Financial Data and Key Metrics Changes - The third quarter revenue was $839.6 million, a decrease of 0.3% compared to the previous year, reflecting the macroeconomic landscape [12][18] - The adjusted operating ratio increased to 87.6%, up from 85.1% a year ago, primarily due to a decrease in adjusted cost per shipment [18] - The diluted earnings per share were $3.22, down from $3.46 in the same quarter last year, while adjusted diluted earnings per share were $2.81 [18] Business Line Data and Key Metrics Changes - The ramping markets, consisting of 39 terminals opened since early 2022, improved their operating ratio by over 100 basis points compared to the second quarter, now operating at a sub-95 [4][5] - Shipments per workday decreased by 1.9% year-over-year but improved by 3.2% sequentially [8][12] - The cargo claims ratio was 0.54%, marking the fourth consecutive quarter below 0.6%, indicating strong service performance [7] Market Data and Key Metrics Changes - The company experienced a 3% sequential increase in shipments, but a 4.8% decrease compared to the third quarter of 2024 [9] - The fuel surcharge revenue increased by 2.1%, accounting for 15.2% of total revenue compared to 14.8% a year ago [12] - The overall freight market has shown softer trends in 2025, impacting shipment volumes [8][19] Company Strategy and Development Direction - The company is focused on customer service, network optimization, and cost control, with an emphasis on expanding its national footprint to enhance customer relationships [4][5] - A general rate increase of 5.9% was implemented on October 1, impacting approximately 25% of operating revenue [11] - The company aims to leverage its investments in network expansion to become a significant player in the less-than-truckload (LTL) industry [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic backdrop remains uncertain, but the company is well-positioned to adapt and leverage its network investments [20][21] - The company anticipates that the current market conditions are in the early stages of realizing its full potential, with expectations for improved performance as the market stabilizes [21] - Management expressed confidence in the company's ability to maintain high service levels while managing costs effectively [19][20] Other Important Information - The company recorded a $14.5 million net operating expense reduction from a gain on real estate disposal and impairment [2] - Salaries, wages, and benefits increased by 0.7% year-over-year, driven by higher employee-related costs [13] - Accident claims and insurance expenses rose by 22.5% year-over-year, primarily due to existing claims development and inflation [17] Q&A Session Summary Question: Trends in October regarding tonnage and shipments - Management reported that shipments in October are down around 3.5%, with tonnage down about 4%, indicating a softer start to the month compared to expectations [24][25] Question: Updates on new terminals and their performance - Management highlighted that the new terminals are showing improved productivity and cost efficiency, with expectations for continued improvement as they mature [32][34] Question: Pricing environment and yield metrics - Management noted that the pricing environment remains disciplined, with a focus on maintaining yield metrics despite challenges in the market [40][41] Question: Network optimization efforts - Management discussed ongoing network optimization initiatives, emphasizing the importance of AI tools in improving operational efficiency [48][50] Question: Capacity and technology investments - Management indicated that the company has ample capacity across its network and continues to invest in technology to drive efficiencies [63][64] Question: Growth opportunities in a down year - Management expressed confidence in the ability to grow share-of-wallet with existing customers, even in a challenging economic environment [90][91]