mom-and-pops that don't have enough volume to command a contract. They move on tariffs. And so that's what the GRI applies to. That was 4.9% in early March and obviously before any of this hit. But that becomes the baseline for our contractual conversations as well, and it kind of fits in with that long-term average that I was speaking of earlier. We had anticipated costs on a per shipment basis, excluding fuel being up between 4% to 4.5% this year. And so that kind of went into our thinking for what we felt like we needed from a price standpoint. Now certainly revenue per hundredweight is a yield metric. It's a pricing barometer, but it does not equal price, and we tried to talk about that on the last call to make that clear, knowing the trends that we were seeing. So the revenue per hundredweight in April was down about 2%, but we had a 8.5% increase in the weight per shipment. So that significant of a change in mix, certainly, a higher weight per shipment produces a lower revenue per hundredweight, and that's okay. As long as you've got each shipment in each account, if you understand the costing, and you've priced it appropriately, then it shouldn't really change anything from a margin standpoint. But I'd say that we've been consistently getting the increases that we've asked for. Certainly, you might have some requests, and we've seen some given the environment by some customers that are more transactionally oriented that like to push when they think they can push. And we have to push on them when the environment is more in our favor that have come to us, and in some cases, send us letters asking for decreases to which we politely have declined. And in many cases, we just continue to haul the business at the same price even though they asked for a concession. So it's something we'll continue to watch. I'd say the good news is, is that our industry is really consolidated. If you think about the top 4 carriers, that are about 50% of the market, and each of those carriers, I think, has talked about trying to have price stability, if you will. Certainly, we're in that top grouping. And as I just explained, we're going to continue to remain disciplined because it's been supportive really of the overall plan -- the strategic plan is kind of based on being able to get those consistent increases. And so it's been nice to sort of see some of the trends from the larger players and hear them talk about continuing to push for price. And I'd say one difference that if you think about this environment versus 2009, in 2009, many of the price cuts through that price war we all went through, they were financed by wage cuts. And I don't know that you've heard too many, at least of the big players talking about any type of wage cut. In fact, some have paid out bonuses. We paid a special employee bonus in March. I think some others have done something similar in April. And so you'd think if those customers were increasing their cost structure, certainly wouldn't make a lot of sense to try to give it away on the price on the back end.

Yes, that makes a lot of sense. So I don't know if this is a particularly fair question, but I'll ask anyway. Sort of the last of the top line questions. Any view from your own end, relative sense of optimism, where we sit today versus, let's say, beginning or middle of April. Just sort of on a relative basis, how are you guys feeling at Old Dominion right now? Obviously, operationally, I know you guys are feeling good. I'm talking now top line stuff, business stuff versus maybe a month ago.

Yes, I think that the biggest difference is we didn't know what we were going to face a month ago and what things were going to look like. So once we saw things sort of drop and then stabilize, we at least knew what we were sort of contending with, and we felt like we had a good read through customer conversations in terms of what types of consistencies we might see. Now we've kind of lived through that, and we've got these orders that might be lifting, and we're starting to have conversations with customers to see how we can support them. We've heard recently of some competitive failures on service, where we've been called and asked to step in. And we've historically seen periods, where the freight environment changes to the positive. We've seen many examples in the past, and 2017 is the probably the most recent period where there was a massive inflection in revenue for us. And our revenue doesn't always follow GDP. I think that when there's issues within the industry from a service standpoint, and be it that many of our competitors rely on truckload carriers and rail to run a lot of their linehaul network, that creates a lot of issues. And so when they're more defensive and having to protect just maintaining any sense of profitability given the fact that going into this sort of massive recession and decrease in revenues and volumes, people were operating in kind of a mid-90s operating ratio, you got to take a whole different type of tack in terms of how you're managing expenses and the things that you do. And oftentimes, quality will suffer. So we're going through this period, where we're starting to get more inbound calls in that regard. If the environment just picks up in general, we think that, that could certainly lead to even incrementally more freight opportunity for us. And we stand ready. It's part of the reason why we made the decision to not adjust the headcount down as much as possibly some might suggest we should have in line with shipments. Because we want to make sure we've got the equipment capacity, the fleet or the people capacity. And certainly, we've got the service center capacity to be able to respond to any inflection in demand that might happen. And like I mentioned, 2017, we were trending along at about 10% to 12% growth in revenue per day, and almost overnight our revenue growth went to 19% to 20%. So we certainly have got the experience and ability to be able to handle any kind of massive inflection in demand that we might see.

Great. So turning a bit to the operational side of things. Can you perhaps provide some thoughts on your ability to rightsize the business? I know you touched briefly on the headcount, but assets and essentially the operational response to the volume situation that we're in now. And I guess the other side of that question is given the uncertainty around demand and how difficult it is to assess when things are exactly going to pick up the pace, do you feel you're done doing what you need to do? And how do you think about pulling levers given that uncertainty? I imagine planning is a challenge.

Yes. Well, as I said, the fact that we have seen consistent trends, that's helped us tremendously from an operational planning standpoint. And we had -- and we talked about on the earnings call that we've made adjustments in that regard. About 50 -- in the first quarter, 58% of our revenue was related to direct operational and variable type of cost. So our productive labor, fuel, operating supplies expenses, purchase transportation, those types of things. And then the rest of the operating ratio of 81.4% in the first quarter was in the overhead, which generally is between 20% to 25% of revenue. So with a little more than 2/3 of our cost being variable and having the consistency of the revenue trends, that's allowed us to make the adjustments where we've needed to. But we've made the commitment and made sure that our employees continue to understand that we don't want to do things from a cost standpoint that sacrifice our service because the service is really what supports our ability to get the price. And if we lose that, we lose our entire value proposition. So we've certainly made and continue to preach the point that the service metrics have got to remain high. But we were able to go ahead and make adjustments, most notably, the headcount being down 15% in April. And so we were able to make adjustments there to keep -- the goal will be to try to keep those direct costs somewhat consistent as a percent of revenue like they were in the first quarter. And then depending on what the revenue might be in the second quarter, if that run rate that we saw in April of being down 19% to 20%, if that were to continue through the second quarter, and we don't know that, that will. But if it were, that would imply that, that revenues in the second quarter could be lower than they were in the first. So even though aggregate overhead expenditures in 1Q, our goal would certainly be to reduce those in aggregate in the second quarter. And we've made some cuts in places that were controllable cost, those could increase as a percent of revenue, depending on what the denominator, what the revenue might be. So that's still certainly uncertain right now. And who knows what things may look like as we sort of get more into these relaxed environments in the economy, trying to get back to some sense of normal. But we're certainly pulling all the levers, if you will, in terms of managing our labor cost and any other type of discretionary spending to try to protect the operating ratio and keep it as low as we possibly can.

Can you maybe give some thoughts on the recovery when it's everything -- when things are contained and it's -- there are clear signs business and volumes are coming back. Do your costs and various things that you've done, do they come back slower than volumes? Basically just trying to get a sense for what sort of leverage can you create on the other side. And can it be as sharp as prior downturns? I know in the global financial crisis, you did it with the big pricing issues. And obviously, you don't have that as much. So I'm just sort of wondering when we get to the other side, what's your thoughts on getting back on track or getting back to OR levels that were so good for you very recently?

Yes. Certainly, we're not writing off any period for this year as it stands. And I still think that when you think about our operating ratio, in the first quarter, it kind of got overlooked, but we're really proud of that and being able to improve the operating ratio even though revenue was down slightly for the period. And -- but that kind of goes back to the yield stability that we had as well. But historically speaking, when we have an inflection point and revenue starts accelerating, that can be a period in which we generate stronger incremental margins simply for the fact that like the environment that we're in now, initially, as volumes start to recover, we'll be able to increase the employees that we have, the hours that they work. So they're working fewer hours on average right now just based on what the volume demands are. But we'll be able to scale some of those hours back. If we start bringing people back from furlough, we're covering the benefit cost right now for those furloughed employees. And so again, you'll get some leverage there in the fact that most of the benefit costs are already covered and will be kind of a part of what are the -- whatever our second quarter operating ratio will be. So we'll get leverage there. We'll get leverage on the fleet. We were heavy on the fleet coming into this year. And obviously, with the further reductions in volumes, we're even heavier. I mean we've parked some units and have done some things to try to minimize some of the maintenance cost right now, but that will be an area in which we'll be able to flex up and get leverage on as well. So -- and then just the general leverage on the overhead cost. So incrementals certainly could be strong, once we get back to some sort of sequential improvement in our revenue trends.

Great. So one more, I guess, this is a shorter-term question, and I don't know how you -- if it's something you'll answer. But in terms of operating ratio, thinking very near term, you mentioned revenues where they are, it could be an unusual circumstance where second quarter is less than the first quarter. Are you benchmarking yourself then against sort of first quarter OR as opposed to what you did a year ago? Is that the best way to think about the very near term?

I think so. Because generally, the first to second quarter, our revenue per day is generally about 10% higher in the second quarter than the first. And sequentially, that's when we get all the margin improvement for the year. Our second quarter operating ratio is traditionally 400 to 450 basis points better than the first quarter. We were about, in last year's second quarter versus the first quarter of '19, we were 410 basis points better, and that produced a 77.9% record quarterly operating ratio for us. So that's certainly a little bit more of a challenge if you're comparing to that in this environment than comparing back to the first quarter that was just completed. Because the cost structure is going to be more consistent with 1Q of '20. And then the revenue levels, they might be down, but still a little bit more consistent versus the down -- shipments that were down 22% in April. So it's not to say that we're not doing everything, and we'll certainly be talking about the operating ratio on a year-over-year basis. But internally, the way we manage costs, we look at labor on a day-by-day basis and week by week. That's how I compare it, labor. Our revenue and then our labor. Those are the first 2 things that I look at each day when I start my day. And so we want to see how we're managing those trends, and our service center managers, they're doing it in real-time as they're planning their costs. So for us, it's more of a sequential type of thing internally just to sort of see week by week, throughout the months, how we're managing those costs. And internally, it's going to be more of a sequential comparison for this period, again, just that the 2 are more like-for-like in this period, if you will.

Great. And then just a big picture question again. Once things come back, can you perhaps share your thoughts or perspectives on supply chain fluidity as things reopen. For you and maybe for the LTL business as well, do you anticipate any sort of pinch points emerging as things recover for -- or you think the industry is essentially ready to go?

Again, for us, I think that we've seen consistent trends in each of our regions. Maybe the eastern seaboard has been -- the average decrease in revenue is a little worse than the company average, and that'd would be the Northeast, the Mid-Atlantic and the Southeast, and that's probably just related to that's where the majority of the population is. But the rest of the country, all of our regions, in each of those regions, they've all been pretty consistent, and that's helped us from a planning and keeping the network in balance standpoint and helping us keep those service metrics high. So we'd imagine that as business levels come back, they'll come back with relative consistency as well since they've decreased with relative consistency. But like we talked about earlier, I think that when you start doing things of eliminating positions in terms of some of our competitors, then you have a reliance on other industries, be it truckload or rail to perform much of your linehaul operation that can cause disruption. And we're, for the most part, 100% in-sourced our linehaul operation. And so we have complete control over our service product at all times. That comes with a slightly higher cost. It's cheaper if you run the per mile comparison, usually of the average truckload rates per mile versus our all-in cost with our employees and our tractors and all those investments on a per mile basis, it's more expensive, but that's part of our price premium that we can command. And that linehaul component, what we've seen in the past, that's been the biggest impediment to some of our competitors when demand changes rapidly. That was the biggest issue back in September and the fourth quarter of '17, where capacity in certain markets sort of dried up, and it resulted in some of our competitors putting embargoes in places where they just simply wouldn't make pickups. And we've already seen some issues with that. Just in the last couple of weeks, we've had some feedback from people that used other carriers. One recently was a 58-pallet shipment that our competitor didn't make the pickup, and they weren't responsive. And that customer called us and asked if we could step in and fulfill that need for them, and we did. And when you do that, you don't just do it for the onetime event, you have that conversation to say, if I can allocate the capacity to you now, there's got to be some type of consistency there. And it was a common customer. So we were able to do so, already had a contract in place and all those sorts of things, as you'd imagine. But those are some of the types of issues where you start missing, competitors start missing pickups, the on-time because of disruption in the linehaul, deliveries kind of get off schedule as well. And traditionally, the use of third parties has resulted in higher incident of claims. And so you get a claims ratio for the industry that might be between 1% to 1.5%, and our claims ratio in the first quarter was 0.16%. So you might have a customer that might be dealing with 10x the number of headaches from a claims factor than they would with competitor X versus Old Dominion.

Great. And then a longer-term question has come in. What's your thoughts on the trajectory for the growth of new service centers in the U.S.? I know that you guys have been growing and others of your compatriots have not. But do you have any thoughts on sort of service center growth in the U.S., kind of go on 5 years, 10 years, whether it'd be your own plans or thoughts on the industry?

Yes. We haven't seen an appetite really from anyone in the industry. Certainly, one competitor recently has been expanding into the Northeast, but some of that has been a share shift in the sense of some of those same service centers were being operated by a smaller regional player before that closed that shop. So again, when we look over a longer period of time, the number of service centers from the larger public carriers has been pretty flat. And I'd say the largest player in the space in the last couple of years hasn't done as many additions. But if you look over the last 10 years, they have made some investments in that business. And that's a big reason why if you look at the market over the last 10 years, there's been a lot of consolidation of revenue that's gone to us and to the largest player in our industry. But the others have just kind of continued to manage in a confined network. And that kind of goes into that number I talked about earlier of total shipments for the -- in 2011 versus 2019 for the public carriers combined is only up 2%. And so there's obviously just been a little bit of share shift amongst the other group, but we want to continue to make investments. We've got a list of about 35 to 40 service centers that we think we want to add to the network in due time. There's not really a specific time frame on those, but each year, we look at what our capacity is, where we may be tight. And we try to plan to make sure that the network is never a limiting factor to our growth. And I think that we're -- we were in good shape coming into the year. Hopefully, things get back to normal. Right now, obviously everyone has capacity. That's not an issue from a service center standpoint. But it has been in recent years for many of our competitors. And oftentimes, they end up if they're running their networks at full utilization and if they take on a new customer, they have to get rid of another customer and kind of swap them out. So we've taken a lot of customers that in some cases, may have been cold for bad pricing and have brought them into the mix. And obviously, we've been able to add to the revenue, but also improve the operating ratio over time. So those cold customers have come in and been happy customers with us, and we're happy because we can improve the operating ratio and improve profitability by bringing them in-house.

Great. And we're sort of bumping up at the end here, but I did have one more real quick question, maybe it's not quick. But obviously there's always talk in the truckload sector about companies and difficulty in making it through the downturn. You guys, in your sector, had a lot of capacity rationalization in the last 10-plus years. I mean, what's your thought? I mean, does capacity continue to rationalize in LTL? Or the companies -- going to make it through to the other side? I mean, just curious if you have any impressions on that.

We felt like long-term that you'd see more consolidation at the top, and I mentioned it earlier. But right now, about 50% of the market, I think, is in the top 4 carriers, and probably 80% of the market in the top 10 carriers. So the fact that there's been limited investment by some of the other players in the industry, that puts more of the industry growth. And we think there, the industry has been growing, and there continue to be tailwinds for the LTL space given just general supply chain trends, if you will. And so we think we can continue to gain share and I would imagine that maybe more share sort of accumulates at the top, if you will. And I think that you've seen more share shift to the nonunion players over time, given the flexibility that we have, an ability to deliver a better service product, and those trends will likely continue as well. So we think that there will be more consolidation, and we're certainly positioning ourselves to be able to take advantage of it.

Great. Thank you, Adam. So I think that's -- we're at the end of the time. I don't know, Adam, if you had -- if you want to make any quick summation comments, if not, we'll move along.

Well, I think that last comment kind of said it all and very similar to how we led out with -- we're doing what we can to manage through the short-term implications and managing our costs as tightly as we can and trying to protect the operating ratio and profitability. But while we're focused on the short run, we're continuing to plan and to keep the outlook there for the long-term and what those potential market share opportunities might be long-term for us. So we're a long-term oriented company. But as I said before, we don't want to grow for growth's sake. We're going to grow and we're going to grow profitably. And I think we've got all the tools in place to continue to do so and continue to try to increase shareholder value along the way.

Great. Well, look, thank you so much for attending virtually our conference. We do appreciate all your time.

All right. Thanks for having us. Take care all.

Yes. Thank you. Yes. Bye.